Thanks for sharing
@İzmir Zaferi
I have to admit, the latest article creates far more questions than answers.
The first one is with regards to the money raised. They call out its AUD, so it's USD38m that they've raised, which is still an impressive figure, but it's very little runway for a competition where they are saying its going to cost USD40m - 48m to run annually.
I'd love to understand whether that money is in their bank account or if it's just been committed to. If it's the later, the concern is VCs can pull their commitments & don't have issues breaking contracts. It unfortunately happens regularly in the start up space.
I'd also love to understand whether they are including the club investments in there or if it's pure RLA LLC raise.
On the club side, a USD2.5m - 3m (depending if they have a 25 or 30 player squad) salary cap is crazy for year 1. If they get investors who can afford it, great, but Mr Stefanovic wouldn't be able to afford that. The guy has roughly AUD7m in assets and has a TV deal worth over half a million annually, so he's certainly not poor, but doesn't have deep pockets when converting to USD.
If the club owners aren't liable for most of that, then the runway issue for RLA pops up again.
Anyway, some of these questions will get answered one way or another in due time, as we'll either see it kick off or not.
Personally, I'm not seeing the numbers add up currently and if I was them, I'd probably try a more conservative launch (7-8 teams, USD$2m cap drastically increases runway & reduces liability), but hopefully they make it work.
I can understand why the NRL isn't racing to invest in it.