New NRL commission as News Ltd plans to exit game

[El Diablo]

http://www.smh.com.au/news/lhqnews/...eform-says-love/2009/10/07/1254701062605.html

ARL won't stand in way of reform, says Love

Greg Prichard | October 8, 2009

AUSTRALIAN Rugby League chairman Colin Love says his organisation is not standing in the way of reform that would lead to the game being run by an independent commission.

Speaking at yesterday's announcement of the Australian team to contest the Four Nations tournament starting later this month, Love answered the suggestion the ARL didn't like the idea of restructuring because it would mean relinquishing power.

''There's a general consensus in the game that an independent commission going forward is the way to go,'' Love said. ''I just want to make it quite clear that the ARL has done nothing to delay that process and is not delaying it.''

Asked if an independent commission was still a long way off, Love said: ''It's difficult to say but I would like to think it's not. I'm just concerned that we get things right. We celebrated the centenary of the game last year and we just want to make sure we get things right for the game for the next 100 years. That's what this is all about and there's no point in appointing a commission unless we've got to that stage.''

The Herald wrote in March that News Ltd had revealed it supported the game's bid for independence and it did not intend hindering reforms that would lead to a commission being established and the 16 clubs splitting ownership of the competition.

Greg Baxter, the director of corporate affairs for News Ltd, said at the time: ''It doesn't require our blessing for the clubs to talk about this and we're happy to talk to them as often as they want to talk about it. It does require our blessing, as a 50 per cent owner, for any new arrangement to run the game to be put in place, but that's the same as the ARL, the clubs and the NRL. Everyone has to agree with the plan.''

Baxter is on leave at the moment, but Creina Chapman, the manager of corporate affairs for News Ltd, said yesterday there was no point in speculating on who the chairman might be until there was a commission model in place.

''The committee of the clubs is looking at structures going forward, and there have been some discussions between us and them,'' Chapman said. ''But they haven't come to us with anything [regarding a model] yet. We haven't got to the point where we would be even thinking about who would be running it.''

Chapman said that while News Ltd had been aware of the suggestion of former prime minister John Howard becoming involved, there was still no guarantee at this stage that a commission would be formed.

'' … We didn't know [Mr Howard] had been approached until after the approach … You would have to work out what it looks like before you decide who's running it and they haven't come to us with a model … a restructure might not go ahead. We're one player in it, but there are a lot of players in this and all of them have got to come to an understanding.''

 

[El Diablo]

http://www.leaguehq.com.au/news/lhqnews/early-exit-for-news/2009/10/07/1254701061965.html

Why News Ltd is eager to quit the NRL ahead of time

Roy Masters | October 8, 2009

Frustrated by continuing conflicts of interest over coverage of player scandals and payment for media rights, NRL part-owner News Ltd is desperate to exit the game.

The haste to abandon the NRL eight years ahead of its scheduled departure has fast-forwarded plans to establish an independent commission to rule a code that seemingly has as many leagues as Jules Verne envisaged.

Former prime minister John Howard, whose principal sporting passion is cricket and whose interest in rugby league is focused on St George Illawarra, would be reluctant to lock himself into a long-term leadership of a re-branded Australian Rugby League. NRL chief executive David Gallop, who is certain to be the commission's inaugural CEO, was quick to distance himself from Howard, given rugby league received an $11 million grant on Saturday from the Rudd Government to construct a centralised administration.

The NRL club boss pledged with the task of recruiting commissioners, Gold Coast's Michael Searle, has approached former Qantas chief executive Geoff Dixon and chairman Gary Pemberton, who was also involved with SOCOG (Sydney Organising Committee for the Olympic Games) and the NSW TAB.

A past Queensland treasurer, Terry Mackenroth, currently a Queensland Rugby League director who sits on the board of the ARL, is considered a certainty to be elected to the commission. NRL executive board member Katie Page is also highly regarded but has a potential conflict as part-owner of Harvey Norman, the retail chain that sponsors State of Origin.

The potential break-up of Foxtel could also have accelerated News Ltd's determination to leave. News Ltd currently owns a quarter share and management rights of the giant telco, which has pay TV, mobile phone and online operations.

Should Telstra relinquish its half-ownership of Foxtel, News Ltd and the other quarter shareholder, James Packer's Consolidated Media Holdings, hold pre-emptive rights to buy it outright.

The C7 Federal Court case, in which Seven owner Kerry Stokes claimed a conspiracy by a coalition of Telstra, News Ltd and James Packer to shut down his pay TV arm, established that the law looks unkindly on a sport and a broadcaster being controlled by the same entity.

It is not known whether News Ltd

will exercise a first-and-last-rights TV option as a condition of its exit from the NRL.

News Ltd chairman John Hartigan - a newspaper man - is tired of the conflict and looking to improve the balance sheet, while chief accountant Peter Macourt can see the value of exercising broadcasting control over a product that outrates AFL.

News Ltd draws $8m annually from NRL revenue, partly as re-payment of debts incurred during the Super League war but also to fund the Storm's annual $5m-$6m loss.

Such is the rivalry in the ''catch-and-kill-your-own'' world of rugby league, the NRL's other 15 clubs would demand News Ltd's $8m be split among them, rather than fund a club that has won the code's two big prizes - the NRL premiership and the under-20s Toyota Cup.

It is anticipated News Ltd, whose 1997 peace treaty with the ARL committed it to exit all but one of its clubs within 20 years, would leave the Storm at the same time it departed the NRL. This would impose immediate cost burdens on the NRL outpost.

While the Storm's revenue will increase when it moves to its new $300m rectangular stadium next year, it would need significant subsidies until gate-taking and sponsorship can be maximised.

The Broncos, the NRL's only listed club, is controlled by News Ltd, with a 67 per cent share, and makes an annual profit of between $1m and $2m. News Ltd's conflict was exposed during the State of Origin series when a Broncos player considered legal action against a News Ltd publication for a story that wrongly linked him with drug-taking.

News Ltd's Sydney tabloid, The Daily Telegraph, announced its back page would be a ''scandal free zone'' when the relentless exposure of misdemeanours attracted the criticism that the media company was undermining the value of its own sporting asset. A meeting of NRL club executives in August complained about harsh coverage.

The ARL, whose half-ownership of the NRL is enshrined in the 1997 peace treaty, was suspected a few months ago of deliberately stalling moves towards an independent commission. However, ARL chairman Colin Love is a strong supporter of a commission, despite News Ltd's oft-expressed view the ARL is made up of dinosaurs who should also surrender control.

Love is aware many leading Australian companies have been reluctant to invest in the NRL, knowing they were lining the pockets of one of the world's biggest corporations.

News Ltd also has a half share and management rights of Premier Media Group, owners of Fox Sports, which has the rights to televise five NRL games a week until 2012. As News Ltd half-owns the NRL and PMG, it is in fact paying money to itself for rights that, based on rugby league filling 66 of the top 100 spots on pay TV, is a seriously undervalued commitment.

 

[bmwpower]

http://www.leaguehq.com.au/news/lhqnews/early-exit-for-news/2009/10/07/1254701061965.html?page=1

so both the broncos and storm are both owned by the telecrap

 

[$$Poor Boy Blues$$]

"News Ltd also has a half share and management rights of Premier Media Group, owners of Fox Sports, which has the rights to televise five NRL games a week until 2012. As News Ltd half-owns the NRL and PMG, it is in fact paying money to itself for rights that, based on rugby league filling 66 of the top 100 spots on pay TV, is a seriously undervalued commitment."

If they have but one decision to make, have it be that RL ascends to glorious heights and receives all that is deserves. Its a fantastic game, and brings so many people together, its bigger than any one person or any one company.

They have never truly "owned" it. Its always belonged to the communities heart. We know that. We play it in our backyards, we see young kids rise through the grades...we dream of it, and imagine it all the time.

Beyond the people, beyond the ego's, beyond the profits that they make, they must see its right to set this bird free. I know RL can properly pay its way.....but to be shackled in chains is no way to live. I have not heard of any other game that can attract instant approval from those who first whiteness it. RL has shown everyone how great it is. Its time to set it free. Let it rule itself. It deserves it, and will be greater for it.

People will look back on this time in wonderment and in fondness. This is a new chapter of greatness. Great praise will come to those who have shown RL benevolence and compassion, and reason. That will stand forever too.

 

[TimmyB]

Incredible stuff. Hard to know what it's all going to mean. Hopefully big, big things for the game. Finally a chance for us to be as good as we deserve to be?

 

[Ashman]

Thank God for Roy Masters. Its great to have someone in the media that tells it how it really is.

One can only hope that this commission gets established in the next 12 months. There are only positives that will come from it.

The future of Rugby League depends on it.

 

[TimmyB]

I hope that the commission also take a position on the RLIF. It could be an opportunity for a shake up of the international game as well.

 

[El Diablo]

http://www.theaustralian.news.com.au/story/0,25197,26179749-2722,00.html

Rugby league's independence day could arrive within months

Brent Read | October 08, 2009
Article from: The Australian

GOLD Coast chief executive Michael Searle is reticent to put a time frame on the game's move to an independent commission.

With or without former Prime Minister John Howard, however, it appears an agreement between the game's co-owners - the Australian Rugby League and News Limited - could be struck before the end of the year, prompting the greatest overhaul to the game's administrative structure since the two bodies reached a peace deal 11 years ago. Privately, key club officials acknowledge something must happen soon or the opportunity will have passed the game by. There also seems to be consensus between the ARL and News Ltd that the game must be run by an independent commission.

The devil, as always, is in the detail. In that respect, talks between the ARL and News Ltd (publisher of The Australian) have been ongoing for more than 18 months but have taken a significant step forward in recent weeks.

Searle, who yesterday claimed the ARL and News Ltd had an "appetite for change", has been the driving force behind the revolutionary change but yesterday refused to elaborate on reports Howard had been approached to be chairman of the commission.

However, The Australian understands other prominent businessmen sounded out include former Qantas chief executive Geoff Dixon, current NRL board member Katie Page, former Billabong and Qantas chairman Gary Pemberton, and outgoing BHP Billiton chairman Don Argus.

It is believed Argus, who will step down from his position with BHP Billiton next year, also has support to fill the chairman's role should he decide to be involved.

"Until we get both parties to agree on the terms of settlement, it's very difficult to discuss who or who shouldn't become involved," Searle said.

"The process of the deal is complicated. It's a work in progress. Eighteen months ago we were 100-1 of even getting off first base. At least now we have the stakeholders saying the model is the right model.

"They have an appetite for change. We have come a long way in 18 months. It's pleasing to hear the ARL and News Limited can see a desirable outcome.

"There's still some water to go under the bridge before we flick the switch and start talking to potential commissioners."

A News Ltd spokesperson last night reiterated the organisation played no part in the approach to Howard. ARL chairman Colin Love was also quizzed about the independent commission yesterday and used the situation to refute suggestions his organisation had delayed the process.

"I think it's publicly acknowledged now that in the game an independent commission going forward is probably the way to go," Love said. "I want to make it quite clear the ARL has done nothing to delay that process, and is not delaying the it.

"They're discussions that are really for the boardroom and not in the public arena at this time."

Asked whether it was a long way off, Love said:

"It's difficult to say but I would like to think it's not. I am just concerned that we get things right. We celebrated the centenary of the game last year - we want to make sure we get things right for the game for the next 100 years. That's what this is all about."

Searle has deliberately kept the structure of the reformed administration under wraps, but it is believed he will use the next fortnight to finalise details.

While all parties agree an independent commission is the way forward, one of the stumbling blocks is believed to be News Ltd's ownership of Melbourne. While News Ltd receives money from the game as part of the Super League peace deal, it plows millions back into the Storm each year.

If News Ltd removes itself from the game, it is believed to want assurances the Storm will survive.

Former Bulldogs halfback Steve Mortimer, a long-time advocate of an independent commission, believes the Victorian government should take part ownership of the Storm should News Ltd sell it.

"My thought is that the Victorian government ... should be a significant shareholder in the Melbourne Storm," he said. "Quite frankly, if I had the money I think the Melbourne Storm would he a great investment."

 

[TimmyB]

Whilst I'm glad that news are fighting for the Storm, why does it care?! I think the Storm are very, very important for Rugby League. But if News withdraws all of its stake from the game, why does it matter to it whether the Storm survive?

Anyway, fingers crossed this keeps moving forward.

 

[Perth Red]

The bit about Gallop being the continued CEO is a worry!

Would be interesting to know exactly what is the Storm's financial situation. No one really knows how much News put in. Given they have equitable crowds to alot of clubs and seem to have a great sponsorship portfolio I am surprised if it is anything like $6mill.

 

[Loudstrat]

Given they have equitable crowds to alot of clubs

They are above only Canberra and Cronulla. Hardly equitable.

I think Masters knows more than you. The Storm as it stands are up sh*t creek without News money. As the article says, they need bigger revenue from crowds - which MAY come from the new stadium, and more sponsorship, which won't come until News leave is at all.

Anyway, I'm glad the Howard story looks to be a false dawn. Rudd has put $11 million into the commission. The best the code got from Howards sloppy year as PM was an election promise that was never delivered. And the basd smell of his arse on a seat at Kogarah.

 

[_Johnsy]

Whilst I'm glad that news are fighting for the Storm, why does it care?! I think the Storm are very, very important for Rugby League. But if News withdraws all of its stake from the game, why does it matter to it whether the Storm survive?

Anyway, fingers crossed this keeps moving forward.

Agree 100%, You often hear storm fans yelling expansion is the way to go, and that sydney clubs must merger or relocate or die.
It is an easy line to take whn you are subsidised to the tune of $6-8,000,000 per year.

 

[ME SO HORNBY!]

Imagine the publicity it would get for the NRL around Australia, maybe even internationally! It would be great.

And he ran this country for many years and is probably one of our greatest PMs. If he can lead a country why not the NRL?

 

[nomis88]

Bitter much during his time in the job?:lol:

11 long years.

Keating couldn't bare it. He only re-surfaced in the media when Howard finally got the punt.

That 96 election was an absolute classic. :lol::lol:

Actually the 2007 election was much better. The pathetic Howard couldn't even keep his own seat. Bye bye lying little Johnny.:lol:

 

[nyx]

The Storm will be safe either way.

The first thing an independent commission will do is to make sure the Storm survive.
Just like the AFL Commission propped up the Swans to the financial detriment of the Melbourne clubs with things like larger cash grants and big cap concessions

Having a team in our 2nd biggest city is far too important for advertising, TV revenue, ratings etc. The only reason the NRL gf out-rated the AFL gf was because the Storm were in it. A huge point when negotiating the next TV rights.

The struggling Sydney clubs should be more worried about this as an independent commission is far more likely to make the tough decisions like forcing relocations/mergers.
Just ask Fiztroy fans

 

[Goddo]

The Storm will be safe either way.

The first thing an independent commission will do is to make sure the Storm survive.
Just like the AFL Commission propped up the Swans to the financial detriment of the Melbourne clubs with things like larger cash grants and big cap concessions

Having a team in our 2nd biggest city is far too important for advertising, TV revenue, ratings etc. The only reason the NRL gf out-rated the AFL gf was because the Storm were in it. A huge point when negotiating the next TV rights.

The struggling Sydney clubs should be more worried about this as an independent commission is far more likely to make the tough decisions like forcing relocations/mergers.
Just ask Fiztroy fans

Very true. I would be nervous about an independent commission if I were a Manly or Cronulla fan.

 

[Raider_69]

I am just so excited about the fact this is gaining momentum

FTR, all those questioning the 6mil it will take to prop up the storm, with the commission in place and a new FTA agreement negotated properly, with the storm in the comp, they net us about 40-50 mil a year extra simply by having a team in the area to stream games into, its the same reason AFL put up with Sydney losing $$ for so many years

we make more money from the storm than we'd spend proping them up until they are good to stand on their own. And im betting it doesnt take them nearly as long as it did the Swans

 

[matt]

aah ,babes wrapped in the pages of News LTD spin...Aint it beautiful.

 

[Rockin Ronny]

Great opportunity. But they shouldn't stuff it up by enrolling more seatwarmers like John Howard and Geoff Dixon. The game needs independent business, talented people who love the game.

Get rid of Gallp and all other News Limited lackeys to enure maximum TV rights deal. Ditch AFL, Love, Carr and the like.

Perfect opportunity for a fresh start.

AND - bring in the Central Coast Bears plus an official apology (and compensation) for cheating themout of existence for 10 years.

 

[Jatz Crackers]

Great opportunity. But they shouldn't stuff it up by enrolling more seatwarmers like John Howard and Geoff Dixon. The game needs independent business, talented people who love the game.

Get rid of Gallp and all other News Limited lackeys to enure maximum TV rights deal. Ditch AFL, Love, Carr and the like.

Perfect opportunity for a fresh start.

AND - bring in the Central Coast Bears plus an official apology (and compensation) for cheating themout of existence for 10 years.

So a grubby monetary payoff is behind all your incessant ramblings and diatribes. It figures.