NRL and its clubs are expected to palm-off expansion until 2014 or 2015

[bobmar28]

not necassarily

the networks aren't keen to show games where someone is guaranteed a flogging ala the GC in AFL

remember most of the AFL's money came from pay TV as they think they can get ore subsribers in Vic, SA and WA under the new deal

FTA didn't pay more than they did last time and that's with two new teams

Because they were overpaid last time.

 

[POPEYE]

Realistically it matters not where a team is located any more. What matters is it's funding. Every successful team has supporters everywhere.

Mainly due to the fact that teams now travel great distances to play it is no longer significant to represent a large constituency. The Roosters have proven it for many years

but if their money tree died they would find it more difficult than the Sharks to survive. The Bunnies would lose nothing by relocating because their name is set in stone. They would

even increase in strength. With these days of one man or conglomerate ownership all clubs will have to have the means to compete financially.

 

[bobmar28]

Exactly, clubs need to be told how things are going to be not the one's dictating. Otherwise it will always be about self interest, which is what I thought the IC was going to get away from.

After all IC stands for "Independent" commission.

 

[Luc]

How would the IC negotiate the new tv contract. Could they really go "give us X dollars now, but we might have 1 or possibly 2 new teams coming in in a year or two". It just seems to me that it would make these negotiations very uncertain.

And if the tv rights are signed up on the basis of a 16 team comp I can imagine it would be easy for everyone to just say "let's just deal with it next contract".

 

[docbrown]

How would the IC negotiate the new tv contract. Could they really go "give us X dollars now, but we might have 1 or possibly 2 new teams coming in in a year or two". It just seems to me that it would make these negotiations very uncertain.

You can make provision for it as a balloon payment if/when the event occurs.

They'd have to be going into the negotiations with the 9th game as an option on the table.

 

[Quidgybo]

How would the IC negotiate the new tv contract. Could they really go "give us X dollars now, but we might have 1 or possibly 2 new teams coming in in a year or two". It just seems to me that it would make these negotiations very uncertain.

And if the tv rights are signed up on the basis of a 16 team comp I can imagine it would be easy for everyone to just say "let's just deal with it next contract".

Why does the entire term of the contract have to be for one size of comp or the other? As I said above, the new television deal will decide when, how and for how much money expansion occurs. The answer to those questions is fundamental to the next television deal, it won't be left open ended just because it's getting too tight for it to occur in 2013.

Even if expansion doesn't occur in year one, the contract will have enshrined in it that from year two or year three of the new deal there will be an eighteen team comp, one of the new teams will be from Queensland, and all that will be worth x dollars. It won't be a case of "let's just deal with it next contract", we will already have made a commitment for an expanded comp in a certain year that we are contractually obliged to deliver on.

Leigh

 

[Goddo]

^ which makes you wonder if a balloon payment amount would be tied to prefered TV locations for new sides.

 

[Quidgybo]

^ which makes you wonder if a balloon payment amount would be tied to prefered TV locations for new sides.

Of course it will. The networks are going to pay a certain amount extra for a ninth game regardless of who the teams are. But they're not going to pay the same amount for any two teams. The Australian networks won't pay as much extra if one of the teams is from New Zealand or PNG instead of both from Australia. In the interests of locking down figures so that everyone knows what the next five or six years will look like financially, the contract will certainly be signed on the basis of where the expansion teams will be based and when they will enter. Even if that isn't until year two or three and even if the exact identity of the winning bid in each of those agreed areas isn't yet settled.

Leigh.

 

[taipan]

This is how I see the lie of the land:
1) As the stuffing around in setting up the I.C(could only happen in rugby league) ,means the Tv deal will not be done until, end of this year.
2) Too late for 2013 expansion,little lead time for expansion teams.
3) Tv deal would IMO be sold on the following basis over 5 years.

Year 1: 16 team comp,enabling weaker financially stung clubs to consolidate and give grassroots a boost with the extra funding.

Years 2-5 :18 teams either Perth/Brisbane Boofheads/or CC Bears.

Deal sold to FTA and pay Tv networks on the graduated scale 1st year $180m years 2-5 $200m pa.Min $980 over 5 years.Throw in Telstra content over 5 years and the code could grab close to $1.1b.

The decision to expand or not even to 2014 ,must be made by the i.C. before the end of this year,else other codes could try and fill the vacuum or play silly B....s.And the Tv contract must also allow for any expansion.No expansion,less money in the kitty.

 

[El Diablo]

This is how I see the lie of the land:
1) As the stuffing around in setting up the I.C(could only happen in rugby league) ,means the Tv deal will not be done until, end of this year.

this year?

IC or no IC it would never be done till next year

the AFL just did theirs recently and their deal starts a year before our next one will

the only way it will be done this year is if they stuff up like they did last time and re-sign with 9 a year early and not allow other networks to bid

 

[Brutus]

Gallop is currently being interviewed on the ABC.

He said there will be 18 teams by 2015 or maybe a bit before, but they want to give the exsisting clubs a year or two to enjoy the spoils of the new TV deal money.

 

[Brutus]

They have covered a broad range of subjects - a very good interview.

You'd never get this on 2GB. Mascord has asked some awesome questions.

 

[El Diablo]

sounds fair enough

 

[El Diablo]

Gallop is currently being interviewed on the ABC.

He said there will be 18 teams by 2015 or maybe a bit before, but they want to give the exsisting clubs a year or two to enjoy the spoils of the new TV deal money.

on their site now http://blogs.abc.net.au/files/nrl-gallop-sunday.mp3

about 6:15 into the interview it first starts on expansion

he does state that is just his personal view so it's nothing set in stone

 

[Quidgybo]

When asked, Gallop said he thought new franchises needed 18 months to 2 years lead time once their bid is accepted. Warren Ryan mused that for expansion in 2015 that would mean a decision by mid 2013. Gallop then made the point that the decision would be made as part of the larger negotiation over the television rights (ie. it won't be as late as mid 2013)

So taking the finalization of the television deal as the starting point, that would mean the deal would need to be done pretty much today for expansion teams to get 18 months lead time for 2013. That obviously isn't going to happen. But if the deal is done by mid next year, which is quite likely, then 2014 would seem a strong possibility for expansion with 18 to 27 months lead time.

Leigh.

 

[Ronnie Dobbs]

This is a good thing IMO.

Consolidation should be the focus right now rather than the quick buck.

 

[El Diablo]

When asked, Gallop said he thought new franchises needed 18 months to 2 years lead time once their bid is accepted. Warren Ryan mused that for expansion in 2015 that would mean a decision by mid 2013. Gallop then made the point that the decision would be made as part of the larger negotiation over the television rights (ie. it won't be as late as mid 2013)

So taking the finalization of the television deal as the starting point, that would mean the deal would need to be done pretty much today for expansion teams to get 18 months lead time for 2013. That obviously isn't going to happen. But if the deal is done by mid next year, which is quite likely, then 2014 would seem a strong possibility for expansion with 18 to 27 months lead time.

Leigh.

ultimately what Gallop said today means nothing

he said that was his personal view and it won't be solely left up to him to make the decision of when and who

 

[Scarves]

ultimately what Gallop said today means nothing

If that's the case... then most of what is said in here means minus infinity.

 

[Brutus]

I'll bet the NRL/IC know exactly which 2 areas they want for expansion. They'll take this to the broadcasters and say these two areas will have teams for the 2nd year of the contract.

Those areas WILL be Perth and Brisbane.

 

[Beowulf]

Bears for 2013 or 2014 + one other in 2014 or 2015. Nothing new on this interview & more good Bear news to come in coming weeks. Exactly the same comments were made last expansion round to water down expectations....then 6 months later G.Coast was announced as a new entrant.

David Gallop is a lawyer, remember?!