Dave Smith says a together, whole-of-game approach will be crucial in a code that is already making progress, writes Adrian Proszenko.
Dave Smith, now 100 days into the top job in rugby league, is asked to go back to his banking background for a moment. If he was to give the NRL a Standard & Poor's rating, what would it be?
''The game is in good shape and it's reached a point where it is ready to embark on an even bigger success story,'' he said. ''Australia has come through the global financial crisis really well and we have some of the highest-rated institutions in the world. We are recognised around the world and should take pride in that. I want our sport to be AAA-rated.''
In an extensive interview, Smith spoke about his ambitions for the game and how he plans to achieve them. From stadiums strategy to expansion, to TV rights and the international game, Smith's aim is to be the ''No.1 code'' in Australia. The former Lloyds International boss has previously spoken about his desire for rugby league to ''win the premiership'' during his tenure. But what constitutes premiership success?
''I always felt it was a beautiful game and there was a lot of upside. But there is more upside than I thought,'' Smith said. ''Listening to how passionate fans and members are, I've learned how strong it is. That's a really good energy source in where you can take the game.
''In a professional sport like this, you need to look at the foundations you need to lay. It's important to have strong foundations when it's a growth story. We are ambitious, without question, about our growth but there is a fair amount to do.
''I'm confident about that ambition but there's bound to be trip-ups along the way. It won't be easy or straightforward. But given the upside I've just talked about, I'm more excited than ever in terms of what we can do as a sport. What we can do together with the fans, the administrators, the volunteers, the elite players. If you pull all of that together, it's a very bright future.''
THE FIRST STEPS
Before he had even put his feet under the desk, Smith was blindsided by the Australian Crime Commission's report into doping and the integrity of sport. While dealings with ASADA have taken up much of his time, his focus remains on managing the business of rugby league to set up a platform for the next three decades.
''Our ambition is to be the No.1 code,'' he said. ''It's a big and confident ambition but it's entirely achievable. If you break that ambition down into the things you need to think about as a senior executive leading an organisation - by the end of this year I suspect we'll have achieved our stadium strategy. It will be undoubtedly be some form of consolidation around the number of stadiums. We will have achieved that.
''Hopefully we will have had a successful season with more members, more TV watchers, more readers of newspapers, record levels of women in the game. All of that is a factor in terms of the progress that we're making. I'll have the team in place and the first two appointments I've made [Todd Greenberg and Jim Doyle] are very much with a whole-of-game perspective. I'll continue to consolidate around that.
''That's part of my 'together' theme, to look at this game from the floor to the roof. We have to make sure from a grassroots perspective that we absolutely get that right. By the end of this year we would have laid out very clearly a pathway for our grassroots - from the under-6s right through to our Jillaroos, right through to the premiership. We will have substantially moved that forward.
''We will substantially move forward our digital platforms. There's a lot of work going on at nrl.com in partnership with Telstra and there's a lot of thinking about how the digital assets of the future will look like. All of that will create a platform, an architecture if you like, for us to engage and connect with our fans, members, volunteers, players and administrators. It's that unification - for the first time the game can pull all of that together under one unified strategy.
''And for the first time we've got a surplus to invest in that one unified strategy. So we build the foundations and systematically execute against a series of priorities. All of the while you are listening to members and fans because at the end of the day, if you don't, then you can't create a great game and spectacle.
''You do have a five-year vision, you do have a 10-year vision. The stadium strategy, for example, should look forward 20 years.''
EXPANSION
Smith's strategy is one for growth. That includes putting the national into the National Rugby League. Expansion plans were put on hold when broadcasters' desire for more content wasn't matched with a commensurate increase in the TV rights deal. There was also the need to ensure that existing clubs - the majority of which are operating at a loss or just struggling to break even - first secure the own futures.
However, expansion will be back on the table. ''In order to be the No.1 code, we have to be national,'' Smith said. ''We need to think through very carefully exactly what that means and where our growth markets are. We've seen success in Victoria and some success in New Zealand. There are a number of other markets. ''Fundamentally, you have to grow off a very strong base and one of the priorities over the next two years is to strengthen the 16 clubs that we've got. Make them as strong and as viable as we possibly can and do that under our sustainability banner. That's got to be a priority. In conjunction with that, we will think very carefully about our footprint and the size and nature of our competition.
''Back to my whole-of-game vision, the premiership is one dimension but the under 6s and grassroots through junior footy has to connect as well. You've got to end up with something unified and makes sense, which gives you a strong platform to expand.
''There's no doubt that the appeal of this game clearly enables it to be national. You've got to start from a strong foundation and any strategy needs to be simple and integrated. Then you need to prioritise. Mine is a long-term vision, not a one- or two- or three-year vision. What I have the ambition to do is set the game up for the next 20 or 30 years. The decisions we make now will see benefits down the track, so it's important there is solid, analytical thinking.''
STADIUMS STRATEGY
There are fears the end is nigh for ''boutique grounds''. Suburban stadiums have been in the firing line since the NSW government outlined a strategy of consolidation. The majority of AFL games are played at a handful of large venues and the NRL will follow suit over time.
''There's a body of work that's under way right now looking at all of those issues,'' Smith said.
''Inevitably, it is some form of consolidation. There will be limited money to go around and we have to make sure that's it's spent creating the best facilities to get bums on seats. We need to do the right things by fans and members and there will inevitably be some consolidation. It would be a big mistake if we lost the spiritual homes of our clubs. The tribalism and care that goes into the teams relates to these spiritual homes and we shouldn't or won't lose the essence of that.
''It means when people leave their house the transport infrastructure is good - that it doesn't take an age to catch a train or drive down the road - and that the stadium is a place you want to take your family. And you need access to the technologies you are seeing in these modern stadiums.
''There's a big shift in the state government's strategy around stadiums and it will end up being less facilities but better facilities. That's what our game needs.
''There will be a period of time where you consolidate. It won't happen overnight; it's something you take a five, 10, 15-year view of.''
SHOW ME THE MONEY
The NRL have just secured a $1.2 billion broadcast deal, giving rugby league a surplus for the first time. The ARLC has outlined a series of ambitions targets as part of its five-year strategic plan. This includes spending more than $200 million in growth-fund investments. And by the time the next TV rights deal rolls around - despite the shift towards digital content - Smith declares: ''I would hope to extract at least the same value, hopefully a lot more.'' So how exactly will the commission splash the cash? ''The key word is 'investment','' Smith said.
''For the first time the game is in a position where it has a surplus; a so-called future fund. It will be an investment fund. The logic is that every single dollar you invest creates more dollars. If you spend $10 to reduce costs - and shared services is the example I gave you - then what you'd expect is for $30 to come out. So $30 of cost will come out of every $10 you spend. We want to create more revenue streams. We've got a commitment to double our non-broadcast revenue, whether that be through digital or ticketing or other sponsorship.
''They are some quite ambitious targets. We will use our investment funds to look very carefully at potential opportunities to invest in additional revenue streams. The most important thing is if we take our $200 million - it's actually slightly more - and we simply spend it over the next five years, all you get is an overdraft. That will not have been wise. We've got to make sure anything we do with that money is building the game for kids who are going to play first grade in 10 or 20 years' time and fans who are going to be watching in 10 or 20 years' time.
''We are very focused on spending that money wisely for the greater good of the game.''
THE INTERNATIONAL GAME
It's a World Cup year but, on the international scene, league cannot compete with rugby union. Smith rates growing the game on a global stage as his ''second priority''. ''What a fabulous opportunity that is,'' he said.
''We need to focus on the international game and the level of resources we apply to it. Not significantly, but a bit so we have some dedication to it. The Pacific Islands are a wonderful source of rugby league fans and it's something we can potentially strengthen.
''There are other markets we could look at if we are thinking longer term. It's a phenomenal opportunity but it's got to be based off a strong domestic comp.''
DICTATOR DAVE
There is a perception NRL clubs have had too much say in the way the game is run. However, Smith believes they have bought into the ARLC's five-year plan and will more closely align with the ruling body.
''Every single club I have spoken to is 100 per cent to growing the game,'' he said. ''All of the five-year business plans I've seen are aligned to our strategy we've produced. The ambition to grow the game invariably is more than we've put in the plan. Everyone realises rugby league is at a pivotal point where things have changed - the commission structure, my appointment, the surplus we have to invest in the game - they represent a very significant opportunity.
''The game has gone through trials and tribulations forever. Now is the time for the game to grab the bull by the horns and achieve what it deserves to achieve. It's starts here.''
GOVERNMENT ENGAGEMENT
While the NRL has lurched from one crisis to the next, the AFL has skilfully engaged with all levels of government to procure funding. The ARLC is now attempting to better foster those relationships.
''I'll push hard to make sure we're funded in a way which helps us grow the sport,'' he said. ''There's a lot of consistency between what the state and federal government want and what we want. We'll have a tighter alignment and we have already started to do that. [Chairman] John Grant and I have gone down to Canberra and I'm constantly in touch with state and federal ministers. We'll move the professional and grassroots game forward and all off that will need cooperation with government.''
ASADA
Smith is frustrated about the cloud hanging over league. There is no resolution in sight after interviews with Cronulla players were abandoned as lawyers argue over what constitutes ''reasonable assistance''. There is now the spectre of the dramas continuing for months, if not years.
''I'm as frustrated as everybody else that we've stalled in the progress,'' Smith said. ''It's incredibly frustrating the interviews have stopped. I know what fans and members are feeling, I feel it too.
''We need to make sure ASADA have the investigative capabilities to take the thing forward. My view is very plain on that. We will cooperate every inch of the way and we are.
''We'll get through it but it's taken a long time and simply not fair.
''I'm doing everything I possibly can. The way the mechanism works, ASADA are the investigative body and they need to get on with the job. We need to make sure we are cooperating. There's no room for drugs in our sport and the matters raised are serious, and we're treating them seriously. It needs to get done and completed by the people discharging that. I can't do any more. I want to see ASADA get on with the investigation and bring it to a conclusion.''
LEGACY
This brings us to how Smith wants to be remembered. Ultimately, he wants rugby league to live up to its name as the greatest game of all. ''I hope I'm a catalyst for change,'' he said. ''The game deserves it. In any big organisation it is important to our stakeholders that there is a level of professionalism, discipline and level of analytics around decision-making in terms of the way you think things through. That's an ambition, that people respect the way we manage the game. We make $460 million a year in terms of income and we spend about $415 million on different things - players, utilities, resources, whatever.
''It's a big business and demands a certain level of professionalism and expertise in thinking through issues. We want the best elite competition in the world that ultimately can be built into an international competition. In some ways it's a simple strategy and vision but delivering that demands discipline and focus.
''I hope I can create a platform for it to grow and grow and be even more successful than it's been in the first 106 years.''
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