NRL faces major turmoil as clubs threaten breakaway league

[Jatz Crackers]

Gallop had the charisma on TV of a Namibian warthog.

I call BS. I have seen nature documentaries and the worthogs wern't that bad.

 

[Jatz Crackers]

One thing people need to remember when these internal RL things blow up is the message Uncle Rupes left us with when he got caught unawares in the last broadcast deal & took great offense.

Words to the effect of:
"AFL is the number one sport in Australia and I will do all I can to promote that"

This current furore may well be self inflicted but I tell you, rupes is one vindictive git.

 

[Perth Red]

You'd struggle mightily to find any business of 50+ employees that can cover their running costs for $3 mill. It's only $250k a month FFS. I can't imagine Easts for example are paying much less than $100k per month to rent out their facilities at he SCG trust, and our coaching staff would likely set us back about $1 mill (with the lion's share going to Robbo).

Add in travel costs for 40 people making a dozen trips around the country each year and it gets sucked up pretty quick

So you think the NRL should cover the entire costs of running an NRL club? The Grant they got this year covered player salaries and still Left $3million spare. Surely the clubs have some responsibility to generate revenue from memberships, sponsorships, merchandise sales etc etc?

Don't the NRL pay clubs travel and accommodation costs?

 

[Perth Red]

The advance from the next tv deal is $50mill to be spent this year and next, so the $360mill a year is now $350mill a year from 2018.
We don't know what the NZ deal was worth, they have not released its value strangely. Presuming the NRL maintains, or hopefully grows, it's non tv revenue in next 5 years it is safe to say they will be operating on a revenue base of $500mill plus.

So what would be the reasonable split of this to clubs? Let's say the NRL comp should be able to operate on 20% admin cost which is not unreasonable that brings the amount down to $400mill. Let's say $100mill to grass roots plus 20% admin cost brings it down to $280mill, then club bail out costs of say $10mill reserve brings it it to $270mill, then costs such as the touch footy link up, Melbourne storm extra payment (are they still getting this?) another $10mill brings it down to $260mill, women's league, rep footy costs in a RLWC year etc another $10mill = $250mill.

That would still leave potentially $15mill a club,
it shouldn't be unreasonable to see a $9mill salary cap and a $12-13mill club grant.

 

[BuffaloRules]

How much is "maintaining the NRL's digital arm" that Grant is going on about going to cost?

We don't know and probably he doesn't either...

 

[The Mad Hatter]

How much is "maintaining the NRL's digital arm" that Grant is going on about going to cost?

We don't know and probably he doesn't either...

 

[BlueandGold]

The advance from the next tv deal is $50mill to be spent this year and next, so the $360mill a year is now $350mill a year from 2018.
We don't know what the NZ deal was worth, they have not released its value strangely. Presuming the NRL maintains, or hopefully grows, it's non tv revenue in next 5 years it is safe to say they will be operating on a revenue base of $500mill plus.

So what would be the reasonable split of this to clubs? Let's say the NRL comp should be able to operate on 20% admin cost which is not unreasonable that brings the amount down to $400mill. Let's say $100mill to grass roots plus 20% admin cost brings it down to $280mill, then club bail out costs of say $10mill reserve brings it it to $270mill, then costs such as the touch footy link up, Melbourne storm extra payment (are they still getting this?) another $10mill brings it down to $260mill, women's league, rep footy costs in a RLWC year etc another $10mill = $250mill.

That would still leave potentially $15mill a club,
it shouldn't be unreasonable to see a $9mill salary cap and a $12-13mill club grant.

NRL revenue 2015 was 370m of which 220m was TV deal 129m sponsorship and events
NRL tv deal 2018 360-380m Sponsorship and events 2018 150-160m + 15m a year from sportsbet.

NRL revenue by 2018 will be between 530m-550m

There is easy enough money for the club funding model to go through and leave enough to invest in the digital arm.

NRL Cap 10m+3.5m to the clubs 13.5m x 16 clubs 216m a year for the clubs and the cap. That leaves a huge 324m to fund grassroots/admin and the digital arm.

 

[Diesel]

I've seen it mentioned on this thread about a website? What's going on there? Is the ARLC/NRL doing their own production and filming of games to be on sold post 2022?

 

[El Diablo]

i don't think Grant even knows what he's doing

 

[BuffaloRules]

I've seen it mentioned on this thread about a website? What's going on there? Is the ARLC/NRL doing their own production and filming of games to be on sold post 2022?

From what I have learned here, the NRL takes control from Telstra of its website in 2018..

I don't think many of us understand exactly what this entails but Grant is alluding to this being a significant expense and why he is backflipping on the MUA...

Some are comparing this to a creation mirroring the AFL's media unit which will mean a lot more people being employed by the NRL ... Dozens of people...

 

[Diesel]

Thanks Bullafo


How many people actually go to the NRL
website for information? I'd only go there via the NRL App to watch the games since I don't have Fox

 

[taipan]

I call BS. I have seen nature documentaries and the worthogs wern't that bad.

I apologise to all warthogs regardless of their origin, and all who sail in them.

 

[taipan]

From what I have learned here, the NRL takes control from Telstra of its website in 2018..

I don't think many of us understand exactly what this entails but Grant is alluding to this being a significant expense and why he is backflipping on the MUA...

Some are comparing this to a creation mirroring the AFL's media unit which will mean a lot more people being employed by the NRL ... Dozens of people...

Thanks champ,that's the story I was trying to get through to our constant complainer from W.A.

 

[Stormwarrior82]

I found this.....
http://www.afr.com/business/sport/n...-new-rights-deal-with-telstra-20151203-glf8r9

It's seems the Nrl has worked out what they want to do with the digital side of things now and want to structure it into the deal they make with the clubs. Probably for a few reasons.
1. It will impact/affect clubs
2. The Nrl want the clubs to have KPIs associated with the digital arm
3. That this could actually deliver the clubs a bigger slice than they were originally going to get if they do it properly.
4. Could affect salary cap and players digital presence in the game.
Could be plenty of reasons.

But then again the clubs media arm (smh/news) the world is ending.

 

[insert.pause]

NRL gain more digital control in new rights deal with Telstra

The NRL will take back control of its digital assets, including the NRL.com and club websites, under the terms of its new broadcast deal.

The move will mean the competition and its clubs will be able to keep revenue from digital source such as advertising, which is now primarily sold by rights holder Telstra as part of the existing broadcast contract. Telstra and the NRL also currently have a joint venture media unit that provides news, statistical and video content.

Telstra will maintain digital broadcast rights to mobile phones and tablets as part of the five-year $1.8 billion rights deal the NRL signed with Fox Sports, Nine Entertainment Co and Telstra two weeks ago, but the NRL itself will have more direct control over the content of digital assets such as websites and social media.

"This gives us the opportunity to build our own voice with our own resources with our community," NRL chairman John Grant said. "And it is one of the sources we think we can generate more revenue from."


Grant said the league would also discuss with Telstra how it could transition to new arrangements during the next two seasons.


Fox Sports, wholly owned by News Corporation, and Nine will also have digital streaming rights under the new broadcast deal.

http://www.afr.com/business/sport/n...al-with-telstra-20151203-glf8r9#ixzz3taKIR6sc

 

[Stormwarrior82]

I'm not defending grant, but I think certain clubs were always looking for a confrontation that would lead to this and I get the impression they are happy Grant bungled the club funding & gave them the ammunition.

I agree there are certain clubs that want the confrontation and their media arm (news) are giving them noise. I found this http://m.nrl.com/nrl-club-funding-agreement/tabid/10874/newsid/91081/default.aspx

Doesn't that show there was other clauses that had to be agreed upon before everything is binding?
Club bosses don't like to be told what to do and have a (I've been here for decades, what would you know) attitude. I hope the commission sticks with Grant and they keep giving it to the clubs who have a sense of entitlement. The Nrl has changed and the clubs need to move with the times. It's not a little million dollar company it's a multi billion dollar company.

 

[taipan]

Grant intruded too much? Your knowledge of this is? Did the media and clubs tell you this?
I think Smith left because the push from media and club land was too great. Then Grant and the commissioners eccepted less to appease everyone. Media got what they wanted. He was heading in the right direction.

Well we don't need to talk more about the gallop and media circus

Ah yes I follow the media and believe what they print or advise.

He spent too much time appearing on TV making comments,that should have been left to Greenberg and at times Smith.So I blame my eyes and ears for paying attention.I saw a lot of him making pronouncements on Foxtel Sports News.
Why the hell the need to be on the victory dais at the G/F? That should be the CEO and Provan,Summons and
the Clive Churchill family member and Telstra flunky.

He openly admitted he stuffed up on the 130% issue.People lose positions in business for such things.


Smith indeed IMO was pushed by the media types,one who is not with us now and made it abundantly clear where News stood.Especially after the TV deal with 9 ,which ended up screwing us with the deal with News.
Rupert made it obvious where his preferences lay on codes.
Strange Smith was the only NRL/commission person to announce the initial Tv deal for 9.Did the others know something?

I've already stated Smith(I lauded him at the start) did some good things, but appears did not appreciate the News effect and their power.Or their "divine right".But spending large sums on high flyers who failed, is not a great legacy for Smith.

And I'm not dumb enough not to realise, the clubs have their own agendas.

 

[Stormwarrior82]

He spent too much time appearing on TV making comments,that should have been left to Greenberg and at times Smith.So I blame my eyes and ears for paying attention.I saw a lot of him making pronouncements on Foxtel Sports News.
Why the hell the need to be on the victory dais at the G/F? That should be the CEO and Provan,Summons and
the Clive Churchill family member and Telstra flunky.

He openly admitted he stuffed up on the 130% issue.People lose positions in business for such things.


Smith indeed IMO was pushed by the media types,one who is not with us now and made it abundantly clear where News stood.Especially after the TV deal with 9 ,which ended up screwing us with the deal with News.
Rupert made it obvious where his preferences lay on codes.
Strange Smith was the only NRL/commission person to announce the initial Tv deal for 9.Did the others know something?

I've already stated Smith(I lauded him at the start) did some good things, but appears did not appreciate the News effect and their power.Or their "divine right".But spending large sums on high flyers who failed, is not a great legacy for Smith.

He spent time on tv because Smith left and he became the fill in CEO for months and months during the busiest time then Greenberg got the spot. I'm sure he controls the amount of time he appears on fox.

Your opinion is he didn't need to be on the gf stage. I'm happy to disagree with you. CEO was there. Why not a member from the commish?

You know that there is a commission and Grant is 1 of 8? I'm sure these things are debated in those meetings and go to a vote?
Not sure his words were "I stuffed up" but could of done it better... well yes it could have been but you never can tell what a disgruntled club boss will do. Hindsight is a wonderful thing.

Smith left due to no support before his so called high flyers failed.

 

[taipan]

He was also on TV when Smith was there.I'm au fait with the time lapse on Smith leaving.

We agree to disagree ,the stage looked like George St on a Monday morning.

I'm not going to respond to the bleeding obvious about the Commission makeup.

I didn't quote him(Grant) verbatim,but the inference was clear.

He(Smith) had high flyers working under his command,whether they left afterwards has nothing to do with their performance during his tenure.$5m of their salaries is now being distributed to grassroots /Affiliated states.

 

[Stormwarrior82]

He was also on TV when Smith was there.I'm au fait with the time lapse on Smith leaving.

We agree to disagree ,the stage looked like George St on a Monday morning.

I'm not going to respond to the bleeding obvious about the Commission makeup.

I didn't quote him(Grant) verbatim,but the inference was clear.

He(Smith) had high flyers working under his command,whether they left afterwards has nothing to do with their performance during his tenure.$5m of their salaries is now being distributed to grassroots /Affiliated states.

Yes he was on tv a couple times but that was more due to Smiths lack of RL knowledge and media training and passing the buck onto him. Yet you are judging him by that?

Your inference is different to my take on it. He is in a highly respected position and time after time takes the high road while others resort to attacks. He could have said "the information that the media/clubs are sprinkling is outright wrong". Just like the clubs have recently been doing in the media. His role is to be above the tit for tat, which he does well. I definitely couldn't keep my cool with the continuous attacks he only receives.

I'm glad money has been diverted to grassroots ... more the merrier!

Ive seen Pearce from the commish front a couple times .... is there anyone else actually there?