NRL faces major turmoil as clubs threaten breakaway league

[T-Boon]

I read today that NRL clubs spend on average $6mill on "football department" while in 2012 they were only spending on average $1.8mill. Put a cap on football department expenditure of $3mill. If a club wants to spend over that tax them dollar for dollar from their next season grant.

 

[alien]

Wests Tigers don't owe the NRL anything.

Balmain Tigers owe the NRL the $3M

Lol, good luck getting that back!

 

[sensesmaybenumbed]

Lol, good luck getting that back!

They should just let clubs go broke, starting all the way back from the 80s.

Good-bye magpies!

/S

 

[Lockyer4President!]

They got rid of Smith and replaced him with Greenberg.
Now they're trying to get rid of Grant...

 

[siv]

I read today that NRL clubs spend on average $6mill on "football department" while in 2012 they were only spending on average $1.8mill. Put a cap on football department expenditure of $3mill. If a club wants to spend over that tax them dollar for dollar from their next season grant.

Too easy for a shelf company or LC to do the spending and charge $1 to the FC

 

[I Bleed Maroon]

Greenberg's tenure is hopefully coming to the sort of spluttering and embarrassing end that he deserves

 

[T-Boon]

Too easy for a shelf company or LC to do the spending and charge $1 to the FC

Is that what happens in the NFL, NBA or the AFL?
We just chuck things in the too hard basket far too easily. We are the "can't do it" code.

 

[Stormwarrior82]

Wests Tigers don't owe the NRL anything.

Balmain Tigers owe the NRL the $3M

Now West tigers are owned by West and balmain with people like it or not. Balmain has a loan with the Nrl. So by default West tigers has a commitment with the Nrl. They can word it all they like.

What's Interesting is the move that the west majority board has published a statement. Must be a bit frosty in the board room with the balmain members.

 

[Stormwarrior82]

I read today that NRL clubs spend on average $6mill on "football department" while in 2012 they were only spending on average $1.8mill. Put a cap on football department expenditure of $3mill. If a club wants to spend over that tax them dollar for dollar from their next season grant.

If they currently average $6 mil in there football dept wouldnt that be a sensible starting figure? Not $3mil.

Can't see the clubs wanting that at all. I think it's something the Nrl would like to do. But like the clubs have shown if they don't like it they will just vote a commissioner off.

 

[T-Boon]

If they currently average $6 mil in there football dept wouldnt that be a sensible starting figure? Not $3mil.

Can't see the clubs wanting that at all. I think it's something the Nrl would like to do. But like the clubs have shown if they don't like it they will just vote a commissioner off.

Propose a 3mill cap and settle at say 5mill. Point is that at 6mill there is heck of a lot of waste to the game.
Thing's that sound essential to the clubs to compete with the big spenders (how much do they spend on wrestling staff?) but adds zero value to the game on the ground and in some cases (wrestling staff) have sent the game backwards.
The game was pretty damn professional in 2012 when they were spending 1.8mill. Where is the 200% increase on spending going - does it all go on those bra's the players wear at training?

 

[siv]

Is that what happens in the NFL, NBA or the AFL?
We just chuck things in the too hard basket far too easily. We are the "can't do it" code.

No my take on this is

If a football club cannot manage its own books. First governance control is for the FC member to call a EGM and remove the CFO or the board

Next would be a points based penalty for financial mismanagement, eg every 5% of loss after LC grant has been applied to a loss greater than 10% of total revenue losses mean loss of 4 competition points

If they make $20 mil but lose $4 mil - then they get a 8 point penalty

Next penalty if they go into administration or after 5 years of mismanagement is to revoke their NRL licence, let the club revert to State Leagues and promote the next worthy candidate

 

[BuffaloRules]

I read today that NRL clubs spend on average $6mill on "football department" while in 2012 they were only spending on average $1.8mill. Put a cap on football department expenditure of $3mill. If a club wants to spend over that tax them dollar for dollar from their next season grant.

The NRL admin spend on themselves has gone up considerably more so whilst they are putting caps on things, I hope they don't forget to put one on their own excessive waste of $$$.

 

[BuffaloRules]

No my take on this is

If a football club cannot manage its own books. First governance control is for the FC member to call a EGM and remove the CFO or the board

Next would be a points based penalty for financial mismanagement, eg every 5% of loss after LC grant has been applied to a loss greater than 10% of total revenue losses mean loss of 4 competition points

If they make $20 mil but lose $4 mil - then they get a 8 point penalty

Next penalty if they go into administration or after 5 years of mismanagement is to revoke their NRL licence, let the club revert to State Leagues and promote the next worthy candidate

It's a great argument in theory.But could you imagine the NRL just letting say the Knights and Titans die?

 

[siv]

Yes the clubs.

Any concerns with the Admin spending?

Who's Admin

NRL or the clubs ?

 

[BuffaloRules]

Who's Admin

NRL or the clubs ?

Compare the NRL admin costs now to when Gallop was in charge..

 

[siv]

It's a great argument in theory.But could you imagine the NRL just letting say the Knights and Titans die?

Seems to be one rule for Sydney based clubs

And a different rule for tegiobal clubs

As they have propped up or saved
- Auckland twice
- Gold Coast 3 times
- Knights
- Melbourne

Each has a different reason for struggling even though they are one city towns

But we don't see the Cowboys having issues

So the key thing to understand why these areas generate less revenue, but to offset this running costs are generally lower

 

[siv]

Propose a 3mill cap and settle at say 5mill. Point is that at 6mill there is heck of a lot of waste to the game.
Thing's that sound essential to the clubs to compete with the big spenders (how much do they spend on wrestling staff?) but adds zero value to the game on the ground and in some cases (wrestling staff) have sent the game backwards.
The game was pretty damn professional in 2012 when they were spending 1.8mill. Where is the 200% increase on spending going - does it all go on those bra's the players wear at training?

The problem.is it restricts clubs from growing

Lets say a club builds a nest egg and pays $9mil for a center of excellence ir buys real estate to house the admin staff to save on rent

Where does that sit ?

 

[BuffaloRules]

Seems to be one rule for Sydney based clubs

And a different rule for tegiobal clubs

As they have propped up or saved
- Auckland twice
- Gold Coast 3 times
- Knights
- Melbourne

Each has a different reason for struggling even though they are one city towns

But we don't see the Cowboys having issues

So the key thing to understand why these areas generate less revenue, but to offset this running costs are generally lower

I think your comments here explain why your earlier statement about dropping clubs out of the league won't happen...

The Storm could be indefinitely broke and never get punted, and to be honest I don't believe they should- too many $$$ have been thrown down that pit already, and I think the results with crowds and ratings are improving...

 

[siv]

Compare the NRL admin costs now to when Gallop was in charge..

Was always going to up as we changed

They tried to change too much too soon

Issue I see is duplication where the NRL wants to take over areas that are running fine eg Penrith

 

[TheFrog]

As they have propped up or saved

- Knights

It has taken some serious managerial ineptitude to get into trouble with the Knights. This is a club who can not only pull 15,000 when they haven't won a game in the last 15, but their crowd will think they are going to win. And even when they lose by 30, the crowd are back next time.

All Newcastle need is a decent football manager. One who can make the correct decisions in recruitment and retention, including not paying huge overs for unproven players. A Phil Gould is what they need, but he is also needed elsewhere.