NRL faces major turmoil as clubs threaten breakaway league

[T-Boon]

So T Boob's game would look like this:
Captain coaches
Unathletic specialist kickers
2 points for field goals
The t boon rule: 50/30 kicks or whatever nonsense it was
The game played in quarters

Spending less on football operations at the same time as making it more attractive.

This one is truly a special type of nanger.

I am unsure about 2 point field goals. Still thinking about it.
The so called 'T-Boon rule" is changing 40/20 to 30/50 and I am flexible about it. There are at least two other variations on the 40/20 rule that would achieve the same result I have brilliantly devised and bring about unbelievable game play.
Playing in quarters is essential. Its free money. $30mill a year for nothing.

 

[Von Hipper]

Well why don't you get working for a company that could develop the app instead of stunning us simple bogans on this forum with your superior intellect.

haha, I would love to, but it will have to be written in various programming languages, it will take time, and its very early stages, a lot of stars would have to align. It would take a lot of work. I think thats why the digital strategy costs a lot, I may have a concept, but a lot of groundwork needs to be laid.

Initially you would not do the 'end' app, you would make the core app and make it a hub or some such, you could do it in stages. In my view, as rudimentary now as it is, it would require a partnership at least in some sections, like a telco that wants to gather content and function as a content provider. Im not sure how they would set it up. If nrl did 30% of the whole thing with a view of doing a lot more, or contracted out various parts, I dont know.

I would think they would be making a new company. NRL Digital or something

 

[Stormwarrior82]

Assume your projected expenses are for 2018 when the new TV deal starts..

Wont the States be included in development budget?

What is associated with "Football" that doesn't fit into one of the other categories?

yes sorry that was for 2018.

I have copied the concise annual budget exactly the same way that it is in the 2015 annual report bar small amounts which i put in other.

No the figures for state and development were seperate. I'm also not sure if the $100 mil grassroots would be added to the amount or is a total of the development costs or state cost. this information is lacking and your guess is as good as mine about that.

Now Football i would assume is costs of running Nrl, SOO and International game day operations? just a guess. I feel they could cut some costs from here.

What i was getting at with those comparisons was its not hard to run up a $500mil expense.

The Nrl and clubs have different views on funding. The Nrl would like to teach or at least help them increase the clubs revenue so they aren't reliant on the Nrl so much. by using the analogy, If the Nrl gave the clubs money they would last a year or 2. If they showed or helped them make money they will be sustainable for a lifetime. which is my preferred approach. Where as the clubs want a percentage of total revenue no matter what.

 

[Lockyer4President!]

But what does it buy? We already have Facebook, twitter, instagram etc etc. we need an independent website and I can see nrltv service improving but what beyond the digital footprint the game has now will it get for $20mill a year?

Any examples of what we don't have now but could have in the future for this investment?

https://en.wikipedia.org/wiki/MLB_Advanced_Media

MLB Advanced Media (MLBAM) is a limited partnership of the club owners of Major League Baseball based in New York City and is the Internet and interactive branch of the league.

Robert Bowman, president and CEO of MLBAM, indicated in May 2012 that MLBAM generates around $620 million a year in revenue.[3] Forbes went as far as calling the company "the Biggest Media Company You've Never Heard Of".[4]

Obviously the NRL's digital arm will never be that big but it goes to show that when done right there is a lot of money to be made.

 

[siv]

Now looking at the Concise Nrl annual report they Spent $392 million ($374 mil with a $18 mil loss) in 2015.

now if everything rises with inflation topping $400 mil for 2016 is probable.

2015
Expenses (mil)
$100 Event, game and sponsorship
$42 Football
$12 Community and welfare
$28 Administration
$148 Clubs
$28 States
$28 Development
$4 other
Total $392 mil

now if all those amounts were increased due to inflation x 2 and what funds are promised we would get
2017
Expenses (mil)
$110 Event, game and sponsorship
$45 Football
$15 Community and Welfare
$30 Administration
$200 Clubs
$30 Development
$30 States
$5 Other
$100 Grassroots
$20-50 Digital dept
Total $585-$615 mil

now thats well above the $500 mil we have so its not that hard to use the money up. yes they could cut back on different areas of course but still it all ads up.

What is $100 mil on event game sponsorship ?

 

[Perth Red]

Why not? They've earnt it.
Say if it's a 10m cap and they get 13m.
That's 10m to pay the players what they deserve. That leaves 3m.
3m to cover coaching, front office, marketing, junior programs etc.
If the clubs want to spend more on top of that then it has to make the money themselves from sponsorship, memberships, merchandise, stadium deals/ticketing.
They can no longer use the excuse that they are overspending to keep up. That 130% should be enough to cover the bare minimums

Probably because history shows over the last few years that whatever a clubs revenue is they cannot be trusted not to spend above it, let alone put some aside for a rainy day. For most clubs one scandal and loss of sponsor, one bad year and drop in attendances, a bad year at the pokies or just some plain dumb decisions by the CEO can see them deep in the poo and needing an NRL bail out.

It's not that the clubs dont deserve more money it's more can they be trusted that no mater how much money the NRL throws at them they won't face another dragons, Titans, Knights, tigers sceneraio?

The NRL feels a responsibility for its brand and 16 team contract so it's not like normal franchising were if an owner is shite and goes bust the mother company lets them burn.

 

[Perth Red]

What is $100 mil on event game sponsorship ?

I suspect there is a number of those Line items created to hide admin costs of nrlhq

 

[Perth Red]

https://en.wikipedia.org/wiki/MLB_Advanced_Media


Obviously the NRL's digital arm will never be that big but it goes to show that when done right there is a lot of money to be made.

Cheers, that's interesting and explains the long term picture better. Hopefully the clubs can see the future rather demanding their pot of gold now.

 

[BuffaloRules]

yes sorry that was for 2018.

I have copied the concise annual budget exactly the same way that it is in the 2015 annual report bar small amounts which i put in other.

No the figures for state and development were seperate. I'm also not sure if the $100 mil grassroots would be added to the amount or is a total of the development costs or state cost. this information is lacking and your guess is as good as mine about that.

Now Football i would assume is costs of running Nrl, SOO and International game day operations? just a guess. I feel they could cut some costs from here.

What i was getting at with those comparisons was its not hard to run up a $500mil expense.

The Nrl and clubs have different views on funding. The Nrl would like to teach or at least help them increase the clubs revenue so they aren't reliant on the Nrl so much. by using the analogy, If the Nrl gave the clubs money they would last a year or 2. If they showed or helped them make money they will be sustainable for a lifetime. which is my preferred approach. Where as the clubs want a percentage of total revenue no matter what.

I think the issue is though that these expenses that we aren't really sure about are multiplying at a rapid rate...

I have no problems with the players sharing in the increased TV deal as its through their efforts and long term wear and tear on their bodies that is the product that TV is paying for and we are watching..,

I do have a problem with one line items in the annual report like "event game sponsorship" and "football" increasing 30-40 per cent in one year...can mean anything...

Then people whinge about the Clubs blowing money..

 

[Perth Red]

Especially when they lost $6.5mill in the line item with little explanation!

 

[T-Boon]

https://en.wikipedia.org/wiki/MLB_Advanced_Media


Obviously the NRL's digital arm will never be that big but it goes to show that when done right there is a lot of money to be made.

Nice. So in 2012 MLBAM generated $620m, call that $2 per head of population. So if that translated to Australia it might generate $40m per year.

 

[BuffaloRules]

What is $100 mil on event game sponsorship ?

This item was $70 mil the year before...

Not a bad increase in 12 months whatever it was used for...

 

[Von Hipper]

I think the issue is though that these expenses that we aren't really sure about are multiplying at a rapid rate...

I have no problems with the players sharing in the increased TV deal as its through their efforts and long term wear and tear on their bodies that is the product that TV is paying for and we are watching..,

I do have a problem with one line items in the annual report like "event game sponsorship" and "football" increasing 30-40 per cent in one year...can mean anything...

Then people whinge about the Clubs blowing money..

This is a slight read, but it will show you the thinking behind companies, revenue's, profit, growth, future, scaling, ect. Its often counter intuitive.


You are all too right though if we just consider it from the point of view where the clubs do not receive that money, instead....but its not just disappearing into thin air>> but it would be a waste if going forward [they will all determine, clubs+ARLC I think] if some of that was not pared back... . >>> One of the big ways to announce 'you're hear, you've come' is to put on a big 'do'. It represents something, and the scale is noteworthy and many things are addressed and much is seen, and people get the impression, and it makes a lasting impact, and gathers up a network of people, on the ground for the NRL/Rugby League.

The NRL had that huge season launch one year, they did the origin at the mcg and spent extra on it, and I suppose a bunch of other things like various functions; i remember them talking about it after the report came out. They have to service some of the extra revenue so its not like all that money is not getting a return, but its not something they would be continuing, I would think. Then there was the darling harbour thing and I forget the rest.

So I am thinking they shouted a bunch of sponsors and various people lunches/dinners and parties. Which is how you get things done, believe it or not. Remember to actually move people/sweep them up you have to put on a show. Its why parliament is all swanky and corporate functions can get out of hand.

Look at Google I/O this year - omg, it was like a stadium atmosphere. Then look at the subdued pixel launch - but the 250Million in advertising they spent -- ok, so the pixel phone will generate about 6 billion for them, but you got to spend to make. Don't worry, the relatively inert iphone will make 200B - but they are freaking out over that, especially with the new patent crisis (but win for the industry, in that 1 patent won't make an entire device [thats got 200+patents] unable to be done/sold/made, ect. Its a patent web out there...

**********

So the thing is there to note: Pixel/Goole spending heaps on growing revenues (from a small base for this phone/hardware division, 6b is still peanuts to them - they have 75B in the bank in cash, and its grown massively recently - most is offshore, so where they are based in USA they don't have full immediate access to it, but they can gather it up) and Iphone spending heaps (but not as much as other years I suppose) on shrinking revenues - but they did a whole bunch of cost cutting elsewhere (T Cooke is no dill) : BUT> when the iphone dies and it looks like it will, once the wave of iphone8 comes/goes, thats it for apple, they have nothing else to back it up from behind that is concrete. Aren't we lucky NRL will always be here? Ok, so iphone does have future in virtual reality a little, since they say they will skip that (could be a big mistake) but they want to do Augmented reality. I think they will be late to the party, but their whole thing is using other peoples tech in a more artsy way, however this time no Jobs and I doubt they will pull it off. Its not all roses on the google side with their big company they have in that field being rather secretive. You should be glad in the NRL we mostly know what is going on.

************

Whats my point there? Ok, they know they are going to get lean but they are still spending: but look at the revenues and profitability for apple (up 10% on less revenues): this is what will be on the mind of the ARLC. Then Apple refresh their other things> laptops, ect, and revenues will stop stalling on them, so its all tiny little boosts, but that segment is nothing like iphone.

Point here is, you'd be surprised how the figures all come together, and the NRL is a closed circuit. No fickle public.

Undoubtedly with such a massive revenue jump everyone in the NRL will be better off in the years to come. No doubt. The 100M sponsors, gameday, ect, thing will pale into comparison for what it is delivering even if they may look back and think they could have got more value from it. I mean, the Origin was huge, literally a super boost for the game and made people take notice, and the season launch was one of the best in living memory.

>>>>>It made a statement <<<<<<< and that was worth it.

The NRL will surely scale that all back going forward. There seems to be a bunch of one-time costs. Or they will determine to make them one-time costs.

Nice. So in 2012 MLBAM generated $620m, call that $2 per head of population. So if that translated to Australia it might generate $40m per year.

I think much like the 100M sponsor, gameday, ect, item thats money well invested. Its best to use it on those things rather than directly peel it off the face of the earth by throwing it at a wall down at clubs. Just think, not only do they not waste it on one end, but they get back a dividend on the other.

Sounds horrible if you're a "I'm a club man! - through and through!!!" type guy, but really its for the best. Overall its much, much more.

____

NOTE: Google is an advertising company essentially. They never advertise. Never need to, i.e Google dot com. For them to spend what 50M in a couple of weeks on some of the most valuable marketing real estate in the world (apart from google dot coms home page, though they did put the phone on there), and tv as well to boot, is significant. There's more to come yet.

For the NRL to spend that 100M was significant as well.

 

[taipan]

http://www.giants.com/team/staff.html
Just an average nfl team staff roster, including 4 video technicians, 2 dentist, 6 IT staff

Which NRL team needs dentists? Fill in the blanks.........................

 

[El Diablo]

isn't Perth Dickhead always telling us how great the AFL is?

http://www.couriermail.com.au/sport...l/news-story/197ed8ebb20803174a10ca089c2edf40

Patrick Dangerfield says players will not be backing down in their pay fight with the AFL

Lauren Wood, Herald Sun
December 7, 2016 12:12pm

BROWNLOW Medallist Patrick Dangerfield has declared players will not be backing down in their pay fight with the AFL.

The Geelong star, who is also an AFL Players Association board member, says strike action is not off the table if a settlement cannot be reached.

The players are hunting a set percentage-based pay model upon which they would receive a percentage of the game’s revenue each year, and the competition’s best player is adamant that the players have a “clear direction” in their demands.

“No doubt. No (we won’t be backing down),” he said.

“We have a clear direction from all 850 players we represent.

“It’s not until we get together with the entire playing group and when the delegates of 18 clubs will discuss these things. But nothing’s (including strike action in the preseason competition) off the table at the moment because as (Paul) Marsh has stated, we haven’t reached an agreement.

We’re a fair way away. So it would be good to sit down with the boss over the next couple of days and hopefully strike out a deal that’s fair for all parties.”

Players Association boss Paul Marsh recently told the Herald Sun that the ball is in the AFL’s court.

Two days of talks are set to begin Thursday with players from around the country gathering.

Dangerfield said he hopes it’s “not too far down the highway” for AFL chief Gillon McLachlan to attend after what he admitted has been a frustrating period of waiting for the league to respond.

“It is a bit (frustrating). As players, the game starts with us and we’re a part of the AFL,” he said.

“We understand there’s other areas of the game that need to be catered for as well. But without the players, there is no competition.

“(A preseason competition strike) a chance, but I’m not saying it’s a definite possibility.

“If nothing gets done, then we need to look at all avenues in order to secure a deal. At the moment, the AFL isn’t meeting with the PA. We’re not going to get anything done unless the conversation starts.”

The AFL is refusing to consider a percentage proposal, just as it did five years ago when former chief executive Andrew Demetriou emerged victorious after months of bitter negotiations.

That deal expired last month.

 

[DiegoNT]

Which NRL team needs dentists? Fill in the blanks.........................

Dragons now that they have Cameron Mcinnes

 

[taipan]

isn't Perth Dickhead always telling us how great the AFL is?

http://www.couriermail.com.au/sport...l/news-story/197ed8ebb20803174a10ca089c2edf40

Patrick Dangerfield says players will not be backing down in their pay fight with the AFL

Lauren Wood, Herald Sun
December 7, 2016 12:12pm

BROWNLOW Medallist Patrick Dangerfield has declared players will not be backing down in their pay fight with the AFL.

The Geelong star, who is also an AFL Players Association board member, says strike action is not off the table if a settlement cannot be reached.

The players are hunting a set percentage-based pay model upon which they would receive a percentage of the game’s revenue each year, and the competition’s best player is adamant that the players have a “clear direction” in their demands.

“No doubt. No (we won’t be backing down),” he said.

“We have a clear direction from all 850 players we represent.

“It’s not until we get together with the entire playing group and when the delegates of 18 clubs will discuss these things. But nothing’s (including strike action in the preseason competition) off the table at the moment because as (Paul) Marsh has stated, we haven’t reached an agreement.

We’re a fair way away. So it would be good to sit down with the boss over the next couple of days and hopefully strike out a deal that’s fair for all parties.”

Players Association boss Paul Marsh recently told the Herald Sun that the ball is in the AFL’s court.

Two days of talks are set to begin Thursday with players from around the country gathering.

Dangerfield said he hopes it’s “not too far down the highway” for AFL chief Gillon McLachlan to attend after what he admitted has been a frustrating period of waiting for the league to respond.



“It is a bit (frustrating). As players, the game starts with us and we’re a part of the AFL,” he said.

“We understand there’s other areas of the game that need to be catered for as well. But without the players, there is no competition.

“(A preseason competition strike) a chance, but I’m not saying it’s a definite possibility.

“If nothing gets done, then we need to look at all avenues in order to secure a deal. At the moment, the AFL isn’t meeting with the PA. We’re not going to get anything done unless the conversation starts.”

The AFL is refusing to consider a percentage proposal, just as it did five years ago when former chief executive Andrew Demetriou emerged victorious after months of bitter negotiations.

That deal expired last month.

Yeah the great AFL.Made a meal of the doping saga ,when the NRL had already put it to bed ,thanks to Smith.
Their arrogance showed no bounds.
The continued losses of the Lions ,the $93m plus losses of AFL clubs,with all their members yet some still relying on poker machine monies.
Their great Wellington invasion, which turned out to be a dud.
Now a Port Adelaide player, smashes a few cars, runs away and gets a one match ban.
They are a great sporting organisation, who can do no wrong.

 

[unforgiven]

But what does it buy? We already have Facebook, twitter, instagram etc etc. we need an independent website and I can see nrltv service improving but what beyond the digital footprint the game has now will it get for $20mill a year?

Any examples of what we don't have now but could have in the future for this investment?

Depends how at they want to go, especially on the NRLTV service. I know the NFL is not the most popular sport on here, but the NFL network and gamepass are examples of what can be done. As the name suggests NFL network is a 24 hour NFL station, with indepth footy show type shows, shows about past players and teams etc. The show "This football life" is awesome and focuses on the life of someone who has been involved in the game. Hard Knocks is another great show. These shows are all inhouse productions. Now a 24 hour online NRL network is highly unlikely but maybe the NRL want to create their own content for an NRLTV service that can be accessed on demand.

Gamepass is miles ahead of the NRL streaming service, on gamepass I can watch full or condensed games on demand in HD. They have a service called coaches film that allows me to watch the game from various angles of my choosing.

At the bare minimum we ae going to see the NRL and all clubs websites replaced, atm Telstra provides all of these and keeps all the advertising revenue generated. The NRL wants that Advertising $. I also feel that a NRLTV on demand service is a possibility as the game prepares to sell content directly to consumers sometime in the next 15-20 years. The NRL Rookie show my have been the NRL getting its toe in the water to producing it's own entertainment type content.

 

[BuffaloRules]

So this Rodney Dangerfield is "the competitions best player"?

Honestly have never heard of him...

 

[Diesel]

I saw Dangerfield written in the article but was picturing Danger Mouse

NFI who this Dangerfield is