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...
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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.
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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.
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.
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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.
