NRL & Money

[doggzfan4lyf]

I always read about how the afl has this massive war chest of money and are about to spend $200 million in western sydney, just curious as to howmuch money the NRL actually has in its coffers? i dont know if anyone would know but any ideas? surely it should have a decent amount right?

 

[chrisc101]

I'm pretty sure Gallop answered this on the footy show during one of those 'game in crisis shows' during the year? The figure $50 million rings a bell, but I could be wrong.

 

[Goddo]

War chests are all relative to how good your income stream is in the future. Eg, Union after the 2003 world cup to now.

AFLs war chest is the result of very favourable TV deals, but it is unlikely they will be so lucky next time (I think it will only grow slowly if at all, even with more teams). With high overheads with two new teams, some current clubs struggling theirs will be wittled away quite a bit I think, but they will be okay, and worst case, they relocate teams to tasmania.

The NRL is building for 2013 as a huge year. All our media rights, restructuring, expansion, 2013 world cup all coming in the same year. It is shaping as a real cash cow year. It would be somewhere between $50-100m, and in adition, there would be whatever money the ARL has, which is used to grow the game at grass roots and for internationals.

On expansion, the Bears will be completely self sufficient from the get go, and if done right in QLD, WA or NZ would be as well. Government money would be needed for stadiums, but QLD would be very generous, in WA we have allies in the Force and Glory and NZ would be a "southern" francise using a variety of current stadia. WARL NZRL and QLDRL will all be support mechanisms for any new sides.

Lets not forget that NZRL and the NRL are both restructuring in the near future. Dispite all the Telcrap hype, the future is looking good for the NRL.

 

[chrisc101]

War chests are all relative to how good your income stream is in the future. Eg, Union after the 2003 world cup to now.

AFLs war chest is the result of very favourable TV deals, but it is unlikely they will be so lucky next time (I think it will only grow slowly if at all, even with more teams). With high overheads with two new teams, some current clubs struggling theirs will be wittled away quite a bit I think, but they will be okay, and worst case, they relocate teams to tasmania.

The NRL is building for 2013 as a huge year. All our media rights, restructuring, expansion, 2013 world cup all coming in the same year. It is shaping as a real cash cow year. It would be somewhere between $50-100m, and in adition, there would be whatever money the ARL has, which is used to grow the game at grass roots and for internationals.

On expansion, the Bears will be completely self sufficient from the get go, and if done right in QLD, WA or NZ would be as well. Government money would be needed for stadiums, but QLD would be very generous, in WA we have allies in the Force and Glory and NZ would be a "southern" francise using a variety of current stadia. WARL NZRL and QLDRL will all be support mechanisms for any new sides.

Lets not forget that NZRL and the NRL are both restructuring in the near future. Dispite all the Telcrap hype, the future is looking good for the NRL.

All good points, plus people forget how much more an AFL team costs to run in comparison to an NRL team, a combination of double the team rooster and higher player payments. If we get a strong boost on our tv rights this would go straight to the bottom line.

 

[Mooks Nephew]

War chests are all relative to how good your income stream is in the future. Eg, Union after the 2003 world cup to now.

AFLs war chest is the result of very favourable TV deals, but it is unlikely they will be so lucky next time (I think it will only grow slowly if at all, even with more teams). With high overheads with two new teams, some current clubs struggling theirs will be wittled away quite a bit I think, but they will be okay, and worst case, they relocate teams to tasmania.

The NRL is building for 2013 as a huge year. All our media rights, restructuring, expansion, 2013 world cup all coming in the same year. It is shaping as a real cash cow year. It would be somewhere between $50-100m, and in adition, there would be whatever money the ARL has, which is used to grow the game at grass roots and for internationals.

On expansion, the Bears will be completely self sufficient from the get go, and if done right in QLD, WA or NZ would be as well. Government money would be needed for stadiums, but QLD would be very generous, in WA we have allies in the Force and Glory and NZ would be a "southern" francise using a variety of current stadia. WARL NZRL and QLDRL will all be support mechanisms for any new sides.

Lets not forget that NZRL and the NRL are both restructuring in the near future. Dispite all the Telcrap hype, the future is looking good for the NRL.

The AFL's last 5 year TV deal was $750,000,000.00.
The next deal will eclipse $1,000,000,000.00 almost certainly on the back of the Gold Coast and Western Sydney expansion sides.
This is by far the biggest but by no means the only revenue stream which feeds the AFL. You could probably add another $300,000,000.00 to that to get the total 5 year revenue stream giving an average of $240,000,000.00 per year. Meanwhile the bulk of the individual clubs also make a tidy profit with only a few struggling at the moment but soon to be debt free after finalising infra-structure projects and sharing in the returns from the newly agreed stadium deals.

 

[Edwahu]

The AFL's last 5 year TV deal was $750,000,000.00.
The next deal will eclipse $1,000,000,000.00 almost certainly on the back of the Gold Coast and Western Sydney expansion sides.
This is by far the biggest but by no means the only revenue stream which feeds the AFL. You could probably add another $300,000,000.00 to that to get the total 5 year revenue stream giving an average of $240,000,000.00 per year. Meanwhile the bulk of the individual clubs also make a tidy profit with only a few struggling at the moment but soon to be debt free after finalising infra-structure projects and sharing in the returns from the newly agreed stadium deals.

Why would TV networks pay more for extra games which would be outrated by replays of the ABBA Movie? The only way the AFL will get a simmilar deal is if they stop forcing networks to show live games in states where they dont rate.

 

[Mooks Nephew]

Why would TV networks pay more for extra games which would be outrated by replays of the ABBA Movie? The only way the AFL will get a simmilar deal is if they stop forcing networks to show live games in states where they dont rate.

You obviously have no idea how television works.

I read on here how League is hoping to increase their TV rights deal.
You do realised the competition is owned by a single network?

You know....no competition.

AFL has three networks and the Pay Tv bidding.

 

[chrisc101]

You obviously have no idea how television works.

I read on here how League is hoping to increase their TV rights deal.
You do realised the competition is owned by a single network?

You know....no competition.

AFL has three networks and the Pay Tv bidding.

Sorry mate I don't agree, definitely think the AFL will get another big deal, and might get some growth on it, but in no way is GC and WS the 'golden goose' for the tv networks. For starters it totally messes up the balence of the comp which they have. You think about how many dud games there are in the AFL scheduling (a few but not too many), you are just about going to triple that with the new teams coming in. Port v WS, Melb v GC, NM v WS. Hardly a tv executives dream.

 

[Jatz Crackers]

The AFL's last 5 year TV deal was $750,000,000.00.
The next deal will eclipse $1,000,000,000.00 almost certainly on the back of the Gold Coast and Western Sydney expansion sides.
This is by far the biggest but by no means the only revenue stream which feeds the AFL. You could probably add another $300,000,000.00 to that to get the total 5 year revenue stream giving an average of $240,000,000.00 per year. Meanwhile the bulk of the individual clubs also make a tidy profit with only a few struggling at the moment but soon to be debt free after finalising infra-structure projects and sharing in the returns from the newly agreed stadium deals.

I particularly like the manner in which you specify the decimal place and the two zeros representing the cents. It adds clout I am sure.

 

[Edwahu]

I particularly like the manner in which you specify the decimal place and the two zeros representing the cents. It adds clout I am sure.

He is probably logging it in a spreadsheet somewhere.

 

[taste2taste]

I like Parra CEO Ocbournes quote in the tele,
by memory
"they may as well throw 200mil in a black hole, no one watches AFL its boring"

 

[taste2taste]

I like Parra CEO Osbournes quote in the tele,
by memory
"they may as well throw 200mil in a black hole, no one watches AFL its boring"

 

[Goddo]

mooks nephew, Kerry Paker's last moves media wise on this earth inflated the AFL rights. The reforms and expansion of the NRL commission and the current undervalueing of NRL rights along with, and write this one down, better ratings on pay and free to air when including regionals for NRL games, including the finals.

Don't get me wrong. the AFL will most certainly get more than $0.8b but won't get near the $1b. I think they will get around $0.85b mark, which is very healthy growth. The question is though, is it enough to cover all of the new expenses on top of current liabilities?

Part of the reason some NRL clubs are currently struggling is that David Gallop massively undersold NRL rights by maintaining the status quo between the ARL, ch9 and News Corp. There has been outrage over this since. With Titans, Rabbitohs, Bears and lets say Reds added to the competition along with the ratings, the NRL is getting ripped off big time right now. It will be looking for around $0.75b for its rights.

Also, you may not have heard, but David Gallop has been working on a plan to split the NRL's media rights.
Channel 7 has shown interest in Origin especially.
One HD will porbably be looking for maybe 1 NRL match a week concidering how badly it is hemeraging ratings with AFL in NSW/QLD.
9 will want to keep what it has but will have to bid more to get it in future.
International rights will no longer be sold by the NRL but RLIF, so its up for grabs.
Pay TV will be expected to pay more, concidering Toyota Cup (under 21s) games outrate super rugby and the top 63 shows on Pay tv this year were Rugby League.

EDIT: Club revenue in AFL is much larger, but the NRL has shown signs of improvement with membership drives and other forms of revenue previously not concidered important. Again, AFL are in front on this one, but with the NRL salary cap being covered by the TV deal from 2013ish, it allows clubs to grow.

 

[Goddo]

Gallop discussing these issues here (from january 2009 I think)
http://www.youtube.com/watch?v=iruJkhy6Ipk
http://www.youtube.com/watch?v=no4yunY3zyw&NR=1

 

[Perth Red]

Thing is the AFL's expansion chest isnt coming from the TV deals in the most part so they must have some massive other income streams. Didn't i read that 95% of the TV deal goes back to AFL clubs in direct grants. If so that leaves only 5% to run the whole AFL and spend big on expansion and propping up the struggling Melbourne clubs. They must have some great other income to be able to do this and still give clubs the majority of the TV contract.

 

[Marshall_magic]

I like Parra CEO Osbournes quote in the tele,
by memory
"they may as well throw 200mil in a black hole, no one watches AFL its boring"

I'm liking Ozzy, he doesn't buy into this mass hysteria, kind of like Searle on the Gold Coast. Ozzy on 9 news was asked if he was worried that Kelvin Shoddy was coaching the GWS team, his response was something like ".......who? Nah, not really worried at all"

 

[LeagueXIII]

League will get dudded in the next TV deal it's obvious as Gallop is resisting doing anything that will increase the games value. He has even come out and said the Bears will not be included until AFTER the next deal.

 

[Brutus]

mooks nephew, Kerry Paker's last moves media wise on this earth inflated the AFL rights. The reforms and expansion of the NRL commission and the current undervalueing of NRL rights along with, and write this one down, better ratings on pay and free to air when including regionals for NRL games, including the finals.

So in effect we can all thank Packer for the GWS and the Gold Coasy Gazzas.

The big clown's last move was really helping two new AFL clubs be formed.

A closet AFL supporter.

 

[$$Poor Boy Blues$$]

So in effect we can all thank Packer for the GWS and the Gold Coasy Gazzas.

The big clown's last move was really helping two new AFL clubs be formed.

A closet AFL supporter.

I can't believe we let him come in and take the game for granted. You got to watch powerful people if they want to sink their claws into you. Often in the past, the only way to take down a powerful man was by a sword or firearm. They are driven by their ego, fiercely competitive, like a dog with a bone they wont let go....I understand he was only protecting his territory and bashing the "other" guy....but I can never forgive what happened.

You got to watch them with their smooth words and inviting propositions, their visions and persuasivness, their diplomacy and positioning......then when it comes time to call a favour.....they are there with a noose and knife waiting for you to F-up, daring you to disrespect their authority so they can wind their screws into you a little further. He had league right where he wanted it. Then he mistreated it over something that amounts to a petty squabble and chest-beating - if it weren't for the fact that it cost league a huge sum of money and awarded our enemy with a massive sum - the last thing we wanted.

His favorite outcomes were high ratings - not the smiles on the faces of RL supporters. Its not hard for a media mogul to spin some crap about watching the game with love from his living room chair - even if he did.

Like Rome, RL should not tolerate another "king" or owner. It should own itself. And keep all the power for ITSELF. Let only symbiosis measure the furthering of anothers cause .

In life you should pay your way, with money or services or labour - and rise as high as you can with integrity and honesty and a good run - but to be held to the heel of something as abstract to RL as the whim on a media mogul who likes you under his thumb, is no life, and should never be allowed again. You are either the predator or the prey.

 

[Goddo]

I hope that the review of the list of free to air programs and the anti siphoning law reforms all pan out in our favour.

I hope though, that it comes too late for the AFL's next deal. I hope they sign when TV companies are all still struggling from the GFC, and the laws haven't been finalised, putting pressure on struggling melbourne clubs and the stupid expansion clubs.
I hope the market then fully recovers for the NRL as well as favourable media laws take effect, then we explode onto the scene with multi channel coverage and a much bigger TV deal.

That is best case scenario.