NRL posts $46m profit for 2018

[BlueandGold]

Is that $280M for the stadium or something else?

Yes the AFL borrowed 280m to buy Marval Stadium.

 

[Cheesie-the-Pirate]

Yes the AFL borrowed 280m to buy Marval Stadium.

I think only about $180m-$200m of the facility was used to purchase the stadium, the rest was related to other projects.

 

[BlueandGold]

Is that $280M for the stadium or something else?

200m for stadium and 80m set aside to run the stadium for 10 years i believe.

 

[Perth Red]

Good to see they’ve 2017 deficit around but not that impressive considering Smith managed same result in first year of last tv deal with $200mill less revenue. Grassroots funding clearly got screwed due to the extra club grant agreement, from a promised $20mill a year increase to an actual $7.5mill.

2018 (000’s)
Media revenue 317,992
Non media revenue 178,850
Total revenue 496,842 (up 141,500)

Where it was spent
Event, game and sponsorship (83,757) (up$9mill) mostly due to extra digital spend
Nrl Comp costs (21,845) (up $1.8mill)
Community and player welfare (16,010) (down $300k)
Integrity and salary cap (3,864) (up $100k)
Admin (18,559) (up $800k)
Insurance and finance cost (13,986) (up $11.5mill) due to advance of tv deal spent in 2017
NRL club grants (222,760) (up $65.7mill)
States and affiliates (38,111) (up $5.3mill) mostly increased grants to second tier clubs, reduction in funding to nzrl
Development (35,125) (up $2.3mi) extra $2.6mill spent on women’s game

Surplus 42,825mill

Some interesting bits in the financials

Knights sold for $3.4mill (Titans year before sold for $3mill)
Grassroots promised an extra $54mill 2019-2022
Mercy royalties dropped $2.4mill to $11.4mill
Digital revenue jumper from $6.5mill (2017) to $23.5mill
Game receipts dropped $9mill to $45.8mill

 

[taipan]

Except in 2013 the start of the TV deal and Smith's tenure( with Smith) drawing comparisons to 2018

Revenue 2013 $303.375m 2018 $496.842m est 64% increase yes $193m less in 2013.

However
Event game and sponsorship contras( excl contras) were $44.489m in 2013 as opposed to 2018 costs of $83.757m
Football costs $9.597m in 2013 as apposed to $21.845m in 2018
Admin $15.550m in 2013 as opposed to $18.559 in 2018
Insurance $2.365m in 2013 as opposed to $13.986m in 2018

Costs 2013 $89m costs 2018 $158m before distributions to clubs states/development
Available to distribute $214.660m n 2013 $338,821m in 2018


2013
Roughly $168m distributed in 2013 $132.28m to clubs
States and Affiliates in 2013 $16.3m
Development $20.739m in 2013

Whereas in 2018
Distributed $222,76m to clubs (up 68% on 2013 )higher than revenue increase to 2013
$38.111m to States and Affiliates (more than double 2013)
$35.125m to development.(50% up on 2013)

We can play with figures as much as we want ,and lavish praise on Smith.The facts are the profits were similar ,and more expended in club distributions % wise than 2013.We can argue on what clubs should or shouldn't receive.WE made profits in 2013 and 2018 and you still bring up a perceived negative .

Also digital revenue increased from $6.583m in 2017 to $23.593m in 2018.The very department in which you bagged the NRL on these threads for spending large sums on digital,for which the 2018 results tends to indicated they knew what they were doing.

And I note on League Life tonight in a. general discussion in the state of the game, with admin and high profile people within the game,that little was done discipline wise with prior administrations on player behaviour.Those prior admins included Smith and Gallop.
As Stuart pointed out ,this clamping down should have been done years ago by prior admins, and he applauded, as did Lumby and Go, Greenburger for putting his foot down.
Carney and Barba should have never even got to the stage they did IMO.

 

[Perth Red]

As a % of revenue the games profit in year one of this tv deal was less than in the last one. That is fact. You can argue if that is a good or bad thing but it doesn’t change the fact.

As for digital, I am pleased to eat some humble pie on that one, it is a significant revenue increase, and as long as it continues increasing it will eventually make a return on the $100million they plan to spend on it.

The insurance massive jump is in fact due to advanced payments of the tv deal to clubs last year, not insurance per se.

With the game making a $46mill surplus every year no reason they can’t find $30mill to fund expansion I guess?

 

[taipan]

As a % of revenue the games profit in year one of this tv deal was less than in the last one. That is fact. You can argue if that is a good or bad thing but it doesn’t change the fact.

As for digital, I am pleased to eat some humble pie on that one, it is a significant revenue increase, and as long as it continues increasing it will eventually make a return on the $100million they plan to spend on it.

The insurance massive jump is in fact due to advanced payments of the tv deal to clubs last year, not insurance per se.

With the game making a $46mill surplus every year no reason they can’t find $30mill to fund expansion I guess?

I'm arguing on that very basis and where the money was allocated.Smith at times did not allocate as a proportion of revenue ,as did the admin in 2018.
Insurance premiums have increased in 5 years ,if you believe they have remained unchanged, hello to dreamland.They do have an impact.Costs in 5 years hardly remain unchanged.
And Smith, like Gallop before him did not clamp down as a code ,re player requirements on behavioural matters.Just left it to the clubs.
You're only eating humble pie now, because it's been brought to your attention publicly.

If the code continues to make $45-$50m they can paint the town red in every state, AFAIC.
I tell you what, if these clowns continue to bring the game down off field, we'll be lucky to make $5m.

 

[Perth Red]

I'm arguing on that very basis and where the money was allocated.Smith at times did not allocate as a proportion of revenue ,as did the admin in 2018.
Insurance premiums have increased in 5 years ,if you believe they have remained unchanged, hello to dreamland.They do have an impact.Costs in 5 years hardly remain unchanged.
And Smith, like Gallop before him did not clamp down as a code ,re player requirements on behavioural matters.Just left it to the clubs.
You're only eating humble pie now, because it's been brought to your attention publicly.

If the code continues to make $45-$50m they can paint the town red in every state, AFAIC.
I tell you what, if these clowns continue to bring the game down off field, we'll be lucky to make $5m.

You’re right, Smith should have come down on those drug cheating players much much harder!

Interestingly think I read this deal the revenue isnt split 1/5th like previous ones and is incremental.

 

[taipan]

You’re right, Smith should have come down on those drug cheating players much much harder!

Interestingly think I read this deal the revenue isnt split 1/5th like previous ones and is incremental.

ASADA and Smith actually.
At last you agree Smith was out of his depth, after years in banking.Loved all the entertaining.
He and Gallop also should have come down harder on the Carneys,Barbas.

Whatever the revenue split is, we know the next 5 years were well up and expenditure was up accordingly.And admin costs were chopped.
It's a real pity, you didn't come out when 2018 digital profit was announced, stating ,I was wrong.Humility .

 

[Perth Red]

Wasn’t carney kicked out of the NRL?
And the guy that went easy on Barba we made ceo, can’t understand why we are now in this clusterfck situation re players behaviour and game culture lol

Re digital was waiting for financials before judging and like said happy to be proven wrong on this one. Still a long way to go to recoup the investment that is being made but a great start last year.

Surplus this year was around 8%, be nice to think the nrl plans to achieve same each year of this deal to build a nest egg(like Smith was planning) ready for future investment like expansion and in case next tv deal is reduced. First two years, under smith, were on target for the future fund then we slipped into deficit years and club bail outs that ate all the egg up leaving us with nothing at the end of the windfall. Hopefully lessons learnt this time, the tv golden goose may stop laying eggs one day.

 

[Nerd]

NRL swimming against the stream when it comes to TV rights, expansion

Netflix and Stan will decide the fate of Sydney’s nine NRL clubs in any move towards expansion.

The streaming services have nothing to do with rugby league but, ultimately, the money secured in the next TV rights deal will guide the game. And with consumer money pouring into streaming, there might not be a big pot left for league.

This situation will influence every decision about the game, including expansion and/or relocation.


TODD GREENBERG
Cash and carry: NRL considers offering money for clubs to relocate
The ARLC is acutely aware of this; acutely aware operating budgets may fall.

In all the expansion and relocation debate, there really is only one certainty: there will be a second Brisbane team. It's a no-brainer and the powers that be know it.

The growing talk about Perth is just that, talk.

The NRL winces at how much money the AFL has pumped into the GWS Giants and Gold Coast Suns: $100 million each. And rising. The prospect of less, or even the same, TV money will end the hopes of any Perth NRL team. Getting excited about a packed house for a one-off Origin match in a new AFL/cricket stadium will get us nowhere.

How will it look when Perth play the Titans on a Saturday afternoon?

The game most likely will not have the luxury of matching the AFL and pump $100 million into a team in a non-heartland state.

Phil Gould this week spoke about 20 teams in two conferences. In a perfect world, this would be the future. But are there enough good players for that? Is there anywhere near enough cash around for that? Sadly, no.

Money will drive all decisions and the uncomfortable truth for fans is the Sharks and Manly are the two clubs most vulnerable to relocation as a possible second Brisbane team. To a lesser extent, Wests Tigers. Financial viability, or the lack thereof, will be the only factor that results in a club being moved.


NRL 2019
Greenberg peers towards Perth on expansion front
There is zero appetite among the ARLC to forcibly move a club. Memories of the South Sydney protest in 2000 burn bright. The last thing the game needs is fans marching down George Street.

The Sharks and Manly have teetered on the edge of financial disaster seemingly forever.

They continually rely on 11th-hour saves from benefactors and, in the case of the Sharks, promises of developer money for apartments and shops on adjacent land. A story/promise that goes around and around …

Manly have the Penn family, but how deep is their commitment? They don’t want to pump big money into the Sea Eagles, but can’t part with the club either.

Wests Tigers looked dreadfully shaky a few years ago when the NRL propped them up. Under former chair Marina Go, the club righted itself. The Balmain side is on life support, but the Wests side is strong. Money from the powerful Wests Ashfield club helps.

Greenberg has put himself under pressure, declaring he has this season to put together a concrete plan.

There won’t be one by the end of the season because uncertainty about TV revenue will remain.

https://www.brisbanetimes.com.au/sp...s-to-tv-rights-expansion-20190321-p516db.html

Speaking of rights deals the above is from an ex Newscorp tosser called Neil Breen. What he fails to mention is that if the NRL is looking at less in the next TV deal what will happen to the AFL. With AFL ratings plummeting 12% for their regular season last year their own TV deal looks set for a massive drop in value. At least the NRL still has the expansion carrot to dangle where as the AFL have already done their (failed) expansion.

 

[Whip Whitaker]

Does anybody have access to an article behind a pay wall about the Cowboys needing 30 million from the Government to survive?

 

[T-Boon]

Does anybody have access to an article behind a pay wall about the Cowboys needing 30 million from the Government to survive?

what do they need Greg Normans yacht to get around in?

 

[T-Boon]

I could be mistaken but Netflix and to a lesser extent Stan are probably negatively effecting free to air, not Fox.
Free to air can die a painful death in my opinion.

 

[Last Week]

Does anybody have access to an article behind a pay wall about the Cowboys needing 30 million from the Government to survive?

It's about a centre of excellence. It's going to cost $45 million to build and the Cowboys are putting in $15 million and need a government to put in the rest.

Its the biggest beat up headline you could imagine.

 

[axl rose]

Does anybody have access to an article behind a pay wall about the Cowboys needing 30 million from the Government to survive?

Beat up. They want a new training facility and need the government funds. They are not in any 'financial ruin'.

The North Queensland Cowboys — one of the NRL’s proudest clubs — is fighting for survival. A Sunday Mail special investigation can reveal the Cowboys require $30 million in urgent funding to build a new headquarters that will represent the final plank in their move to a state-of-the-art stadium in Townsville next season.

Cowboys chairman Laurence Lancini is lobbying the highest levels of government, including Prime Minister Scott Morrison, in a desperate bid to secure the multimillion-dollar lifeline that will guarantee the club’s long-term future.

The Cowboys’ proposed new training base and stadium. “We need help,” Lancini said.

“We’ve got nothing so far. Zero. We need to pick up $30 million in government funding.

“Back in 2002, we were a few days away from closing the doors to this club.

“We were just about broke … it can’t happen again.”

The Cowboys last week unveiled plans to construct a Community, Training and High Performance Centre, which will be situated adjacent to the opulent $250 million North Queensland Stadium that will be operational for round one of the 2020 NRL season.

But the Cowboys are facing a crippling financial scenario. Construction of the new training facility will cost $45 million. Lancini says the club can afford to contribute $15m, but without state and federal government aid, the project will not get off the ground.

The club needs support to remain a competitive and viable franchise. Time is ticking. Just 12 months out from the Cowboys’ first home game of 2020, they have not received a cent to build the training base that will go hand-in-hand with their presence at North Queensland Stadium.

“We’ve got nothing so far. Zero,” Lancini said.

That presents a major headache for the region’s flagship sporting team. With their current home ground, 1300 Smiles Stadium, to be demolished next year, the Cowboys must vacate their increasingly antiquated training set-up within 18 months to establish a long-term footprint in Townsville’s CBD.

Laurence Lancini is calling for help at the highest level. In the short-term, the NRL’s annual $13 million grant to each of the 16 clubs, which exceeds the current $9.6m salary cap, will give the Cowboys a financial buffer.

But Lancini fears that without a new home, the Cowboys will be left on death row as local juniors flee the region in search of better opportunities at other NRL rivals.

In the past three years, four NRL rivals — the Broncos, Newcastle, Penrith and South Sydney — have either built or begun work on High Performance Centres costing at least $20 million.

The state and federal governments committed more than $15 million to the Broncos’ $27.2m Clive Berghofer Centre, which was opened last year — underlining the professional chasm between the Cowboys and their Queensland archrivals.

“The Broncos have a wonderful facility, by comparison we are in the backblocks,” Lancini said.

“If we don’t get the help we need, our survival is under threat. That’s not an overstatement, that’s a fact.

“Think about this. North Queensland breeds a lot of talented young players but if we don’t give them the facilities to make them bigger and better NRL players, they will not choose our club.

“Our best local products will go to places like the Broncos or Penrith.

“If we don’t keep up with the modern facilities in the current age, we will go downhill. It would have a major impact on our roster, our club and our finances.

“If we can’t compete, there is no doubt it will have significant effects on the viability of the Cowboys.

“There is no question.”

Lancini stressed the proposed facility is not strictly for Cowboys use. The 17,000-square metre site will be a multipurpose community asset housing medical, sports science, research and rehabilitation services involving James Cook University and the Mater Hospital.

As part of a Memorandum of Understanding, the Cowboys will support women’s sport, including the Townsville Fire, and preside over an indigenous arm involving training, education and charity work.

Keen to expedite funding for immediate construction work, Lancini — one of Australia’s most successful property tycoons — has reached out to the Prime Minister.

The club just wants the same help as its competitors.

“We need help from governments to chip in and help us,” he said.

“This facility would be for the people of north Queensland, not just the Cowboys. We can fund part of it, but we simply can’t afford it all ourselves.

“I’ve met with both sides of government. At this stage they are listening. We are sending information to them. The Prime Minister and Opposition Leader know all about it.

“There’s been no commitment from them to date but we’re hoping for a commitment from both sides on the table very soon.”

The Cowboys have already received generous support. The state and federal governments provided $240 million collectively to build the Cowboys’ shiny new jewel, North Queensland Stadium, in the wake of their famous 2015 premiership victory.

Queensland Rugby League board member Ben Ikin, a former Cowboys board appointment, urged government officials to “finish the job”.

“The Broncos have had huge government support, including upgrades to Suncorp Stadium,” Ikin said.

“It’s one thing to have a venue you can play out of, but it’s equally important to give an organisation the resources it needs to inspire an entire region with a cutting-edge work environment.

“For the Cowboys to have continued success, it’s important they offer best practice and to do that they need the right facilities.

“The Cowboys are striving to be industry leaders. The government needs to recognise the Cowboys are not just an NRL club — they are so much more than that up there.

“When young men decide whether to play for the Cowboys or Broncos or a Sydney club, the decision is largely influenced by the facilities a club can provide.

“If the Cowboys want to inspire their local talent to stay, they have to keep pace with the rest of Australian sport.”

 

[kdalymc]

$46m and they couldnt make a decent logo

 

[Diesel]

It's about a centre of excellence. It's going to cost $45 million to build and the Cowboys are putting in $15 million and need a government to put in the rest.

Its the biggest beat up headline you could imagine.

I’ll assume it’s a typical News Ltd headline

 

[Hello, I'm The Doctor]

NRL swimming against the stream when it comes to TV rights, expansion

Netflix and Stan will decide the fate of Sydney’s nine NRL clubs in any move towards expansion.

The streaming services have nothing to do with rugby league but, ultimately, the money secured in the next TV rights deal will guide the game. And with consumer money pouring into streaming, there might not be a big pot left for league.

This situation will influence every decision about the game, including expansion and/or relocation.


TODD GREENBERG
Cash and carry: NRL considers offering money for clubs to relocate
The ARLC is acutely aware of this; acutely aware operating budgets may fall.

In all the expansion and relocation debate, there really is only one certainty: there will be a second Brisbane team. It's a no-brainer and the powers that be know it.

The growing talk about Perth is just that, talk.

The NRL winces at how much money the AFL has pumped into the GWS Giants and Gold Coast Suns: $100 million each. And rising. The prospect of less, or even the same, TV money will end the hopes of any Perth NRL team. Getting excited about a packed house for a one-off Origin match in a new AFL/cricket stadium will get us nowhere.

How will it look when Perth play the Titans on a Saturday afternoon?

The game most likely will not have the luxury of matching the AFL and pump $100 million into a team in a non-heartland state.

Phil Gould this week spoke about 20 teams in two conferences. In a perfect world, this would be the future. But are there enough good players for that? Is there anywhere near enough cash around for that? Sadly, no.

Money will drive all decisions and the uncomfortable truth for fans is the Sharks and Manly are the two clubs most vulnerable to relocation as a possible second Brisbane team. To a lesser extent, Wests Tigers. Financial viability, or the lack thereof, will be the only factor that results in a club being moved.


NRL 2019
Greenberg peers towards Perth on expansion front
There is zero appetite among the ARLC to forcibly move a club. Memories of the South Sydney protest in 2000 burn bright. The last thing the game needs is fans marching down George Street.

The Sharks and Manly have teetered on the edge of financial disaster seemingly forever.

They continually rely on 11th-hour saves from benefactors and, in the case of the Sharks, promises of developer money for apartments and shops on adjacent land. A story/promise that goes around and around …

Manly have the Penn family, but how deep is their commitment? They don’t want to pump big money into the Sea Eagles, but can’t part with the club either.

Wests Tigers looked dreadfully shaky a few years ago when the NRL propped them up. Under former chair Marina Go, the club righted itself. The Balmain side is on life support, but the Wests side is strong. Money from the powerful Wests Ashfield club helps.

Greenberg has put himself under pressure, declaring he has this season to put together a concrete plan.

There won’t be one by the end of the season because uncertainty about TV revenue will remain.

https://www.brisbanetimes.com.au/sp...s-to-tv-rights-expansion-20190321-p516db.html

Speaking of rights deals the above is from an ex Newscorp tosser called Neil Breen. What he fails to mention is that if the NRL is looking at less in the next TV deal what will happen to the AFL. With AFL ratings plummeting 12% for their regular season last year their own TV deal looks set for a massive drop in value. At least the NRL still has the expansion carrot to dangle where as the AFL have already done their (failed) expansion.

Clearly had a deadline with nothing to write. Were there ANY quotes?

I actually think streaming will be huge for NRL particularly with them owning one of the providers.

Forgetting the benefit of individualised account (very specific customer info and targetted ticket/merch offers), the NRL Telstra app is finally a decent competitor to FOX. If FOX lowballs the offer, NRL can just offer few games and host exclusive matches on the app.

FTA is dying, but their was never much money in that to begin with. The bigger benefit of that is the advertising and exposure (which is why i cannot understand the decision to stay at C9). Even if the NRL need to sell their FTA matchs to the ABC, the comp will still to very well out of the total deal.

 

[Perth Red]

Article is riddled with holes, assumptions, make believe and poorly thought out arguments. But thats the media for you. Catchy doom and gloom RL headline as usual though!

Some facts:

AFL is making more from the sale of their ninth game content than it is costing to fund the Suns and GWS. AFL also had a long term plan for this and has a grant system that supports its extra costs of expansion.

Ch9 and Fox profits are both up.

No TV deal has ever been less. There is no evidence or reason the next one wont follow the last few decades of increases. Yes people will be digesting their media differently but they will still want NRL content.

The game wont need to pump $100mill into a non heartland team, it will need the same $13.5 mil as everyone else plus a little set up and early growth support, if done properly.

Games in Perth have been selling out regularly for last few years culminating in a record breaking 38.8k at last years double header, hardly one off Origin game situation.

There will always be uncertainty about TV $'s, its a 5 year cycle! There will be a plan by end of year, if we get to hear about it, or like it is another matter.