NRL posts $46m profit for 2018

[Nerd]

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.

AFL may be making more money from the ninth game than it costs to fund the Suns and GWS but both 7 and Fox would be taking a bath on games involving both these clubs and the Lions and especially when they play each other. Combine that with their 12% drop in ratings over the regular season last year and their loss in ratings to the NRL and it's not hard to imagine for the first time in a long while the NRL will walk away with a better deal than the NRL at the next rights. If the AFL rights value did drop, considering the amount of money the AFL is burning on the Lions, Suns and GWS it is possible the future of one of these clubs would be in jeopardy. The addition of a team in Perth would also add some competition to West Coast Eagles for spectators, viewers and sponsors.

 

[Perth Red]

AFL may be making more money from the ninth game than it costs to fund the Suns and GWS but both 7 and Fox would be taking a bath on games involving both these clubs and the Lions and especially when they play each other. Combine that with their 12% drop in ratings over the regular season last year and their loss in ratings to the NRL and it's not hard to imagine for the first time in a long while the NRL will walk away with a better deal than the NRL at the next rights. If the AFL rights value did drop, considering the amount of money the AFL is burning on the Lions, Suns and GWS it is possible the future of one of these clubs would be in jeopardy. The addition of a team in Perth would also add some competition to West Coast Eagles for spectators, viewers and sponsors.

There's a lot of what ifs and maybes in there lol. But yes if all of that happens it could.

 

[Perth Red]

AFL annual report out, Total revenue $778million. Massively more than NRL ($278mill more) Anyone who thinks the game can stay the same needs to wake up, the gap isn't closing.

 

[Captain Apollo]

....and it's not hard to imagine for the first time in a long while the NRL will walk away with a better deal than the NRL at the next rights.

I know its a typo, but it did make me laugh

 

[franklin2323]

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.

If you pay for Fox why would you pay for Netflix? Will be one of the other going forward

 

[franklin2323]

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.

How much would TV costs go up with the extra game though? That is what it will comedown to. As it is TV barely covers it's cost as it is now

 

[Cumberland Throw]

Just read the Giants and sun's normal afl grants are $23.5 m a year

Collingwood is $11m


How would the nrl clubs like it if say the Dogs grant was $8m a year and the gold coast Titans $17m a year ?

Does the NRL need to move to a fluid grant system if we are ever going to compete ?

 

[taipan]

Just read the Giants and sun's normal afl grants are $23.5 m a year

Collingwood is $11m


How would the nrl clubs like it if say the Dogs grant was $8m a year and the gold coast Titans $17m a year ?

Does the NRL need to move to a fluid grant system if we are ever going to compete ?

Not only $23.5m but an extra couple, of million due to their finances.
They NRL clubs wouldn't like it full stop.The NRL would no doubt assist in start up costs for a new team, then it would be a case of now do it off your own bat.
If the NRL had a couple of hundred spare million in the Bank, they might get away with it.I still doubt it.

 

[BlueandGold]

AFL annual report out, Total revenue $778million. Massively more than NRL ($278mill more) Anyone who thinks the game can stay the same needs to wake up, the gap isn't closing.

Now take away the Stadium revenue from that number.

 

[Last Week]

Now take away the Stadium revenue from that number.

Better. Their assets more than tripled in the last two years. Credit to them, they made a good deal when it was first built.

 

[Nerd]

There's a lot of what ifs and maybes in there lol. But yes if all of that happens it could.

Not really. The AFL are burning money at a massive rate on the 3 northern expansion teams. The only real conjecture would be if the NRL could get more in the next deal than the AFL. Considering Uncle Ruperts age it's a fair call that he won't be involved in any future negotiations.

 

[Perth Red]

How much would TV costs go up with the extra game though? That is what it will comedown to. As it is TV barely covers it's cost as it is now

Fox and Ch9 profits are up.

Needs to be worth around $30mill, or it needs to be used to further the games sustainability long term. Possibly by being a unique offering on NRL's digital platform?

Current TV deal works out at about $36mill a game

Not really. The AFL are burning money at a massive rate on the 3 northern expansion teams. The only real conjecture would be if the NRL could get more in the next deal than the AFL. Considering Uncle Ruperts age it's a fair call that he won't be involved in any future negotiations.

They’ve been doing that for decades, they are well set up to manage the cost of expansion.

Nrl will have to have something significant to offer to not only close the current gap but overtake them. The fear is in doing so it may cause even more damage elsewhere, like in attendances.

 

[franklin2323]

Fox and Ch9 profits are up.

Needs to be worth around $30mill, or it needs to be used to further the games sustainability long term. Possibly by being a unique offering on NRL's digital platform?

Current TV deal works out at about $36mill a game




They’ve been doing that for decades, they are well set up to manage the cost of expansion.

Nrl will have to have something significant to offer to not only close the current gap but overtake them. The fear is in doing so it may cause even more damage elsewhere, like in attendances.

Ch9 lose money someweeks. Overall they are fine but Origin and Finals help that

Look at Sat on Fox. Christchurch, Townsville into Bathurst.

All those cameras, staff to man the equipment etc. I doubt Fox makes a profit on weeks like this.

I am all for expansion BUT it isn't as straight forward for broadcasters

 

[Perth Red]

Ch9 lose money someweeks. Overall they are fine but Origin and Finals help that

Look at Sat on Fox. Christchurch, Townsville into Bathurst.

All those cameras, staff to man the equipment etc. I doubt Fox makes a profit on weeks like this.

I am all for expansion BUT it isn't as straight forward for broadcasters

Businesses don’t make decisions on weekly profit and loss forecasts!

 

[franklin2323]

Businesses don’t make decisions on weekly profit and loss forecasts!

They aren't an neverending pool of funds though either. Lets say it costs $500k in costs for a game. It adds $13m a year to TV costs.. Who wears that? So these things can be dragged out for such reasons

 

[Perth Red]

They aren't an neverending pool of funds though either. Lets say it costs $500k in costs for a game. It adds $13m a year to TV costs.. Who wears that? So these things can be dragged out for such reasons

Well that would be where your sales team shows the tv stations how much extra value to them a ninth game of content is. Maybe we need to bring in whoever negotiated the afl tv deal as they managed to sell them in two tv deals two clubs no one really wants to watch for $50mill a year!

Depending on how serious the nrl is about it’s own digital subscription channel it might be an opprrtuunity to start creating unique content for its own channel to drive subscriptions?

 

[franklin2323]

Again though start up and production costs would be an issue to do it all in house.

Plenty of time to get it sorted though

 

[Cumberland Throw]

Businesses don’t make decisions on weekly profit and loss forecasts!

Wow some smart people on here .

Billion dollar business don't do weekly profit and loss statements ffs..

Hahaha Uber is losing $500m month.. but is probably going to worth $125B when floated..

And all the cameras are run by a private contractor who does it on fox and 9 behalf.. they have a yearly contract price.. they don't put it up for trips to Bathurst ffs

 

[franklin2323]

Wow some smart people on here .

Billion dollar business don't do weekly profit and loss statements ffs..

Hahaha Uber is losing $500m month.. but is probably going to worth $125B when floated..

And all the cameras are run by a private contractor who does it on fox and 9 behalf.. they have a yearly contract price.. they don't put it up for trips to Bathurst ffs

So who pays the extra cost?

 

[Cumberland Throw]

Fox and Ch9 profits are up.

Needs to be worth around $30mill, or it needs to be used to further the games sustainability long term. Possibly by being a unique offering on NRL's digital platform?

Current TV deal works out at about $36mill a game




They’ve been doing that for decades, they are well set up to manage the cost of expansion.

Nrl will have to have something significant to offer to not only close the current gap but overtake them. The fear is in doing so it may cause even more damage elsewhere, like in attendances.

Thanks for doing the calculations PR

Per game the nrl get $36m a year

To get 1 more game you need 2 new teams

We would hope the contract goes up to $50m a game by 2023

Gives you $25 m / club

Grant will be probably $16m

So it gives you $9m over and above a year to support a Perth side to break even ..

And you would think Brisbane 2 would not need $9m top up at all... Maybe $2 m a year to get them set up

On these numbers I'm not sure why we are talking re location at all..

And the bonus is nrl is a 95 minute game we can squeeze games in on sat arvo sun arvo or Monday god forbid