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NRL rebellion: Rugby league clubs want CEO Dave Smith gone or threaten to leave comp

RoosTah

Juniors
Messages
2,257
Great summary in the SMH today as to why the Super League war is almost impossible to repeat today:

Why Super League Mk II can never happen


On the proviso you're reading this column in the fortress of solitude that is your own lounge room – not reclining in some mung bean-themed Eastern Suburbs cafe – then try this. Walk over to the nearest floor-to-ceiling wall. Standing side-on to the wall, wedge your foot as close as physically possible to the junction of wall and floor.

Next, stand bolt upright so your left hip and shoulder each touch the wall, along with your foot. Finally, without losing any of these three contact points, crane your neck so that your left ear – yes, you guessed it – rests against the wall. By this stage your feet will likely be quite close together. Now, slowly lift your right foot by extending your leg outwards, in the direction diametrically opposite to the wall … as high as you can.

For those playing along at home, by now you KNOW how this experiment ends. For those brunching alfresco in the Tamarama sun, let's just leave it by saying some things are physically impossible.

Equally, no amount of tactical sang-froid will bring about a panacea to a devilishly complex problem, when the solution is premised with legal improbabilities blended with commercial lunacy. The chatter and scaremongering heralding the potential for "Super League Mk II" would be oh, so boring; if the suggestion was itself not so ludicrous.

The structure of the top rugby league premiership competition, played in Australia in the early 1990s has as much in common with the structure of the current NRL as a mung bean salad has in common with a chocolate sundae. Until 1994 the NSW Rugby League ran the elite competition. In 1995 control was ceded to the Australian Rugby League, for reasons including that teams from Queensland, Western Australia and New Zealand now participated.

Yet the actual arrangements existing between the ARL and the clubs were vague. Clubs weren't bound to the ARL by anything like iron-clad agreements. Rather, the clubs were rusted onto the ARL by trust, and an assumption of loyalty. That fidelity did not, in many cases, prove impervious to the penetration of Rupert Murdoch's gigantic can of golden WD-40.

When "peace in our time" was declared in 1998, ending the "Super League War", what remained of the ARL was teetering on the edge of a financial cliff. The union of the ARL and News Limited, in forming the NRL Partnership that controlled the elite competition until 2011, was a marriage of convenience. And all the while, News Limited had slipped a noose around the neck of the sport by securing effective control over the game's media rights for the next quarter century, as a key term of rugby league's own Treaty of Versailles.

Fast-forward a decade and a half. The negotiations that finally ejected News Limited from part-owning the NRL were horrendously complex; the parlaying took years. But however complicated those discussions were, one thing is certain: all parties knew exactly the terms of the bargain.

The ARL Commission – formed in 2012, and itself the exact same company that was the ARL - exists with the core objective of being the single controlling and administrative body for rugby league in Australia. This includes running the NRL (which it does through a separate, wholly-owned subsidiary company) and State of Origin; however the ARLC has equal responsibilities to foster, develop and fund the game at all levels.

The voting stakeholders in the ARLC comprise the 16 NRL clubs, the NSW and Queensland state governing bodies, and the eight ARLC directors; but voting powers are unequal. The reason the directors are members is to dilute the voting strength of the NRL clubs. Strict tests of independence from stakeholders must be satisfied before any person can be a director.

There is nothing stopping the ARLC's members demolishing the commission model, and starting afresh. However to do so, 15 of the 16 clubs AND both state governing bodies must agree. That will not happen while the ARLC owns two NRL clubs.

Fourteen clubs, or alternatively ten clubs and the two state bodies could together vote to remove any director, such as John Grant; however his replacement is selected by the remaining directors, NOT the clubs (who can only appoint directors in certain discrete or catastrophic circumstances).

As for chief executive Dave Smith, he is one step further insulated than even the directors. The CEO is appointed at the pleasure of the board, and Smith knows it. If the clubs seek to pass some type of "no confidence" motion, as has been mooted, its effect would be a nullity. Apart from being entitled to vote on a very limited number of matters, NRL clubs have no real voice at all under the ARLC's constitution.

Moreover, commercial problems abound. NRL clubs do not own their own brands. Penrith doesn't own the panther; nor does Canberra have title to the raider. Rather, the ARLC owns all club trademarks, and then licenses those logos back to the clubs for limited marketing, merchandising and sponsorship purposes. Though this issue alone wouldn't stop a club leaving, the "Penrith Piranhas" doesn't have any heritage or quite the same pizzazz.

Also, careful examination would be required as to what promises clubs have made to the ARLC, to not "compete" with the NRL competition by participating elsewhere. It stands to reason - bearing in mind the Super League debacle - that clubs playing in the NRL undertake, in their participation agreements, to do so exclusively. But it would be commercially naïve to assume those clubs haven't also promised to not compete in rival competitions even after their NRL participation obligations end. Any such restraints would be no absolute barrier - courts don't like post-term restraints, and clubs could always try shifting assets to new corporate entities not likewise hamstrung – but these contractual barriers would be significant.

Further, this analysis does not even touch on other serious issues. What happens to the Australian Sports Commission and other governmental support afforded to the ARLC? What of the hundreds of players signed to NRL contracts registered with the controlling body, which contain promises given to the NRL about myriad issues? What churn in fans and club members would be sustained by all this corporate jiggery-pokery? What wider scaffolds would any mooted breakaway competition have, besides running a 12-team competition? Issues around junior football development pathways, and the game at the representative level would need to be addressed.

The short point is that there simply will not be any breakaway from a structure that all parties signed up to with eyes wide open.

Darren Kane is a Sydney sports lawyer

@sportslawyer7

http://www.smh.com.au/rugby-league/...e-mk-ii-can-never-happen-20150827-gj91ps.html
 

strong_latte

Juniors
Messages
1,665

elbusto

Coach
Messages
15,803
Five AFL games yesterday combined ratings on FOX were 50000 lower than three NRL games.

News Limited hacks can stick that where the sun don't shine :)
 

hutch

First Grade
Messages
6,810
There wouldnt have been 5k in the stands in total between gold coast and suns and giants yesterday yet both were reported as blatant lies at 9k a piece

This. Why do they get such a free run in the press. Every week these clubs blantatly lie about their attendance and nobody bats an eyelid. Yet turds like Rebecca Wilson lie on radio saying NRL games get 4000 people without checking the facts.
 

Johnny88

Juniors
Messages
1,335
NRL tells clubs Fox Sports can be replaced by ‘new players’
The Australian, September 2, 2015 12:00AM
The NRL’s battle with Fox Sports over the next broadcast rights deal could intensify after club chief executives were told yesterday the code could go with a non-traditional partner for its digital media rights in a worst-case scenario.
“The gist of it was that if you control the content then you have the product that drives everything,’’ one source told The Australian.
“They were just saying you’re well placed if they (Fox Sports) don’t come up with the money. There will be other options.’’

The NRL is still banking on Fox Sports to pay $750m to $850m for four exclusive games and the right to simulcast Nine’s matches but negotiations have stalled with reports the pay-TV operator believes the games it is expected to bid for have been severely devalued.

The NRL organised yesterday for former officials from the AFL and Cricket Australia to make a presentation which showed that the game had a number of options to sell its digital media rights. These included selling the whole package or half of it to existing partners, or forming a joint venture with different providers.

The presentation also included examples from US sports including Major League Baseball, the National Football League and even professional wrestling and how they have handled their digital media rights and where the growth areas have been.

http://www.theaustralian.com.au/new...d-by-new-players/story-e6frg6n6-1227508347942
 
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