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

[DiegoNT]

The nrl relies on its clubs
The clubs rely on the nrl
Its a circle, its a balancing act, one without the other is nothing.
If the nrl lost all 16 clubs and had to start again would anyone care? No they'd follow the 16 clubs to a new competition.
If a club changed comp, dropped down into a second tier comp would anyone care? No because they are no longer in the elite division of the nrl.

This is why the nrl gives back to the clubs, because the success of the nrl is linked to the clubs

 

[CowboyFuriousFury]

The nrl relies on its clubs
The clubs rely on the nrl
Its a circle, its a balancing act, one without the other is nothing.
If the nrl lost all 16 clubs and had to start again would anyone care? No they'd follow the 16 clubs to a new competition.
If a club changed comp, dropped down into a second tier comp would anyone care? No because they are no longer in the elite division of the nrl.

This is why the nrl gives back to the clubs, because the success of the nrl is linked to the clubs

It's getting to the point where the clubs are using the grants as a begging bowl to the NRL and ain't doing a damn thing to improve there finances. How about these clubs be pro-active in attracting crowds, sponsors, memberships to minimize these losses. Constant cash drain holding down the code preventing expansion decade after decade, all that time and these clubs don't have it together.

Yet, there are those who want rugby league person as a CEO, the evidence is in the 14 clubs making constant losses. :lol:

 

[Last Week]

People criticize the nrl for pumping money into the clubs, but forget how the nrl makes most of its money, from those very same clubs. If the nrl was to take only the profitable clubs, atm broncos and rabbitohs and replace the other 14 clubs with generic profit making clubs would anyone watch? Hell no. People will want to watch the comp that contains the dragons and bulldogs and roosters, Cowboys storm etc. The nrl is making so much money from having such a strong and attractive competition, so of course some of that money should go back to the very clubs that wearn it so much money. Broncos fans look down on others because their club makes so much money, what would happen if it went to the Queensland cup? It would lose a lot of money. Broncos make their money by being a successful club in the nrl, the nrl makes it money by being a well supported and attracted competition, the broncos success is actually linked to the other 15 clubs.

Yeah, but that's short sightedness. Of course the clubs make most of the money. But, they've shown consistently that they can't be trusted to support themselves no matter how much money they're given. This was why the salary cap was introduced in the first place. To protect themselves.

And what the clubs don't seem to care about is that every dollar they receive is worth so much more to every level of the game below them. The stronger the game at grass roots and state levels, the stronger the clubs will eventually be.

With the revenue the clubs receive aswell as the grant from the NRL, I struggle to see how they're consistently run at a loss. With the business people they have on boards and links to other business people through sponsors, how is it that they haven't invested in a profitable venture already?

 

[siv]

Clubs will always spend more than they earn

No matter how high the grant - they will spend it to try and get a competitive edge

 

[Last Week]

Clubs will always spend more than they earn

No matter how high the grant - they will spend it to try and get a competitive edge

Which is why they need to fall in line to the governing body. They can't be trusted to look after themselves. They're like know it all teenagers.

 

[CC_Roosters]

People criticize the nrl for pumping money into the clubs, but forget how the nrl makes most of its money, from those very same clubs. If the nrl was to take only the profitable clubs, atm broncos and rabbitohs and replace the other 14 clubs with generic profit making clubs would anyone watch? Hell no. People will want to watch the comp that contains the dragons and bulldogs and roosters, Cowboys storm etc. The nrl is making so much money from having such a strong and attractive competition, so of course some of that money should go back to the very clubs that wearn it so much money. Broncos fans look down on others because their club makes so much money, what would happen if it went to the Queensland cup? It would lose a lot of money. Broncos make their money by being a successful club in the nrl, the nrl makes it money by being a well supported and attracted competition, the broncos success is actually linked to the other 15 clubs.

The other clubs need to look at why the bunnies are making money. They left behind the licenced club nodel to pursue being a genuine football club with a focus on the fans and memberships. They are driven by ticketing and merchandice. The rest of the sydney clubs are just dinosaurs of a bygone era and its the dinosaurs who are making the most noise. And unfortunately they are the ones with the established friends in the media as well as god knows how many vested interests aroumd the place.

Reform or die should be the line from the nrl

 

[Perth Red]

Penrith are a classic case. they have significantly increased their revenue to now bringing in $23mill a year, yet still managed to lose $720k in that revenue record breaking year. They are, by and large, poorly run bottomless pits. Yes they need financial support from the NRL, yes it needs to be slightly above the salary cap but it should come with strings attached that lead to them being better businesses long term not just richer beggars.

 

[Card Shark]

Clubs will always spend more than they earn

No matter how high the grant - they will spend it to try and get a competitive edge

Exactly

The more grants given to clubs, the more inflation in the game goes up.

They already get a good grant, time to be more self-sufficient.

What is the current grant btw?

 

[tumbidragon]

It's getting to the point where the clubs are using the grants as a begging bowl to the NRL and ain't doing a damn thing to improve there finances. How about these clubs be pro-active in attracting crowds, sponsors, memberships to minimize these losses. Constant cash drain holding down the code preventing expansion decade after decade, all that time and these clubs don't have it together.

Yet, there are those who want rugby league person as a CEO, the evidence is in the 14 clubs making constant losses. :lol:

 

[Perth Red]

Exactly

The more grants given to clubs, the more inflation in the game goes up.

They already get a good grant, time to be more self-sufficient.

What is the current grant btw?

2013 they received a $2million one off hand out
2014 the grant went up $450k to $7.55million salary cap $6.1mill
2015 grant has gone up to $8million Salary cap $6.55mill

Some clubs are reciving additional grant payments to help them out one Wests, st's, Knights, Titans and Melbourne receive an extra $4.5mill grant on top

When you consider the club grant in 2010 was only $3.45mill that is a significant over cpi increase in central funding over the last 5 years

Still clubs are hard done by and need another $3mill to help them get through lol.

 

[DiegoNT]

2013 they received a $2million one off hand out
2014 the grant went up $450k to $7.55million salary cap $6.1mill
2015 grant has gone up to $8million Salary cap $6.55mill

Some clubs are reciving additional grant payments to help them out one Wests, st's, Knights, Titans and Melbourne receive an extra $4.5mill grant on top

When you consider the club grant in 2010 was only $3.45mill that is a significant over cpi increase in central funding over the last 5 years

Still clubs are hard done by and need another $3mill to help them get through lol.

So a perth team will be totally self reliant and need no grants from the nrl?

 

[Stormwarrior82]

Clubs will always want to run at a loss. Any excess money that they forcast will be used in the football department budget. That i believe is the real issue.

The nrl has forced clubs to be accountable for themselves which was part of the legacy that smith has left. and by all reports is exactly why the club bosses are angry at smith and grant.

If the football department had a cap and was gradually increased, clubs would be better off because at the moment they seem to be trying to keep up with the Joneses and running at a loss to do it.

 

[Perth Red]

In 2014 Penrith paid out $16.6 million in salaries. Salary cap that year was $6.1 million. They lost $780k. As you said clubs will always spend whatever they get, and then some.

 

[Perth Red]

So a perth team will be totally self reliant and need no grants from the nrl?

Sorry? What is the premise of your question?

I am simply showing that within the last 5 years club grants have risen significantly, and gone significantly beyond the salary cap. you can keep raising them as much as you like but some clubs will still cry poverty.

 

[BlueandGold]

In 2014 Penrith paid out $16.6 million in salaries. Salary cap that year was $6.1 million. They lost $780k. As you said clubs will always spend whatever they get, and then some.

The Panthers group paid out 16.6million in salarys or the football Club?

 

[Gina Minehart]

Get rid of grant - useless merkin

 

[DiegoNT]

So in 2010 clubs only got 3.45m. Times that by 16 clubs equals 55.2 million in grants.
Now consider that at the time that the tv deal ( negotiated by gallop) was for 83m a season that means the clubs were recieving 66% of the tv revenue

In 2015 the grant is 8 miilion per club. Times 16 that equals 128 million. But the nrl's current tv deal is worth 250m a year, so the percentage of tv revenue going back to the clubs is now 52%.

So saying that the nrl is giving the clubs more money is true, but they are actually getting less of a percentage. Now considering it's the elite nrl comp and it's 16 clubs that bring in the majority of that money, then of course they'd be asking for more of a cut.

Most Clubs are never going to be run for a profit, they are run to be competive on the field, so every last cent is going to go into football. That's never going to change. Only 4 clubs arr currently struggling financially, but it's been reported that changes are being made to fix those clubs.

Perth red you constantly moan that the nrl needs to pump money into perth , even though that's tens of millions for the nrl to get it off the ground, yet when newcastle are struggling you criticise the nrl for helping out with a few extra million? Especially when the alternative is losing a club in one of the nrls heartlands? Especially when that current club has in part helped the nrl to its biggest ever tv deals?

Look at it this way
Nrl clubs recieve less off a percentage of tv revenue then the did 5 years ago.
The current clubs that recieve an extra top up are mostly clubs that bring in a good amount of tv viewers.
The nrl is spending
4.5 million to support help out a popular clubs and to secure the game in the illawarra region
4.5 million to help support a popular club and to secure the game in the campbelltown region
4.5 million to support an existing club and to secure the game in the GC/ SE QLD region
4.5 million to support an existing club and to secure the game in the hunter region
Thats 18 million all up, but you want the nrl to pay more than that amount, to try secure the game in a region that averages about 9k viewers for an nrl match?

 

[Perth Red]

I haven't criticised Newcastle or any other club doing it tough. I think it's great the NRL supports expansion in Melbourne with a significant extra annual investment. It's great the game has enough money to bail out clubs short term when absolutely necessary, it's great clubs are now getting NRL grants more than the salary cap. What's not great is some belief that giving clubs an extra $3mill or increasing the grant by say $2mill a year is going to make all 16 clubs profitable and sustainable. Extra money should come with an expectation of continuous business improvement or in 3 years time we will be hearing exactly the same thing from some clubs.

I've stated before I'd like to see the club grant at $10million and salary cap at $8million but that extra club money going to things that make clubs sustainable, not better suppliment programs.

In terms of % of to revenue to club grant you could argue that under gallop the infrastructure if the game, grass roots funding and things like media and marketing were neglected in funding not to mention the notion of investing some in a future fund and the % now paid is more balanced to allow those other activities vital to the game to take place?

 

[Captain Apollo]

The one thing that often gets ignored in all this is the demands of the players for their salaries. Based on what has been said publicly in recent years, I would not be surprised if the NRL players start making demands for a fixed percentage of the game's revenues to be used on wages. When that happens believe you me it will make this seem like petty squabbling.

 

[MaxPower]

There is no game without the clubs and players. they should get the majority of any revenue. What exactly has the NRL done with the extra tens of millions they are getting every year?