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

[Stormwarrior82]

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?

just off the top of my head:

started a slush fund
spent plenty structuring the nrl and clubs
adding money to infrastructure (allianz project and money to townsvilles stadium)
increased funding to state leagues.

 

[MaxPower]

Why does that require 50% of the games revenue?

 

[Perth Red]

not quite right re increased funding to state leagues, they have only increased to NSW cup and Qland cup

but also:
Significantly increased NRL club funding
development in Fiji and PNG
Brought all DO nationally under one management structure
funding pacific test matches
brought touch footy into the fold
got better GF entertainment!

I do agree for $150mill a year plus extra it doesn't sound a lot but I suspect a lot has gone on developing the NRLs management and infrastructure which was sorely lacking. We do have a lot more twitter followers lol

Out of revenue in 13-14 of $344.9mill $146.7 went directly to NRL clubs

For more info see
page 43 nrl club funding
page 51 loans to struggling clubs
page 85 a summary of revenue and expenditure

https://www.nrl.com/portals/nrl/radeditor/documents/nrl_annual_report_2014b.pdf

2014-15 report should be out soon

 

[Stormwarrior82]

not quite right re increased funding to state leagues, they have only increased to NSW cup and Qland cup

but also:
Significantly increased NRL club funding
development in Fiji and PNG
Brought all DO nationally under one management structure
funding pacific test matches
brought touch footy into the fold
got better GF entertainment!

I do agree for $150mill a year plus extra it doesn't sound a lot but I suspect a lot has gone on developing the NRLs management and infrastructure which was sorely lacking. We do have a lot more twitter followers lol

Out of revenue in 13-14 of $344.9mill $146.7 went directly to NRL clubs

For more info see
page 43 nrl club funding
page 51 loans to struggling clubs
page 85 a summary of revenue and expenditure

2014-15 report should be out soon

I cant see in the report where it says that WARL didnt receive any of that extra funding? Clubs shouldnt have to rely on grants. I would be happy to see broncos and souths just recieve the salary cap grant and maybe some help strengthening there administration/marketing/memberships. Where does the grant money go that they get? Football departments!! (extra trainers/better rehab)

 

[Perth Red]

I know from first hand info from a board member. They got a very small amount to cover the costs of changing the brand to NRLWA and the Pilbara RL got a development officer. We also have had increased visits from NRL ambassadors as part of the NRL one community program. That's the sum total of increased investment in the game in WA since the commission took over.

The $ value mentioned in the report is the extra money given to the second tier clubs in nsw and Qland. Ask people from nt, sa, tassie or Victoria if they have seem much development in last two years.

 

[MaxPower]

Where does the grant money go that they get? Football departments!! (extra trainers/better rehab)

You make that sound like a bad thing. The spending you are so dismissive of directly improves the product the NRL sells.

 

[CC_Roosters]

I know from first hand info from a board member. They got a very small amount to cover the costs of changing the brand to NRLWA and the Pilbara RL got a development officer. We also have had increased visits from NRL ambassadors as part of the NRL one community program. That's the sum total of increased investment in the game in WA since the commission took over.

The $ value mentioned in the report is the extra money given to the second tier clubs in nsw and Qland. Ask people from nt, sa, tassie or Victoria if they have seem much development in last two years.

The current rights cycle is basically a period of financial stabilisation, hence the ceo being a banker. I dont think the financial mess and underfunding by the old regime should be underestimated. There have been baby steps in grassroots funding since the commission tookover, grant has said in his latest interviews they know the investment so far has veen inadequate but they have had to be so careful with how they allocated the games first big windfall. The next funding cycle will see clubs and grassroots being the main beneficiaries.

They got the nrl financials in order under smith, now they will switch gears to focus on football so at the very leaat an experienced sports administrator will be the next ceo

 

[Lambretta]

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.

You're contradicting yourself there
You can't have 14 profit making clubs that no one is turning up to watch

All 14 would make a loss, just a worse one than the current clubs make as some people ARE watching them.

But you're right - the NRL can't replace 14 teams as without those 14 teams there is no NRL. If they tried to start a new comp with brand new clubs the whole thing would fall in on itself and collapse completely - no one would be interested - not even Broncos and Souths fans

 

[DiegoNT]

You're contradicting yourself there
You can't have 14 profit making clubs that no one is turning up to watch

All 14 would make a loss, just a worse one than the current clubs make as some people ARE watching them.

But you're right - the NRL can't replace 14 teams as without those 14 teams there is no NRL. If they tried to start a new comp with brand new clubs the whole thing would fall in on itself and collapse completely - no one would be interested - not even Broncos and Souths fans

Yea i tried to make that point in other posts. Broncos make a profit, but if you put them in the qld cup, they'd immediately start losing money. The broncos success is due to them being in the nrl with the other 16 clubs, there success is in part down to the other 15 clubs. The nrl needs its clubs and the clubs need the nrl, it's a partnership, so of course any money that the nrl makes, mainly due to having a successful and strong comp with 16 relatively popular clubs that people watch in high numbers, then of course the nrl should share that money around the clubs that make it so much

 

[Perth Red]

Which they are doing. To the tune of $150million a year.

 

[DiegoNT]

Which they are doing. To the tune of $150million a year.

But so many on here complain about the clubs recieving these grants, that the clubs should be self sufficient without these grants, when in actual fact it's the clubs that help earn the nrl the majority of that money

 

[Card Shark]

I'm fine with the clubs receiving sizeable grants but if it's way more than the salary cap / players wages (which would be by far the biggest operating expense), I think they are being greedy at the expense of the game's future - junior & bush footy.

I'd like to see every rugby league player of working age given free (or close to it) additional insurance to cover them for full loss of wages if injured. It's a big risk playing footy on a Sunday & needing to be at work Monday, to make ends meet. How do you tell your partner "I've broken my leg & can't work for 6 or 8 weeks". They'll never let ya play again.

I guess the point is, we must do all we can to encourage participation.

 

[Captain Apollo]

I'm fine with the clubs receiving sizeable grants but if it's way more than the salary cap / players wages (which would be by far the biggest operating expense), I think they are being greedy at the expense of the game's future - junior & bush footy.

Player wages are their biggest cost, but that is not their only cost. Consider they have to pay besides those -

- Wages/salaries of coaching and all club admin staff (this includes everything from Marketing staff, Membership Staff, Development Officers to the Receptionist/Secretarial staff);
- Ground hire fees;
- Equipment fees (e.g. gym equipment, tackling bags etc);
- Workers' Compensation insurance;
- Player uniforms and gear;
- Advertising/Promotions stuff;
- Medical costs and rehab for injured players;
- Travel costs beyond those covered for by the NRL.

As you can see many of those things are not insubstantial, and that is before you get to things like junior development work. Nor is the above exhaustive, it was just off the top of my head.

 

[Hello, I'm The Doctor]

You make that sound like a bad thing. The spending you are so dismissive of directly improves the product the NRL sells.

This kind of expense is an absolute black hole, they will always find some new more expencive thing to buy...

This isnt necessarily a problem, but when it means clubs come crying poor to the ARLC who then need to dip into the cash reserve that would have gone to development, we have a problem.

Clubs are f*cking childern about their money. They have no sense of self preservation, they just see their friends buying new things and feel like they need to match it. Its why we need a salary cap on player salaries; the clubs would spend themselves broke if they were allowed to...

 

[Hello, I'm The Doctor]

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.

Im fine with the ARLC pumping money into the clubs as long as there is structural change attached to this grant....

Youre right that 14 brand new clubs would be a disaster, but that doesnt mean the status quo is the only other option. The ARLC can actively replace the idiot management of these clubs with qualified people.

The grants to the Tigers, TItans and Knights were based on the agreement that the ARLC would be allowed to restructure the clubs (im surprised they didnt do the same with the Dragons). This is why club management is getting so up in arms about club funding; they know the ARLC would happily give grants out, but they also know that these grants would probably see these managers lose their jobs.

I personally have no sympathy for these debt-riddled clubs as they all have potential lines of revenue that they just cannot be assed to create. Instead theyd rather dig into the ARLCs accounts then spend t all and do the same again next year....

 

[Jatz Crackers]

Symbiosis.

 

[siv]

Someone thinks that there are only 16 clubs that need support

But you also have 26 Tier 2 clubs

6 State Leagues

SOO and Rep teams at all levels Oz to state teams like U20s to schoolboys

Lets remember TV rights included TV of many many other games not just NRL FG

 

[MaxPower]

How much funding do these non-NRL clubs currently receive?

 

[Dogs Of War]

So could the nrl then look at an idea from the afl and have a luxury tax for expenditure of off field staff etc so that a limit is set so clubs don't get themselves into trouble unless they can really afford it. Go over the limit and you need to pay an extra dollar for every dollar you go over? That money can go towards a rescue/grant fund for clubs.

 

[RWB]

So could the nrl then look at an idea from the afl and have a luxury tax for expenditure of off field staff etc so that a limit is set so clubs don't get themselves into trouble unless they can really afford it. Go over the limit and you need to pay an extra dollar for every dollar you go over? That money can go towards a rescue/grant fund for clubs.

How about the weak clubs just fall away, or is that too progressive for our comp?

There's too much charity in our game.