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

JamesRustle

First Grade
Messages
8,072
The far more telling number would be a % of the budget expendature or revenue...

These days, a $2m loss on a $30m budget doesnt seem like much, whereas the $3m the Bear lost could have been in a budget as low as $5m a year.

You are right in saying the bald numbers cannot be compared fairly, but basic inflation is not the equalising mechanism you should choose...

Correct... rushed post.
 

Last Week

Bench
Messages
3,726
Could be $50 if it means you have to close the doors, or $5million if it is a manageable debt due to assets or projected revenue increases. End of day 14 clubs losing $40million is ridiculous and shows how badly run they are, or how unsustainable the current make up of the competition is. Throwing more money at them by taking it away from other areas of the game has no historic evidence that it will make a blind bit of difference to their sustainability. sorry to hark on about the Panthers but they produce good financial reports so can see in detail what is going on for them and they increased their revenue significantly but still ran at a significant loss in 13-14. Sounds like their losses this year may be even higher.

What do you mean by that?
 

Last Week

Bench
Messages
3,726
No, I'm sure there's more to it than that. I eagerly awaited Perth Reds response.
 
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Perth Red

Post Whore
Messages
69,885
What I mean by it is that if there are too many clubs or too many clubs cannibalising each other's revenue in one city or some clubs that just do not have the ability to devlop a sustainable revenue or that new clubs may have a better chance than existing ones at thriving then the competition may need to have a different look going forward. In SL for example they took the bold decision to drop from 14 to 12 teams as they recognised they did not have enough funding to support 14 sustainable teams. Bit different here were you have lots of central revenue but seemingly most clubs unable to generate enough outside the central grant to thrive. If it is true one club lost $4million last year then that should be enough to make you think some just aren't going to survive as the game continues to grow.

The NRL needs to up the grant to around $8-10million over next 3-4 years and cap non player football salaries, if clubs still can't get by then take some tough decisions if need be. Grants gone up,significantly in last 3 years including one off payments yet some clubs are still making significant losses, somethings got to give.
 
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Last Week

Bench
Messages
3,726
What I mean by it is that if there are too many clubs or too many clubs cannibalising each other's revenue in one city or some clubs that just do not have the ability to devlop a sustainable revenue or that new clubs may have a better chance than existing ones at thriving then the competition may need to have a different look going forward. In SL for example they took the bold decision to drop from 14 to 12 teams as they recognised they did not have enough funding to support 14 sustainable teams. Bit different here were you have lots of central revenue but seemingly most clubs unable to generate enough outside the central grant to thrive. If it is true one club lost $4million last year then that should be enough to make you think some just aren't going to survive as the game continues to grow.

The NRL needs to up the grant to around $8-10million over next 3-4 years and cap non player football salaries, if clubs still can't get by then take some tough decisions if need be. Grants gone up,significantly in last 3 years including one off payments yet some clubs are still making significant losses, somethings got to give.

Lets say we drop the two weakest teams in Sydney, bring in a Brisbane side and, I don't know, lets say somewhere random that neither of us would ever try and suggest, I know, Perth. Lets say we bring in another Brisbane team and a Perth team. Your logic is that the remaining Sydney clubs would be better off for it. But why? What do you base that on?

Do you really think that crowds are going to rise significantly, sponsorship to be worth more because there's less Sydney teams to choose from (less cannibalization as you put it), that sponsors are going to want to throw more money at clubs at the chance of being exposed to a new Perth audience or a Brisbane audience twice, to make up for a supposed $40million deficit?

And what on earth makes you think that new clubs could have a better chance at thriving? The Titans and Storm haven't. Hell, even the Warriors, who have an entire country to draw revenue from, struggled.

We can look at your precious AFL. The Giants and Suns are only alive because of the grants they receive from the AFL and then more. The Swans and Lions are still sucking off the field and require help from the AFL.

You have nothing to back up your claim that the game would be better off with less Sydney teams and with new teams in other areas.

Short to medium term investment into our current clubs to get them self sustainable not only is better for the current fans, but also ensures a stable base for new clubs to come into, who will no doubt need assistance to the tune of millions. Be patient and quit with the agenda. You just look stupid.
 
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Perth Red

Post Whore
Messages
69,885
lol re agenda, like what I think or post on a message board will have any influence on the decision making of the NRL. Its a place to express an opinion, thats what message boards are for.

re the less sydney teams, no there isnt but there is plenty of evidence it isnt working at the moment and given no sport in the world has close to the the number of top prof teams in a comp that sydney has (only equivalent is (my precious lol) AFL and they are in the same boat with a number of melbourne teams struggling) would suggest that there is some historical evidence that something needs to change. That something is either cut some clubs so that there is less competition for fans and corporates or massively increase the central grant and not be too worried about if clubs have big fanbases and stong corporate appeal. There are arguments to be made for both approaches, at the moment the NRL has admitted it doesnt feel comfortable expanding as there are so many struggling clubs, if we are happy to delay the growth of the game in the hope that the existing clubs will come good one day so be it. As for new clubs needing financial help, well thats exacly what many of the current 50-100 year old clubs are needing so nothing lost there and maybe the new clubs will become sustainable much quicker in unstaurated markets?

As for looking stupid, I'm sure you can do better if you want to insult me lol.
 

Perth Red

Post Whore
Messages
69,885
More News Ltd BS about a breakaway

Rugby league clubs have expressed mounting frustration and disbelief that the Rugby League Commission has not cut a pay-TV deal with Fox Sports in a closed-door meeting at League Central.

Club chairmen yesterday floated the idea of a breakaway 12-team competition at a high-level summit in Sydney amid angry mutterings about commission chairman John Grant’s “courtship” of telco Optus, which has expressed interest in buying the rights.

http://www.theaustralian.com.au/bus...way-over-tv-deal/story-fna045gd-1227614501997
 

Diesel

Referee
Messages
23,773
Yeah right, Super League 2/breakaway comp would mean less money than the new $2b-ish for a united comp. sure people make mistakes and learn from the past but a Super League 2 will never happen
 

sensesmaybenumbed

Moderator
Staff member
Messages
29,225
lol re agenda, like what I think or post on a message board will have any influence on the decision making of the NRL. Its a place to express an opinion, thats what message boards are for.

re the less sydney teams, no there isnt but there is plenty of evidence it isnt working at the moment and given no sport in the world has close to the the number of top prof teams in a comp that sydney has (only equivalent is (my precious lol) AFL and they are in the same boat with a number of melbourne teams struggling) would suggest that there is some historical evidence that something needs to change. That something is either cut some clubs so that there is less competition for fans and corporates or massively increase the central grant and not be too worried about if clubs have big fanbases and stong corporate appeal. There are arguments to be made for both approaches, at the moment the NRL has admitted it doesnt feel comfortable expanding as there are so many struggling clubs, if we are happy to delay the growth of the game in the hope that the existing clubs will come good one day so be it. As for new clubs needing financial help, well thats exacly what many of the current 50-100 year old clubs are needing so nothing lost there and maybe the new clubs will become sustainable much quicker in unstaurated markets?

As for looking stupid, I'm sure you can do better if you want to insult me lol.


So you're making the assumption that people who were fans of the teams that might get axed will just up and follow another team? Just like that?

You didn't, and your club only existed for a few years. Imagine if you had decades of history with them.

Such a viewpoint shows you learned nothing from superleague.
 

Hello, I'm The Doctor

First Grade
Messages
9,124
So you're making the assumption that people who were fans of the teams that might get axed will just up and follow another team? Just like that?

You didn't, and your club only existed for a few years. Imagine if you had decades of history with them.

Such a viewpoint shows you learned nothing from superleague.

TBF he doesnt have another local option and still he is pretty clear about his support for teh Storm.
 

siv

First Grade
Messages
6,765
NRL Clubs didnt lose $40 mil

The report is just choosing to ignore LC grants

LC grants still exist and are part of the bottom line

Prefer to see these figures after LC grants are included

Clubs work under different operating models

A Souths model with no LC doesn't suit Canterbury Parramatta or Penrith who have big LCs

And the same goes in reverse

While we have Easts and Brisbane set up 3PA companies

There are so many different operational models and they cant be ignored
 

Cumberland Throw

First Grade
Messages
6,547
So does Parramatta Leagues Club, pay a licencing fee to the Parramatta RLC for using the images of all the players in their promotional material and signage hanging off the building ?

Surely thats worth $1 Million a year,

Oh look Parramatta RLC is now $1M better off...

This $40M black hole has more accounting flaws than a microsoft double dutch irish sandwich arrangement,,,
 

Perth Red

Post Whore
Messages
69,885
Support that he would drop in a second, so hardly real support at all.

You seem to think you know a lot about me lol. Bit different scenario when your nearest club is 3500km away not just a couple of suburbs. If a club goes the existing fans will leave the game, many will still enjoy watching RL but not neccessarily follow a club and many will start following someone else. But it's the next generation where the benefits are felt. As long as the NRL does a good job keeping kids in school interested in RL and exposed to that cities remaining NRL clubs they will pick one that is left and so we will see those remaining clubs fanbases grow and grow over future years.

Then you bring in the new clubs in unsaturated markets and add whole new fanbases to the numbers.

In the ideal world all existing clubs would be successful with healthy bottom lines and massive fanbases and you would just keep building on this bringing in new markets, but they're not and we can't at the moment.
 

Perth Red

Post Whore
Messages
69,885
Eels LC put in $5.6million into the NRL Eels in 13-14 to cover their loss. I guess it isn't seen as revenue but as more a guarantor to cover losses, the more money the NRL eels make the less the LC gives them (12-13 the LC put in $7.5mill to cover their losses)
 

sensesmaybenumbed

Moderator
Staff member
Messages
29,225
You seem to think you know a lot about me lol. Bit different scenario when your nearest club is 3500km away not just a couple of suburbs. If a club goes the existing fans will leave the game, many will still enjoy watching RL but not neccessarily follow a club and many will start following someone else. But it's the next generation where the benefits are felt. As long as the NRL does a good job keeping kids in school interested in RL and exposed to that cities remaining NRL clubs they will pick one that is left and so we will see those remaining clubs fanbases grow and grow over future years.

Then you bring in the new clubs in unsaturated markets and add whole new fanbases to the numbers.

In the ideal world all existing clubs would be successful with healthy bottom lines and massive fanbases and you would just keep building on this bringing in new markets, but they're not and we can't at the moment.

Oh you poor dear. I lived 16000km away for years and stuck solid. Sook.
 

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