What's new
The Front Row Forums

Register a free account today to become a member of the world's largest Rugby League discussion forum! Once signed in, you'll be able to participate on this site by adding your own topics and posts, as well as connect with other members through your own private inbox!

Peter Beatte NRL 360 - expansion

Perth Red

Post Whore
Messages
65,925
And as you can see from the AFL committing to untapped areas costs millions and millions of dollars . Where's the money going to come from ? Especially if you start cutting Sydney clubs

A few possible places places, and this is what the NRL will be investigating.

1) Increased revenue from extra content, increased sponsorship revenue from a more vibrant and national reaching comp, increased revenue from exclusive NRL owned digital content

2) Using the existing money currently being paid to a license holder and moving it to a new location

3) The NRL ran at a $46mill profit last year. If this profit/loss margin is sustained it will be more than enough to pay for expansion, so basically out of their operating surplus
 

tri_colours

Juniors
Messages
1,828
A few possible places places, and this is what the NRL will be investigating.

1) Increased revenue from extra content, increased sponsorship revenue from a more vibrant and national reaching comp, increased revenue from exclusive NRL owned digital content

2) Using the existing money currently being paid to a license holder and moving it to a new location

3) The NRL ran at a $46mill profit last year. If this profit/loss margin is sustained it will be more than enough to pay for expansion, so basically out of their operating surplus


There would be little or no revenue coming through sponsorship or any other means. Rather the reverse.....in these new ventures for the next 10 or so years, with the exception of the 2nd Brisbane team. They wouldn't need to do much investigating.

Any new area would want there own team, not one that’s been relabelled. Both sets of fans would lose out. This is something else they would be aware of.


At the moment we don't have anything like the money that will be required . The AFL spend 10m a year, each, on GWS and the Suns and have been for the past 10 years! And what makes this possible is there 10 clubs that saturate the Melbourne market.
 

Perth Red

Post Whore
Messages
65,925
There would be little or no revenue coming through sponsorship or any other means. Rather the reverse.....in these new ventures for the next 10 or so years, with the exception of the 2nd Brisbane team. They wouldn't need to do much investigating.

Any new area would want there own team, not one that’s been relabelled. Both sets of fans would lose out. This is something else they would be aware of.


At the moment we don't have anything like the money that will be required . The AFL spend 10m a year, each, on GWS and the Suns and have been for the past 10 years! And what makes this possible is there 10 clubs that saturate the Melbourne market.

Not sure what you mean by any of this
There is a good chance a ninth game is worth extra money to TV. There is a good chance that a stronger national footprint will attract more sponsorship to the NRL.

Im not talking relocation, I said the license grant money would good to a different party. So someone drops out of the NRL to make room for someone coming in meaning a neutral cost to the NRL in grant payments

The AFL dont spend $10mil a year at all, they spend a combined $45-50mill on the two expansion clubs. The NRL wouldn't need to spend anything like that, it is much more likely to be in the region of $30mill for two new teams depending on future grant payments. And no, what makes it possible is a healthy revenue generated from TV deals and other revenue sources combined with systems set up to cover it like the variable grant system.
 
Messages
14,220
Id hope it would be Perth and Brisbane2 followed by Adelaide and NZ2 (where ever is best suited)
Todd Greenberg has said in the recent past that Melbourne-2 is just a matter of time.
Melbourne-2 Brisbane-2 Central Coast and the Sunshine Coast in the long term with Cains really does effectively sews up the East Coast and Wellington sews up NZ.
Perth will open up WA for further NRL expansion in the long term
 

tri_colours

Juniors
Messages
1,828
Not sure what you mean by any of this
There is a good chance a ninth game is worth extra money to TV. There is a good chance that a stronger national footprint will attract more sponsorship to the NRL.

Im not talking relocation, I said the license grant money would good to a different party. So someone drops out of the NRL to make room for someone coming in meaning a neutral cost to the NRL in grant payments

The AFL dont spend $10mil a year at all, they spend a combined $45-50mill on the two expansion clubs.


The NRL wouldn't need to spend anything like that, it is much more likely to be in the region of $30mill for two new teams depending on future grant payments. And no, what makes it possible is a healthy revenue generated from TV deals and other revenue sources combined with systems set up to cover it like the variable grant system.

All AFL clubs get a base payment of 12 or 13m . So how is this any different to what I just said??

'The AFL contributed a combined figure of more than $45 million to the two expansion clubs in 2018 in an attempt to gain traction in the non-traditional football markets in Western Sydney and the Gold Coast.'?

And how would it be any different ? Adelaide ? Perth ? Christchurch . Three clubs are all in the homeland of other codes?
 

Perth Red

Post Whore
Messages
65,925
All AFL clubs get a base payment of 12 or 13m . So how is this any different to what I just said??

'The AFL contributed a combined figure of more than $45 million to the two expansion clubs in 2018 in an attempt to gain traction in the non-traditional football markets in Western Sydney and the Gold Coast.'?

And how would it be any different ? Adelaide ? Perth ? Christchurch . Three clubs are all in the homeland of other codes?

Because it costs a lot less to run an NRL clun than AFL club, and NRL doesnt take from the rich clubs to give to the poor clubs. Id expect the NRL will be paying the standard grant of $13mill with maybe some start up extra for a set period of time. Nowhere close to the $26million GWS needed last year.
 
Top