Question on Peter V'landys

[Perth Red]

Whatever reductions occurred, it's only for the next two and a half years. I am more interested in the extension deal with Fox, especially if the NRL introduce a 17th team.

That is the big one. Is it $1billion (if that is the figure!) for 5 years (if so great deal!) or is it $1billion for 7 years (if so terrible deal!). Also what was in the deal that might impact the value of the next FTA deal. We know Ch9 only went to $185mill because they had the option of clawing some of that ($60mill a year) back by selling Saturday and simucast back to Fox. If that is now included in the Fox deal the FTA will be worth much less. Devil will be in the detail!

 

[franklin2323]

Totally... I mean the Annual Report listed the travel costs as just under $2.9M. Assuming that you use the loan to buy a decent plane for the numbers required to travel, you are looking at excess of $100M to purchase the plane.

On top of that cost, you need at add insurance, maintenance, fuel, storage, and staffing. Further to that - you will also need to pay back interest on the loan.

Add on top of that the depreciation of the asset.

Then of course, you won't actually remove all costs using commercial because it's unlikely that a single plane will be able to effectively cover all teams over a weekend.

It will not save the game money, nor add a significant amount of value.

Yet people bang on about the lack of assets. That is the problem with them they lose value.

This year is the test. How it works and how costly

 

[Perth Red]

Yet people bang on about the lack of assets. That is the problem with them they lose value.

This year is the test. How it works and how costly

You want your assets to be making you money or saving you money, not costing you money!
NRL's travel budget is less than $2.5mill a year. Its hard to see buying and running a jet plane being less than that. And we arent talking a 12 person private jet. We are talking a 50 person jet. You're looking at around $22million purchase price for a jet that size plus significant running costs of up to $4mill a year. Would be hell of a business case to justify it lol.

 

[Chook Norris]

Yet people bang on about the lack of assets. That is the problem with them they lose value.

This year is the test. How it works and how costly

Yes and planes also depreciate quickly in value I believe.

 

[seanoff]

Yet people bang on about the lack of assets. That is the problem with them they lose value.

This year is the test. How it works and how costly

.
Not all assets lose money.

the AFL have marvel stadium in their books at cost. 200m. If they knocked it down and sold the land it’d be worth close to a billion.

Shares over the longer term have appreciated. 2.5% a year over the last 200 iirc.

cars and aircraft. Yeah they lose value. Quickly.

 

[BuffaloRules]

NRL's travel budget is less than $2.5mill a year. Its hard to see buying and running a jet plane being less than that..

What are you basing that figure on?

Please don’t tell me the pre Covid world we used to inhabit..

 

[franklin2323]

.
Not all assets lose money.

the AFL have marvel stadium in their books at cost. 200m. If they knocked it down and sold the land it’d be worth close to a billion.

Shares over the longer term have appreciated. 2.5% a year over the last 200 iirc.

cars and aircraft. Yeah they lose value. Quickly.

Also had government funding to assist with updates.

Yeah very likely isn’t worth it but atleast are looking elsewhere to get funds

 

[franklin2323]

What are you basing that figure on?

Please don’t tell me the pre Covid world we used to inhabit..

This is a good point. If Virgin falls over you’d expect costs to rise and flight availablity to be difficult

 

[seanoff]

The only way private flying is going to work for Aus sports is if they work together. Shocking I know.

but the afl, nrl, maybe super rugby need to approach qf to see if they can get a couple of jets configured to all business class and they all share the costs.

even then it’s going to be expensive.

a private jet just for nrl including operating, maintenance and financing costs is going to be closing on 8-10m a year.

 

[Perth Red]

What are you basing that figure on?

Please don’t tell me the pre Covid world we used to inhabit..

Annual report for last couple of years. You think airline travel is going to go up so much that owning a private jet becomes a viable option? lol

Virgin will be bought and operating again by end of year
https://thenewdaily.com.au/finance/consumer/2020/06/16/virgin-australia/

 

[taipan]

That is the big one. Is it $1billion (if that is the figure!) for 5 years (if so great deal!) or is it $1billion for 7 years (if so terrible deal!). Also what was in the deal that might impact the value of the next FTA deal. We know Ch9 only went to $185mill because they had the option of clawing some of that ($60mill a year) back by selling Saturday and simucast back to Fox. If that is now included in the Fox deal the FTA will be worth much less. Devil will be in the detail!

Ok here are my hysterics or pie in the sky stuff ,or figures plucked out of my rear end.;
If it was Foxtel 7 years for $1bn ,that would equate to about $140m p.a.,not much more than what Nein was paying the NRL under the current deal.So I call BS on 7 years .
Reason if it was $140m pa for the remaining 5 years thats $700m in toto. Foxtel was paying NRL under current deal est $230m pa.
Then you hopefully got to flog 5 years with 9.They were paying $130m or thereabouts under current deal,
So 9 for 5 years $650M 18-22
Foxtel for years$1,150M 18-22
Total roughly $1.8BN 2018-2022

So even if they (Nein) paid the same no chance w plus you throw in digital FWIW $50m max ?????,thats $180M pa or $900m for 5 years in toto.
So you have Foxtel for 5 years $700m
Nine for 5 years. $180m pa $900m (which I call BS because Foxtel is always much dearer.)
So for 2023-2027 total $1.6bn

You'd have to be a loon to drop nearly 40% on the next 5 year deal with Foxtel.13% reduction I could understand($230m pa to $200m pa),but I'm guessing.

I any case the reported deal Roy the Boy Masters on May 30th noted, that V'Landys has stated the Foxtel has been awarded a FIVE YEAR RENEWAL FOR AN UNDISCLOSED AMOUNT.That has been explicit, whilst the amount has not been revealed.And that has given the AFL honchos the sh*ts, because they are not able to quantify any possible bragging rights.
More so because they haven't yet struck Foxtel deals, so keep the fumblers guessing.

WTF should you publicly announce a figure you got from your major broadcaster to your major competitor, when that same competitor is yet to strike a deal with the same broadcaster.
That's Gallopesque comedy stuff. "We got $500m over 6 years, we broke an Oz sport broadcast record".
Then your competitor a couple of weeks later gets $780m over 5 years.
Talk about being rogered, reamed, screwed and hung out to dry.

 

[siv]

I reckon plane companies would be happy to lease one of the jets at this time if covid crisis

 

[colly]

I reckon plane companies would be happy to lease one of the jets at this time if covid crisis

FYE
https://www.avalonairport.com.au/airport/blog/general/aircraft-at-avalon
I say it's the best time to lease while prices are very low. Pick a dreamliner in the above link, put in a sports bar and massage table and hire hot hostees, what could go wrong.

 

[Twizzle]

I reckon plane companies would be happy to lease one of the jets at this time if covid crisis

yeh, but when its over ?

now might be a good time to pick up one at bargain basement price, assuming it ever happens

 

[Perth Red]

Ok here are my hysterics or pie in the sky stuff ,or figures plucked out of my rear end.;
If it was Foxtel 7 years for $1bn ,that would equate to about $140m p.a.,not much more than what Nein was paying the NRL under the current deal.So I call BS on 7 years .
Reason if it was $140m pa for the remaining 5 years thats $700m in toto. Foxtel was paying NRL under current deal est $230m pa.
Then you hopefully got to flog 5 years with 9.They were paying $130m or thereabouts under current deal,

.

not sure where you’ve got them figures from for the 2018-23 deal.
The original deal was $1.8billion with Fox paying $175mill a year and nine paying $185mill a year.

 

[taipan]

not sure where you’ve got them figures from for the 2018-23 deal.
The original deal was $1.8billion with Fox paying $175mill a year and nine paying $185mill a year.

The original deal, then followed with selling back games from Nine to Foxtel.
The figure of Nine's est $130m pa in discussing the reductions agreed this year, was based on comments in the print media.When they talked about the $27.5m reduction to bring it down to about just under $100m pa for 2021/2022.

My whole point in my rant, was to state the Foxtel extension was 5 years at whatever the $1bn $1.1bn (who knows)estimate was all about.It was not as the SMH comments showed for 7 years.
V'Landys has stated Foxtel is the bigger payer ,which we all know.

 

[BuffaloRules]

Annual report for last couple of years. You think airline travel is going to go up so much that owning a private jet becomes a viable option? lol

Virgin will be bought and operating again by end of year
https://thenewdaily.com.au/finance/consumer/2020/06/16/virgin-australia/

Its not just the expense of flying.. its the players having to live in a bubble and not mixing with the general public and the convenience of fly in fly out on the same day without check in , delays etc...

Do you want the star player sitting in 31E on the Virgin flght next to some random who has the Covid?

 

[Perth Red]

The original deal, then followed with selling back games from Nine to Foxtel.
The figure of Nine's est $130m pa in discussing the reductions agreed this year, was based on comments in the print media.When they talked about the $27.5m reduction to bring it down to about just under $100m pa for 2021/2022.

My whole point in my rant, was to state the Foxtel extension was 5 years at whatever the $1bn $1.1bn (who knows)estimate was all about.It was not as the SMH comments showed for 7 years.
V'Landys has stated Foxtel is the bigger payer ,which we all know.

That was a payment from Fox to nine, NRL still got its $185mill from Nine and $175mill from Fox. Only way Fox is paying $200mill plus a year to NRL is if they are paying those Saturday and simucast fees to NRL post 2022, in which case we will end up with a lot less than $185 from FTA. The bar set in 2018 is $360mill a year. Lets see how much under we are when we actually know the Fox extension details and what the new FTA deal looks like from '23 onwards.

 

[Perth Red]

Its not just the expense of flying.. its the players having to live in a bubble and not mixing with the general public and the convenience of fly in fly out on the same day without check in , delays etc...

Do you want the star player sitting in 31E on the Virgin flght next to some random who has the Covid?

I guess if we are expecting Covid to last a few years then yeh that would be a consideration in purchasing.

 

[T-Boon]

I think this plane debate is stupid. It doesn't save any money and like who could possibly care one way or another. If they do it it will be because they have worked out it makes a degree of financial sense. If they don't do it so be it. Either way, who cares?

We should talk about things the game could invest in that would improve the game day experience, thusly drawing bigger crowds. It should be an NRL level endeavour because clubs have sucked at this stuff for 100 years.