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!

RL independence day arrives - NRL Independent Commission announced for November 1

Status
Not open for further replies.

Patorick

Moderator
Staff member
Messages
8,997
417730-nrl-ransom.jpg
 

Goddo

Bench
Messages
4,257
Clubs may not survive without fund boost

NRL club bosses have warned that some clubs might not survive until the new television deal in 2013 unless their annual grant is increased from $3.85 million to $6 million next season.

With 14 of the 16 clubs recording losses this year, officials are determined to avoid the situation that occurred in the British Super League when the Wales-based Crusaders collapsed and players - many of them Australians - were left out of pocket.

''Some people think that if the clubs get it into their heads that there is going to be rivers of money from 2013 onwards they will just cop another year of making losses but in some cases they might not make it to 2013,'' said Wests Tigers director David Trodden, who has been appointed spokesman for the clubs.

''There are a lot of big issues in the game but how catastrophic would it be if we had the same situation that Super League had with the Crusaders, where a club goes broke and players are running around not getting paid.''

The club considered most at risk is Cronulla, which is relying on a property development receiving government approval to ensure its long-term survival.

However, the Herald has been told that the Sharks will be in dire straits if the development isn't approved before March 31.
Melbourne is the least profitable club but is owned by News Ltd, as is the most profitable club, Brisbane. Despite their links with the media company, the Storm and Broncos are united with the other 14 clubs in seeking the funding increase.

The clubs have been discussing the annual grant for a month, since receiving draft licence and member agreements, which contained no increase from the $3.85 million they received this year.

Souths chairman Nicholas Pappas emailed their response to the other stakeholders on Tuesday, and it was leaked to News Ltd newspapers, which accused the clubs of holding the game to ''ransom'' and stalling the independent commission.

Trodden said: ''All of the revenue in the game derives from the clubs and the players that play for the clubs. All of the various stakeholders that are a part of the game feed off that revenue, and the only stakeholders in the whole game that make losses are the clubs because everyone else gets funded to their break-even point out of the revenue the clubs raise.

''It's a bit offensive then when the clubs say, 'We need to break even too if we are to have a viable future,' for clubs to then be accused of holding the game to ransom and being greedy when effectively all we are saying is, 'We don't want to go broke.'

''The people who have been driving the creation of the commission more than anyone else has been the clubs … but if we are given a document that contains a figure in it that will continue to see 14 of the 16 clubs make annual losses, are we expected to say that is fine?''

http://www.smh.com.au/rugby-league/league-news/clubs-may-not-survive-without-fund-boost-20111012-1ll4q.html#ixzz1abT0nPtA

This is all very interesting and important regarding expansion. The clubs are protecting Cronulla (and their own interests).

It sounds like Cronulla are on the virge of collapsing, and the clubs collectively want the grant increased to prevent that. It doesn't look good for the Bears expansion chances. You can see why the clubs wanted expansion put back a year or two, which is fair enough - we don't have a commission or a TV deal yet anyway.
 
Last edited:
Messages
14,139
Sounds to me like this is the chance to thin the herd. If already marginal clubs can't survive without massive handouts that would be better spent elsewhere maybe it's time to cut them adrift and put their $3.85m into other areas that offer a greater return for the game.
 

Goddo

Bench
Messages
4,257
^ the clubs have a point though that they are the only ones who are forced to fund losses every single year.

Gallop and News signed off on an undervalued TV deal, but the ARL and News both get their juicy cuts off revenue every year, while the clubs (who are the bread-winners of the game) are forced to rely on pokies.

I know thats all ment to change in 2013 with the new TV deal, but they have a point. If the grant was at $6M already, or even $5M I don't think Cronulla would be having problems like they are currently.

All these problems can be traced back to Gallop selling the game for less than its worth 5 years ago.

EDIT - its no surprise that the two organisations that are complaining loudest about the clubs are the very leaches we are trying to get rid of - News Ltd and the ARL.
 
Last edited:

POPEYE

Coach
Messages
11,397
Just piss off the NRL and all other hangers-on, let the clubs rule their own destiny with survival of the fittest.

Give power back to the clubs that after all supply the entertainment and have an administration that serves excellence, not jobs for the boys.

Clubs should share collectively more of what they generate instead of being treated as though they are the servants . . . not the masters
 
Last edited:

Rockin Ronny

Juniors
Messages
1,769
Sounds to me like this is the chance to thin the herd. If already marginal clubs can't survive without massive handouts that would be better spent elsewhere maybe it's time to cut them adrift and put their $3.85m into other areas that offer a greater return for the game.

Agree entirely.

Although a complete fraud, the "criteria" process in 1999 signalled that rugby league, the clubs accepted that the game should be treated as a "business".

In that case, you chop the unproductive elements and focus on growth areas.

There should be another criteria now - eject the hopeless cases.
Going forward, to play in the NRL, each club should show previous year's financials (P&L, balance sheet) plus commitments for sponsorships, forecast P&L, balance sheet etc for upcoming year.

It is only with all clubs looking after themselves (and not looking for charity) that we will have a strong game and player strength spread evenly amongst the teams.
 
Messages
14,139
No all this can be traced back to Cronulla, and others, selling the game to News Ltd in the first place. Now they whinge that News is sending them broke. Time for karma to finally come around and bite them I reckon. The NRL clubs are not the "bread winners". They are nothing without grassroots football and yet these pricks want to rob the grassroots to fund the holes in their incompetant administration. All clubs will go under in 20 years when there are no juniors playing the game due to neglect brought about by selfish clubs living beyond their means.
 
Messages
16,034
your making the assumption that the inclusion of an extra game a week plus the viewership, TV scheduling options etc of two new clubs won't be worth MORE than the COST to the NRL (ie $14mill a year). If expansion brings in more than it costs than there is no argument against doing it as it won't make one jot of difference to the bottom line of existing clubs. In fact you would hope it would increase every clubs bottom line by:
1. Bringing in more TV $'s
2. Making the game more popular and therefore more attractive to sponsors
3. Exposing sponsors to new markets there by making product placement more valuable

The teams are aiming for a billion dollar + tv deal with what they already have.

You are not, will not be and should not be on the radar until all clubs are financially secure.

What you are proposing is a MASSIVE gamble that an sensible business would LOL at.

You dont look at expanding your business until your current one is 100% secure, not loosing money in 90% of its sections.
 
Messages
16,034
You are about to be proved wrong on all three points!

Expansion will take place in 2014 or 2015, or 1 new entrant in each.

CC Bears, Perth and even western corridor all have very strong and legitimate claims, and Central QLD aren't far behind - certainly ahead of the Bombers bid if its still around???!!!

Saying no to NSW bids forever is foolish - there will be new NSW teams entered in the future - hopefully very soon, just as its highly likely some existing NSW (and QLD) teams won't exist in 20 years time.....maybe even 1 years time. 90% of businesses fail eventually - and Clubs are no different.

Look at the past 30 years - Newtown, 4x Gold Coast, Reds, Rams, Mariners, 4x Gold Coast franchises, Crushers, Bears, Northern Eagles, Magpies, Balmain, St George, Steelers...I've probably forgotten a few along the way!

How many grants have Manly, Cronulla, Titans, Newcastle, Penrith, Canberra etc had to keep them afloat?

If the IC is truly Independent, they have a responsibility not to hold back the game to bail out poor products THAT HAVE NO REALISTIC LONG TERM PROSPECTS FOR GROWTH. If the IC won't encourage relocations or mergers there will be more crises' in the near future (economic most likely, or maybe political if the Pokie tax somehow gets up and Gillard is re-elected) that will do the job for them and claim more teams.

The only certainty is that there will be changes in the future.

Do you want a tissue mate? Sounds like it got messy. You don't expand when 90% of your business is loosing money each and every year, pretty simple.
 

Goddo

Bench
Messages
4,257
No all this can be traced back to Cronulla, and others, selling the game to News Ltd in the first place. Now they whinge that News is sending them broke. Time for karma to finally come around and bite them I reckon.

:lol: you won't hear me complain if thats the outcome. I'd be happy with Sharks out Bears in, 2012 (its a distribution problem in NSW, no new licences). Then expansion in Perth and Brisbane.

The problem with Cronulla is they were/are one of the basket case clubs of the 90s the criteria was ment to remove from the game, only SL hand outs saved them. They p!ssed that oportunity into the wind and now they are farked again.

Without super league and a NSWRL bail out or two they wouldn't have made it to 2000 with or without deliberate culling.
 

adamkungl

Immortal
Messages
42,971
The teams are aiming for a billion dollar + tv deal with what they already have.

You are not, will not be and should not be on the radar until all clubs are financially secure.

What you are proposing is a MASSIVE gamble that an sensible business would LOL at.

You dont look at expanding your business until your current one is 100% secure, not loosing money in 90% of its sections.

The game will expand. Your opinion is wrong.
 

Raiderdave

First Grade
Messages
7,990
Buy a mirror, dildo.

CC Bears will be a powerhouse.

You're a one team town going going down the toilet fast.

buddy .... put the penis pump away
the CC bears .... who are they ?:roll:

they're nothing , they don't exist .. & never will ;-)

what lunacy would it be .. if the identified problem is too many sides in Sydney
so we start up another 1 .. or replace 1 with another

it being 5 miles from Sydney

won't ever happen
so suck it up princess ...... the CC Bears are a figment of a pack of w@nkers imaginations ;-)
 

Raiderdave

First Grade
Messages
7,990
http://www.smh.com.au/rugby-league/league-news/clubs-may-not-survive-without-fund-boost-20111012-1ll4q.html#ixzz1abT0nPtA

This is all very interesting and important regarding expansion. The clubs are protecting Cronulla (and their own interests).

It sounds like Cronulla are on the virge of collapsing, and the clubs collectively want the grant increased to prevent that. It doesn't look good for the Bears expansion chances. You can see why the clubs wanted expansion put back a year or two, which is fair enough - we don't have a commission or a TV deal yet anyway.

lets not selectively say some articles are properganda & others like this one are not
Cronullas finances are most likely no better or worse then they were 6 months ago

this is just News Ltd spreading panic & attempting to scatter the herd
nothing they print is to be believed on face value
 

Goddo

Bench
Messages
4,257
Raider Dave, its a SMH article. Pretty impressive if News are sprouting properganda from their sworn enemy's newspaper.

Regardless Cronulla are in bad shape, but as I said, the interesting thing is the way other clubs maybe sticking up for the Sharks.

And if thats the case, I really can't see the clubs backing another NSW club for expansion - its a big nail in the Bears coffin. Lets face it, the Bears best chance is if the Sharks fold. Notice the sudden desire of Bears fans to reintroduce criteria for licences?
 
Last edited:

Raiderdave

First Grade
Messages
7,990
When are you going to let it go, until all existing clubs are financially viable there is ZERO chance, neither the independent commission or clubs will support expansion. - Its idiocy to suggest it.

2016 minimum and most likely 2018 before expansion becomes a feasible option.

I do admit that WA and a 2nd Brisbane team are the only choices.

Another NSW team will never and SHOULD never happen.


completely agree with both points here
however ... it needs to happen sooner then you've advocated
2014 for mine.
 
Status
Not open for further replies.

Latest posts

Top