Sponsors now want to shaft us!

[Perth Red]

I find this very bizarre that main club sponsors might get together to find out what each is paying, isn't there some law about price fixing?

MAJOR sponsors of NRL clubs will share information on how much they pay teams for signage deals in a plan being hatched by Canterbury's maverick backer, Gary Johnston.
In an initiative that stands to cost clubs money, Johnston, the managing director of Jaycar Electronics, wants to put together a ''network'' of sponsors in an effort to standardise the fees that they agree to pay the NRL's 16 teams.
''It's not in the CEOs' interest to let the sponsors get together and share notes, that's for sure,'' Johnston told the Herald. ''But it's a free country and it's something that I think is possible and can be done.


Read more: http://www.smh.com.au/rugby-league/...-club-deals-20120419-1xa4j.html#ixzz1slawag5l

 

[CC_Roosters]

this surprised me when i read it the other day. I'm sure there is competition legislation that would forbid this kind of thing? Wouldn't be any different than say supermarkets getting together for price fixing i'm sure.

 

[jonno_knights]

Makes no sense whatsover,

Different clubs get different exposure, therefore would have different values on sponsorship deals.

Its like saying Queens Park Rangers sponsor should pay the same as Manchester United, or vice versa...Despite one club having massive global exposure, averaging 75,000 fans to each game, while the other is relatively forgotten about when outside of the EPL, and gets about 17k to each game.

 

[attila_the_gorilla]

When there's no threat of new competition, u get away with murder. NRL sponsors are quite a constant group of companies, there's very little turnover in this market. They do exactly as they please to push their expenses down. Same deal with supermarket chains in Aussie and NZ. It's a market that's impossible to enter so the few players involved do whatever they please.

 

[StGeorgeBull]

this surprised me when i read it the other day. I'm sure there is competition legislation that would forbid this kind of thing? Wouldn't be any different than say supermarkets getting together for price fixing i'm sure.

In this case the sponsors are the customer. The analogy would be do you think Woolworths and Coles have the right to ban an internet forum where shoppers get together to discuss where the best prices are at?

Makes no sense whatsover,

Different clubs get different exposure, therefore would have different values on sponsorship deals.

Its like saying Queens Park Rangers sponsor should pay the same as Manchester United, or vice versa...Despite one club having massive global exposure, averaging 75,000 fans to each game, while the other is relatively forgotten about when outside of the EPL, and gets about 17k to each game.

It will be upto clubs to negotiate. Being on the Red V, a Broncos jersey or even a Souths jersey would be more valuable than on some of the smaller clubs.

If a Dragons/Rabbitohs/Broncos potential sponsor wants to pay as little as a Cowboys or Raiders sponsor (no offense) then I'm sure those clubs would be able to find a better sponsorship elsewhere.

Remember even if this group gets up it won't have every single business in the country. There will always be competitors looking to outbid them.

 

[aarondoyle]

The sponsorship agreements would have NDA clauses forbidding discussing the details, unless they were written by children.

 

[VictoryFC]

When I first heard this, I thought it was very odd. A day later, I find it even more bizarre. Never seen anything like this nonsense.

 

[BuffaloRules]

There has been some criticism about the Sharks selling their jersey on the cheap, but really, how does this concern the other clubs?

They are only hurting themselves as its only going to make it harder for the Sharks to get somebody to pony up more money the next time...

 

[franklin2323]

There has been some criticism about the Sharks selling their jersey on the cheap, but really, how does this concern the other clubs?

No trophies, 1 FTA game. The fact they have a sponsor is a great achievement. To try & have them find 1 for the same price as Dragons or Broncos is just crazy.

 

[Eion]

Don't believe everything (or anything) that germ weedler writes about the sharks. He's blinded by his hatred of rothfield.

 

[Frances the Mute]

I find this very bizarre that main club sponsors might get together to find out what each is paying, isn't there some law about price fixing?

MAJOR sponsors of NRL clubs will share information on how much they pay teams for signage deals in a plan being hatched by Canterbury's maverick backer, Gary Johnston.
In an initiative that stands to cost clubs money, Johnston, the managing director of Jaycar Electronics, wants to put together a ''network'' of sponsors in an effort to standardise the fees that they agree to pay the NRL's 16 teams.
''It's not in the CEOs' interest to let the sponsors get together and share notes, that's for sure,'' Johnston told the Herald. ''But it's a free country and it's something that I think is possible and can be done.


Read more: http://www.smh.com.au/rugby-league/...-club-deals-20120419-1xa4j.html#ixzz1slawag5l

LOL..... Hmmmmmmmmm you'd pay as much for Cronulla or Penrith as you would for Brisbane Hmmmmmmmmm NEXT!

 

[carlosthedwarf]

Not the clubs fault if the sponsors aren't doing their homework.

 

[Connie Kreski]

If the clubs (and for that matter the sponsors) want a real eye-opener they should compare themselves with what a corporate naming sponsorship's worth down in Bleak City. If they're valued that highly down there with comparatively weaker tv exposure...

 

[Russell Crowe's Band]

in regards to the sharks id say he's mis informed about the amount.
regardless, the clubs are not equal. brisbane etc can command more, hence they have bigger companies sponsoring them etc.
its pretty simple economics.

the sponsors would need to do better due diligence if they though they were getting the rough end of the stick

 

[Haffa]

I hope he invites Hunter Ports to this meeting Tinklers taken them to the cleaners....

 

[Canard]

Commercial in confidence? I doubt many companies would like to openly share how much they paid for certain things with competitors.

 

[madunit]

Can't see this getting legs.

No company wants its shareholders to know if they are paying 200k (for example) more to be a major sponsor of Club A than the major sponsor of Club B is.

Besides, the sponsorship has a second factor, and that is how well the team they sponsor improves sales etc of their own product, the better the exposure, the more cash they pay the club as its sponsor.

Seems like one major sponsor here is finding it hard to justify how much sponsorship cash they are spending.

 

[docbrown]

Won't work because different clubs have different levels of exposure for potential sponsors.