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!

the nrl and its need to grow

Messages
14,242
Didn't they just get a 2.5 billion contract?
Even that money will only see them continue treading water.
You just can't keep giving $40 million a year to 2 expansion clubs indefinitely which is what they are doing.
The aFL said first of all it was a 10 year plan for both clubs now they are saying its a 20 year plan for both clubs.
The $40 million a year will only rise as well, as cost rise.
Other aFL clubs have huge money problems as well.
Money wise the Anglo-Irish game clubs are in a downward spiral.
 
Messages
1,850
The NRL need to bite the bullet and make some tough decisions;
South Sydney Rabbitohs
East Coast Roosters (Central Coast)
Manly Warringah Sea Eagles (Northern Beaches)
Parramatta Eels
Penrith Panthers
Western Bulldogs
St George Dragons (Illawarra)
West Coast Tigers (Perth)
Brisbane Broncos
North Qld Cowboys
Canberra Raiders
Newcastle Knights
Melbourne Storm
NZ Warriors
Gold Coast Titans (lucky to be there)
Move the Sharks to QLD.
Two sides relocated, one partly, three new areas introduced.
Look at more changes in another 15-20 years.

12122844_10153773280269954_2050891717100423521_n.jpg
 

Perth Red

Post Whore
Messages
66,282
Even that money will only see them continue treading water.
You just can't keep giving $40 million a year to 2 expansion clubs indefinitely which is what they are doing.
The aFL said first of all it was a 10 year plan for both clubs now they are saying its a 20 year plan for both clubs.
The $40 million a year will only rise as well, as cost rise.
Other aFL clubs have huge money problems as well.
Money wise the Anglo-Irish game clubs are in a downward spiral.

It was$35mill last year and of course they can. They hav structured their revenue and grant allocations to cope with that investment. With a $2.5bill to dea plus the massive reve ue from other areas $35mill a year is chicken feed to them. In fact expect them to send even more now they have a massive revenue increase.
IF NRL bring in two new teams and if they do it properly it is going to cost them around $20mill plus the $4.5 mill they are already giving Storm. Growth costs.
 

alien

Referee
Messages
20,279
The Tigers are moving to Liverpool.

they need millions of dollars of federal and state government funding before they can build a centre of excrement there. as far as i know, it hasn't been guaranteed yet
 

alien

Referee
Messages
20,279
.
IF NRL bring in two new teams and if they do it properly it is going to cost them around $20mill plus the $4.5 mill they are already giving Storm. Growth costs.

the nrl would make extra money from the tv rights deal if one of those teams is perth. it's a whole new market. that would cover any risk
 
Last edited:

Perth Red

Post Whore
Messages
66,282
Tbh I don't see a lot of point in it. It's not going to draw a crowd and would need to be filled with eastern states players to be competitive as all our best jnRs are getting signed to Holden cup or NRL club linked teams. It would be very expensive exercise for very little gain. It would be much better to spend that million $ a year on more development officers, strengthening the wa clubs and getting more high schools onto the scholarship program plus supporting at least 4 NRL games a year to be played in Perth. That's what we need to keep growing and hit the ground running for an NRL team eventually.
 

bobmar28

Bench
Messages
4,304
no they don't! they are planning on playing all their home games in the inner west (anz stadium) starting from 2017. maybe wests tigers should just stay in the inner west whilst the outer south west of sydney gets their own team. "macarthur magpies" sounds good! :)

I don't think Sydney needs a tenth NRL team.
 

Shorty

Moderator
Staff member
Messages
15,555
Even that money will only see them continue treading water.
You just can't keep giving $40 million a year to 2 expansion clubs indefinitely which is what they are doing.
The aFL said first of all it was a 10 year plan for both clubs now they are saying its a 20 year plan for both clubs.
The $40 million a year will only rise as well, as cost rise.
Other aFL clubs have huge money problems as well.
Money wise the Anglo-Irish game clubs are in a downward spiral.
Exactly.

It's actually the same as NRL, there are perennial 'poor' clubs that have fans continually asking for their relocation.
So now, on top of that they've got two black holes in expansion clubs.

We can revisit expansion in the future, when the NRL is financially ready to do so.
 

Perth Red

Post Whore
Messages
66,282
and what criteria do you put on the "when it is ready" to do so?

everyone keeps saying AFL gets more tv money, partly due to expansion, yet we are saying it is a black hole that will soak up money. Yes it is costing $35mill a year for AFL's two expansion teams bet their increase in TV deals has more than covered that. Would they have got as much without expansion? impossible to say but not likely, everybody says having a ninth game is valuable.

For NRl it gets a triple whammy with expansion, a ninth game to sell, a second Brisbane team which we know TV is crying out for and a Perth team that adds a new live tv opportunity in a new but popular market.

The idea that we cant expand in 2 years because 4 or 5 clubs are in strife right now is laughable when the NRL's revenue is set to have trebled in the space of 10 years.
 

Shorty

Moderator
Staff member
Messages
15,555
and what criteria do you put on the "when it is ready" to do so?

everyone keeps saying AFL gets more tv money, partly due to expansion, yet we are saying it is a black hole that will soak up money. Yes it is costing $35mill a year for AFL's two expansion teams bet their increase in TV deals has more than covered that. Would they have got as much without expansion? impossible to say but not likely, everybody says having a ninth game is valuable.

For NRl it gets a triple whammy with expansion, a ninth game to sell, a second Brisbane team which we know TV is crying out for and a Perth team that adds a new live tv opportunity in a new but popular market.

The idea that we cant expand in 2 years because 4 or 5 clubs are in strife right now is laughable when the NRL's revenue is set to have trebled in the space of 10 years.
The same criteria as any basic business.

It would be too much risk and cost too much money at this stage, better to secure the competition as a whole before expanding out.
It's really straight forward, the fact that you're impatient to get a Perth team is why you can't see it.

The AFL ,for the most part, is a better run competition, I'd put that as one of the reasons for a good tv deal.
It's more professional, involves women a lot more, overall it is a more polished product to present.
NRL was stagnant with Gallop but it is starting to show it's value now.

Have you read what people in the AFL think of GC and GWS? There's varying opinions but the general consensus is that the AFL under estimated the costs of these teams.
It will continue.

In general, I wouldn't really compare how the AFL operates as a business to the NRL.
This is the same competition that signed 2 NRL players with limited AFL experience purely for media attention/exposure.
 

duylm

Juniors
Messages
126
The same criteria as any basic business.

Successful business's are overwhelmingly the result of entrepreneurs that take risks. In the business world you either grow or you die. You don't wait around for growth opportunities to be handed to you on a silver platter, that you will only accept AFTER someone else has underwritten the risk like people on here seem to think. This idea that if foxtel want the extra game they should fund it?! If they are the ones risking their capital then they will demand something in return like say a cheaper outlay on broadcast rights or first and last rights or ownership of these new clubs? We are going to have to one day spend our own hard-earned money or else we will always be waiting around for someone to give us money for nothing.
 

Perth Red

Post Whore
Messages
66,282
Too much risk and money? Like I said it is only risk if A it is rushed and B it adds no value to the tv deal so would have to be paid for out of the current pie (which is about to grow significantly again anyway). AFL proved TV will pay for a ninth game, no reason it would be any different in NRL. Waiting for all 16 current clubs to be financially solid is a fools goal, hasn't been that way for 30 years, what makes you think it will be anytime in the next decade. the real risk is to sit and do nothing, losing the opportunity for growth whilst spending your resources on unviable clubs.
 

LJC

Juniors
Messages
584
One thing that is reassuring is that David Smith has a vision that the NRL will have 18 teams within the next decade. This is the most promising statement I have heard in recent times. Let talk of new bidding franchises be the way of the future. The genuine expansion is a boon for aspiring junior footballers as well as incentives for areas such as Brisbane, NZ and Perth. Let's hope these areas really get their act together and push for entry. Ideally I think their are some win/win names for these future expansion clubs. They are:
Brisbane Dolphins(taking the northern part of Brisbane and affiliated to Redcliffe Dolphins as backing club:
West Coast Pirates(a very appealing name for all fans and particularly the young in an area that will support RL) and
New Zealand Orcas based in the south Island provided the game of RL finally gets access to the schools in that area.
These areas are ready for the benefit of rugby league and their own destiny. Let's see if logic happens!
 

Perth Red

Post Whore
Messages
66,282
One thing that is reassuring is that David Smith has a vision that the NRL will have 18 teams within the next decade. This is the most promising statement I have heard in recent times. !

I heard galllop say the same thing for years!

Sound familiar? Gallop comments from 2008-2013

2008 Gallop reiterated that the NRL had long term plans to expand in south-east Queensland - namely the Sunshine Coast and the Ipswich-Logan corridor west of Brisbane.

2009 ''There are obviously target areas we have our eye on - Central Coast, Brisbane, Perth, Adelaide and perhaps another team in New Zealand,'' he said. ''I think PNG is, quite frankly, a fair way off but our timeline now is to wait until the middle of 2011 before we have a real serious look at expansion again and whether it is the right thing for our competition.''

2010 When will the comp be ready to take on a 17th team?
We are not putting a date out there ? it is as simple as that. The first priority at the moment is the health of the existing competition and the clubs within that competition

2011 Personally I would have thought we would get to 18 teams by 2015," he said.
"It might come earlier but we should be giving our existing clubs a couple of years with the new television money to get themselves stable before we introduce new teams into the competition."
 

Latest posts

Top