the nrl and its need to grow

[duylm]

Broncos Warn Against Expanding Beyond Means

By Tony Webeck
Thu, Oct 22, 2015 - 07:29AM

It was very much poetic that on Back To The Future day across the globe Broncos CEO Paul White disabled the flux capacitor that would thrust the NRL's Delorean into an expanded future with new teams and an 18-club competition.

While representatives of expansion bids in south-east Queensland had viewed the resignation of NRL CEO Dave Smith on Tuesday as an opportunity to reignite the expansion debate, White urged rugby league stakeholders to "take three deep breaths" and carefully map out the future the game is hurtling towards.

Unveiling the Broncos' new away jersey for 2016 complete with new sponsor National Storage prominently on the back, White said the immediate concern for the game should be to ensure grassroots rugby league is protected and not add additional numbers to a competition where only two clubs are currently profitable.


"As the game gets its head around where it goes in the future we all have to be spokespeople for the grassroots," White said.

"There are football fields in the central west that have no grass and we've all got to understand that our right to sit here and participate and draw an income out of the game is predicated on the support of the people in those areas.

"Every CEO and every administrator and the NRL executive have to understand that that's the message, that we haven't forgotten about them and that they are part of our process.

"We've got to be really direct about that because they need to hear that.

"Fourteen of our current clubs are insolvent without the assistance of the game and licensed club funding, which isn't hard commercial revenues.

"Expansion will happen when the game is ready for it to happen. What's never discussed is whether we're talking about geographical expansion or numerical expansion.

"And if your question is whether we can afford to have two more teams in the competition at the moment then I'm giving you a categoric answer: no."

As one of only very few business models currently turning a profit in the NRL, the Broncos' sound commercial strategy benefited from the team's improved on-field performance in 2015, with the team watched by close to 25 million people on television over the course of the season.

It remains one of the most iconic brands in Australian sport and an opportunity to be associated with the 2015 runners up was one that National Storage managing director Andrew Catsoulis said was too good to let pass.

"Incomparable would be the only word that I would use," Catsoulis said of the strength of the Broncos brand. "Absolutely at the top of the tree but it hasn't been a solely research based decision. What struck us most was the level of family-based values that you see in the Broncos.

"The opportunity to align with somebody like the Broncos is pretty rare and pretty unique and we see it as an opportunity to get into a whole new demographic and that's exciting."

Question for everyone about TV revenue passed onto the clubs via the NRL grant:

Would you consider it to be:

a) a handout from the nrl that clubs are not naturally entitled to which keeps them alive.

b) a legitimate form of club revenue that the clubs are entitled to.

I really think it's B because as a game we actively discourage people from going to the gates with our wall to wall coverage from our loungerooms. If Dave Smith was ever serious about his crowd target we'd have done things like negotiate cheap tickets for away supporters, directly subsidize tickets for Monday night football (half price Mondays), subsidize memberships for wooden spoon teams, black out TV games in local markets but show all respective away games etc. Without clubs to watch there'd be no TV revenue. I think if our definition of profitable excludes TV revenue passed back to the clubs then we may as well contract to a 6 team comp.

And of course Brisbane are going to kick up a stink about losing their monopoly. Cry me a god damn river. What will it be, self interested individual clubs vs greater good for the game?

 

[insert.pause]

14 clubs may not make money but they aren't all insolvent.

 

[Perth Red]

What a Surprise, not like there is a conflict of interest in their opinion!

 

[RL The greatest game]

14 clubs may not make money but they aren't all insolvent.

What a Surprise, not like there is a conflict of interest in their opinion!

RLTGG likes these comments.

 

[Last Week]

Question for everyone about TV revenue passed onto the clubs via the NRL grant:

Would you consider it to be:

a) a handout from the nrl that clubs are not naturally entitled to which keeps them alive.

b) a legitimate form of club revenue that the clubs are entitled to.

I really think it's B because as a game we actively discourage people from going to the gates with our wall to wall coverage from our loungerooms. If Dave Smith was ever serious about his crowd target we'd have done things like negotiate cheap tickets for away supporters, directly subsidize tickets for Monday night football (half price Mondays), subsidize memberships for wooden spoon teams, black out TV games in local markets but show all respective away games etc. Without clubs to watch there'd be no TV revenue. I think if our definition of profitable excludes TV revenue passed back to the clubs then we may as well contract to a 6 team comp.

And of course Brisbane are going to kick up a stink about losing their monopoly. Cry me a god damn river. What will it be, self interested individual clubs vs greater good for the game?

To answer your question, it's a legitimate source of revenue because they earned it. People are watching the clubs and the players. Of course they're entitled to it. Also why it should be an even and fair distribution of payments.

But just to address this;

As one of only very few business models currently turning a profit in the NRL, the Broncos' sound commercial strategy benefited from the team's improved on-field performance in 2015, with the team watched by close to 25 million people on television over the course of the season.

It remains one of the most iconic brands in Australian sport and an opportunity to be associated with the 2015 runners up was one that National Storage managing director Andrew Catsoulis said was too good to let pass.

"Incomparable would be the only word that I would use," Catsoulis said of the strength of the Broncos brand. "Absolutely at the top of the tree but it hasn't been a solely research based decision. What struck us most was the level of family-based values that you see in the Broncos.

"The opportunity to align with somebody like the Broncos is pretty rare and pretty unique and we see it as an opportunity to get into a whole new demographic and that's exciting."

Helps when you have the third biggest market in the country to yourself as well as being on prime time television almost every week.

 

[papabear]

Honestly the broncos have by far and away become the biggest plague on the nrl ever.

Bigger then easts or manly could even hope to become.

Their self interested bullshit is so ordinary.

 

[Perth Red]

Maybe the additional Brisbane team will become the third profit making club in the league lol.

 

[papabear]

the sad thing is it would make the broncos even more profitable but they are too insecure to see that.

 

[Perth Red]

Bombers bid chairman Craig Davison believes a second Brisbane NRL team is inevitable despite Broncos CEO Paul White's damning view on expansion.

Brisbane Bombers boss Davison is unfazed after White dismissed the notion that NRL CEO Dave Smith's resignation could fast track expansion in Queensland.

The north Brisbane-based Bombers, Ipswich's Western Corridor bid and a Redcliffe consortium are considered favourites to snap up the next expansion berth.

Australian Rugby League Commission chairman John Grant last month vowed to select the next expansion team from south-east Queensland.

He said there were provisions for a 17th team from Brisbane in their 2018-22 free to air TV deal.

But Davison told AAP: "That's his opinion, and what do you expect a Brisbane CEO would say about another team coming into his market?

"He's doing something a CEO is expected to do - protecting his turf."

Davison said they hoped to receive an expansion update after NRL head of strategy Shane Richardson reveals his blueprint for the future later this year.

However, he believed a second Brisbane team was just a matter of time.

"The argument of 'if another Brisbane team enters the competition' has passed - now it's a matter of 'when'.

"I have no doubt there will be another team in Brisbane."

Davison admitted it may take another three years before another expansion team is sighted.

"We are looking forward to at some stage receiving from the NRL a process, it might be two or three years away but we are in no hurry," he said.

"We know the Brisbane market is solid and strong and do look forward to competing in that market place at some time.

"The reality is Brisbane does need a team, and I have no doubt it will get one eventually.

"It's the best backyard in rugby league."

http://wwos.ninemsn.com.au/article.aspx?id=9044148

 

[ash the bash]

The one thing I have noticed the last year, how quiet has the Brothers bid gone. I really thought they had an interesting bid with 8 games at Suncorp then 4 in rural Queensland (Anywhere with a Brothers club). No news seems they have thrown the towel in.

 

[morley101]

14 clubs may not make money but they aren't all insolvent.

Most of the clubs are not run for profit. Clubs owned by shareholders
do expect profit. Their lies a problem.
The more money some clubs get to cover their playing roster, will spend more money on non-playing activities ( better training facilities, more coaches etc ) These clubs can rely on grants from their leagues clubs.

Why were licensed leagues clubs were first established ?
To help to pay and expand the game of rugby league amongst their districts both through junior clubs and senior clubs.

 

[Perth Red]

The one thing I have noticed the last year, how quiet has the Brothers bid gone. I really thought they had an interesting bid with 8 games at Suncorp then 4 in rural Queensland (Anywhere with a Brothers club). No news seems they have thrown the towel in.

Maybe they have been told the same as the Pirates bid. There has been absolutely nothing about the WC bid since the NRL took over the WARL and gagged Sackson and ousted the board. Either because they know there is no expansion or they know they are in if there is I suspect.

 

[Perth Red]

Not very positive from the games interim leader,


GRANT: I don’t see expansion on the rise in the near future.

BUZZ: But surely the game needs a second Brisbane team?

GRANT: I don’t think there’s any advantage of having one more team to make it 17 because you don’t get an extra game for television. You’ve got to go back to my point about the number of players we have. If we expand we need two new teams and I don’t think we have enough players.

http://www.dailytelegraph.com.au/sp...587229953?sv=e944714ab8cea8660098c9f487157b3b

 

[Last Week]

Not very positive from the games interim leader,


GRANT: I don’t see expansion on the rise in the near future.

BUZZ: But surely the game needs a second Brisbane team?

GRANT: I don’t think there’s any advantage of having one more team to make it 17 because you don’t get an extra game for television. You’ve got to go back to my point about the number of players we have. If we expand we need two new teams and I don’t think we have enough players.

http://www.dailytelegraph.com.au/sp...587229953?sv=e944714ab8cea8660098c9f487157b3b

I don't think that can be taken real seriously to be honest. Doesn't matter when expansion is done, the playing number will technically drop. What really will happen though is that the quality of players will be spread out more and there will be more players of a lower quality playing. It's inevitable no matter when it's done.

When just one team was added, the Titans, I found the drop in quality of football quite noticeable, and that was just one team.

Ultimately, the standard of football we have now is due to the way coaches have teams playing and thus grooming junior players to play in the boring mediocre style that coaches want.

I think it's a throw away line. Just an answer to give to the question he doesn't want to discuss for what ever reason. It's not a false reason for not expanding, but it's probably not the main one.

 

[Perth Red]

Not sure you'd be talking down expansion if you had any intention to expand, where would be the logic in that?

 

[Last Week]

Not sure you'd be talking down expansion if you had any intention to expand, where would be the logic in that?

Bargaining tool for TV rights negotiations?

NRL - Gee I dunno guys. I don't know if we really need 2 more teams for an extra game.
Fox - Aw. Come on. Well give you $12.
NRL - Mmm. Our clubs don't really want expansion. (see Broncos CEO)
Fox - Oh come ooon. We'll give you $16.
NRL - It's gonna cost us a fair bit and their existence will also need to result in a significant reward for our other clubs.
Fox - Ok ok. Here's $25.
NRL - And we're going to have to strengthen our player developmental pathways for the inevitable drop in quality of the competition.
Fox - Ok. For f**ks sake. Here. $1.1 billion. Now f**k off.
NRL - Thanks.

 

[Centralcoastdragon2]

Agree