Rugby league must use windfall wisely
by: Brent Read
From: The Australian
August 21, 2012 2:19PM
THE target was always $1 billion and the ARL Commission got that and more. Sure, it gave up something in return.
A Sunday night grand final is back on the agenda from next season. State of Origin will remain on Wednesday night, much to the chagrin of the players union. Expansion is on the backburner.
But any disappointment over the draining Origin period will be offest by what is headed the players' way. A sizeable chunk of the commission's billion-dollar broadcasting deal will be used to increase the salary cap. Some of game's elite are ready to cash in.
The likes of Johnathan Thurston and Jarryd Hayne are off contract at the end of next season - they are in line to become the latest million-dollar men.
Clubs are also headed for a period of prosperity unlike any in recent memory. Sydney teams have rarely returned a profit. Cronulla has lived on the breadline for years. This will be like manna from heaven.
Thanks to the Nine Network and Foxtel, the game now has the financial muscle to take the fight to the AFL. Rugby league clubs in western Sydney and the Gold Coast have had their nerves soothed. The game can launch a counter-attack if it so wishes. It's more likely the money will be used to shore up the game's heartland rather than return serve.
The greatest challenge for rugby league now is to make sure it uses its riches wisely. More money will come via New Zealand and digital media rights. It could be that the commission deal eventually out-strips the $1.253 billion paid to the AFL. That would be a victory for the ARLC chairman John Grant and his fellow commissioners, who have been criticised at times for moving too slowly.
Grant has always spoken of acting to get the best deal, not the fastest deal. It was hard to argue with his rationale today as he announced a broadcasting deal unlike any in the game's history. Grant described it as the greatest in the game's history. It was hard to argue.
While the commission will rightly be praised, the forgotten man yesterday was former chief execuitve David Gallop. Gallop deserves much of the credit for the game being in such good health. He helped put the game in position to cash in on its popularity. And how they cashed in.
As part of the new deal, $90 million will be paid in advance to help the game set up a future fund. Clubs can expect a significant increase in their grants. They want it to exceed the salary cap by $1 million. The players union will have something to say about that. They will want as much cash as possible for their players.
The days of crying poor are over. Rugby league is rich again but must not squander the windfall.
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