WA BEARS

[Perth Red]

The consortium specifically are done

The Bears had not stumped up for a licence fee given an estimated $26 million in start-up costs and what Cumins felt was between $10 million and $20 million in value being created for the NRL by establishing a West Australian team.

The Dolphins were not required to pay a licence fee when they entered the league in 2023, given the club’s financial strength.

“Unfortunately I see (the bid) on life support, disappointing as it is,” Cumins told SEN on Thursday.

But since absorbing the initial shock of having their bid rejected, Cumins said the Bears were committed to imminently renegotiating with the NRL.

Cumins previously estimated a licence fee would be in the vicinity of $20 million, but is hopeful of reaching a compromise with the league to enter the league in 2027 as planned.

“Certainly that is our hope still,” he said.

“But we’ve got to be very conscious of the fact that if there is a (licence) fee to be paid and it’s significant, we’ve got to make sure we can honour the commitment that we make.

“That’s what we’re working on at the moment.

“I’m hopeful that we can have further negotiations with the NRL and come to some compromise on this licence fee.

“We will be going back to the NRL to make an offer.”

Cumins’ previous experience working with the Western Reds’ entry into the Australian Rugby League in 1995 had cautioned him against paying exorbitant fees at the outset.

“We had to pay, for example, to fly a first and reserve grade team to Perth for every game as well as our own cost to fly to the East Coast,” he said.

‘That was a crippling legacy for the club. I’m not prepared to do the same this time.”

The Australian Rugby League Commission is expected to enter negotiations with the West Australian Government should the private consortium fail to stump up an adequate licence fee.

Cumins was sceptical of the idea, and WA Premier Roger Cook has previously distanced the Government from the bid.

“I wish them luck because I don’t believe State Government’s role is to partner up on operating rugby league clubs or sports in general,” said Cumins.

https://www.theroar.com.au/2024/10/10/bears-blink-first-in-stand-off-with-nrl-expansion-bid-on-life-support/?fbclid=IwY2xjawF0JO9leHRuA2FlbQIxMQABHeuDKqGvWtuLLtChvwf0FSSUOSaVERuO0wQH6KSAw-v5siLVShVzHkvlJw_aem_Xn8-m0ck-RCSTm3PCLEjhg#m22pyor3szo9efxj3j

 

[Pippen94]

unless the consortium find some money or the NRL decide they will invest the $50mill themselves thats needed both Bears fans and WA fans are going to be bitterly dissapointed. The WA govt will not own or have any share in ownership of a sports club, I can guarantee you that.

If Vlandys is stupid enough to walk away from $480mill investment in the game in WA for the sake of a $20mill license fee will be interesting to see, if he does I think we can all agree he's a moron.

Lol, you're side has resorted to making threats. It's over. NRL will run team & sell it later.

 

[Pippen94]

The Bears had not stumped up for a licence fee given an estimated $26 million in start-up costs and what Cumins felt was between $10 million and $20 million in value being created for the NRL by establishing a West Australian team.

The Dolphins were not required to pay a licence fee when they entered the league in 2023, given the club’s financial strength.

“Unfortunately I see (the bid) on life support, disappointing as it is,” Cumins told SEN on Thursday.

But since absorbing the initial shock of having their bid rejected, Cumins said the Bears were committed to imminently renegotiating with the NRL.

Cumins previously estimated a licence fee would be in the vicinity of $20 million, but is hopeful of reaching a compromise with the league to enter the league in 2027 as planned.

“Certainly that is our hope still,” he said.

“But we’ve got to be very conscious of the fact that if there is a (licence) fee to be paid and it’s significant, we’ve got to make sure we can honour the commitment that we make.

“That’s what we’re working on at the moment.

“I’m hopeful that we can have further negotiations with the NRL and come to some compromise on this licence fee.

“We will be going back to the NRL to make an offer.”

Cumins’ previous experience working with the Western Reds’ entry into the Australian Rugby League in 1995 had cautioned him against paying exorbitant fees at the outset.

“We had to pay, for example, to fly a first and reserve grade team to Perth for every game as well as our own cost to fly to the East Coast,” he said.

‘That was a crippling legacy for the club. I’m not prepared to do the same this time.”

The Australian Rugby League Commission is expected to enter negotiations with the West Australian Government should the private consortium fail to stump up an adequate licence fee.

Cumins was sceptical of the idea, and WA Premier Roger Cook has previously distanced the Government from the bid.

“I wish them luck because I don’t believe State Government’s role is to partner up on operating rugby league clubs or sports in general,” said Cumins.

https://www.theroar.com.au/2024/10/10/bears-blink-first-in-stand-off-with-nrl-expansion-bid-on-life-support/?fbclid=IwY2xjawF0JO9leHRuA2FlbQIxMQABHeuDKqGvWtuLLtChvwf0FSSUOSaVERuO0wQH6KSAw-v5siLVShVzHkvlJw_aem_Xn8-m0ck-RCSTm3PCLEjhg#m22pyor3szo9efxj3j

NRL dodged a bullet.

 

[Red&BlackBear]

Will a license fee be a requirement of existing clubs when their renewals come up?

Probably not because they make up part of the ARLC and NRL already. They aren’t bidding to enter the comp. Things change over time. Hence no fee before for Titans and Phins and a fee now.

 

[BuffaloRules]

Dont be silly! This smacks of Western Reds travel cost imposition all over again.

a myth …

They jumped ship to Super League before they ever played a game …

 

[Perth Red]

I can tell you now that the NRL's plan B is about to be formerly rejected. That leaves them only 2 options if they still want a Western Bears, go back to the table with the consortium or invest the money themselves.

 

[BuffaloRules]

The proposed license fee has nothing to do with viability or a guarantee, they arent banking it 'in case'.
It’s to pay off the clubs for the license renegotiation thats about to happen as the licensing period runs out in 2 months and has to be renewed.

So the Clubs are going to get a million each ? That’s a cheap date these days right?

 

[wb2027]

I can tell you now that the NRL's plan B is about to be formerly rejected. That leaves them only 2 options if they still want a Western Bears, go back to the table with the consortium or invest the money themselves.

Why would the NRL reject their plan to own and operate the club themselves?

 

[Perth Red]

So the Clubs are going to get a million each ? That’s a cheap date these days right?

added to the PNG $60mill, an $80mill lube can make the negotiations on the new license agreement happen much smoother!

 

[Vlad59]

What I don’t understand is how the WA Bears bid did not attract big WA money or support from the mining and other sectors there. The NRL is a massive Australian sport and surely worth investing in. Instead we got a pawn broker. I am mystified.

 

[Perth Red]

Why would the NRL reject their plan to own and operate the club themselves?

That wasnt their plan B.

 

[Canard]

I don't believe so. One media article mentioned, for example, that the Dolphins paid very little (if anything) for a licence fee because its finances for the NRL club were guaranteed by the Redcliffe Dolphins Leagues Club. Even our worst performing clubs on field, like the Wests Tigers or Parramatta Eels , are on a solid financial footing.

That's different to a license fee though.

For example, I don't think it unreasonable, nor unexpected to ask any new team to provide a unconditional bank guarantee for X amount of money.

PNGs "financial" situation will be even more tenuous than this bid.

 

[Perth Red]

Perth Bears puzzled by the NRL’s decision to stop negotiations

The Perth Bears say they were “blindsided,” expecting the NRL to announce their entry into the competition, only to read in the newspaper that the deal had fallen through. Peter Cumins, Chair of the Perth Bears consortium, spoke to 6PR Breakfast hosts Millsy and Karl about what went wrong...

www.6pr.com.au

 

[BuffaloRules]

What I don’t understand is how the WA Bears bid did not attract big WA money or support from the mining and other sectors there. The NRL is a massive Australian sport and surely worth investing in. Instead we got a pawn broker. I am mystified.

I don’t see why they would be interested … they don’t need to advertise or try to gain the public’s favour … PNG is hopefully a different story

 

[Perth Red]

What I don’t understand is how the WA Bears bid did not attract big WA money or support from the mining and other sectors there. The NRL is a massive Australian sport and surely worth investing in. Instead we got a pawn broker. I am mystified.

There's 6 investors putting in $30mill. Despite your ideas of grandeur the NRL isn't seen as a huge investment opportunity on a pure business case. Reality is most people involved in Rl are becasue they are RL fans, not because its a money making venture.

 

[Bukowski]

I can tell you now that the NRL's plan B is about to be formerly rejected. That leaves them only 2 options if they still want a Western Bears, go back to the table with the consortium or invest the money themselves.

Did they ask the WA Govt to part own it?

 

[Vlad59]

There's 6 investors putting in $30mill. Despite your ideas of grandeur the NRL isn't seen as a huge investment opportunity on a pure business case. Reality is most people involved in Rl are becasue they are RL fans, not because its a money making venture.

Just a second there. You’ve been lecturing us forever here about the advantages the afl has over us as a ‘national sport’. These codes are massive businesses. Applying your prior logic a team in Perth provides advertisers and sponsors with a huge opportunity for national exposure. If that’s the case where are they? Surely a well prepared bid would have sought and received support from the BIG end of town. Not a pawn broker.

 

[Perth Red]

Did they ask the WA Govt to part own it?

Cant say, but what I can say is what the NRL identified as plan B wont happen. and thats straight from the horses mouth. So its either NRL invests $50mill and owns the license or they sit down with the consortium and work something out.

 

[Vlad59]

Cant say, but what I can say is what the NRL identified as plan B wont happen. and thats straight from the horses mouth. So its either NRL invests $50mill and owns the license or they sit down with the consortium and work something out.

And just another thing. You’ve been lecturing us forever here about the evils of pokies revenue for NRL clubs. Yet your highest profile sponsor and spokesperson is a bloody pawn broker. A bloke who can’t write a number on a bid after being told to do so.

 

[Canard]

Just a second there. You’ve been lecturing us forever here about the advantages the afl has over us as a ‘national sport’. These codes are massive businesses. Applying your prior logic a team in Perth provides advertisers and sponsors with a huge opportunity for national exposure. If that’s the case where are they? Surely a well prepared bid would have sought and received support from the BIG end of town. Not a pawn broker.

Getting sponsorhip, or even "support" from corporates is a totally different thing to owning and running a club.