I’ve noticed in the past month or so, a particular advertisement appearing on Fox Sports encouraging all rugby league fans to purchase memberships for the forthcoming year.
This reminds me that about a year ago, Jacquelin Magnay wrote in the SMH about some of the financial problems being experienced by a few of the Sydney-based rugby league clubs.
In that article, and subsequently in the ABC’s Offsiders program, she mentioned the need for rugby league clubs to commence emulating the AFL clubs in attracting financial members.
Around this time, Magnay also referred to discussions that she had with the management of the Wests Tigers, where they mentioned their intention to look to Collingwood for creative ideas in boosting membership numbers.
The differences in their respective figures are quite stark.
Wests has a total membership of 4,000 odd and an annual income of some $12 million. Collingwood has now breached the 40,000 mark in memberships (only four or five AFL clubs are up around that number) and its annual revenue would be at least triple that of Wests.
This NRL ad on Fox Sports has got me thinking about the fundamentals of club memberships in Australia.
The large club memberships that exist amongst many of the AFL clubs is a factor behind the wealth generated by Australian Football in this country, and it makes sense that the NRL (and other codes) would want to tread a similar path.
But at the end of the day, the success or otherwise of selling memberships depends on a number of factors, including:
1. the sporting culture of the followers of a particular code, and/or of the city where a particular code might be dominant; and
2. the numbers of fans of a particular club to begin with.
In relation to the last point, clubs like Collingwood and Essendon have a massive pool of fans to draw from. In all probability, less than ten percent will be financial members at any one time – but it’s the sheer numbers to begin with that drive the success of the membership drive.
As some fall off from year to year, there are plenty to take their places.
Going back to the Wests Tigers example, the question arises: what is the number of people within the Sydney basin who claim to be a Wests Tigers fan, and are they inclined towards paying a lump sum at the start of every season to watch most home games?
In understanding the mechanics of memberships, we have to understand that we’re not just talking about someone at the water cooler on a Monday morning with a passing interest in the game claiming to be a fan for the sake of social conversation. We’re talking about someone so committed to the team that they are willing to put their money where their mouth is at the start of most seasons.
For whatever reason, the bigger AFL clubs have a large amount of these sorts of fans.
Added to that, a city like Melbourne has a culture of memberships going back a long way.
This is something that the Melbourne Victory has been able to trade on, and as a consequence it has far and away the largest number of memberships amongst the A-League clubs. According to management, about half of all Victory members are AFL members of one type or another.
In an unexpected twist, it could well be that ultimately the Storm will do better than its Sydney counterparts, precisely because of the prevailing sporting culture in the city in which it resides.
Qwountik
Guest
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Midfielder
Guest
Doing the eagle rock ?????
Col the Bear
Guest
just an add on..the central Coast residents have proven time and time again that they will back their own team, and want their own team...it proves how many turn up to the games each year..maybe a nice initiative by the NRL ?maybe a way of gauging the response on the CC support?..but I'm sure there are a lot as myself, who are waiting for season passes for their own team.. the Central Coast Bears>>>
Col the Bear
Guest
David Gallop has said he wants to do a CC membership for the 5 games at gosford this year..Well sorry, but I want a season pass for the Central Coast Bears mr Gallop...and i'll wait when i can see the day the Bears are there then i'll gladly buy season passes for the Bears games as will my family....
Col
Guest
Thanks CC..we are working extremely hard behind the scenes to make this happen,(oh and thanks MF)it's looking very very good..all round..and also our Juniors are looking good, with our SG ball drawing 23 all with the very powerful Illawarra steelers, and our harold matts beating them..not only that our NSW cup side with no Souths NRL players knocked over a very strong Canterbury NSW cup feeder team yesterday(The Bankstown city Bulls formerley Sydney bulls),22-14..and there was at least 7 players in their squad with NRL experience, including Michael Sullivan..so yes we are looking good across the field at the moment..I do agree it has to be the CC Bears and then Perth Reds..and this is how it's shaping up...the NRL just have to come out and say it publicly,so we can get more sponsors on board, and begin rebuilding for an NRL reappearance..Interesting also what Kimmorley said the other night on the news..that the CC has to be next..before the west or anywhere else..
Crosscoder
Guest
Col I would put a fair bit of my hard earned on a CC Bear return and a Perth entry in the next "cadet" LOL intake. Reasons? 1.The amount of goodwill engendered by the big ,bad, brutal, bombastic bear's return ,would result in afair swag of people previously lost to the game, returning.The area covers an affluent and a huge working class area of the CC and Nth Sydney are necessary mix to get the company people on board.Off the tip of my worry lines,I know of at least 3 different characters who followed the bears ,nad no longer follow the NRL.It would be like the Rabbitohs getting back.A Manly v Bear's match the mind boggles as to the interest. 2.You can't simply continue to ignore a huge junior base.You can't get too much sympathy for a relocated team out of necessity. 3.Allied with a new Perth entity,you would have a genuine argument for a large increase in teh next Tv contract. 4.You cover all bases in NSW.
col
Guest
Can't wait to get my Central Coast Bears membership when they become available...today in the Sun Herald..Wally Lewis supports the Central Coast Bears bid, as does Peter Stirling..and Shane Webke, Mathew elliott also doesn't oppose the Central Coast getting their team,and Bratih Anasta says any new team will bring more supporters...And it's all happening at Manly, with Max Delmage taking firm control,and ruling out any move from them to go to Gosford...Well it's looking very very good for all those die hard Bears supporters who have clung to the hope that the Bears will get back into the NRL..Can't wait for the CCBs...
col
Guest
the problem with RL memberhip is that it always appeared too hard to access or only certain people could become a member..it's all about educating the masses..if your a Leagues club member your not a football club member..and this is what has to get across to all the people, but I believe with the right push and publicity you will get those memberships as the AFL do.. as someone else put it..plagarism is a must when concerning how the AFL do it...
Crosscoder
Guest
True Tah. Harry T is not the main sponsor and has not been for a few years of the West Tigers .Proton as stated is the main one. The push for memberships for each NRL club is to be applauded,as some sources of sponsorship have either dried up or impossible to secure. All the main sponsors of the NRL governing body have been retained:the Tv contract,Toyota,Harvey Norman etc,an increase to $1.7m per annum for the under 20 comp.. The unknown of course should things get to a stage where companies are in dire straits, sponsorship is the first to go. BTW I am fairly certain News ltd has relinquished ownership of the Cowboys. Should as expected unemployment continue to rise,merchandise sales and attendance at all sports will be down dramatically. It is a case of batten down the hatches,push membership to the hilt in these tough as a depression times.
sheek
Guest
Pip, Mid, Forgie, Red, Mick, Link, etc - you know the love is spreading when monikers are shortened. I can feeeeel the love! Well done guys, enjoyed reading your posts, & have added 'business spectator' to my favourites. Love.....xo!
Midfielder
Guest
Redb As I explained in my last post it has nothing to do with any of the code sponsor's. ... Its the media companies i.e. Ch 7 & 10 getting advertisers to agree to place adds during the show. Essentially nothing to do with each code directly more advertisers punning back on the number of adds they do.
Redb
Guest
Midfielder, As a fellow reader of business spectator I can only concur that this usually excellent website has got the info wrong. The AFL announced Toyota as the major sponsor for the next 3 years about a month back. I haven't read the link yet. Redb
Midfielder
Guest
Pip Done a little digging on what this means ... nothing to do with the sponsors of the sports. What this is about is advertisers who pay for adds during games ... so in affact the media companies are having trouble selling the main adds they show....
Skull
Guest
True Tah, I dont think Harry has sponsored them for a few years now. Lat I saw it was Proton cars or something
Midfielder
Guest
Pip http://www.businessspectator.com.au/bs.nsf/Article/Channels-in-limbo-on-footy-sponsors-NUUJL?OpenDocument&src=ea&ir=1
Pippinu
Roar Guru
Mid I wasn't able to access it - can you double check the link please?
Midfielder
Guest
Pip Further to your post above .. If nothing else this is a very interesting comment on our recent times. http://www.businessspectator.com.au/...nt&src=ea&ir=1 Abstracted from The Australian The Australian Football League, Super 14 and National Rugby League competitions are yet to secure full sponsorship for their 2009 seasons. MCN CEO, Anthony Fitzgerald, said sponsors were reacting to the global financial crisis, with finance departments having expressed an unwillingness to fully commit. Seven Network director of sales, Kurt Burnette, said the delay also related to concerns about how and where advertisements would run in the network's sports schedule
Pippinu
Roar Guru
tt I didn't know that, but I reckon that's a massive thread in its own right - all the professional clubs (of all persuasions) throughout Australia who are likely to be hit by the current economic crisis because: 1. they are struggling to find a sponsor (major sponsors in particular, and I know there are at least two AFL clubs in that category) and/or 2. their major sponsor(s) is feeling the pinch themselves and if they're not going under, they will certainly reduce their commitment to sponsoring sport as part of a belt tightening exercise. What do you think in broader terms?
Pippinu
Roar Guru
Mid worry about the Roar first! (good luck tonight, I am more than happy for you to knock them out of contention) Waterboy I'm not sure I understand what your concern is. This article is about now well documented initiatives by the NRL to increase its number of memberships across its clubs. They themselves (not me) have referred specifically to the AFL in this particular campaign. That has to be mentioned in an article like this for completeness and background. The Victory gets a mention because, like the Storm, they benefit directly and indirectly from being resident in a city that has a long history and strong culture of purchasing club memberships (or season tickets if you like). This whole subject fascinates me as much from the difference in cultural norms that are clearly evident in the AFL cities and the Northern cities. The NRL understands this as well, and thus its advertising campaign. This whole issue can be looked at calmly and rationally without anyone getting up tight or for any need to descend into cross code banter or worse (and most have already entered the discussion in that spirit). It's an interesting topic, just accept it as such. You will note that somehwere I've already mentioned that just as the NRL clubs try to emulate the AFL clubs in terms of selling memberships, the AFL clubs are trying to follow the NRL lead in increasing its gambling revenue - that's the way of the world!
True Tah
Guest
Pip interesting you use West Tigers as an example Their main sponsor is Harry Triguboff, who owns Meriton Apartments - seeing as Harry is struggling to meet his land tax bill in Darling Point, how they hell can they afford to sponsor the Tigs? They are right in ramping up their membership drive!