The Australia Rugby League Commission has announced that it saw a $49.9 million surplus for 2014, following from the $49.6 million from 2013.
The numbers touted by the NRL today appear to show the game is in great financial health.
Today’s annual generation saw both Commission Chairman John Grant and NRL CEO Dave Smith trumpeting successes for the code in the last year.
There were some facts that were hard to ignore, including the fact that rugby league had the top three highest rating shows of any kind on Australian television in the year, along with the 250,000 people who committed to membership of some kind.
Grant said the plan they had put in place was working.
“We reported today on some big achievements and our financial performance has once again been very strong. We’re building a balance sheet to secure the game’s future whilst at the same time preserving profitability, and two years into our new rights deal we are distributing the funds in support of the game’s growth agenda and strategic priorities.”
Dave Smith said the growth story of the last two years was hard to ignore.
“In two years we have built a combined operating surplus of close to $100m that will be reinvested back into the game. We’re proud that this surplus has been achieved while the NRL has continued to increased financial support for all aspects of the game,” Smith said.
“We have also put aside $50m into a long term Sustainability Fund that will ensure the game’s underlying position is secured”.
Mr Grant also complimented the structure that had been put in place to secure the game’s future.
“We are transforming our operations so that we have the right foundations in place on which to keep building.
“This is why we are investing to develop the skills, capability and capacity of the NRL to maintain that momentum.
“The results that have been delivered over the past two years have been driven by the hardworking team at the NRL led by CEO Dave Smith and we’re in a strong position to meet our challenges and secure the opportunities of the future.” he said.
Smith elaborated on some of the developmental steps the league had taken in light of the windfall.
“We have increased distributions to the Clubs, the State Leagues and into the development of the game to more than $200 million.
“We also set up a model in New South Wales in partnership with the Government to create a new Footy Facilities Fund that is driving investment of more than $4 million into grassroots facilities – that’s something we want in other states too.”
“Off the field we introduced new concepts such as the Dick Smith NRL Auckland Nines, which were a tremendous success, and we’re driving a strong campaign to push membership which supports our clubs.”
“We’re also widening our base at the local level and also invested more in career education and training for players, and focused on strengthening governance across the game. These are activities that improve our brand and reputation.”
Mr Smith said there was still a lot of work ahead to achieve the game’s longer term targets.
“Our focus is our clubs and securing their sustainability; investment into rectangular stadia which will drive a better fan experience; staying committed to enhancing our brand; building value into our future rights; and a dedicated focus on key strategic priorities in football such as pathways and competition structures from the grassroots up to the elite level.
“These are the elements that will build even greater value in our game,” Mr Smith concluded.
What do you think Roarers? What’s your take on the figures?
Sleiman Azizi
Roar Guru
Sorry Russell. Given your post history, I should have realised what you meant. My bad!
Russell Johnson
Guest
I hope you have not misunderstood my question Sleiman, and I'm truly sorry if you have. It's the internationalism and goodwill towards the game as a whole that made me ask that question. These are things that are sadly too often missing in fans, pundits and journalists who are part of our game. And often as not the Aussie tendency has been narrow in the extreme!
Sleiman Azizi
Roar Guru
It's probably because of questions like that that I support rugby league's internationalism.
Russell Johnson
Guest
Like your style Von Neumann :-) I don't think you did that bad a job on the crust and as it led to RL as the pinnacle of the evolutionary process I can't complain. I see I made a mistake and wrote wright instead of write I forgot my tablets the day I writ it! The point is though that if the sport is cash rich in Oz there are all sorts of possibilities as to the way everything can move forward to benefit the game as a whole!
Von Neumann
Roar Guru
well, it turns out that I made a mistake in the very first line of the bible; the earth could not be created before light because carbon needs to be fused together from lower atomic elements in the belly of stars (which are made of mostly hydrogen and hellium), not to mention the iron content as well in the earths crust. Then, looks like I made another several thousand mistakes. So when I wrote the Qur'an I decided to start with a poem.
Russell Johnson
Guest
Phew, did you also wright the Bible, Torah, Quran and the works of Shakespeare? I'm very impressed but concerned that actual knowledge and supposition make strange bedfellows!
Russell Johnson
Guest
Unfortunately clubs will go to the wall largely by their own deeds. And the question is what would the NRL's market competitors do with that kind of superior funds when it came to the RL?
Russell Johnson
Guest
I have to ask Sleiman, with views like these, are you altogether sure you're Australian?
Russell Johnson
Guest
Hello Cathar, Do you ever think there's a tide of RL fans who would only be happy if RL failed, came out second best or was out marketed altogether by inferior products. This might be so they can blame their particular bête noire!
Russell Johnson
Guest
Glass half empty personalty,eh?
Von Neumann
Roar Guru
And as for the networks, they are not the last line of defense in money making. They are part of larger empires now. With creative accounting, you can offset a lot more. Thats the reality. Unless you're a big tech company who can buy up anything, you just reach into the bank. For the next level down, you shuffle a bit more. There's more room than they let on I think, when combined with the philosophy of making changes in the way sports do things. It both a battle to begin with but finally a team effort. In terms of the surplus. Get used to the good news about viability. The fact of the matter is sport is more important than ever. You can't talk this down. If you go over the report with a comb for the NRL, its impressive what the sport has done. I think I told people here a few years back, you wouldn't recognize the sport (for the better) in the future with all the changes. Nows not the time to doubt it.
Von Neumann
Roar Guru
This surplus is obviously a fantastic result for the sport. Given my track record in these matters, I swear my last prediction wasn't a fluke. But I still had to argue black and blue with people. The only thing we know at this stage, this far, is that the NRL will have more content to sell next time, and the AFL (and NRL as well) are prepared to change things up as they work with networks to harness the sports' popularity. As it is, by 2017 the NRL will have received $1.2B from tv, and will have generated around $6-800M in non tv revenue. You guys think AFL undercuts the NRL deal, it doesn't really. They go in there and they go hard. If they don't get the prize, they look at the other mob. Thats when they determine individually to all go in. Right now ch9 have said they probably won't bid for the AFL since they want to keep the NRL. Then channel 7 said they want to maybe do a 10 year deal with the AFL. Channel 10 would have either sport but were shattered last time over losing the battle for the NRL rights. As far as I know though - everyone desires the NRL, and ch9 has said it doesn't really want to bid on AFL, just focus on NRL. Hmmm. Imagine how its going to be this time with no first and last rights. Channel 7 really want to retain the AFL, some of the things they've done with the telecasts work really well for them. Next AFL deal to be completely different in many respects. Its clear they think they may be getting left behind in grooming the population to accept slots and staples like night time grand finals that pay out more, such as other sports have. Dont be surprised when they get 1.6B or more if its a standard length deal; and dont be surprised when the NRL get something like that as well. But if you look at it dollar for dollar, by the time you have a few offers going back and forth and everyone working which card they will put down next, it could happen that they pay a premium to win the sport in the end, so maybe your 1.6 becomes 1.7 or 1.8. I think 2 is obscene based on my general feel. But I dont know that. I could see 2B working for the NRL somehow if they showed and pushed it nationally, and worked up the Melbourne market for the storm more, along with new teams. I think people under estimate that a second brisbane team will be a massive money spinner. Both sports are busily talking up the price. The AFL is going to do things a bit different during the next deal. Who can blame them because as the NRL have shown - people may whinge, but they don't tune out that much. The exception is maybe lower ranked games when it comes to the cruddy commentary on ch9, offset by the highest ranked matches being on tv. But there's differences and efficiency here (and pleasure for fans) could be massively improved. Then the AFL may decide to add in an extra fixture day. It didn't seem to stick when they tried it last but you never know. All anyone talks about TV deals these days is maximizing them. If the AFL have to hand over some control to networks, I think they will. Because the NRL has shown (see above). Right now the NRL is giving away for free (its contractual) things like the 9s, The World Club Series, and the Four Nations. Those things are only set to grow in the next 5-10 years in value. Also the NRL is increasing its focus on going where the money is (which lets face it means popularity; they dont 'use' money - the money is a reward for the popularity, and this is what we're seeing in NRL's massive revenue jump, its not greed, its only sensible). Speculation from people right now thinking NRL could be 2B next time round. You've got ready made value in having the extra competitions being paid for instead of bundled in the existing agreement - and you'll probably have 2 extra games, one going into an entirely new market in Perth thats shown it will watch rugby league, even in the pouring rain. Then you've got general inflationary pressures, CPI, whatever else. I think you'll be seeing offers of 1.6 or more for each sport. The AFL reckon they are even walking in with that figure to start off with. The AFL really seem to be wanting to change it up, and so do the NRL. When people say to us they cant see them getting more - thats a fair comment - but we must consider that they've considered that and are prepared to change it up. The NRL is even looking at having more teams, less NRL games and more internationals and world club matches/whatnot. The NRL are also trying hard to balance player workload and ensure each NRL game is at its highest desirability level for ratings (by maybe shortening season, and rationalizing origin). We also must realize that both bodies sat through the negotiations last time so they are aware of what they networks need, just as they networks are aware of what the sports need. They will work out how to pay more together. Never mind the bidding war potential. And dont forget it channel 7 has already set the tone on bidding next time; while I personally dont believe in the 2B figures bandied about I believe the sports and networks will work out how to pay more and get more out of it. They dont do this for greed, they do it as a reflection of the increasing popularity, and as the NRL is demonstrating with things like -140,000 new juniors last year -highest ratings shows on tv bar none -season that goes from February to november -22 attendance records, including that big easter crowd -massive social media reach larger than other sports now -regions crying out for teams -focus on pacific, -NZ tv contract -internet/mobile rates are way up -nrl has the widest reach, largest junior networks/2nd tier -memberships broke 250k last year, and are increasing again 10% this year too, seemingly. --- and its showing that its growing. In fact when you put all that out, 1.6-1.8 may not be out of reach for the NRL. Or the AFL either. If you want my ultimate money, I would gamble the NRL will get a larger increase than the AFL, but they will probably end up being very similar in size. We must remember, these not for profit organizations, revenue is the final say.
catcat
Guest
Same start time as last year 4pm Sunday - but it will be live this year rather then 1 hour delay of a 3pm start. People want live sport on TV
turbodewd
Guest
Well perhaps the NRL could encourage clubs to NOT change their jersey every year and to NOT wear gimmick jerseys and to wear something the fans have pride in. Noone in the AFL or NFL goes around making gimmick jerseys or wearing 6 different ones per year.
Gazza
Guest
The NRL should buy out the entire Canadian Football League and convert the teams to rugby league. The CFL is a going nowhere doing nothing sport. It would give us a new instant international competitor in Canada to play internationals. Along with Aust, NZ, and England we are all under the same Crown as well.
Bruce
Guest
What planet do you live on?? The very fact that RL has had very little following and promotion in Victoria and the desert states obviously means there is far greater margin for growth in those areas. Conversely the AFL has spent decades in Qld and NSW and spent untold millions of dollars for moderate results. I would say growth for the AFL in the northern free states has plateaued and the current following will be very hard to sustain let alone grow. As such your analysis is completely wrong and should be reversed. I hope you don't work in marketing and promotion!!
Jasper
Guest
The clubs provide the IP that sells the NRL to viewers & makes tv companies want to buy it. Fans watch their club not players especially under this constant swapping of clubs by players thanks to the cap. The Rabbitohs brand aren't giving the NRL free use of their IP just so the NRL can give Souths enough money to pay 25 players. It's a rort and the NRL clubs are getting ripped off badly. If you divide the tv money up 16 ways the clubs would be like Frnech rugby clubs buying the top rugby players from all over the world. Instead the NRL clubs are losing star players & can't fund juniors. A rebel super league is coming once the majority of clubs are privately owned & they work out they don't need the NRL to organise a tv deal, a season schedule & two teams for an Origin series.
Kirk
Guest
clubs make money through other means - i.e Leagues clubs. I don't think the NRL grant is much to some of them.
The_Wookie
Roar Guru
They managed to retain 66 million from 2013 and have established reserves this year worth 2.28 million. retained suplus at present is counted at 82 million, which isnt too shabby.
Rob C
Guest
Guys, some creative accounting and reporting in those numbers. FYI surplus does not equal profit. When you look at the balance sheet the net position of the game has improved appx $10m in the last 12mnths, not $50m as reported. A lot of that surplus this year has already been spent, which the NRL should have stated as it is misleading to say this has been banked when it is no longer available. For the record I am extremely happy with the games performance. It would be nice though to know where all this surplus was spent. If it was in future income producing initiatives, than it would have been reflected in the balance sheet. I am guessing it has been gifted to clubs and state leagues, for their own "infrastructure" investment. Which by the way is still a good outcome if the money is invested wisely. There will be no stadium purchases, unless some serious cash remains on the balance sheet going forward.