Dave Smith will leave rugby league next month. I won’t miss him, I won’t feel sorry for him, and I won’t feel like he’s been hard done by in his past three years.
Rugby league is a brutal game on the field and is no less brutal off it. Take any club in the NRL and you will find cases of staff – and everyone is ‘staff’ in one way or another – who were dismissed, contracts not renewed, marginalised or shut out of the game.
Players, coaching and administration staff, club officials can all count themselves part of the hard-luck crew.
Because that is the game, and it’s been that way since 1895.
Smith did his job for the time he was there. His achievements are too numerous to mention and I would be repeating what other commentators have outlined.
However, rugby league fans should note two points in particular: digital media, and women in league.
I believe these will be Smith’s greatest legacies.
The second point will be the most quickly acknowledged.
Prior to Dave Smith taking over rugby league in Australia, you could count one one hand the women in senior positions in the game.
We now have a Women’s Player of the Year for the first time in 2015, the Jillaroos are actually being paid to play representative games and participation from women and girls playing the game is up 26 per cent.
In addition, whenever the NRL had to step in to provide funding to clubs such as the Wests Tigers and Gold Coast Titans, Smith ensured women were represented on those boards.
The game doesn’t know it yet, but actively encouraging women’s involvement in every area of the sport will yield future dividends not possible with their exclusion from the ‘Boys’ Club’ of decades past.
The second point to address is the media rights – the broadcasting deal that has already been struck with Channel Nine, and the soon-to-be-negotiated pay TV rights.
Wrongly, Dave Smith has been ridiculed for excluding News Limited, owner of Fox Sports Australia, in negotiating the television rights.
What he has already achieved is securing four games a week, across the same number of nights, on free-to-air television. The broadest possible reach was sought, allowing the most number of rugby league fans in Australia to see the games.
This leaves the question of Foxtel and the shut-out of their highly prized and successful Super Saturday content, where they were able to screen three games in succession on most weekends.
Soon the Nine Network will have a plum Saturday night NRL game in their schedule while News Limited owner Rupert Murdoch will have to pour himself a cup of hot chocolate and tune in to the Aussie rules.
Yet focusing on Foxtel is missing the real point of Smith’s broadcast strategy.
My view is that Fox will get a seat at the negotiating table and will need to come up with a zillion dollars to get even the smallest piece of the rugby league pie.
The NRL has recognised that pay TV – or ‘subscription television’ – is an old model. It had its heyday a decade ago when the only apple I held in my hand was a golden delicious.
The days of paying for a subscription to a suite of channels, most of which the average subscriber hardly flicks to, just so that they can get their Saturday rugby league, are over.
The NRL are in a position to offer its product to everyone who wants to see it for a far more modest fee than Fox charges, with much greater value for the footy fans.
In March this year, free-to-air television was available in every household, the internet in 80 per cent of homes, and pay TV in only 27.2 per cent.
This last figure is overshadowed by smartphones (73%), tablets (47%), games consoles (43%) and smart TVs (30%).
Those numbers of penetration into Australian homes are only growing. Pay television is being left behind while all other digital screens are dwarfing it.
I didn’t understand the versatility of the smart TV until I got one myself. I can use the remote control to source everything on the internet from Peppa Pig to Ingmar Bergman’s classic The Seventh Seal. Once I can get live NRL games, I will want for nothing.
Streaming through whatever device you’ve got is the future of broadcasting. The NRL knows it and last year devoted four pages of its annual report to digital initiatives.
The current NRL paid digital pass is at present not available through a smart TV because of the contract with Telstra. As soon as the NRL has more authority to wrestle free of these sorts of constraints, the better.
So who will see the digital revolution through to its end? It won’t be Smith, who is out the door, but in the interim will be replaced by John Grant.
Does that name sound familiar? It should, because he’s the current Australian Rugby League chairman. He’ll also be the interim CEO, having accepted additional duties thrust upon him by the Commission’s nominations committee.
What did you say? Members of the same board he chairs recommended he take up additional responsibility? It seems that’s exactly what has happened.
So where does that leave the governance of the ARL Commission? You tell me, because I can’t find the Constitution anywhere despite searching for it and asking some league journos to help out.
It’s certainly mentioned in the code of conduct on the Play Rugby League website but this is as much as can be found on the NRL websites.
I know you’re going to draw historical comparisons with this. Julius Caesar had emergency powers conferred on him by the Roman Senate and became dictator in 48 BC, Adolf Hitler was given the same by the German Reichstag in 1933, and Emperor Palpatine gleefully accepted more power in a galaxy far, far away. It all worked out fine for the people those guys ruled, you’re telling me?
You’d be drawing a longer bow than the Battle of Agincourt to suggest anything like that.
Except, as much as I want to refute your claims, I can’t find the Constitution to smack you down.
Maybe one day we’ll find it at the bottom of one of Smith’s archive boxes at Grace Storage.
Either way, we’re into a new era for the NRL.
***
There was one other resignation at the NRL last week that will resonate with me long after Smith heads back down a Welsh coal mine.
Don Stuart, the NRL referees’ operations manager has resigned after 18 years with the organisation. He was there when I came to first grade as a touch judge, and he was there when I left.
Donny was responsible for keeping everything running in the referees office – the logistics of officials at eight first grade games a week, clothing, equipment, booking training venues, referees trainers, petty cash, milk in the fridge, liaison with HR at the NRL – you wouldn’t believe the things he had to organise and was left to blame when circumstances changed.
Anyone on the outside would not understand his responsibilities or how busy he was. Yet Donny would simply smile and get on with the job.
The guy is a professional person and offered me tremendous support in all aspects of my life as a first grade match official. He is owed a debt by the game and although few people in rugby league will understand the role he played, the people who worked with Donny admire him.
Donny and his American wife Lori will move to the USA. I wish them both the very best and a new life away from the stress of being part of the NRL referees.
marco
Guest
You are right. News journo's articles are a bit off the mark. But Smith has taken the most heat when others like Grant surely have had a direct say in negotiations. If they aren't going to deal with fox and have another alternative master plan then go for it. But they need to make it happen soon. The code is looking for a bit of certainty. Surely they must of known that to upset long term partners like fox and Telstra would be risky.
Crosscoder
Roar Guru
Seriously ,relying on Darren Davidson ,the News Ltd media hatchet man in the Australian,for his backtracking comments on Grant is a bit rich. Davidson since the day Smith announced the $925m FTA deal with ch9,has been the leading light in his attacks (ably directed by his New's masters) on Smith and Grant.The agenda based commentary is as plain as Sydney harbour. The usual unamed sources,the club CEO s who do not wish to be identified .On that basis apparently the club CEOs are doing this to assist News in pushing for a lower Tv deal LOL. This is a common theme run through New's media via Davidson ,Koch,Honeysett in the Australian,Wilson (the self opinionated loudmouth who was a Swan's ambassador so much for her rl devotion)Rothfield,Kent,Richie,Hooper,Massoud. When a collection of journalists from the same stable write similar guff,with similar criticism,and similar recommendations and using similar methodology at individuals ,one can be fairly certain the directive comes from above.There is about as much independent thought as there is with a North Korean news broadcast. All coming from the very same organisation that knew how to run rugby league circa super league,losing $6000m plus,losing fans,and these journalists are experts on industry and commerce.Ms Rebecca Wilson was in fact the PR person for Super league.Did a mighty fine job for a natural disaster.And she is telling anyone who will listen how to run the NRL.DShe should have got a job with "Laugh In." The same Darren Davidson who ignored the influence of Samuels,another of the Commission people also involved in negotiations and officials of Credit Suisse. There is an opportunity for a twilight game on Sundays for Fox and an extra slot with expansion.Take it Rupert before you blow another fuse.
marco
Guest
The fallout continues. Now Grant is trying to backtrack and is apologizing to news and telstra for the botched negotiations. His job is reportedly on the line. Sounds like the NRL is trying to salvage a deal. Nine may lose its saturday games to fox. That will mean less FTA for fans. Then theres the money and the clubs arent happy. No mention of the great hope of expansion. From the outside it looks an embarrassing mess . Meanwhile fox look to be partnering up with channel 10 and give them some AFL on saturday. This could mean 4 maybe 5 FTA games per week of AFL. If there is a mystery bidder for the 4 remaining NRL games, they need to step up now.
marco
Guest
I'm sure that many hope you are right. The situation as it stands is the NRL has sold the 4 premium games in the premium time slots to channel 9 for $925 million and shut out fox. At the time this was regarded by many to be an awsome result. Fox are miffed and are left with not much to bid for. The main man, Smith assured everyone that he had everthing under control with a future partners .He has suddenly resigned. Hopefully the new management will get something close to the AFLs $2.5 billion or leaguies will be pissed.
no one in particular
Roar Guru
There are other broadcasters kicking the tyres - one backed by Disney the other backed by Middle East oil. There are other platforms apart from Foxtel, one being the codes major sponsor. There are different players, its just a matter of whether one will step up. The reaction of News shows who exactly holds the aces here.
Bruce
Guest
I'm actually 100% right MF. The NRL have the content and hold all the aces. Rupert has plundered RL enough and needs to be moved on. Your ' intellectual exercise' comes straight from Fox's hack journalists......its old thinking and old media. Smith has set the NRL up for new media, new opportunities and a massive future......hallelujah brother!!!!!!!
Mister Football
Roar Guru
Bruce You are partly right - I don't know if an online broadcaster will emerge over the next couple of years with the capacity to pay $800 millions over five years. I do know that right now, as we discuss this interesting question, that there is no one who can front up the money by cob tomorrow. I also know, right now, advertisers continue to prefer the mass audiences that traditional TV continue to deliver. Yes, that will change at some point, but for the moment, traditional TV is holding on a lot better than traditional print managed, and it's unclear just how quickly new players will come on board willing to front up $800 million to telecast live sport. So, that's where I am coming from, there are no online players with a capacity and/or willingness to front up the $800 million right now. As a bit of an intellectual exercise. Let's assume the NRL finds an online partner tomorrow, and they are going to seel NRL passes for all live games, unlimited replays, etc. What's that worth to the average NRL fan? Let's say it's worth around $200 per annum, seems a reasonable deal and most fans would be willing to pay such a sum. To match $160 million per annum, how many such passes to you have to sell? Exactly 800,000. Is that achievable? Pretty tough I would have thought, but not impossible. But they can make ad revenue - yes true enough. Factored against that are the production costs of producing live broadcasts, and can all eight games be shown live with the Nine deal in place? Does some payment have to flow back to Nine for being able to stream those games live? Anyway, in short, right now, it's pretty hard for an Australian sport to replicate online what they can make from traditional TV (as the print media has discovered in their industry).
Bruce
Guest
'imaginary online broadcaster'....how do you know MF? Answer......you don't.....you're making it up. There are already other platforms that can do it, it's just a matter of how much money they will pay. Smith, Grant, the commission and every sensible neutral commentator has said they have made a strategic move in holding off the pay component. They have 2 years to get where they want and I'm sure they will. In the meantime the AFL has locked in with Rupie for seven years of old media.......good luck with that.
Sleiman Azizi
Roar Guru
I wonder if many league even know the world the code finds itself in.
pete bloor
Guest
That's quite a fair point on the second tier comps, the qld cup in particular seems to get more press or support now.
Mister Football
Roar Guru
dbs I said from the very outset that the NRL will reach $1.7 billion over five years - you can go back and check it. It's equally true that Fox have lost two premium timeslots. The gist of this article (and other commentators) has been that the NRL are waiting for some imaginary online broadcaster capable of paying $800 million. I'm simply making the point that there is no one else. In terms of the AFL - they actually do have an option - themselves.
Von Neumann
Roar Guru
Of course those legacy's are good stuff. He did much more we don't see behind the scenes we'll be thankful for in due time. Also the commission, G Samuel and others helped with the deal and more still to go. People in those areas are cool under pressure. Smith is meant to have told someone the deal will be commensurate with the afl one. At the end of day digital sorted and I doubt anyone is too disappointed with the CEO in truth
db swannie
Guest
Tell me mr Football who was waiting in the wings when the AFL did their deal with Fox . Where were the other bidders for the non FTA games ? Lol . There is no competition at the moment ,but losing a large number of customers because of no RL content is a major problem . They are already losing subscribers to Netflix, Stan etc ,so keeping their sport subscribers is imperative. All the laughable articles by news show just how much good Smith was doing .
Von Neumann
Roar Guru
Smith is a genius. He knew 4 yrs max for him. I don't think he is disappointed. I doubt anything has changed since my original piece on potential rights written here on the roar. They played for all outcomes. Picture this, and the AFR says as much. Fox will get more than likely Saturday back and it would goto 10. Fox simulcast extra 3 games. They have doubled content, fox with all 8 games and potential for 9th, and improved slots, everyone bar fox who lose Mondays but gain 3 plus finals simulcast Expect around double money. Digital rights and splitting fta and pay was needed to get proper bargaining. They had to bust up the Telstra deal and naming rights. Now time to do it. Negotiations are different to discussions but a deal was always moving bar for a few weeks. 9 was always talking to ten and even in center of fight they were investigating. Streaming could go either way, they are open universal. This kind of leverage to put game first and 100% of people first is what I also called for separately. Trust me smith was the goods. Thanks for a good article but you will miss him. Though the next CEO has been shown the standard to beat
Crosscoder
Roar Guru
The Australian reporting this morning LOL.Wouldn't be Darren Davidson who has been Rupert's mouthpiece ever since 9 secured the $925m FTA deal. Yeah that would be a balanced comment without any bias. Read every one of Darren's articles (I'm an Aus subscriber) ,which i have done,and you get a trend ,an obvious trend authorised by His Master's Voice. 9 has already stated from day one,their willingness to negotiate on Saturday FTA with Fox..The option of simulcasting has not been taken off the table either.RL fans have already started to churn Fox,I think they will soon get the message,about bread & butter income. Ignore 500,000 subscribers at ones peril.
Birdy
Guest
Mr footy, Any negative reporting from a NEWS source is a positive for the NRL
bbt
Guest
Of course News Ltd papers would say that re Foxsports and the NRL. $160 million per annum is only about $2 million per game. They'll pay it or they are history if they lose 500K subscribers. All production facilities are now outsourced, so that is not an issue.
Mister Football
Roar Guru
The NRL is looking to get an STV deal up worth about $800 million over five years or $160 million per annum. Is there anyone out there waiting in the wings with the capacity (in terms of both cash and production facilities)? The Australian is reporting this morning that Fox is refusing to even meet the current $530 million price point, let alone anything higher. Not too hard to see where they are coming from: 1. they have lost two premium fixtures; and 2. there isn't exactly an over abundance of STV providers out there capable of forking out half a bill.
JonD
Guest
Agree. 4 games a week on Free-To_air is the smart long-game move. It will build the supporter base and make RL stronger. I know the media landscape is changing a lot, but FTA is still oxygen to any sport. The more the better.
Birdy
Guest
Agree no one, One of Smith's first promises was to make all 16 clubs viable. He's certainly doing that but people would rather complain about banning the shoulder charge. And on top of that our 2nd tier comps are going from strength to strength.