Will the NRL ever have a prosperous future?

By Mark Campbell / Roar Guru

In times like these, sport plays second fiddle to the health and economic tragedies of the time.

Still, I recognise the truth. In tough times, sport in Australia has often been a release to such tensions. That is why the current predicament facing rugby league and all professional sports is all the more frustrating.

The National Rugby League is Australia’s second most successful professional sporting league, yet during the current crisis, it has been shown to be anything but professional. Granted, it is not alone in this regard. Rugby union is in debt, and the financial powerhouse that is the Australian Football League has taken a loan to get through the turmoil. Yet, things should not be this grim in rugby league.

After roughly 13 years of joint ownership between the game and News Limited, the Australian Rugby League Commission was meant to right the wrongs of the past and lead the game into a new a prosperous future. Things started well with a five-year, $1 billion rights deal and despite issues at headquarters followed this up with a $1.8 billion deal. All sounded sweet, right?

(Photo by Mark Metcalfe/Getty Images)

Obviously, like sharks in the water, everyone started circling for their cut of the catch. It turns out the professional players get 29.5 per cent of the cut and whatever figure that turns out to be, and the clubs get 30 per cent above that. The administrators in headquarters also get compensated and then the funds get handed out to the NSWRL and the QRL. Eventually, when it is all said and done, the NRL gets knocked back from the banks for a $30 million loan to cover a cash shortfall.

Okay, fair enough, the NRL recently posted a $30 million profit, but still you can see the problem, right? As departing South Sydney chief Shane Richardson said in regards to the economic model of the game: “this isn’t sustainable,” which highlights a very important aspect moving forward.

It does not matter if players and administrators take a 75 per cent pay cut to fall in line with falling revenue. If players still receive 29.5 per cent and clubs 30 per cent above that with head office taking a set percentage, then the game may have cut outlays, but it does not mean it is more economically viable.

I do not want to enter the blame game, but I hope out of this situation the game learns something important. Would it not be prudent in future that with every media rights deal that the first 25 per cent of the value is placed in a future fund and savings. Then, once that has been done, the rest of the spoils get divided up into the set percentages (that are shared equally) between the players, clubs, headquarters and development.

All in all, the game should cater to the fans and it should look after the players, but at the moment it is not about the fans, it’s not about the players, it’s about the game – it’s about survival. I just hope that moving forward, the sport makes the right decisions and that greed does not rule the day.

The Crowd Says:

2020-04-05T13:19:21+00:00

mannafromheaven

Guest


Except if it would only determine to be a national comp, it could do it. Sydney could have 4 or 5 teams. The north shore could be better served. The peninsular's could do with a close look. Its just reorganisation. They can keep 14 probably of the existing teams to start with. Eventually that number may be 13 of the existing teams, with sydney to lose 3 over perhaps 10 years. Its 2020, so by 2030 you would feel entirely different about this period of time and consider it a necessary step to the greatness of a much better competition.

2020-04-03T00:05:37+00:00

Big Daddy

Guest


Randy, what's the old saying. He's trying to be the Alpha Dog in the pack. In his defence most of this mismanagement happened before he took the roll led by Todd Greenberg as CEO and Pete Beattie as head of the commission who obviously had no idea and failed to reign in the spending. The commission is full of academics, ex footballers and politician's and let the administration run their own race without much intervention. I love my league but unless there is some smart planning or big changes with the same team in place I fear for the future of the NRL as an entity, not rugby league- it will go on. Every time someone challenges them they go into lockdown mode and nothing happens or a smoke and mirrors explanation. There does need to be Changes but will it ever happen nobody knows.

2020-04-02T23:13:17+00:00

Randy

Roar Rookie


I'll just say there is something very fishy going on with V'landys, Greenberg and the media at the moment.... my guess is Nine and Fox want to drive down the value of the broadcast rights and V'landys is there to hand it back to them come 2022 or whenever it comes up again. Its going to be less value anyway with COVID-19 decimating everything. But why is V'landys suddenly fronting the media on everything and acting like the CEO?

2020-04-02T22:47:03+00:00

Christo the Daddyo

Roar Rookie


Oh there are other population centres, I agree. You could add Wollongong to that list and the Gold Coast. But in response to (what I understood to be) the point of DD's comment, they're all much smaller population centres than cities in North America that have just one NHL team. That will always be the challenge for professional sport in Australia.

2020-04-02T22:23:40+00:00

Albo

Roar Rookie


That's why you need strong leadership of the NRL to ensure the longevity of the game rather than the short term pilfering from players, player agents & Clubs. I suspect that Peter Vlandys may be the right leadership the game needs right now.

2020-04-02T21:37:04+00:00

AR

Guest


The NRL’s billion dollar broadcast deal was like the red neck who won the lottery. He splashed his cash on some gold plated shoes, hired a butler, ate caviar, travelled everywhere first class, his relatives (clubs) came out of the woodwork with their hands out, everyone got fur coats...and after a few short years he’d spent it all and was back where he started livin poor.

2020-04-02T07:36:49+00:00

Succhi

Roar Rookie


I see this period as a real opportunity for the NRL and clubs to re-set Some aspects of the game - particularly around contracts, player managers, profitability requirements of clubs, transparency, stadium management and tradition to name a few.

2020-04-02T06:27:07+00:00

Big Daddy

Guest


What amazes me is this " I have a dream theory" that we'll be up and running by July 1 purely driven by the fact they may go belly up unless bailed out by the government or some very rich benefactor. Rugby league will always be here it just depends on whose running it. If someone else gets there hands on it you can bet they will cut the deadwood without any hesitation. If we don't play rugby league again this year it won't worry me. All the NRL are doing is looking for a short term fix. Plan for a 2021 restart because a lot of businesses will be doing the same. The Banks won't give them a loan because they have nothing to offer unlike the AFL who have Marvel Stadium and a reasonable bank balance and revenue stream when they come back.

2020-04-02T05:42:41+00:00

matth

Roar Guru


Last time the NRL tried a future fund the clubs collectively hounded the CEO out of the game and took it for themselves.

2020-04-02T05:32:17+00:00

matth

Roar Guru


If you went with the other major population centres you get Townsville Auckland Newcastle That gets to 11, so then maybe there would be room for Sydney x3 to cover North, South West. 12 teams seems sustainable. Can we pay them in NZD?

2020-04-02T05:06:01+00:00

Ian Whitchurch

Guest


I'll just leave this here. https://www.afr.com/companies/sport/nrl-raids-54m-future-fund-ditches-investment-managers-20170213-gubk4w That would have been real handy right now, wouldn't it ?

2020-04-02T04:44:12+00:00

Walter White

Guest


Its true that we wouldn't like seeing one of our single city teams being demoted just like Superleague don't like seeing any of their powerhouse clubs get demoted but they let it happen because they know that ultimately its the best thing for the game. In recent years Leeds have come close to going down, I remember in the 70s when Wigan was a second division team and we all know what happened to Bradford. The point is that if you believe in the process then you stick with it through thick and thin because in the end you are the stronger for it. I am not in favour of chopping and changing teams area or franchises as this loses fans. Better that everyone has an equal chance and if your team is good enough then good luck to you. There is a very good reason why the North American franchises are joining the ESL and that is because they can. Toronto or New York trying to get in here just would not stand a chance. It is those pathways that are the real strength of the English System. Just imagine if Bill Gates suddenly got interested in Rugby League and formed the Perth Penguins, pumped a billion dollars into them and bought every top class player on the planet - no way into the NRL.

2020-04-02T04:42:52+00:00

Christo the Daddyo

Roar Rookie


I get the feeling you haven't understood the context of my comment. Hint: it was a reply to another comment about NHL comparisons.

2020-04-02T03:35:34+00:00

Dwanye

Roar Rookie


I’m not sure they find relegation workable if it across the board. I don’t think they’d be wanting the one team city teams being relegated and then it also being a rule applying to some and not others. I think if it goes ahead the best (not the ‘best’ word) option would be create new business so NRL not existing. Invite teams wanted (one city teams etc, new franchise’s), create 4, 5, 6 (how ever many they wanting) new Sydney teams franchises. Sydney and Brisbane (possibly if two teams) teams cut up into locals. Those winning bids choose colours, mascots. Current Sydney teams falling into the new locals are their Jr, feeder, catchment, those players aim to rep the new team area. The current Sydney teams can still be followed in that league by fans and you can jump on the new team support. Many won’t, some will. With the promotion to kids and schools in the region (maybe not the dogs player’s, lol) so a generation down the track it could be something. Super league was 20 years ago and has it developed like you could say about afl? Nothing will probably happen and in 2040 we will still be chatting about this.

2020-04-02T03:04:57+00:00

Nat

Roar Guru


I have no doubt there is an appetite for an NRL team over there but how much is still an unknown. This is above the investment required to get the club operational, Twiggy himself could back the club to ensure it's survival but if we are in the process of creating a product that the NRL can sell to the broadcasters. The broadcasters can only offer an amount they know they can sell advertising revenue for. Example: they know what Cronulla vs ... attracts in terms of eyeballs. That equation has historical evidence. To remove that and place Perth in that same spot, they don't know how many of WA's finest will watch the game so the deal they offer has to account for that. I suspect the deal won't be near where it was in any case. Most advertisers will have been effected by this virus in some manner so their marketing budget would have been slashed. Maybe Telstra can foot the entire bill because all the streaming this year will boost their bottom line significantly.

2020-04-02T02:52:43+00:00

Ross Leslie

Guest


The game has one major problem - CAPACITY FOR STRUCTURAL CHANGE - that will deliver predetermined future growth of the game at all levels - its beyond the leadership and management CAPACITY of the current clubs and its administrators! If there's ONE thing that can predetermine the success or failure of CHANGE it is TIMING. This latest crisis delivers the TIMING critical for such CHANGE, if this doesn't happen now the game will over-time go the same way as RUGBY is, sadly!

2020-04-02T02:19:18+00:00

Walter White

Guest


I am not saying it is without pain, there is a lot of pain and a lot of anguish but there is always hope. Your team might get relegated but if it is then the club should rally round, fix what is broken with a view to going up again next year and if they can't then mabe your team really doesn't deserve to be in the top flight. What is worse than the pain of relegation is the pain of having no team and having no hope of ever having one. That is enough to drive even your most ardent League supporter to go watch something else. Imagine you are a Gold Coast Titans fan, forever the whipping boys of the NRL, Two wooden spoons on the trot and looking for a third. Every week your team gets thrashed. Would you sooner have that or see your team demoted, of playing in a lower league where you have a real chance of winning, where every match is a real contest instead of one way traffic, where winning the comp says you are ready to return to the elite league again in a state fit to do battle. If I were a Titans fan, I know which I would prefer.

2020-04-02T02:06:25+00:00

Roberto Bettega

Roar Rookie


Most players will have an 8 year career, if they're lucky, why should they give a damn about future growth? They are busting up their bodies right now.

2020-04-02T02:02:58+00:00

Dirk Diggler

Roar Rookie


I thought West australians were very supportive of rugby league....they had decent crowds back in the day so why would we play SOO and nines tournaments in markets that are not traditional rugby league heartland if not to grow the game?

2020-04-02T01:31:04+00:00

Dwanye

Roar Rookie


Hi Walter. I think that one possible, good solution - just let the clubs that can’t compete (in your words) die. Then they play in the league level down a run. You still going to lose the fan base of those teams that don’t pass the bar, but any direction will hurt someone.

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