Both rugby codes in Australia have walked a similar path recently as the economic realities of the COVID-19 pandemic hit home.
Both have tangled with News Corp and been lambasted about over-spending, both have had a CEO step down and both have had at least part of their respective broadcast agreements played out in the media.
As the economic realities of these times grow more evident each day (seen in the NRL’s reduced broadcast contract extension with Channel Nine and Fox) we need to ask ourselves, is this the new normal?
Even more importantly, can this country sustain two professional rugby competitions?
If we look at the facts in the cold light of day, the market isn’t big and profitable enough anymore to have two fully professional rugby competitions with millionaire players, lucrative broadcast agreements and sponsorship deals.
Yes, the two sports will always exist, but maybe not at their current level.
As it stands, Rugby Australia have no broadcast deal beyond 2020 and it is becoming increasingly likely that they will have to re-sign with Fox Sports (a company with its own financial woes) for a considerably diminished value.
This demonstrates that there is less to go around for the winter codes in Australia. With international travel being non-existent at the moment, the road ahead for the 15-a-side code is looking rough.
Many people have recently pointed to the golden age of professional rugby union in Australia around the turn of the century, when the game drew six figure crowds and even the Prime Minister donned a Wallabies tracksuit.
But this was a vastly different time in the makeup of Australian sport. It was around the time of the Sydney Olympics when Australians had a massive appetite for large international competitions. Rugby league was still licking its wounds from the bitter Super League war and rugby’s sun was truly shining with much hay made.
Current times present a vastly differing reality.
Looking at both games it’s somewhat difficult to do a direct comparison. But if you look at a single market like Canberra the picture becomes a little clearer.
Both the Canberra Raiders and the ACT Brumbies call the region home, are Canberra’s only fully professional winter teams which both share the same stadium and their seasons have significant overlap.
Yet in 2019 the Raiders had an average crowd of 16,237 (including a home preliminary final) where the Brumbies as Australia’s most successful Super Rugby franchise in 2019 posted an average crowd of 8,797 (including a home quarter-final).
Perhaps what is more alarming is that in 2014 the Raiders averaged 9,600 where as the Brumbies averaged 12,500 during this time.
So examining the figures here it suggests that at least some rugby union fans in Canberra have switched codes or have stopped attending live games. TV ratings also paint an underwhelming figure for Super Rugby with the current Pay TV average sitting at around 50,000 compared to the NRLs average of 164,000 on Fox.
Despite this ascendancy, the NRL still trails in one vitally important area, sponsorship. When the Rugby Australia financial statements for 2019 came out it made for pretty dire reading, despite one very notable area of financial growth: sponsorship.
Sponsorship rose by five million dollars, which goes someway to showing us that even in its leanest years, sponsors are still eager to create relationships with Rugby Australia.
This is this is partly due to the Rugby World Cup being such a big global event but also due to so many strong business connections in the rugby family.
So while rugby league may have more fans and more money in the bank it is still seen by many as the poor cousin of rugby. The NRL has better average crowds than Super Rugby, the Aviva Premiership and the Pro 14 Rugby competitions, yet struggles to gain the strong commercial partnership and is barely mentioned outside of the east coast of Australia.
Much of this comes down to a word that no one really likes to mention but is at the core of many of these issues, and that is culture. Rugby union culture is seen to many as elitist and even haute by some and it is a large reason that their numbers are drying up and they have such a small market in key areas like Western Sydney and Brisbane’s northern corridor.
Rugby league culture is a reason that the game has so many negative headlines, which in turn is a reason that the bluest of blue chip corporates steer clear of the game.
With the rivers of broadcast gold that the rugby codes have been relying on slowly drying up, both games need to address issues with their culture or face a very bleak future. Considering that Australia is already a crowded sports market and the winter behemoth that is the AFL has a presence everywhere, there is little margin for error for either organisation.
The NRL needs to appeal more to the big end of town and rugby union needs to find a way to engage John and Jane Q Public, because as we have seen recently the future can look very bleak.
clipper
Roar Rookie
No, I did not miss that - as Train without a station notes, it is NOT in the bank, and as shown over the last few years, not much actually makes it into the bank once expenses etc are taken out.
Crosscoder
Roar Guru
I suggest you read todays Australian WOE and the media section.The AFL CEO has been advised by his broadcasters that his code will be taking a financial haircut.As will other codes. At last reports I heard we were having some sport of virus that was undermining our economy and throwing people including those in the broadcasting industry out of work. Yet quite a few AFL pundits have given V'Landys a wrap for his efforts in getting his code up and running and bringing in broadcasting income by doing so.That clause is used by parties at times, hardly a scoop. He has secured $1bn set from 2023-2027 which is an increase from their current Tv deal with Fox.I think you need to do a little research, and not let your obvious disdain for the NRL cloud your rationale.
Crosscoder
Roar Guru
"So irrelevant "Joel, it got up off the canvas during COVID-19 and did something about it.All this whilst the other codes stood by shuffling their feet and doing little else. So irrelevant that Fox was desperate to sign up the code, as their subscriptions were in freefall. So irrelevant that the code has had its best Tv ratings for many years ,and got 96,000 ratings in Melbourne on ch9 main channel for Storm Friday night. Of course who could ever forget John O'Neill's famous quote during his tenure' Rugby will be the number one code in the Northern States and no 2 in the AFL states."You fill in the blanks. And the $38m that code had in the Bank, where did it go? I can read any newspaper in Sydney and every code is covered.SMH and Australian give Rugby Union decent coverage.Hell Folau saturated the media for RU.
Crosscoder
Roar Guru
Why Mick?I can go to at least 40 plus countries now and watch a game of rugby league in competitions, which I couldn't do 20 years ago. A Challenge Cup at Wembley attendance or an International at Manchester,is one hell of a way to enjoy "suburban rugby league". It's just so good to have that choice now.
Crosscoder
Roar Guru
Clipper The fact they got a $250m loan from a British consortium, referred by the Storm Chairman Campbell,indicates they saw a strong revenue stream to fund any loan(which will not now be needed BTW).Figures indicated about $80m in the Bank ATT,which was not sustainable if no games this year,as costs remained unchanged. Of course they haven’t got $2bn in the bank. But they do have a Fox deal up til end 2027 with known revenue set $1bn from 2023 and an FTA reduced deal.The Fox deal from 2023 is in fact an increase on their current deal, small though it be. Meantime your mob’s CEO is awaiting an expected hair cut also from ch7 and Fox. Rugby Union ?Well getting a TV station interested is the first point of attack.
Adam Bagnall
Roar Guru
Is that why 4.5 million people tuned in for the NRL return, because it's so irrelevant?
Paul
Roar Guru
Popularity is based in part on success and in professional Rugby, that's measured by how the Aussie Super Rugby & Wallaby teams are going . I agree the NRL can't be measured the same way but the popularity of professional rugby league in Australia has been waning, IMO and that's because the product had become stale. It's taken one rule change to highlight just how stale the game had become. What's helped the NRL is both the AFL & Rugby have become just as stale. You only have to read the articles that have posted on the Roar to see that.
Wise Old Elf
Guest
Odd how people are talking up this Peter Vilandis chappie for being so wonderful when he managed to negotiate less money for the NRL than before. Is he trying to get a gig working for the tv companies? And then he tried to put a clause into the contract to ensure AFL could not get more than his chopped down price. What a clown. He certainly can get deals done when he is giving it away for a knock down price, the butcher down the Sunday market does that with his meat tray too. Maybe they should hire him as the next CEO. NRL propagandists, please don't piss down our backs and tell us it's raining!
Adam Bagnall
Roar Guru
The NRL isn't reliant on the Kangaroos for popularity. Big difference. When the Wallabies were going well, super rugby was going well. Rugby League is not as popular internationally so even if the Kangaroos never won a game for 5 years the NRL would still be popular
Adam Bagnall
Roar Guru
The most exciting thing to happen in union in the last 20 years is the league converts. Thats how good union is going. Does anyone, deep down, really care about the super rugby?
The Set Peace
Roar Rookie
I’m not sure about that, I think Company’s are attracted to Rugby’s global nature. I know one thing Rugby needs to kick off soon and stop watching League win the ratings war from the sidelines.
Train Without A Station
Roar Guru
It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so
Tom G
Roar Rookie
It’s one of those oft trotted out myths that provides a grab bag answer to all of the games ills
Mary K
Guest
They are both full of Australian players
Train Without A Station
Roar Guru
RA has never to my knowledge tipped money into GPS Rugby.
Rick Stein
Guest
You seem to have missed the rights deal just signed by the NRL worth 2 billion. That’s ok - union as a small loan.
peeeko
Roar Guru
a one off test and Tonga are very good
Ben
Guest
This is factually incorrect, the NRL’s regular season average on STV last year was around ~240k & last year the NRL increased its commercial revenue by $30m alone to $204m.
ScottD
Roar Guru
Good points Nat. The fact that RA has 150 direct employees plus contractors is an opportunity to right size. This habit of making money in RWC years and a loss in the others is crazy and needs to be rectified. You don't have to find too many efficiency improvements to cut $1m to $2m in costs each year and therefore turn everything around. It is after all a 1% turnaround which is available in any organisation.
soapit
Roar Guru
They're both league teams right?