NRL boss Andrew Abdo says it won’t force the introduction of a 17th club if the numbers don’t stack up once the process is finalised by July.
NRL boss Andrew Abdo won’t rush to include another team in Brisbane in 2023 if the numbers don’t stack up over the next few months.
Stressing the need for proof of “incremental value”, the chief executive is comforted by what he’s seen from the three leading bids but will meet with them again soon before a call is made by July.
Redcliffe, a combined Brisbane Bombers-Ipswich Jets bid and the Easts Tigers-backed Brisbane Firehawks are vying to become the Broncos’ cross-town rivals as the NRL’s 17th team.
ARL Commission boss Peter V’landys has been bullish in his pursuit of a 17th team while Abdo has even flagged an 18th team in New Zealand to follow.
There are claims another team in Brisbane would be worth $50 million to the code but Queensland Rugby League chairman Bruce Hatcher has fears about saturating the market and wants to see proof before investing.
Abdo says that won’t be far off.
“We’ve been working towards a June-July decision point for 2023 and I’m confident from what I’ve seen today on the readiness of all three interested parties here locally,” he said at Brisbane’s Magic Round launch on Tuesday.
“But it’s not something that has to be rushed; if the business case says we need a bit more time, then we need a bit more time.
“We’ll do a thorough analysis and that will allow the (ARL) Commission to make an informed decision to do it for the right reasons.
“I’m confident we can get there along that timeline but I don’t know at this stage if it will create incremental value.
“It’s a complex question to answer and one we’re in the middle of right now.”
The chief executive also effectively shut the door on North Queensland prop Jason Taumalolo’s hopes of playing for Queensland despite having spent his formative years playing for New Zealand.
He said the NRL were pushing to create an international window to avoid the collision of club, state or country commitments, but that changes to State of Origin eligibility rules were not on the agenda.
Tuesday was Abdo’s first trip to Brisbane in about a year – and first as boss after replacing Todd Greenberg – after COVID-19 played havoc with last season’s fixtures.
He’s confident the NRL will be able to adapt if the situation changed again before mid-May, when all 16 teams will play at Suncorp Stadium across three days.
As it stands, teams will fly in the day before their game and leave either that night or the next morning, depending on their fixture’s time slot.
“There are always concerns 24 hours a day, such is the world we live in,” he said of fears of any last-minute COVID-19 curveballs.
“We’ll be prepared and ready for any scenario but at this stage things look really good.”
Paul
Roar Guru
I'm sure a new team in Brisbane will bring in millions, through more bums in seats, merchandising, etc. Whether that equates to $50 million's another matter. I've no doubt though, which ever bid they go with, will be sustainable in the long term.
Paul
Roar Guru
Your comment is really sensible Randy, but I'm thinking the networks will be crying poverty, when it comes to negotiating a price for FTA coverage. As you say though, we'll have to see. I guess the one advantage the NRL does have is they've already managed to get the Players Association to agree to a pay cut, along with the Clubs for this season, so IF they don't get lots from the broadcasters but still want to bring in that 17th team, I'd imagine it would not be that hard to sell, especially to the players. Talking them into a small across the board pay cut, in return for bringing in another 30 plus players & staff, should be straight forward.
Randy
Roar Rookie
Paul, I am sure the NRL is aware of this hence they probably want a guarantee from TV networks they can stump up more cash. In saying that I would think they would need a 9th game to make it work, but I guess we will see. They could honestly just reduce the grant by 800k and that would make up 12 million for the 17th club.
KCR
Roar Rookie
I guess I missunderstood, that aside the NRL have reported that a new QLD club will bring in $50 million, whether that is the full truth or not the NRL would not be putting in a new team if they can't afford it so the money would have to cover costs. It would make no sense for the NRL to even go through this exercise if the money wasn't there. 2 of the 3 bids agreed to pay a proposed entrance fee to go to the other clubs until the NRL nixed that idea and said that a new club won't pay a cent, so they must be confident that they can cover the costs. It seems that all the NRL is concerned with is if the new club is sustainable outside of the standard grants that all clubs get.
Paul
Roar Guru
You're missing my point. It makes no difference what assets the Club has. We both know some Clubs have lots of financial backing and others likely don't have two bob to rub together. The NRL gives Clubs money each year and that money is then used to pay the players. When the 17th Club comes on board, the NRL has to pay them exactly the same amount as any other Club, regardless how many shops, etc they own. Right now, in 2021, the NRL has given all of it's grant money out, so where will they get the money to hand out to a new Club?
KCR
Roar Rookie
As Randy states above the Dolphins have assets worth over $100 million. They also bring in significant revenue from a diverse business portfolio. They have the club itself, health precinct, a Coles as well as leasing land to other shops and businesses. This is a bid for which money will never be a problem. They also have all of their infrastructure in place high performance facility and training pitch so they will not be spending on those aspects after getting the green light. And if another bid is chosen then they would have somehow bettered that. I hope that answers your question as to where the money comes from. Cheers.
KCR
Roar Rookie
Absolutely right, they absolutely deserve to be in the NRL they are ready.
KCR
Roar Rookie
At this point in time the right reasons for NRL expansion could be to defend their own house. If the don't put another team in Brisbane the AFL could. I would hate to see rugby league lose ground to AFL in South East QLD. That would not just be bad for QLD but the game as well. Perhaps this position is alarmist, in fact I hope that it is. I am reminded of a sports opinion piece that I read in the Australian a few years ago that outlined AFLs plan for national dominance which first involved two teams in every region giving the game weekly presence all over the country, this was prior to the Giants. It could be argued that presence is established now and the right move could push them over the top. The NRL looks to be protecting itself by proposing second teams in Brisbane and NZ rather than expanding into Perth or Adelaide. On the business side of things the NRL is reporting that a new Brisbane team will bring in more money and the competition between bids should ensure that the team chosen is fiscally responsible. If that is the case then adding a team is the right thing to do.
Paul
Roar Guru
The NRL gives grants to every Club each year. Right now that amounts to $13 million per Club and as I understand it, this will be the amount next year as well. This means when the 17th Club starts, say in 2023, the NRL would have to find at least that amount of money for them to match the grants made to the other Clubs. My question is, where will come from? In years gone by, the NRL tried to set up a contingency fund which was abused by the Clubs, so they decided to give ALL of the money out, leaving nothing in the kitty. In current times, when dollars are tight, that's a fair additional whack to have to find every year
Randy
Roar Rookie
The Redcliffe Dolphins have an asset base that dwarfs many NRL clubs and AFL clubs apparently...
Randy
Roar Rookie
Joel Thompson Aiden Sezer Didn't the Broncos just bring Albert Kelly back? not sure he is NRL standard though... Coaching and club culture is a bigger indicator of performance than player talent anyway. Look at all the average no frills players who go to the Storm and become top 5 in their position.
KCR
Roar Rookie
From my understanding the 17th club will be able to fund itself.
KCR
Roar Rookie
It is impossible to foresee how a new club will recruit. However given the financial strength of the bids I would imagine that they wouldn't be aiming for under performing players rather aiming for top guys at top clubs. If anything they could bring the run away leaders back to the pack and create a more competitive tournament.
Dwanye
Roar Rookie
That news of the super rugby and a Fiji and png ( I think ) team, is interesting and would have in impact on NRL wouldn’t it in its current version and any expansion ideas.
Paul
Roar Guru
I think what's seriously wrong is you paying 1000% more for tv content, but hey that's your business. The part of the broadcast money I'm talking about is free to air
Dwanye
Roar Rookie
Also offset the few clubs that’s games don’t do that sort money.
Dwanye
Roar Rookie
Hi Big Daddy. To me what you say makes sense. But that is where it gets tough and since before Super League, the ARL had a difficult time trying to do this. I’d be incredibly surprised if this ever happened. More likely and maybe what league management hope is for clubs to fold/go bankrupt almost so they don’t have to seem like the bad guy and kick them
no one in particular
Roar Guru
Name a starting 17 of players without an NRL contract that will be willing to play in the NRL (Maloney will not return). They simply will not be competitive. How many players that you mentioned are under 30? Which talented kids are getting knocked back early in their careers? There are that many junior rep teams and school rep teams that any half decent kid is getting looked at. And then you'll be playing NSW Cup, or Massey Cup or Sydney Shield or Qld Cup or Foley Shield. If you can tackle in these grades you'll be noticed
Adam
Roar Guru
I dont think your maths is correct...
Sammy
Guest
The NRL has a unique mixture of foundation clubs (Sydney), expansionist clubs, one amalgamated club (Wests Tigers), a JV Club (St George Illawarra) and some former clubs that live-on in the State Cups (Newtown and Norths). But unlike the AFL, we are yet to see is a Club relocated geographically and yet to see a Club promoted from a Lower Division (although some might argue that Penrith were promoted in 1967). I'd like to see the 17th Club promoted from the Queensland Cup, with a loyal fanbase and history. Manly Warringah are now extremely vulnerable and they have overtaken Cronulla as the most likely candidate for survival-through-relocation. One reason is that the North Sydney Bears still control a significant Junior Territory (from Berowra to Baulkham Hills to Willoughby / North Sydney) and are relatively comfortable being a NSW State Cup Team for the Roosters, but still have extreme hatred towards Manly. Granted, Norths and Manly have cooperated for many years when running the combined North Sydney / Northern Beaches Junior League, but that's the extent of their relationship. The Sydney Roosters could end up being the Club that represents Sydney's North Shore, the Lower part of the Central Coast and eventually the Northern Beaches. Last year the Norths Leagues Club at Cammeray was happy to sell Roosters merchandise. Since Manly is a partially-privatized club, it will actually be much easier to relocate them and I would suggest Perth. They could even form a partnership with the local WARL Club the "North Beach Sea Eagles".