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Why is constant expansion an obsession for Australian sporting codes?

The Dolphins celebrate beating the Roosters in their first ever NRL game. (Photo by Chris Hyde/Getty Images)
Roar Rookie
17th March, 2023
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2023 may be the year of Australian sporting expansion. Several codes have laid out clear plans for club expansion in the near future and beyond.

At NRL headquarters, Peter V’landys articulated this week that there is potential for a Pasifika team to enter the competition in 2025. Further south at AFL House, CEO Gillon McLachlan is looking to introduce a Tasmanian team into the AFL, with this introduction hinged on whether funding can be secured for a new stadium in Hobart.

In January, former ARU boss John O’Neill also flagged his preference for an expanded Super Rugby competition – whether that be with new teams from Japan or on Australian shores.

Two of Australia’s lesser sporting codes have also announced plans for expansion. The A-League has supposedly communicated to Auckland and Canberra that they are the favoured expansion clubs ahead of the A-League’s increase from 12 to 14 clubs in 2024-25. Lastly, NBL Commissioner Jeremy Loeliger told Newscorp in December 2022 that “There are pretty serious discussions happening with a number of other cities” which are rumoured to be Canberra, Gold Coast and Darwin.

What is driving this expansion agenda that seems contradictory with Australia’s small population of 25.7 million people? Television rights are the predominant factor. Increased games on television equates to improved revenue, which in turn creates inflated broadcast rights deals and greater financial security for Australian sporting codes.

Code bosses regularly argue that these cash injections will fund further infrastructure and development at grassroots level. However, these excess funds have historically gone towards improving elite level stadia, increasing professional salary caps, and propping up financially unsettled professional clubs.

In a highly competitive sporting landscape, expansion also provides an opportunity to dominate certain geographical areas. This motive has been demonstrated historically by the AFL’s incursion into Western Sydney and the Gold Coast. The rugby codes are also looking to utilise this method through potential international expansions in Japan (Super Rugby) and the Pacific (Rugby League).

More recently, expansion clubs have also shown a remarkable propensity to be competitive from their introduction. Western United were crowned A-League champions in their third season of existence, the Dolphins sit second on the NRL table after their introduction this year and the Tasmania JackJumpers reached an NBL Grand Final in their first professional season.

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JackJumpers

The JackJumpers have had instant and impressive expansion success. (Photo by Steve Bell/Getty Images)

An expansion agenda also includes risks and downsides. Firstly, additional teams may cause a dilution of the talent pool and competitiveness within a sporting league. The English Premier League demonstrated this theory when it was downsized from 22 teams to 20 in the 1994/95 season, with the rationale being to promote development and excellence at club level.

Secondly, the financial cost of expansion is substantial with a limited guarantee of return. For example, the AFL is reportedly spending $50 million on expansion clubs Gold Coast and GWS in 2023 alone, to ensure their competitiveness and sustainability.

The financial sustainability of Australian sporting codes may continue to be tested as their expansion plans intersect with a broader economic downturn that is expected throughout the Australian economy over the next 12-24 months.

How does the obsession with sporting expansion play out in Europe and America? Well, it doesn’t really. In Europe, all major round ball competitions rely on a promotion/relegation system to ensure financial stability and consistent competitiveness.

Across the Atlantic, the NBA and NFL have also shown a resistance to change. The NBA’s latest new franchise was the Charlotte Bobcats in 2004, whilst the NFL’s most recent new team was the Houston Texans in 2002.

Why do Australian sporting codes buck the trend and continue with expansion? In short, it is seen as the most effective way to assert dominance over other sporting codes in a highly saturated and sports obsessed Australian market.

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Which code will win the expansion arms race? It’s anyone’s guess.

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