NRL 80million profit in 2014

[eelofwest]

http://www.watoday.com.au/rugby-league/ ... 25wn3.html

NRL chief executive Dave Smith believes the game is in a strong position to begin making decisions about its long-term future after a record-breaking season in which television ratings, membership figures and social media activity all increased significantly.

With officials set to adopt a blank canvas approach as they consider what the game should look like after the next television rights deal in four years, Smith said the NRL was open to any option for building the game.

He said the NRL was able to think far ahead because of the growth achieved this season, which is expected to lead to an even bigger broadcast deal from 2018 than the present $230 million a year agreement with Channel Nine, Fox Sports and Telstra.

"My strong belief is that we are creating enormous value for this game like it has never had before," Smith said. "What that means is that the game is building a secure future, and that gives you the luxury of being able to sit down and plan out what you want in Australia, what you want in New Zealand, and what you might want to do internationally."

Ahead of next week's announcement of the 2015 premiership draw featuring more blockbusters and major events than previous seasons, Smith outlined a series of indicators that demonstrate the success of the NRL this year, including: having the three most watched television programs of the year (Origin II, Origin I and the grand final), as well as four of the five highest rating sporting events; having already exceeded the 2017 target for social media engagement with 7.125 million followers on Facebook, Twitter and Instagram; growing overall membership by 11 per cent from 229,000 in 2013 to 254,000 this season; and setting 22 new attendance records as crowds increased across the game from 3.653 million to 3.805 million, including representative matches.

"We have done exceptionally well at bringing very large audiences together, and as well as doing that we have broken our own records," Smith said in reference to Origin II being the highest-rating rugby league game in history and South Sydney's premiership triumph over Canterbury being the most watched grand final.

"We own for the first time the top three programs in the country. It is a really, really significant achievement. That is creating real long-term value for this game because ultimately it goes to rights, and there are lots of things that we might do differently, but fundamentally that is creating real long-term value for the game.

"Across the world, premium sports like ours are growing between 10 and 15 per cent a year. The reason for that is because we have the ability to aggregate big audiences like nothing else. And the thing with premium sports is that you can't time-shift, you can't watch it tomorrow, you want to watch it now. That is why sport is so valuable to media companies."

Since leaving Lloyds International to take on the role of NRL chief executive at the start of last season, Smith has been determined not to let issues such as the ASADA investigation and player behaviour problems distract him from his task of expanding the game's wealth, and $80 million has this year been invested in a future fund.

He has also overseen the NRL's merger with touch football, which has 630,000 participants – including a large number of female players – and the introduction of the NRL Nines tournament in Auckland.

Smith and his staff have also been developing a stadium strategy, in conjunction with governments, as the game focuses more on the big events that attract a wider range of fans – as evidenced by the 9 million unique users who accessed official NRL content via FaceBook during grand final week.

"Ultimately, more people aren't watching broadcasts, they are using digital devices. So 10 years down the track, the fact that we have built strength in this area is very, very significant," he said.

After backing the NSW government's three stadium policy, the NRL has invested $750,000 in a feasibility study on the re-development of Allianz Stadium and the adjoining Moore Park precinct, which will be repaid by the SCG Trust if the project goes ahead.

"One of the most significant things I think we have seen this year is the government's announcement to invest a minimum of $600 million into stadiums in Sydney, and I think the historic lack of investment has meant that our long-suffering fans haven't had the experience they deserve, so I am thrilled by that," Smith said.

"The next step is how does the government invest that money and there is a range of options that are being considered. The SCG Trust was well advanced in their planning and we had an opportunity to be involved in that, so we chose to fund half of the initial planning phase on the agreement that if the investment comes we get all of that back.

"We want to be part of that because ultimately we are a major provider of content in this country, so we want to do that on behalf of our fans to ensure that they get a better experience and when they go to watch a game of rugby league it is in a world-class stadium, it is easy to get there, when they get there they can go for a nice meal or whatever and be entertained."

The NRL is also supporting a major stadium in western Sydney.

"We have a vision of a stadium network because we know that a vast majority of our fans are in western Sydney, so the question is: where does the government want to invest? But wherever the government wants to invest, we will be active partners, because we are active contributors and we want to have a voice in the way our fans are going to experience the game of rugby league," Smith said.



80million put into future fund in 1 year. So the NRL made a Profit of over 80million this year bloody hell.. =D> =D>

[AFLcrap1]

Annual report will make for interesting reading. I suspect profit increases will be primarily on the back of ticket price rises for Origin and the finals, and digital subscriptions. I also suspect the NRL is positioning itself to buy or build its own stadium.

Look forward to another year of it all being about the profit from you lot though.

You can't blame us .
We copped shit for yrs after being run by an incompetent lawyer ,who seemed more inclined to please news ltd than run a business,.
Plus underselling rights meant it's hard to make a profit When the game Is run on the smell of an oily rag .
We are enjoying the fruits of being run by smart business people .

[AFLcrap1]

It's just a good feeling to have smart business people running the show .

Future looks bright ,after along dark spell after SL war.

[AFLcrap1]

That's the plan .

[Raiderdave]

holy fuckin snappers
80 million in 12 months on top of the 50 million last year =D> =D> =D> =D> =D> =D> =D>

that is an astounding result & this on top of already increasing the grant
from 4.5 million in 2012 , to 7 million this year
that's another 40 million more to our clubs

lets hope when we start spending wot may end up being about 300 million in 2017
we do it right
we don't piss it up against the wall like the VFL has done on stupid ego exercises like the Thuns & Midgets

we secure our heartland
we expand responsibly ... Brisbane II & Perth in 2018
we help the code grow even more internationally starting with taking the 9's to a greater audience in Nth America & Europe as well as the pacific

shit folks
just try & stop us
just try

[Raiderdave]

Its not in anyones interest to prevent the growth of leagues finances. The AFL pundits might, but competition is good for the soul.

On the other hand Raider, you havent expanded yet - theres literally no sign the ARLC is ready to go on it, you spend much less on game development, you fund less to the clubs in general, and you've barely invested in infrastructure. Its easy to make a profit when you arent spending money.

our clubs have far smaller bills if they can continue to control spending while the NRL increases the grant they will all be in very healthy positions
besides
our funding models haven't been worked out yet ..... we're not quite sure what to do with our new found wealth
but we'll have the dosh to be bold .... not stupid egotistical wankers like the VFL who now have 6 financial basket cases on their hands that will tie up a lot of their earnings for decades ... no..we'll channel our mountains of funds smartly for maximum effect & eventual solid returns


Smith is in favour of expansion & has stated it many times plus
we have even now & will certainly by 2018 ..... have the financial stability to absorb it into our plans
our new franchises will be strong & competitive from day one
not fucking jokes that dilute the quality of the comp overall & are cannon fodder for the first 5 years like the VFL's
we won't fuck it up like the VFL have

I have said it before & I'll say it again
the NRL will be the code of the next 20 years & nothing that's happening ATM is suggesting I will be wrong

[Raiderdave]

The clubs and the players wont sit still while the league makes millions in profit. They'll want their share - they deserve their share.

Not to put too fine a point on this, but your clubs arent as secure as you think pushing many out of the arms of the membership and into private ownership. AFL clubs are strictly ALL non profit. They run a fine line and are as beholden to AFL distributions as any NRL team is, without the fallback of a leagues club to throw money at them as well.

Its far from certain that the AFL have screwed up expansion yet at all. Gold Coast for one is going to be a success in the relatively short term I believe, although GWS is going to struggle for a while.

You can say it all you like, but you're still coming from way back in the field and havent overtaken the leaders yet so its all bullshit until you do.

they have had a significant increase for this 5 year period
they will negotiate another for 2018-22
I think I said the grant could rise to as much as 10 million by the end of the next media rights deal meaning players will be on very good wickets when you consider an NRL roster is only 25 players

the VFL have dead set fucked up the lastest stage of expansion
anyone suggesting anything else is pork chop deluded

its not just the 2 latest entries
the affect they've had on the overall comp has been is an even bigger problem
the manipulating of the draft & cap has created an under class of battling clubs that will struggle to rise anytime soon & the knock on effect is more debt & this has created an uneven low quality ...uninteresting ... boring comp
no wonder crowds are down 5000 a game on where they were 5 years ago
poor ol VFL
poor ol VFL

step aside guys
its our turn

[ParraEelsNRL]

I'll help them spend it if they need a hand, you know these banking types, good at gathering the money, not so good at letting it go.

[Raiderdave]

Just to reiterate what i wrote in the other thread. I dont have a problem with the NRL making a proft. I don have a problem with them setting aside a future fund. Im merely pointing out the differences in AFL and NRL philosophies on the matter.

Sure u dont
Sure

[AFLsforPussies]

I think Dave Smith is doing a good job. A guy with a smart business head is what the game needs.
Gallop meant well but lacked business experience.

Money in the bank makes expansion all the more likely for teams like the West Coast Pirates and Central Coast Bears etc..

[AFLsforPussies]

Its not in anyones interest to prevent the growth of leagues finances. The AFL pundits might, but competition is good for the soul.

On the other hand Raider, you havent expanded yet - theres literally no sign the ARLC is ready to go on it, you spend much less on game development, you fund less to the clubs in general, and you've barely invested in infrastructure. Its easy to make a profit when you arent spending money.

I think Rugby League expansion can work in some places. As they are guaranteed by wealthy businessmen.

West Coast Pirates and Central Coast Bears both have people with the money to financially back them.

Souths were gonners until people with money got involved and look at them now.

[Foolproof]

Tremendous result for the NRL and it bodes well for the future of the game. If it is the case that they are going to build a new venue, it needs to be of a 100,000 capacity to allow for maximum attendance for both State of Origin and the finals. Make it the MCG of Sydney. It can be done, and it wouldn't hurt any future effort to get the FIFA World Cup here either.

[eelofwest]

Hey Wookie

i have a question for you.

If the NRL can make 80million on revenue of about 325million in 2014, why was it the AFL could not do the same in 2010 when they had revenue of 335million.

The AFL made a profit of 5 million that year. Maybe expansion?

Page 149 on this link http://www.afl.com.au/staticfile/AFL%20 ... Report.pdf

I ask you this because maybe you know straight of the bat why.

I am no expert at reading financial reports but it looks to me like the NRL's business model is far superior when it comes to its running costs and what it can produce for that little amount of expenditure.....maybe there is more to it that's why i am asking you.

[eelofwest]

314million annual revenue NRL Operatings expenses in 2013 72million.
335million revenue AFL 2010 operating expenses 105million.

Now that is over 30million for operating expenses alone wook?

AFL seems like is is expensive to run...

[eelofwest]

314million annual revenue NRL Operatings expenses in 2013 72million.
335million revenue AFL 2010 operating expenses 105million.

Now that is over 30million for operating expenses alone wook?

AFL seems like is is expensive to run...

Look at the club grants.....

335million revenue AFL 2010 club grant 145million
314million revenue NRL 2014 club grant 112million.

So add the operating expense from the AFL and the club grant and that's were all the profits for the AFL are being eaten away on a relative even revenue from those 2 years.