Rugby League’s less evolved culture

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Beaussie
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Re: Rugby League’s less evolved culture

Post by Beaussie »

Fred wrote: Sun Apr 05, 2020 8:05 am
Every time there is a new person in charge it is claimed that the NRL are only getting their house in order now.

I think what needs to happen, and as is said in the article, the commission needs to be fully independent. If this has happened then I would agree it is a move to improving but if not self-interest by the clubs will continue to be put first.

A charity rather than a business one NRL sponsor suggests in the article below. :shock:

Oh and the failed bank loan issue is raised again. This time by a sponsor making a comparison with the position of the AFL. Where is pussycat? For a long time now he has been suggesting around these parts a rosy financial picture for the NRL. :hmm:


NRL is run more like a charity than a business, says key sponsor
By Danny Weidler
April 5, 2020

A leading sponsor of two of Sydney’s biggest clubs has taken the NRL to task for what he says are years of financial mismanagement.

TripADeal co-founder Norm Black said an inability to get a bank loan to bail the game out of trouble highlights just how badly the NRL has been run for a decade.

Black is the back-of-jumper sponsor of the Dragons and Sea Eagles and built his travel company from the ground up.

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Norm Black’s TripADeal sponsors the Dragons (above) and Sea EaglesCREDIT:AAP

‘‘Why does the NRL have to appeal to the government while the AFL go to NAB and ANZ [banks]?’’ he asked. ‘‘It’s because of the underlying risk the NRL represents as a business. The NRL has been living beyond its means for years now and they have nothing for a rainy day.

"We paid the Dragons an instalment when we knew the comp was going to be shut down and we knew our business was going to be hit hard. That’s because we have managed things and we are prepared for difficult times.

‘‘This position that league finds itself in is a combination of years of not seeing themselves as a business, but as a game. We all do love the game, but that is a business and that business is in the entertainment business. How we provide that entertainment and use the revenue from it remains the key to any future.’’

Black is a league lover and TripADeal was previously the front-of-jumper sponsor for the Titans, even though he is a Dragons man. He says the whole set-up of league is wrong from a business perspective.

‘‘The NRL essentially runs as a franchise in that the NRL (the franchisor) is the head franchise and allows the clubs to become the franchisee,’’ he said.

‘‘In the case of the NRL, they collect all the major revenues and distribute it down to the clubs and, as a consequence, run a very top-heavy, expensive head office and try to apply control of their franchisee in that their dependency on funding from head office becomes, in many clubs’ cases, their majority revenue. In any other franchise model, the franchisee collects all their individual revenues and pays the percentage back to head office.

‘‘If, in the case of the NRL, the clubs owned say 50 per cent of the game, still paying franchise fees back to a head office, they will be more incentivised to run a much more efficient business model at club-land level as they live and die by the overall success of their individual business.

"In any other franchise model, if you don’t run your business [as] efficient and profitable, you close down and receive no funding. In the case of league, we continue to prop up failing franchisees. This is not business, this becomes the definition of charity.’’

https://www.smh.com.au/sport/nrl/nrl-is ... 54h53.html
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Re: Rugby League’s less evolved culture

Post by leagueiscrap »

Well in fairness and progression!

The nrl has finally managed to achieved to be approved for a loan!
*the interest rate isn’t been made public yet but no doubt it will be a high risk rating
Australian sporting sponsorship
AFL excess of $50m
A league $30 million plus
ARU $27 million
NRLOL $25 million

Leagueiscrap
and she still changes your nappies as well!
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Only when I have an accident.
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