Melbourne Storm = Another Failed NRL Expansion Franchise

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Melbourne Storm = Another Failed NRL Expansion Franchise

Post by Beaussie »

Haemorrhaging money yet still provided with handouts from the NRL's owners News Ltd. :-$

If only NRL supporters of other clubs knew the real picture. Not a rosy one that's for sure.
Try as they might, no News Ltd means no Melbourne Storm
by Back Page Lead's Malcolm Knox

Handled correctly, the NRL’s salary cap investigation into Cameron Smith can solve fifteen-sixteenths of the code’s problems as it heads towards an independent commission.

All it needs to do is recommend that Smith’s club, the Melbourne Storm, be wound up.

The Storm, like Paterson’s Curse, is a pretty-looking purple noxious weed. A very well-run and successful rugby league club, with three premierships in its first decade and a bit, a brilliant coach and some of the best players in the game’s history, Melbourne is the extravagant indulgence that is dragging everything else down.

First, some history.

Melbourne was founded as a sop, a gift to appease those who had tried, through Super League, to make the people’s game their own. The chief recipient was John Ribot, who in his playing days was a bullocking, exciting winger for Newtown, Wests, Manly and Australia. Ribot, a Queenslander, had formed a coalition with some Brisbane powerbrokers and News Limited to break the Australian Rugby League’s hold on the sport and was the founding CEO of Super League.

After two years of separate competitions, Super League re-merged with the ARL to form the NRL, partly owned by News. To keep the peace, Ribot was given a club in Melbourne, which he ran for its first seven years. It suited him, and it suited the new league to expand into the southern “market”.

Owned by News, the Storm was allowed to operate at a loss. Rugby league clubs have often depended on subsidies, but this was the first time the subsidising body was the code’s owner, a media organisation whose income derived indirectly from the fans of the other clubs. Melbourne became everyone’s gift to John Ribot.

The Storm immediately won a premiership in 1999, its second season, and established the kind of club culture that flourishes in an environment of exile. Nobody recognises or bothers the players in Melbourne’s streets, the club is their family, they have nothing to do but focus on their football, and they are encumbered by none of the old-boys networks or habits of slackness that take root in clubs that are hundreds of years old.

Run by competent administrators and utilising the best scouts, Melbourne has been able to spot players like Smith, Greg Inglis, Billy Slater, Israel Folau, Cooper Cronk, Ryan Hoffman, Scott Hill and Matt Geyer in their footballing infancy and hothouse them south of the border.

All well and good. Another two premierships and four consecutive grand-final appearances followed. A great success. Why, then, isn’t there an overwhelming push for a second Melbourne NRL franchise?

Because, for all of its onfield success, the Storm franchise is a failure. Melbourne has been haemorrhaging money at a rate that has only recently become clear. They have a tiny, if devoted, fan base which is not large enough to sustain the club. They have not been successful in attracting the media’s, sponsors’ or the public’s interest in Melbourne to the degree where they can be financially viable. They are kept alive by the largesse of News Limited. And now that News is pulling out of the game, Melbourne expects the other clubs to continue to help it win premierships at their expense.


As the books have been opened in the process of forming the independent commission, from the other 15 clubs there has been a collective: “Eh? Come again?”

Melbourne, with such deep pockets for players, coaches, staff and facilities, has been living beyond its means to the tune of about $6 million a year. News — which derives some of its income from the fans who subscribe to pay-TV and go to games — has been covering those losses. The main sticking point in the move towards an independent club-owned commission has been Melbourne holding out its hand asking everyone else to keep covering its losses and funding its success.

Now, think how this looks to the other clubs. Of every dollar they scrap and beg for, in sponsorship drives or marketing pushes or merchandise ideas, some of it goes to a club that is allowed to walk away with premierships. Every other club has to fight tooth and nail to remain profitable. Cronulla has never won a premiership. St George hasn’t won one for 30 years. Souths haven’t won one for 40. North Queensland and the Gold Coast, two good new clubs in real rugby league communities, haven’t won a premiership.

Meanwhile Melbourne, which has had its sugar daddy buying premierships for it, now wants them to keep up the inflow so it can continue to live beyond its means. Eh?


Every other club has to compete under the salary cap for the best players. Not Melbourne, which has been able to spend what it likes and — in the ultimate outrage — keep the best forward in Australia, the club captain, due to News Limited, through Foxtel, actually paying him again.

And for what? So the NRL can call itself a national game? Comparisons may be drawn with the benefits enjoyed by the Sydney Swans over the years. But at least there is a real, thriving interest in the AFL in Sydney. At least some players from Sydney, and NSW, actually play for and have played for the Swans. (Melbourne Storm’s count of locals: nil.) At least the Swans draw good crowds and the public’s affection even when they’re not winning.

The Melbourne Storm, even having sucked the best playing talent out of the other clubs, even being winners, still can’t pay its way. How is that fair? And how is it fair that fans of the other clubs have to pay Cameron Smith’s wage not only once, but twice?

The answer is simple. It only requires some brave souls to stand up and say to the Storm: you’re on your own now, and good luck to you.

Malcolm Knox is an award-winning author and journalist. He writes for Back Page Lead, a new sports opinion site at backpagelead.com.au.

http://www.crikey.com.au/2010/03/31/try ... rne-storm/
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Re: Melbourne Storm = Another Failed NRL Expansion Franchise

Post by ParraEelsNRL »

And the second vfl team in Sydney came around when?

Oh, that's right, 31 years after the first, but dickheads like you and the so called author of this article expect the Storm to have a local rival in Vic****ia within 13 years.

Wow, just wow.

Might I add that vfl had a comp in Sydney for 100 years before the swines came along, RL in Vic****ia had an off and on again comp that never bedded down.

Yet here we are reading this pile of garbage backed by a troll that RL has failed in Vic****ia :roll:
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Re: Melbourne Storm = Another Failed NRL Expansion Franchise

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ParraEelsNRL wrote:
RL in Vic****ia had an off and on again comp that never bedded down.
Clearly RL in Victoria will never be bedded down. Accept your destiny as you did in Adelaide and Perth. Victorians hate Rubgy League and will never embrace the English import or should i say imposter posing as football. :wink:
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Re: Melbourne Storm = Another Failed NRL Expansion Franchise

Post by NSWAFL »

And meanwhile the Giants will bed down comfortably in a short period of time simply because AFL is the better game.
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Re: Melbourne Storm = Another Failed NRL Expansion Franchise

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NSWAFL wrote:
And meanwhile the Giants will bed down comfortably in a short period of time simply because AFL is the better game.
Exactly. As the article in the OP points out.

Comparisons may be drawn with the benefits enjoyed by the Sydney Swans over the years. But at least there is a real, thriving interest in the AFL in Sydney. At least some players from Sydney, and NSW, actually play for and have played for the Swans. (Melbourne Storm’s count of locals: nil.) At least the Swans draw good crowds and the public’s affection even when they’re not winning
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Re: Melbourne Storm = Another Failed NRL Expansion Franchise

Post by ParraEelsNRL »

http://www.theaustralian.com.au/news/na ... 5857630482
Despite the current uproar, Melbourne Storm's latest accounts reveal the embattled club to be in a sound financial position, having turned its previous year's $967,000 loss into a $1.6 million profit.

The club's recent success in the National Rugby League, including two premierships in the past three years, has obviously started flowing through to its bottom line, with income from membership fees rising by more than $200,000 to $1.3m during last season.
And the swines have lost how much over the last 31 years?

And the new club will need somewhere around 200 million + just to survive maybe*?

Fark me, only in the delusional vic****ian mind does any of that make sense.
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Re: Melbourne Storm = Another Failed NRL Expansion Franchise

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ParraEelsNRL wrote:
http://www.theaustralian.com.au/news/na ... 5857630482
Despite the current uproar, Melbourne Storm's latest accounts reveal the embattled club to be in a sound financial position, having turned its previous year's $967,000 loss into a $1.6 million profit.

The club's recent success in the National Rugby League, including two premierships in the past three years, has obviously started flowing through to its bottom line, with income from membership fees rising by more than $200,000 to $1.3m during last season.
And the swines have lost how much over the last 31 years?

And the new club will need somewhere around 200 million + just to survive maybe*?

Fark me, only in the delusional vic****ian mind does any of that make sense.
Look we deal in facts around these parts. Take note.
At the end of last year, the Storm's accounts show that it had made a $1.65 million ''profit''.

That money is believed to be a chimera - league insiders estimate that the club ran at a deficit of up to $6 million.

The Storm's lack of money is covered up by the fact that a wholly owned News subsidiary, Valimanda Pty Ltd, owns the licence from the NRL to run a club in Victoria. In legal terms, Melbourne Storm Rugby League Club then runs the team and charges Valimanda ''management fees'' to cover its costs.

In reality, Valimanda pays varying amounts to the club - $12.93 million last year and $13.62 million in 2008 - to offset the difference between how much the Storm can rake in from memberships, ticket sales, corporate sponsorships and events, and the $17 million a year it has to shell out to pay players, management and marketers.

Included in the money that News pays to the Storm is the annual ''grant'' paid to each of the NRL's 16 clubs, which last year was $3.45 million.

While the Storm's auditors, Ernst & Young, have not commented about the club's financial fragility over the years, the directors note in the accounts that the club is dependent on the drip-feed of money from News.


The Melbourne Storm website says the club has less than 8500 members (it was aiming for 10,000 this year), and that last financial year, memberships generated only $1.13 million - although that was about $260,000 better than 2008.

http://www.kickoff.net.au/Fragile-club- ... s-Ltd.html
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Re: Melbourne Storm = Another Failed NRL Expansion Franchise

Post by ParraEelsNRL »

Despite the current uproar, Melbourne Storm's latest accounts reveal the embattled club to be in a sound financial position, having turned its previous year's $967,000 loss into a $1.6 million profit.

The club's recent success in the National Rugby League, including two premierships in the past three years, has obviously started flowing through to its bottom line, with income from membership fees rising by more than $200,000 to $1.3m during last season.
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Re: Melbourne Storm = Another Failed NRL Expansion Franchise

Post by ParraEelsNRL »

And since then, the Storms crowds have gone up.

Once more for the blind, illiterate and stupid.
Despite the current uproar, Melbourne Storm's latest accounts reveal the embattled club to be in a sound financial position, having turned its previous year's $967,000 loss into a $1.6 million profit.

The club's recent success in the National Rugby League, including two premierships in the past three years, has obviously started flowing through to its bottom line, with income from membership fees rising by more than $200,000 to $1.3m during last season.
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Re: Melbourne Storm = Another Failed NRL Expansion Franchise

Post by Xman »

There is very little grass roots RL in Melbourne. Are there any Victorians playing in the NRL?

Seriously, imagine when the storm start losing! Oh dear!!!
King-Eliagh: ...I believe [RL] is popular in all the other states and territories, bar tasmania.
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Re: Melbourne Storm = Another Failed NRL Expansion Franchise

Post by Xman »

ParraEelsNRL wrote:
And since then, the Storms crowds have gone up.

Once more for the blind, illiterate and stupid.
Despite the current uproar, Melbourne Storm's latest accounts reveal the embattled club to be in a sound financial position, having turned its previous year's $967,000 loss into a $1.6 million profit.

The club's recent success in the National Rugby League, including two premierships in the past three years, has obviously started flowing through to its bottom line, with income from membership fees rising by more than $200,000 to $1.3m during last season.
1.3Mil from Memberships? That's laughable. :lol:
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Re: Melbourne Storm = Another Failed NRL Expansion Franchise

Post by Raiderdave »

A very well-run and successful rugby league club,
nuff said :wink:
RL SOO II 4.194 Million veiwers
RL SOO I 4.068 Million
NRL GF 3.968 Million
VFL Grand Final 3.620 Million
SOO III 3.364 Million
NRL Prelim 2.219 Million
Kangaroos V NZ 1.214 Million

Sookerwhos V Japan 238K :lol:
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Re: Melbourne Storm = Another Failed NRL Expansion Franchise

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"Try as they might, no News Ltd means no Melbourne Storm"

nuff said
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Re: Melbourne Storm = Another Failed NRL Expansion Franchise

Post by Xman »

for all of its onfield success, the Storm franchise is a failure. Melbourne has been haemorrhaging money at a rate that has only recently become clear. They have a tiny, if devoted, fan base which is not large enough to sustain the club. They have not been successful in attracting the media’s, sponsors’ or the public’s interest in Melbourne to the degree where they can be financially viable.
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Re: Melbourne Storm = Another Failed NRL Expansion Franchise

Post by Raiderdave »

Xman wrote:
"Try as they might, no News Ltd means no Melbourne Storm"

nuff said
:lol: :lol: :lol:

nice theory .... :wink:
RL SOO II 4.194 Million veiwers
RL SOO I 4.068 Million
NRL GF 3.968 Million
VFL Grand Final 3.620 Million
SOO III 3.364 Million
NRL Prelim 2.219 Million
Kangaroos V NZ 1.214 Million

Sookerwhos V Japan 238K :lol:
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