MarkZZZ wrote:I still don't think you can draw any conclusions from the numbers. AFL have to spend more to create a market and that in turn creates more expenses which can be iffy if the market doesn't eventuate and isn't self sustaining.
It's a different business model so comparing one to the other so is pretty meaningless. The NRL have alleady stated that they will use the profit along with future profits to grow the game in future years. Lets hope they go with the "assist natural growth" rather than the "create a market" route that the AFL have gone down.
I read somewhere that some among the AFL don't expect teams like GWS to turn a profit for 30 years. The article said they may even go on to play finals football and even win a Premiership within 10 years but financially they would be a drain for the AFL for a long time into the future.
MarkZZZ, the NRL aren't going to move anywhere as long as their liabilities are so high. That's a minus number that the AFL doesn't have to the same level and more than counters any market creation methods the AFL use.
I would also state that market creation is an integral part of expanding a business. The AFL have already saturated their natural growth areas, so they must go looking for new markets through creation or they will stagnate. And because of the natural lie of the nation's population the pull towards Sydney is inevitable. The population base has the room for a second Sydney AFL club.
The NRL would do well to copy this template, and they are already talking about Perth as well as the second Brisbane team. But like the AFL in Victoria, the NRL can't look to New South Wales - except maybe on the Central Coast if anything to make use of Blue Tongue. But the NRL must also target Adelaide as soon as possible, in order to match the AFL's effort of having a league presence in all five major population centres. It's all about competition in sport, and the NRL is behind at present and will remain so as long as the revenue is down and the liabilities are high. And that increase in revenue needs to be spent on expansion.
Just while I think of it, I put it to you that (for different reasons) the PNG effort could be as bad for the NRL as the GIants for the AFL. While the pure numbers of supporters would be there in PNG without doubt, do they have the money? It's food for thought.