Dakink
29-09-05, 09:41 AM
http://smh.com.au/news/league/codes...7804550004.html
Code's counting the cash after a big year on and off the field
By Jacquelin Magnay
September 29, 2005
By any measure it has been a bumper year for rugby league, but just how big has it been?
For the year to the end of October, the NRL's total revenue has risen to $100 million. Sponsorship has risen by 39 per cent. There were eight crowd records at five grounds - Leichhardt, Jubilee, Campbelltown, Telstra and WIN - with the average attendance at games up by 12 per cent. Licensing royalties have increased by 41 per cent. Junior player participation is up by 12 per cent. Television ratings have been so healthy that the Nine Network and pay television group Premier Media Group have committed $500 million over six years.
These are all good reasons for chief executive David Gallop to smile, especially when he is about to re-negotiate the code's major naming-rights deal early next year.
But Gallop knows there are hurdles ahead: none the least managing what he terms "fan avidity" - the passions of the game's fans which have sent merchandising sales through the roof, but which have created other problems, such as satisfying demand for seats to the finals.
Gallop said he was considering relocating finals matches to best suit at least one of the teams playing. And that may mean more finals in New Zealand, Queensland or even Melbourne if the fan demand were there.
Certainly the competition's closeness, and the unpredictability of games right up to the shock finals results, have contributed to the league's phenomenal commercial success. But Gallop has warned against expectations that the growth will continue at such a heady pace.
"I would caution against explosive growth that we have had this year, but I think steady growth is achievable over the next few years," he said.
"One of the things I have noticed and it is reflected in the hard figures, … is that fan avidity has gone up a gear this year … we are seeing the fanatical fan that we haven't had ever before."
The plan is to consolidate the gains of this year and then gear up for another spike in 2008 - the year of the game's centenary.
The increased 2005 profit has meant bigger handouts to the clubs, with the grant rising to $2.75 million next year, up from $2.5 million. Gallop said he wanted to narrow the difference between the grant and the salary cap (currently $3.3 million plus other bonuses which makes the maximum allowed to be spent on players $3.9 million) so that the clubs' exposure to outside influences, such as leagues clubs, becomes negligible.
"It will give them greater flexibility in how they spend their money, their marketing and their promotion … it is the right model to generate central revenue to match the salary cap …" he said.
The NRL is also aware that the rival Australian football code has a golden marketing opportunity after the Swans' premiership. "Our game, week in week out is in a position of dominance, but the Swans' success is a reminder that in a record-breaking year in a competitive market we cannot rest on our laurels," Gallop said.
Gallop also said the NRL's relationship with the players could improve. "The NRL management and the RLPA [Rugby League Professionals Association] managements have at times had poor relations and this year I would like to think they will take a less confrontational approach, especially if they get a greater sense of security about their place in the game, which should produce less of a wish to be the leader of the opposition on every issue for the sake of it," he said.
Gallop said he wouldn't be at the players' association awards on Saturday night, not because he didn't want to, but because it clashed with the Country Rugby League awards in Wollongong.
"We bought a table and donated it back and I wish them luck with how it goes, I would have liked to have gone, I went last year," he said.
And Gallop's most significant figure this year? The league chief finished 15th out of 30 in his tipping competition.
I firmyl believe the NRL should be ploughing money back into the grass roots and helping out country football. The problem is that we have too many bodies governing the game in our country. Between the QRL, NSWRL, CRL, ARL and the NRL who does what!!!
I think moving the semis to suit the team is a smart idea. The higher team should get the home game right up to the GF. Another way of doing it is if its MElbopurne playit down there, Sydeny based play at at Telstra or Aussie, QLD either Lang (will never call it Suncorp) or Townsville.
Code's counting the cash after a big year on and off the field
By Jacquelin Magnay
September 29, 2005
By any measure it has been a bumper year for rugby league, but just how big has it been?
For the year to the end of October, the NRL's total revenue has risen to $100 million. Sponsorship has risen by 39 per cent. There were eight crowd records at five grounds - Leichhardt, Jubilee, Campbelltown, Telstra and WIN - with the average attendance at games up by 12 per cent. Licensing royalties have increased by 41 per cent. Junior player participation is up by 12 per cent. Television ratings have been so healthy that the Nine Network and pay television group Premier Media Group have committed $500 million over six years.
These are all good reasons for chief executive David Gallop to smile, especially when he is about to re-negotiate the code's major naming-rights deal early next year.
But Gallop knows there are hurdles ahead: none the least managing what he terms "fan avidity" - the passions of the game's fans which have sent merchandising sales through the roof, but which have created other problems, such as satisfying demand for seats to the finals.
Gallop said he was considering relocating finals matches to best suit at least one of the teams playing. And that may mean more finals in New Zealand, Queensland or even Melbourne if the fan demand were there.
Certainly the competition's closeness, and the unpredictability of games right up to the shock finals results, have contributed to the league's phenomenal commercial success. But Gallop has warned against expectations that the growth will continue at such a heady pace.
"I would caution against explosive growth that we have had this year, but I think steady growth is achievable over the next few years," he said.
"One of the things I have noticed and it is reflected in the hard figures, … is that fan avidity has gone up a gear this year … we are seeing the fanatical fan that we haven't had ever before."
The plan is to consolidate the gains of this year and then gear up for another spike in 2008 - the year of the game's centenary.
The increased 2005 profit has meant bigger handouts to the clubs, with the grant rising to $2.75 million next year, up from $2.5 million. Gallop said he wanted to narrow the difference between the grant and the salary cap (currently $3.3 million plus other bonuses which makes the maximum allowed to be spent on players $3.9 million) so that the clubs' exposure to outside influences, such as leagues clubs, becomes negligible.
"It will give them greater flexibility in how they spend their money, their marketing and their promotion … it is the right model to generate central revenue to match the salary cap …" he said.
The NRL is also aware that the rival Australian football code has a golden marketing opportunity after the Swans' premiership. "Our game, week in week out is in a position of dominance, but the Swans' success is a reminder that in a record-breaking year in a competitive market we cannot rest on our laurels," Gallop said.
Gallop also said the NRL's relationship with the players could improve. "The NRL management and the RLPA [Rugby League Professionals Association] managements have at times had poor relations and this year I would like to think they will take a less confrontational approach, especially if they get a greater sense of security about their place in the game, which should produce less of a wish to be the leader of the opposition on every issue for the sake of it," he said.
Gallop said he wouldn't be at the players' association awards on Saturday night, not because he didn't want to, but because it clashed with the Country Rugby League awards in Wollongong.
"We bought a table and donated it back and I wish them luck with how it goes, I would have liked to have gone, I went last year," he said.
And Gallop's most significant figure this year? The league chief finished 15th out of 30 in his tipping competition.
I firmyl believe the NRL should be ploughing money back into the grass roots and helping out country football. The problem is that we have too many bodies governing the game in our country. Between the QRL, NSWRL, CRL, ARL and the NRL who does what!!!
I think moving the semis to suit the team is a smart idea. The higher team should get the home game right up to the GF. Another way of doing it is if its MElbopurne playit down there, Sydeny based play at at Telstra or Aussie, QLD either Lang (will never call it Suncorp) or Townsville.