It seems that V'Landys knows his way around NewsCorp and how to get a deal done - that's his true value to the NRL
News Corp strikes $75m deal with NRL to prop up 2023 Redcliffe expansion
https://static.ffx.io/images/$width_144%2C$height_144/t_crop_fill/q_86%2Cf_auto/781f7a16cafe800fcc64fb756b16fc18cd9baf9d 2x" alt="Michael Chammas" width="72" height="72" />By Michael Chammas
The NRL is expected to propose the Redcliffe Dolphins as the expansion team for 2023 after striking a deal with News Corp to inject an extra $75m into the sport over five years.
Sources with knowledge of discussions told the Herald that as part of the deal, the NRL has pledged to reduce the number of free-to-air games involving the News Corp-owned Brisbane Broncos by up to 25 per cent.
https://static.ffx.io/images/$zoom_0.198%2C$multiply_0.7082%2C$ratio_1.776846%2C$width_1059%2C$x_0%2C$y_41/t_crop_custom/q_62%2Cf_auto/3eb3e300287be54a23a01896c4d7e4ed14182a5d 2x" alt="Andrew Abdo and Peter V’landys have a struck a revised broadcast deal with News Corp." width="375" height="212" />Andrew Abdo and Peter V’landys have a struck a revised broadcast deal with News Corp.CREDIT:NRL PHOTOS
The deal with News Corp, which is worth $13m-$15m a season, came as a shock to Nine Entertainment Co, publisher of this masthead, when it was recently told of the arrangement.
The deal has caused some angst among Nine powerbrokers as they head to the negotiation table in the coming weeks to resume what are already proving to be delicate discussions for the free-to-air rights beyond 2022.
ARL Commission chairman Peter V’landys, through his role as Racing NSW chief executive, already has close ties and relationships with News Corp.
This latest deal, which V’landys negotiated alongside NRL chief executive Andrew Abdo, is another sign of his influence at News Corp and comes on top of the $1 billion deal already agreed with the media company for the 2023-2027 broadcast rights.
Both Abdo and V’landys flew to Los Angeles at the start of 2020 to meet with News Corp co-chairman Lachlan Murdoch to secure his blessing for a 17th team in the competition.
The NRL will announce the deal to clubs in a video conference with all 16 teams on Thursday. The code’s expansion assessment committee will then meet the following day to put forward a final recommendation for the prospective franchise, which is expected to be the Redcliffe Dolphins.
NRL clubs currently receive an annual grant of $13m from head office. The clubs have been concerned about the impact a 17th team will have on their bottom lines
However, News Corp’s injection of $15m a year for the duration of the next broadcast cycle will not only cover the annual grant of the new team, it will provide head office with up to an extra $2m a season.
That is before considering any uplift in rights revenue from Nine, or a rival free-to-air network, for an expanded competition in 2023.
The NRL was able to convince News Corp that a new team in Brisbane, as well as a reduction in Broncos free-to-air games, would drive extra subscriptions to Kayo and Fox Sports in a state where the network has traditionally had a far lower penetration level than NSW because the Broncos are so regularly on free-to-air TV.
The Broncos have more free-to-air games than any other team in the competition, with a maximum of 16 allocated to Channel Nine in a 25-round competition each year.
The Broncos have proven a ratings bonanza over the past decade, with News Corp now set to benefit from the popularity of the game’s most powerful club with an influx of games on Saturdays and Sundays.
The expected addition of the Dolphins will also provide Queensland viewers with another 24 games worth of content including a team from their state.
On the flip side, a reduction in Broncos games for Channel Nine will provide the opportunity for the new expansion team to dominate the airwaves.
It's expected Wayne Bennett will be the coach of the new team, which will have no trouble attracting talent given the reputation of the seven-time premiership-winning coach.
Replies
I wonder how many other perks this new club will receive. I remember Melbourne receiving a whole heap of cap exclusions ( and probably still are ) due to relocation and living expenses of players.
Why not ?
The bottom line is that the NRL Premiership is a business, it's not an amateur suburban competition anymore, hasn't been for a long time. It helps no one if the new club struggles on and off the field for an extended period of time. If expansion clubs are strong, then the league as a whole, and its constitiuent shareholders, ie the clubs, all win.
This is where Rugby league continues to shoot itself in the foot, there's a chronic lack of "whole of game" thinking, especially in Sydney based fans. The league is only as strong as its weakest club, a poorly run club drags the value of every other club down with it.
Besides, this article indicates that this is new money, not money being taken from the existing pool.
Firstly, isn't that what you and others have been saying about the Storm, that they get extra benefits from the NRL to ensure their success ?
And yes, I think they would agree to it, albeit through gritted teeth, for an agreed period of time, say 3 years, to help the new club get settled. The AFL have done it for years with the Suns & Giants, and before that with the Lions & Swans. Even when the Lions won 3 premierships in a row, that were allowed an extra 10% to help them retain talent, the Swans from memory got an extra 15%, both clubs got extra draft picks as well, right up till just before the AFL brought in the Suns & Giants.
Why did the other AFL clubs agree to it, because they understood the need for expansion clubs to be supported until they can support themselves.
As to your second question, they have propped up struggling clubs in the past. Both the Tigers & Dragons were given interest free loans, they owned the Titans for several years to keep them afloat before they could find a buyer, hell, they forwarded money to the Eels in 2014 I think, nearly 20% of our 2015 grant as an advance. The problem is that the Commission hasn't followed through with those clubs to ensure they adopt best practice as a condition of getting the assistance.
It happens in US sport all the time. The NBA owned the then New Orleans Hornets for 3 years, the NHL owned the Atlanta Thrashers & Phoenix Coyotes for a couple of seasons.
In a closed ringed league, having poorly performing clubs, and I mean consistantly poor, is good for no one.
Probably 8 again instead of 6, guaranteed premiership within 5 years, allowed to hold down players, allowed inside the 10, trainers allowed on the field.
Titans didn't get any real help like that wiz so don't think any will go to new expansion team. Only help titans got which actually put the club backwards was bending of rules to get Hayne there.
That extra $15m a year is so the other 16 clubs don't complain about it. All the clubs are self serving when it comes to expansion. They don't want a 17th team because it might impact their finances. This is how the NRL is ensuring the new franchise gets a decent financial foundation and shuts up the other clubs.
Although they'll play at Suncorp, Dolphins Stadium is 10 minutes from home for me. I've always hated the Bronco's with a passion so I'm keen to support this new local team. They'll always be behind the Eels in my eyes though. I'll be gutted if the Dolphins win a premiership before the Eels manage to get across the line.
I'd be happy with games at home...I just think there's too much money from News LTD and Suncorp Stadium to move games away. The Stadium in particular wants usage every weekend by the NRL, not every 2nd weekend, so they have no doubt incentivised the NRL to ensure home games are played there.