There were a few eye-brow raising results for the best and worst performing clubs off the field. Enough to make Groucho Marx and Tim Mannah proud.
It is based off the NRL's "Benchmarking Document" for the 2023 financial year which does an apples for apples comparison of all the NRL clubs as explained by Proszenko on SEN Radio who notes it is based on five key markers: sponsorship, corporate hospitality, membership, merchandise, and game day ticketing.
The Broncos, as they were a publicly listed company were not part of the exercise. But we could expect they would be on top of the pile.
Surprisingly, the Eels were fifth ahead of the Roosters, which initially seemed odd, considering how this translates to comparative rosters. Long live our fanatic supporters.
However, the Roosters are second for sponsorship and the best when it comes to profit margins.
Interestingly, the Dolphins had the highest sponsorship levels.
It's made even more intriguing by the fact they were banned from advertising their major sponsor "Alternaleaf" on the front of their jerseys due to a breach in advertising laws.
Apparantly, the Dolphins have told the SMH that the "banning" inadvertedly helped spike intense interest not dampen it. Well, fancy that. Perhaps, not unlike the Garden of Eden's naughty apple. Forbidden taboos are often more desirable and saturated in fantasy mystery than the "Easy to Get" with nothing more to see.
As a warning, looking up "Alternaleaf" is strictly forbidden and any deleted Google or Bing searches will be monitored by authorites.
Below is the article published By Adrian Proszenko in the Sydney Morning Herald
May 31, 2024 — 5.30am
They have been in the competition for less than two seasons, but the Dolphins have emerged as the NRL’s new financial powerhouse.
The NRL has benchmarked the commercial performance of all its franchises – bar the publicly listed Brisbane Broncos – and ranked them based on their overall revenue for the financial year. The benchmarking document, obtained by this masthead, shows the Dolphins have come out on top alongside the Rabbitohs, each generating $23.5 million in revenue.
That’s well above the median figure of $15.7 million, with Manly ($11.5 million) and the Warriors ($11.6 million) bringing up the rear.
Souths made a 56 per cent profit off their revenue figure for a total profit of $14 million, just above the Dolphins with 55 per cent ($13.75 million).
Penrith ($23 million; 57 per cent profit), Cowboys ($22.7 million; 63 per cent profit), Parramatta ($19.3 million; 59 per cent profit) and the Roosters ($18.2 million; 71 per cent profit) were the next-best performing clubs in terms of revenue generation. Had the Broncos been involved in the benchmarking exercise, they would likely have come out on top in most categories.
However, the unexpected success story is undoubtedly the Dolphins, who only entered the competition in 2023.
Even before a ball had been kicked in their inaugural season, the Redcliffe-based franchise had 20,000 members and $10 million in sponsorship. Their bottom line continued to improve after they won their opening game against the Sydney Roosters, just as a documentary on their journey to the big time, Dawn of the Dolphins, premiered on Stan.
“We’ve had wonderful support from day one,” said Dolphins chief executive Terry Reader.
“The measure of success for us - and this showed that Brisbane didn’t just want another team, but needed another team – is that our last two home games of the year were our second– and third-biggest crowds of the year.
“That happened when we weren’t in contention for finals, which illustrates how much people were behind our club and had bought in.
“That backed up the decision that we should have had two teams in Brisbane a long time ago.”
The Wayne Bennett-coached newcomers collected more revenue in sponsorship than any other club, with $10.9 million, pipping the Roosters, with $10.4 million. The Raiders ($4.6 million) and Manly ($4.7 million) generated the least.
“A lot of our partners were new to rugby league, it was important we didn’t cannibalise the other teams in Queensland,” Reader said.
“The Broncos having Brisbane for themselves for over 35 years, there would have been a lot of partners locked out of sponsoring up here in Brisbane.
“Bringing a second team allowed them [an opportunity], and that’s one of the great things about the Dolphins’ entry: we’ve brought a lot of new partners into rugby league because of that.
“That’s a testament to how much rugby league is supported here in Brisbane and the good work that has been part of starting up our club.”
Manly CEO Tony Mestrov said the club’s home ground of 4 Pines Park at Brookvale had brought financial challenges.
“It’s a great place for the team to play, but it’s a challenge from a commercial point of view and that’s represented by our standing in the benchmarking,” Mestrov said.
“We’re endeavouring to change that with the redevelopment and with funding, as we’re seeing with Leichhardt Oval.”
Parramatta chief executive Jim Sarantinos (above) said their result allowed them to reinvest funds into the club’s football program.
“Quite a number of years ago we were much lower down the list,” he said.
“Our club has improved a hell of a lot."
"The move to CommBank Stadium has helped because of the experience we can provide to members, fans and corporate partners."
"The club having a better period of football, than has been the case historically, over a period of three or four years helps a lot, particularly in terms of bringing on corporate partners and the like."
Adrian Proszenko explains the NRL's metrics on SEN Radio (starting from 02:20 mark).
Replies
Thanks for posting this HOE - I was reading this on the SMH and similarly to you did a bit of backgrounding afterwards.
It shouldn't be a surprise for those close to the club to know that our finances and business model have been on the improve. What I think this data shows us are a few key takeaways:
1. How vitally important the constitutional reforms were. They've allowed us to be structured and run like a proper for-profit organisation.
2. The comparison against other clubs needs to be viewed through the lens of where we were. As Sarantinos rightly said, a short while ago we would have been down the bottom. We had former admin and board members selling off assets to try and give our books a sugar hit and look financially less crappy, but for anyone who had done basic Year 10 accounting/finance it was obviously a farce. We were in a shocking financial position and had no viable business model. We have come so so so far and full credit to both boards and administration for that.
3. This is a glimpse of where we could be. We know from a lot of prior research that Parra fanbase size and engagement is one of, if not the, best in the league. How we efficiently convert that fanbase potential into dollars is a mission that is only half done. These numbers show we're doing well, but have a significant opportunity for growth if we get it right.
We need to give credit where it's due for those who have turned the tide, but now is not the time to rest on our laurels, we should be the top of this list in continual battle with Souths and the Broncos. We have the brand awareness, fanbase and engagement to be there - now we need to get really really smart about our strategy to top this table. Not as an alternative to success on the field, but as an equal priority. Financially strong clubs have the ability to set up their on field success over longer periods of time...one needs the other.
It's great we've got ourselves back into financial shape. Just like it was great we had our football team as finals regulars before last year. Now we need to keep driving on and off the field until we are the best. It's time for our club to realise our potential - there is no reason we shouldn't be topping this table in 5 years time.
Captain, thanks mate.
Yes, I agree it's a pleasing result. Commbank & our fanatic gigantic fanbase need a big round of applause, too. The COE will also help engage the community even more.
There are still some question marks for me, especially around the details and specifics.
It's a pity they don't breakdown the figures to get a realistic idea of where we sit. I wonder whether government grants (e.g. Parramatta Council partnership?) mentioned in the annual report by Sarantinos were a part of these figures?
Sponsorhip is a question mark. You have an idea of where we sit sponsorship wise? The Roosters being second after the Phins doesn't surprise. The Roosters would not be showing all their cards (like when the Eels had more TPAs than them in 2019). Hardies would help more for 2025, I'd gather.
Sarantinos pointed to the 2019-22 wave helping. Without being 100% sure, it would suggest these figures are about the financial year (July 2022-end of June 2023) rather than the calender year. That makes a huge difference because of the 2022 grand final run.
If so, I wouldn't be surprised if we drop a tad for the next year's report (2024 FY).
And if so, Gurr is also the unsung hero here. It was under his tenure as CEO-GM that the much of 2019 team was formed, almost all of who were either signed or in our system before MON arrived at the end of 2018, which is the foundation of the 2022 squad essentially.
The Dolphins, wow. It also suggests Bennett might have made a huge difference, especially if the team were winning on-field.
Our decent result whilst pleasing along with other good things the club does elsewhere (partnership, community donations, and record memberships), doesn't convince me yet we don't need changes up top especially some changes or restructuring at GM, Chairperson and CEO levels for the footy side.
If we don't get better on-field results the off-field side will eventually also take a hit.
Considering our core players are ending into the 31-32 zone by the latter portions of next year - a rebuild is coming. On the whole, we're slow and ageing, declining progressively in a Speed Era continually getting faster. There's also the spotty Pathways issue to resolve. We haven't been able to get the full benefits of our juniors' success and record silverware dominance that leaves other clubs for dead since 1986. Heck, the new coach might be in for a rude shocks over the next few years unless we start cracking the whip.
Frankie, what about the losses in the period before 2016......wasn't the football club losing every year (up to amounts like 5m (2010 to 2015) which the leagues club just paid for?
FYI, In summary, there has been close to a pleasing $30m turnaround for the PNRL Footy Club since the annus horribilis of 2016.
2016 - loss $12m
2017 - loss $10.2m
2018 - loss $3.9m
2019 - loss $5.3m
2020 - profit $1.36m
2021 - profit $1.05m (includes $900K Gov't grants)
2022 - profit $1.5m
2023 - profit $17.5m
Note:
Above are approximates and what Gurr and Sarantinos (from 2019) quoted in their PNRL CEO reports in the PLC annual report, and are for up to 31 October for each year. The 2023 figure was likely helped by the excitment generated by the 2022 grand final. We may see a drop for 2024?
I agree Fong, the 3P days were grim run by folks I wouldn't trust to run a sausage sizzle and they absolutely screwed our finances.
You've got to give credit where it's due, the Gurr years onwards have seen our financial strength and stability returned. Prior we were running at a loss and selling assets to try and make it look slightly less terrible. It was borderline criminal it was so bad. The admin since have done an exceptional job digging us out of that hole. No other club in that time period has had such a turnaround.
I'm all good to give those who deserve it a "well done".
What needs focus now is how do we turn our high engagement into better revenue, how to we get more efficient to stretch our margins even more, and most importantly how do we make sure this solid financial foundation translates to success on the field.
Pretty much we just need a decent coach, most things are falling into place nicely
Yeah, Hopefully it is, but I'm far from convinced it's that straightforward. I get that nagging feeling and inner voice telling me to look deeper. At least the club is a decent sell to a new coach, right now. Obviously, not for Bennett though. He went higher up this report ladder.
Yep, Adam. When you reduce it to only that, it's straightforward: a good thing. Good point.
I'll concede you're probably right on Bennett. He didn't reject us because of our financials or offer (hope it wasn't low ball). But is that really all good?
Assuming you rate Bennett, either he didn't feel as much of a connection with us or our leadership or the club and/or he feels last-placed Souths could offer him more potential for a premiership over the next few years. Could be some or all of those ingredients in various doses.
Compare what he said about Souths and the Eels, during the woo-ing period when both Souths and the Eels were chasing him (with us secretly playing smoke-and-mirrors poker).
He called Souths an "iconic club", one he knows and feels a connection with the place and the "people" with "a vibe" he likes. One he is comfortable at. That speaks of his admiration for their "past, present and future".
When he talked about the Eels, he noted his deep admiration for "Gibson and Massay". But, outside of that he didn't say much else good about the club, except noting that would not be enough to get him here. That is an admiration for our "past"; little beyond that.
In hindsight that's quite telling, despite many assuming he was playing media games. Of course, we don't know his private thoughts and feelings, but there is evidence there to suggest smoke.
Still, we will be an attractive proposition for plenty of coaches, especially ones desperate for at least a half-decent gig.
Of course he does, Frankie, absolutely.
Hopefully, whatever Souths offered we went in a lot, lot higher, asking "What would it take to get you here?" rather than just making a good, solid offer which would be a meek surrender.
To add to his family concerns, the fact he had a difficult upbringing (father) being a protective, strong father and provider would likely be up there as a top priority and life-purpose.
It's probably one reason, a form of redemption and healing, that is he such a deeply revered father-figure to many players who follow him.
Missing out on Wayne wasn't a good thing, but it has happened and there's no point in dwelling on it or using it as means to find fault with what we do or how we operate.
As Captain said in his comment, give credit where it is due because there's plenty we are doing well
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