Play Nice 2020 Non AFL Admin, Crowds, Ratings, Participation etc thread
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every AFL meh bar Carlton and Gold Coast has listed Job keeper.
Interesting take on motor mouth V'Landys trying to hide the loss of TV income by Roy Masters in the SMH today.
NRL’s neck-to-knee financials can’t conceal broadcast revenue hit
By Roy Masters
March 2, 2021 — 8.50am
It was American economist Aaron Levenstein who compared statistics to a bikini, saying, “what they reveal is suggestive but what they conceal is vital.”
Based on the recently published NRL financial accounts, ARLC chair Peter V’landys is dressing the code in a top-to-ankle swimsuit.
For the first time since 2012, the accounts for the financial year ended October 31, 2020, do not reveal income from broadcasting.
Instead, total revenue is shown as $417.273 million, rather than divided into broadcast and non-broadcast revenue, as it was in 2019.
Broadcast revenue from Nine Entertainment, Fox Sports and Telstra represents the greatest source of income to the governing body, suggesting that V’landys clearly wants to shield it from public view.
Perhaps he doesn’t want to reveal the extent to which the code took a hit from broadcasters as a result of the COVID-19 disrupted season, compared to the AFL.
However, it is possible to tease out the NRL 2020 broadcasting income by examining the cost of non-broadcast revenue.
The margin for non-broadcast revenue is historically around 50 per cent. In 2020, the costs of earning (accountants call this COGS – Cost of Goods Sold), the non-broadcast revenue, was $65.445 million, listed in the financials as “Event, Game and Sponsorship”.
This is the amount of money spent on putting on the show. To establish the non-broadcast revenue number, you simply multiply the COGS of $65.445 million by two, meaning the non-broadcast revenue was around $130.89 million.
Subtracting $130.89 million from the published total revenue of $417.273 million, reveals broadcast revenue to be $286.383 million, or $274.865 million if JobKeeper is excluded.
Pre COVID-19 broadcast revenue for 2020 was estimated to be $330 million, meaning the NRL gave broadcasters an approximate $50 million to $60 million discount.
The exact figure will be known when the NRL is obliged to lodge its accounts with the Australian Securities and Investments Commission in approximately 30 days time.
The AFL’s financial report showed its broadcast revenue dropped by $45 million from $397 million received in 2019, compared to the NRL’s discount of $50 million to $60 million on 2019 broadcast income of $324.6 million.
In other words, the NRL took a bigger hit on lesser income.
This is understandable, given reports Nine’s Hugh Marks threatened to further disrupt the resumption of the already shortened NRL season with legal action, unless he reached a satisfactory discount.
However, V’landys also gave Nine further discounts of $27.5 million for each of the 2021 and 2022 seasons, according to information forwarded to the Australian Stock Exchange.
More significantly, what will be the position if Nine, having been awarded generous discounts, doesn’t renew its free-to-air rights with the NRL when they expire at the end of the 2022 season?
We don’t know how much of the $50 million to $60 million discount was split between Nine and Fox Sports but V’landys was able to renegotiate Fox Sports deal past 2022 to 2027. V’landys describes the terms of the five-year extension as “commercial-in-confidence” but it was good news for the Murdoch owned company who, in the words of one Fox executive, “can’t get enough of rugby league.”
If Fox Sports took a small slice of the $50 million to $60 million in order for the NRL to be sufficiently cashed up to fund its clubs in 2020 – in exchange for a longer deal – it also demonstrates what a great short term outcome Nine received.
The AFL gained extensions with both its broadcasters, Seven and Foxtel, delivering $946 million over 2023-24, or an average of $473 million per year.
Considering the NRL was scheduled to receive approximately $340 million in 2021, now reduced by at least $27.5 million as a result of Nine’s discount, the gap with AFL seems likely to grow.
NRL’s neck-to-knee financials can’t conceal broadcast revenue hit
By Roy Masters
March 2, 2021 — 8.50am
It was American economist Aaron Levenstein who compared statistics to a bikini, saying, “what they reveal is suggestive but what they conceal is vital.”
Based on the recently published NRL financial accounts, ARLC chair Peter V’landys is dressing the code in a top-to-ankle swimsuit.
For the first time since 2012, the accounts for the financial year ended October 31, 2020, do not reveal income from broadcasting.
Instead, total revenue is shown as $417.273 million, rather than divided into broadcast and non-broadcast revenue, as it was in 2019.
Broadcast revenue from Nine Entertainment, Fox Sports and Telstra represents the greatest source of income to the governing body, suggesting that V’landys clearly wants to shield it from public view.
Perhaps he doesn’t want to reveal the extent to which the code took a hit from broadcasters as a result of the COVID-19 disrupted season, compared to the AFL.
However, it is possible to tease out the NRL 2020 broadcasting income by examining the cost of non-broadcast revenue.
The margin for non-broadcast revenue is historically around 50 per cent. In 2020, the costs of earning (accountants call this COGS – Cost of Goods Sold), the non-broadcast revenue, was $65.445 million, listed in the financials as “Event, Game and Sponsorship”.
This is the amount of money spent on putting on the show. To establish the non-broadcast revenue number, you simply multiply the COGS of $65.445 million by two, meaning the non-broadcast revenue was around $130.89 million.
Subtracting $130.89 million from the published total revenue of $417.273 million, reveals broadcast revenue to be $286.383 million, or $274.865 million if JobKeeper is excluded.
Pre COVID-19 broadcast revenue for 2020 was estimated to be $330 million, meaning the NRL gave broadcasters an approximate $50 million to $60 million discount.
The exact figure will be known when the NRL is obliged to lodge its accounts with the Australian Securities and Investments Commission in approximately 30 days time.
The AFL’s financial report showed its broadcast revenue dropped by $45 million from $397 million received in 2019, compared to the NRL’s discount of $50 million to $60 million on 2019 broadcast income of $324.6 million.
In other words, the NRL took a bigger hit on lesser income.
This is understandable, given reports Nine’s Hugh Marks threatened to further disrupt the resumption of the already shortened NRL season with legal action, unless he reached a satisfactory discount.
However, V’landys also gave Nine further discounts of $27.5 million for each of the 2021 and 2022 seasons, according to information forwarded to the Australian Stock Exchange.
More significantly, what will be the position if Nine, having been awarded generous discounts, doesn’t renew its free-to-air rights with the NRL when they expire at the end of the 2022 season?
We don’t know how much of the $50 million to $60 million discount was split between Nine and Fox Sports but V’landys was able to renegotiate Fox Sports deal past 2022 to 2027. V’landys describes the terms of the five-year extension as “commercial-in-confidence” but it was good news for the Murdoch owned company who, in the words of one Fox executive, “can’t get enough of rugby league.”
If Fox Sports took a small slice of the $50 million to $60 million in order for the NRL to be sufficiently cashed up to fund its clubs in 2020 – in exchange for a longer deal – it also demonstrates what a great short term outcome Nine received.
The AFL gained extensions with both its broadcasters, Seven and Foxtel, delivering $946 million over 2023-24, or an average of $473 million per year.
Considering the NRL was scheduled to receive approximately $340 million in 2021, now reduced by at least $27.5 million as a result of Nine’s discount, the gap with AFL seems likely to grow.
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He's merely revealing the world's worst kept secret. Despite all the bluster, it was the broadcasters who were happiest when all the wheeling and dealing was completed.
And for all of those who thought the Commission would have been quaking in its boots over Mr Loudmouth, I'd say the members of the Commission are still laughing (I don't need to clarify which Commission, there is only one true Commission, the other has invested everything in one person).
And for all of those who thought the Commission would have been quaking in its boots over Mr Loudmouth, I'd say the members of the Commission are still laughing (I don't need to clarify which Commission, there is only one true Commission, the other has invested everything in one person).
Have the media companies finished screwing?
Probably an element of reading the financial reports and realising he's been exploited
- Moderator
- #2,383
Need to take off those blinkers, nothing has changed except your understanding of the NRL.
RedV3x
It's about time some mods started being fair
When I arrived in Sydney the NSWRL was about rugby league, the clubs and traditions.
I have little idea of what the NRL is about these days.
is it a sport, a business, a big boys club or an excuse to party/
Not been the NSWRL for even longer than there has been an AFL.
Fair comment that: is it a sport, a business, a big boys club or an excuse to party/
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Mr V'L giving the AFL credit for its progress in Q ..
RA signed up Cadbury as major sponsor replacing Qantas.
The Aus Super Rugby GF pulled 41,637 through the gate.
The Aus Super Rugby GF pulled 41,637 through the gate.
RedV3x
It's about time some mods started being fair
And which one would you rather have ? I know which sponsor I'd rather have.
Quote "is that as good as it gets ?" Really. You want to hang your hat on one ideal GF ?
I don't think old Roy is a fan of the bogan loud mouth and its also great the AFL has ignored V'Landys childish comments about the AFL apart from of course sucker bait motor mouth Kennett!
You only give a second rate competition like the NRL air if you bite back!
EG:In 1969 the AGE brought out an afternoon paper in direct competition to the big selling HWT Herald it lasted only 8 months and the only time the Herald mentioned its name was the day it closed!
Nothing special Suncorp holds 52.500 and is now allowed to have 100% capacity.
I saw it as a good crowd & relevant, no more, no less. Quibbling & dribbling regardless.
Sad to see some knock, knock ..
That’s an incredibly obscure reference but I do like it
- Moderator
- #2,397
Think certain posters need to stop picking fights.
It is getting to a stage where you can't even mention another sport before you get a hornets' nest attacking said sport.
For a sport on the rebuild, the publicity and crowd for the RU GF were good. showed that the fans are still going to listen.
We all know there are certain AFL fans who see putting the boot into any other sport as part of their DNA.
There are plenty of sport issues to discuss without the buffoons feeling challenged at the mere mention of non AFL issues in THIS space.
RedV3x
It's about time some mods started being fair
Huh ? You posted the information, what as community service ? Well good for you. I wouldn't promote ownership of it either.
I know I'd much rather have Qantas than Cadbury as a sponsor.
And 41k to a grand final is just a good AFL crowd to a good AFL game.
Great example of the challenged AFL fan, needing to pump up their own inadequacies.
The advantage of Cadbury is Mr Joyces interference is no more.
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