NRL warned against expansion to Adelaide, Perth or Central Coast
21st May 2009
The NRL is set to remain national in name only after an independent report revealed having teams in Adelaide and Perth would do little to increase the game's value as a television product. The report, commissioned by the NRL with a view towards the next round of broadcast negotiations, also warned fans were becoming disenchanted by the off-field behaviour of players. Only last month, NRL chief executive David Gallop put prospective franchises on notice when he raised the possibility of expansion in time for the next TV deal in 2013. Perth, the New South Wales Central Coast and Central Queensland have all gone public with plans to submit bids to the NRL. For Perth, however, the confidential report's findings will come as a sledgehammer blow. The report, prepared by consulting firm LEK and tabled at a meeting of chief executives in Sydney last week, claimed basing teams in Perth and Adelaide would not increase viewers over current programming in the respective cities. That would lend weight to the theory that having teams in those cities would do little to make the game more attractive to broadcasters. The report instead encourages the NRL to maintain interest in Perth and Adelaide by taking more games interstate. Cronulla took a game to Adelaide this season while St George Illawarra and the Sydney Roosters played a pre-season game in Perth this year. West Australian Rugby League general manager Bill Nosworthy said he was unaware of the report's findings but vowed to press on with a bid regardless. "We have received nothing official of that note," Nosworthy said. "We're proceeding on the basis that we believe we have something to offer. We're confident that our bid is strong." Asked why the game needed a national competition given the report's findings, Nosworthy said: "Credibility, for a start." While the report was damning for Adelaide and Perth, it painted a brighter picture for the game. More than 120 million people watched last year, drawing rugby league alongside the AFL in viewing figures. The game also remains a drawcard on pay and commercial television. However, the game is under siege in its heartlands from rival codes. The AFL is preparing to place sides on the Gold Coast and in western Sydney, while the Australian Rugby Union plans to expand in 2011, with Gold Coast, Melbourne and western Sydney jostling for position. At the same time, the NRL has flagged its plans to expand. Those plans may now be put on hold. The most advanced bid team is from the Central Coast, but Manly chief executive Grant Mayer has cast doubt on the region's ability to support a side. "I don't think a club up there full-time is sustainable," Mayer said. "It costs $14 million to run a team. That means over five years it would need $70 million. I don't think the economy of the Central Coast could do that." However, bid team leader Greg Florimo is a firm believer in the region's potential. So is Nosworthy when it comes to Western Australia. He believes the city of Perth will only enhance the game's standing. "We'll keep our head down, bum up and keep doing our best," Nosworthy said. "We're not deterred. If it's decided it's not best for the game to expand, we will accept that but it's not going to change our resolve." While the Central Coast has a significant head start and central Queensland is backed by millionaire businessman Geoff Murphy, Nosworthy is confident Perth can mount a strong argument. "There is more to a bid than having a gazillionaire," he said. "One thing with gazillionaires -- they have a lot of money but they don't like losing it. We're putting together a very good business case and a very strong strategic plan."