The Cumberland Throw

The Spotlight – Protect The Product

“At our core, we are a football club and so we continue to be totally committed to providing our fans and partners with a successful NRL Rugby League team.” Bernie Gurr

The parting words of former Eels CEO Bernie Gurr ring true in these times more than ever. The NRL and each of the 16 clubs are in the business of rugby league, and whatever decisions are made must be done without losing sight of the game itself.

Facing an unclear future, when so much attention is rightly focussed on the economic challenges facing the NRL, it behoves the decision makers to ensure that they don’t miss seeing the wood for the trees.

http://www.starrpartners.com.au/office/starr-partners-auburn

The strength of the NRL is the quality of the product it sells – professional rugby league. The players that take the field possess an extraordinary mix of athleticism, skill and toughness, with the majority participating in the game since childhood.

The product would not exist without the foundations of junior football, and the ongoing development, coaching, physical preparation and player well-being programs.

Perhaps you can already read where this post is going.

When it comes to cost cutting, the NRL and the 16 clubs need to be careful that they do not diminish the product.

We already know that the players have accepted significant pay cuts for this year, and a reduced salary cap in future years is likely on the discussion agenda. How that transpires will be a matter for negotiation between the NRL and the Players Association.

Whether an edict is passed placing greater restrictions on football department spending by the NRL, or whether individual clubs cut their own expenses, we are facing the inevitable tightening of the belt.

But this is an area where we need to tread carefully.

Last year, Eels Chairman Sean McElduff was quoted as saying:

Sean McElduff

“The core business of the club is winning football games. Of course we want to win premierships but for us it’s about putting the right building blocks in place like well-being, roster management, that we know at the start of every year we are a chance of making the top four.”

This statement would be typical of most clubs.

Professional Rugby League has prospered as a spectacle because the coaching, support and care for the players has evolved. Decisions have been made, and staff have been appointed, with elite preparation and the physical and mental well-being of the players being the motivation.

We could consider NRL executives as paragons of altruism for such decisions and spending, but there is a commercial intelligence behind looking after the overall well-being of players.

Time on the sideline, for whatever reason, is wasted money. Furthermore, when it involves prominent NRL players, it diminishes the quality and appeal of the game.

Individual clubs strive for an edge when it comes to their support staff and coaching programs. Strong rosters are built by astute recruitment and quality development. Successful teams are usually those who are the least impacted by injury, especially during the second half of the season.

Training and preparation go hand in hand with “prehabilitation” – doing what can be done to prevent injuries from occurring or recurring. Should injury strike, the best medical and rehabilitation treatments are crucial in reducing time on the sideline.

In 2019, it was no coincidence that the Eels benefitted from their programs when both the NRL and Canterbury Cup teams reached the finals series. By the second week of the NRL finals, Will Smith was the only player unavailable through injury- and that was a fracture. With virtually all of the top squad available, improved results across both grades were achieved.

Of course, NRL programs run far deeper than just the well-being of elite players.

Interim CEO, Andrew Abdo

Before Peter V’Landys or Andrew Abdo lead any decisions about future cost cutting, the code already has a hurdle to overcome that could impact the product. The loss of NSWRL and QRL programs for this season means that pathways programs, from development squads through to State Cups, have been shut down. The return of community football will not involve these elite programs.

Unless they return to community level football, including Ron Massey and Sydney Shield, these players will lose a season of their development. Even if they play at this level, they won’t receive the quality coaching, physical preparation and mentoring which they would in a regular season. Depending on their current level of development, this could place them anywhere from 6 to 18 months behind where they expected to be coming into next season.

Even fringe NRL players in the top squads, who continue to receive coaching and physical preparation, will be impacted by the loss of match time in the Canterbury Cup, Jersey Flegg and Queensland Cup competitions and the loss of income associated with that. They are almost the forgotten players in the current scenarios, and it’s important that plans are in place for them. It’s not outside the realms of possibility that rationalisation could occur in Junior Rep programs. 

We can probably expect that, at least in the short term, the NRL will continue to reduce its grants to the clubs. They will likely implement further changes.

There’s recent history pointing to limits being imposed on football department expenditure.

Coming into the 2018 season, the NRL mandated a $5.7m football department cap. Whether that is further reduced, or whether the clubs say they can’t afford that level of spending, is yet to be revealed, but it’s not a huge stretch to believe that it could be part of cost cutting.

Just how significant that becomes could shape the quality of programs run by each club.

The importance of maintaining quality football programs cannot be understated as it is the standard of NRL football which attracts the audience, which in turn creates the wealth needed to support its future. Not only does this impact the fortunes of individual clubs, it reflects the overall health of the code.

Looking at some basic broadcasting figures from the 2019 season reinforces the current market position of the NRL.

The 2019 NRL season rated around 88 million viewers at an average viewership of nearly 460,000 per game. The finals series added just over 12 million more viewers.

NRL fans were watching an average of 3.5 hours each week on Kayo, with some regular season games reaching nearly 70,000 users. On 9NOW, an average of 2.9 million minutes was streamed online every round. In total, 302 million minutes of NRL were streamed on Telstra Live Pass and the NRL Live official app across 2019 to the end of the regular season.

The crown in the jewel was obviously Origin, which pulled in approximately 9 million viewers nationally across the three fixtures. What a ratings bonanza rugby league is for Channel 9! Four out of the top ten highest viewed free to air programs for the year are rugby league broadcasts – the three Origin matches and the Grand Final. Additionally, those four matches occupy four out of the top five watched sports broadcasts.

Why mention these figures?

It’s very simple.

The COVID-19 pandemic has impacted the lives of millions of Australians. For some it has been life changing. It has commercially impacted the NRL.

However, something that won’t be negatively impacted is the audience for the game of rugby league. There may be a current short term hit, but when the product is back on the market, the people will tune in, crowds will return when allowed, and that aspect of the revenue stream will bounce back quickly. Incredibly, thousands of supporters have maintained their memberships despite no firm guarantee that they will attend another game this year.

Only one thing will prevent rugby league re-establishing it’s place at the top of the Australian sports market (or even broadening its reach) – and that’s a poorer product.

That may be a warning to the NRL or it might be a warning to individual clubs.

Be careful where you trim your expenses. There are aspects of any operation where savings can be found, but no industry will improve its market share by installing inferior methods of production. Those that protect their product, their programs, as best they can, will be the ones whose revenue streams will be the most resilient.

The game of rugby league, the players that take the field and the staff who get them there, are the code’s greatest asset.

We need to ensure it remains that way. Of all the commercially smart decisions that need to be made, it’s surely top of the list.

Eels forever!

Sixties

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31 thoughts on “The Spotlight – Protect The Product

  1. Higgsy

    I simply pose this question , chicken or the egg ? Was the football team formed first then the leagues club to support it , or vice versa , we all know the answer , our football team is the product , my concern is that the now current board and ceo recognise this fact and maintain said product !!

    1. sixties

      We must have faith that they will do so. So much has been made about the money spent on the game, but at the core, the game must be maintained. Without it there is nothing to market. When cuts are made, as they probably will be, this fact cannot be lost.

  2. Colin Hussey

    Even if the season does go ahead this year, I am quite concerned for the future, same thing will be in the minds of other codes as well but for me, I am not sure of the form/format that the game will head to going forward.

    Great the jnr codes are also being allowed to play for this year, but the loss of the CC, is a biggy for me. I have seen too many comps, teams and players lose out over the years, and I see a repeat coming. There has been some media speculation as to what form the future of the game will take, several former players and officials are calling for a 6 player interchange, reduced players, reduced, coaching staff and the like, as well as the big one that the game should not have amateur/non experienced coaches rather only have a single quality coach at a club.

    Lot of questions out of that, how do we only employ experienced coaches forever more? How do the coaches get the experience when the continued culling of teams/squads are the future of the game?

    With all the desire to get the game going again this year, there are too many of the old top line high mouth speaking ex players who are making the noises to take the game forward, but forward to what?

    1. Milo

      Colin could not agree more with your last statement. I have stopped watching some shows as some of the ex-players have been dribbling on a bit. One of them used to play for Canberra and coached them too for a short while…

      1. Colin Hussey

        Thanks Milo. I also like what you have said in reply to sixtes as well.

        For me the sadness of sixties post and the other items that have been said on this special day, brings a sorrow to me in not just the aspect of Anzac’s and Anzac day itself but, when we think of the last post and its history or beginnings plays hard on me. Many do not know its origins and the story behind it, it does remind of what is happening with the NRL and powers for and against its start up and possible future.

        Here is the story and the words of the last post
        Many of you may be surprised to learn that the LAST POST has words, in fact three verses. This is the story of how it all started with regard to it being used for military funerals.

        It all began in 1862 during the American Civil War, when Union Army Captain Robert Ellicombe was with his men near Harrison’s Landing in Virginia. The Confederate Army was on the other side of the narrow strip of land.
        During the night, Captain Ellicombe heard the moans of a soldier who lay severely wounded on the field. Not knowing if it was a Union or Confederate soldier, the Captain decided to risk his life and bring the stricken man back for medical attention. Crawling on his stomach through the gunfire, the Captain reached the stricken soldier and began pulling him toward his encampment.

        When the Captain finally reached his own lines, he discovered it was actually a Confederate soldier, but the soldier was dead.

        The Captain lit a lantern and suddenly caught his breath and went numb with shock. In the dim light, he saw the face of the soldier. It was his own son. The boy had been studying music in the South when the war broke out. Without telling his father, the boy enlisted in the Confederate Army.

        The following morning, heartbroken, the father asked permission of his superiors to give his son a full military burial, despite his enemy status. His request was only partially granted.
        The Captain had asked if he could have a group of Army band members play a funeral dirge for his son at the funeral.
        The request was turned down since the soldier was a Confederate.

        But, out of respect for the father, they did say they could give him only one musician.

        The Captain chose a bugler. He asked the bugler to play a series of musical notes he had found on a piece of paper in the pocket of the dead youth’s uniform.

        This wish was granted.

        The haunting melody, we now know as ‘The Last Post’ used at military funerals was born.

        Remember Those Lost and Harmed While Serving Their Country.
        Also Remember Those Who Have Served and Returned;
        and for those presently Serving in the Armed Forces.
        The words of the Last Post

        Day is done.
        Gone the sun..
        From the lakes
        From the hills.
        From the sky.
        All is well.
        Safely rest.
        God is nigh.

        Fading light.
        Dims the sight.
        And a star..
        Gems the sky.
        Gleaming bright.
        From afar.
        Drawing nigh.
        Falls the night.

        Thanks and praise.
        For our days.
        Neath the sun
        Neath the stars.
        Neath the sky
        As we go.
        This we know.
        God is nigh

  3. Milo

    Sixties i do not have an answer to all this but see your point and agree.
    It is somewhat concerning about the junior reps and CC being lost this season along with the end to the A Johns / Daley, Ball and Harold Matt’s…..i guess the only consistency is that each club is in the same boat. I guess this is where due to the NRL’s financial issues that have been shown now we are faced with this…….I will not say anything more on this.
    I feel football clubs should not have a reduced cap for their football dept as we have seen our clubs been reduced and areas reduced.
    The positive for me is that i hope the cap is reduced somewhat – i do not know by how much but i do feel some of the high end players are on too much. Just my view, and we are a small country so people who may compare us to the US or Europe need to re-think our population.

    1. sixties

      There are probably a number of players on inflated contracts. When salaries are reduced those on the lower, basic salaries will feel it more. There’s probably a post to be found in how to structure salary caps. How you go about individually cutting every existing contract beyond this year would be a nightmare. I am also concerned about the potential loss of football staff. If a club cut, for example, an assistant coach, a physio and a trainer – how much would they save? It would be a significant percentage of the staffing manpower, but maybe not so significant in the dollars saved. Balance that against the football cost of losing those staff and the equation may not be so favourable.

      1. Colin Hussey

        sixties, I would suggest rather than the probability of a number of players being on inflated, its a reality in more cases than one would thinking of.

        From what I have read in bits here and there, the size of the staff numbers at RL headquarters is very much on the high side, and from a realistic perspective and its being said a bit more openly there will be staff cuts there, be it this year or next, certainly the number of people working there seems to be on the high side considering the actual size of RL as a business compared to similar sized companies.

        The same can be said in regard to pretty well all the NRL clubs with their football club and associated staff levels behind computers and those with on field inputs. I would say that most clubs would have more staffing numbers of employees, these days then say 10 years back and more, even in the days when there were 3 team games each week.

        Looking at the NRL Moore Park headquarters, there are large badges that show the number of competitions that have their headquarters at that location, probably its not all of the game levels though, but what is the staff levels of each of those groups, it includes NSWRL, Country RL and other state leagues as well. Combine the staff how many have duplicating roles particularly these days where the game is in death throws in the regions, the number of competitions under the admin of the NSWRL, how many duplications there.

        As the TV Broadcasters are pretty much playing hard ball and the next contract is likely to be significantly less than the current contract, the next one to be negotiated which is mentioned to be only for 3 years, & will the clubs get more money or not? contracts will likely also be less amounts than these days, those not signed up already for next year and beyond will also likely be getting less than what they would have got had they signed extensions in the first 2 rounds windows.

        Senior/older players may also be victims, maybe those who are younger & one short contracts may be winners, not on the higher pay dept, especially as many of them wont get a game this year with the abandoning of the CC for this season.

      2. Milo

        Thanks sixties i should clarify – i would look at a tiered system where capped numbers at lower pay tiers etc. have not thought too far but it could be done.I truly think the higher paid players need to be cut back and this may not seem fair but that could be the difference between playing with Manly or for GC. Make clubs look at the higher wages (DCE reported to be on $1 mill etc); but this would also depend if the Cap was cut by 5-10% for example. What is the cap now? $9.6? Min wage about $100k? I think the top tiered players would feel it that is for sure….i also think if the NRL was real they would also look at TPA’s and place a cap. If they truly want a level playing field this could help. The top tiered players from each club could earn more with TPA’s again this needs to be looked at; and then you have the rep players earning v good $$$ for origin and even tests.Each sport may be in the same boat.

  4. Big Derek

    The loss of junior reps and NSWRL competitions is significant, already players have taken on jobs that will prevent taking up playing positions. The club I am involved with has already lost 3 junior rep level players as once they cancelled the junior rep competitions , it was an easier decision to take up jobs and leave playing behind. The stepping stone that Ball and Mathews present is a significant attraction that disappeared as the pandemic hit.

    There is already talk that funding will be reduced from junior leagues and junior reps with all the opportunities to do other things, any decision that impacts on levels beneath NRL greatly affects the future. Those in control at club and ultimately NRL level need to carefully consider allowing any reduction of funding or promotion to junior footy. If that occurs then refer to union, which suffers greatly from the funding model that has seen Super Rugby swallow the dollars.

    1. sixties

      Well said Derek. The criticism levelled at NRL management was about the failure to financially futureproof the game. If you don’t look after the football itself, you won’t have to worry about balance sheets as the product won’t exist.

    2. John Eel

      I have read that Penrith have already stated that they will be scaling back their large involvement in junior league to reduce costs. Leagues clubs are going to take some time until they have the cash flow to sponsor NRL in the future.

      With respect to Higgsys post I don’t think it will be so much a question of whether the clubs want to underwrite the football teams but a matter of how much cashflow will be available to finance it,

      Every day these clubs are closed and not earning revenue they are building debt that will need to be serviced.

      1. sixties

        Obviously we can’t ignore the impact on Leagues Club supported clubs. When they begin trading again, they will need to examine what they spend their money on. I guess Higgsy’s point, and it’s a valid one, is that those clubs were first established for the propagation of rugby league in the district. This extended to the support of other community organisations and charities. So should their short term expenditure be more focussed on supporting the teams that, in Parra’s case, they own?

        1. John Eel

          I do agree with Higgsy and in fact the recent changes to the PLC constitution enshrined this.

          The point I was trying to make is that the club will be struggling for their own survival. As much as the PLC may want to spend up big on the NRL team and junior football they will be constrained with mounting costs from the shutdown and dwindling revenues. The problem with dwindling revenues was evident and a concern prior to the shutdown occurring

      2. Higgsy

        Mate i was speaking about the nrl product specifically , the junior problem will be solved by the people its always been solved by , parents , volunteers and people that just love footy, the nrl product is an sustainable self funded entity unto itself its just been mismanaged , the clubs wont have to underwrite the nrl team once caps are in place on an even basis for all .The juniors use to run themselves until clubs wanted to take control and created thier own headaches , just my opinion,

  5. BDon

    Without forensically going through costs,doing analysis over a term to see how expenditures have changed, doing comparative analysis, it is not simple to understand how things can be restructured, where the trade offs are. And that’s both Head Office and Clubs. Usually, any re-set after a time of plenty reveals waste. But certainly one appreciation I have developed over the past few years reading TCT is the depth of expertise,effort and resource required to support an NRL team, moreso a top level team. Maintaining standards should be adopted as a guiding principle, 100% with that one sixties.

    1. sixties

      Cheers BDon. Rugby league rides on the back of volunteers at the grassroots level, but they cannot expect to achieve results at NRL level without professional staff developing, coaching and maintaining the well-being of players. As it stands, clubs like Parra already rely on part time players and benefit from staff volunteering their time. Training times get shifted to late afternoon so that Canterbury Cup players can participate in opposed sessions. Even in these times, staff have continued to work on reduced pay or even when stood down. Goodwill can carry professional clubs through relative short term calamities, but you can’t plan on a future based on goodwill.

      1. Higgsy

        We know greenberg was taking a paycut (now a payout ,nice obviously for a job well done , are there any facts around indicating which ceo,s have taken similar !!!!!

          1. BDon

            Someone asked recently ‘how much money has been wasted on paying out coaches,CEOs,executives?’ Greenberg’s payout is contractual 6months/$650k. The payouts become most wasteful when a replacement is employed straight away, it becomes a double up in cost.Usually coaches become a double up.

    2. Higgsy

      Nrl needs to set expenditure standards and rules, 2 coaches only plus 1 part time specialist coach , limits on trainers, welfare people physios etc , set a staffing budget that all teams have to stay within i suppose and let them decide whats more important to the club within that budget ,reduce salary cap and set rules with numbered levels within ,(60,s could explain that in detail better than me based on our conversations that a pretty close to same thinking ) stop juniors being able to be signed before sensiblle age , only register a fixed number of player agents say 30 that have to conform to nrl rules or lose accreditation , restriction of trade you say , banks do it , govt agencys do it under the guise of gradings as does all business models , anyway there’s people out there lot smarter than me ,at least now we have leader in vlandys , craig maybe explain that salary cap gradings thing we spoke and see what people think mate , i dont know more than anyone else i just love footy .

  6. Shelley

    Well said Sixties, I agree with all you said. My main concerns are about the junior programs being supported. Our junior system is one advantage we have and we need to protect it.

    The NRL has a huge role to play. The game cannot let the junior league systems suffer, both elite pathways and weekend junior league. Look at Rugby, they lost focus on juniors and developing juniors and we can see the result, both on and off the field.
    The NRL and Parra needs to look long term. Being able to have good quality and well coached juniors coming through is paramount, but this also costs money. It creates strength, allows our club to maximise the salary cap and ensure you can get into the finals each year. This will generate more money through sponsorship, memberships and long term success can only help external recruitment without paying overs.

    I am not saying it is easy to manage all the money in this difficult time but if they cut too much money from junior programs and the footy program they will suffer more damage long term, which will end up costing much more in comparison with the money they may safe in the short term. The club and NRL administrators need to earn their money and do their job. I am glad we have skilled people in charge at Parra. This should be a focus of the NRL.

    1. Colin Hussey

      Shelley, I do not disagree with the overall thrust of what you are saying in fact I agree with it, and its been a big concern of mine now for many a long day.

      Both Penrith and Parra have supported Jnr league comps for years now and I believe the pushers for the meat market picking of players, and opening up a type of auction for players with the reason being to even out the competition is what will cause a lot of grief in the long run. We already see players the eels wanted to keep being picked up by other clubs as they do not promote their own jnr teams.

      Doesn’t help I guess when teams with side boundaries with each other are more interested in the border wars for their own low cost benefits.

      1. sixties

        There is a simple solution which can restore some expenditure inequities, reduce underage salaries and keep player agents in check – players can’t be signed to a club till they are 18. It might be difficult for certain clubs to field junior rep teams, but this could be overcome by allocating a region to NRL clubs without significant junior leagues – eg like Roosters have moved into the Central Coast. As I said, I’m expecting some change to junior rep footy, esp with the loss of development time, and Phil Gould’s article on the topic has perhaps foreshadowed the shape it might take.

    2. sixties

      Well said Shelley, and highlighting the plight of rugby and it’s loss of pathways which has flowed on to diminishing its player base, the quality of football and its market share, should be a lesson to other sports in Australia. I’ve reflected quite often about how the rugby club I played for, and a number of the rival clubs, no longer exist. We played in the Parramatta District Junior Rugby Union competition. They were big junior clubs.
      We have to expect cost cutting across the board, but the relative importance of the football programs must surely mean that a massive razor is not taken to their budget.

  7. Achilles' Eel

    An excellent post, Sixties, and a timely reminder of the importance of junior footy to the overall product.

    I see junior development among NRL clubs in the assembly of age squads as messy, competitive and heated. But it works. Even if some clubs do more of the heavy lifting than others. Or even if I mock the process for some light-hearted banter at times: like when I facetiously imagine Bob Fulton to be driving a Mr Whippy ice-cream van to junior venues in the Parramatta district offering tasty treats to the kids accompanied by a contract to play for Manly. The reality is that – whether we like it or not – there are sixteen club pathways to the NRL, and every year a newer bunch of juniors make it through to replace, mostly, the game’s retiring champions.

    On another note, I find worrying arguments of the sort whereby so few juniors make it to the big show that it doesn’t justify the expense spent on them. Well, if the many players who can’t make it stop playing footy altogether, then the few who can won’t be able to come through to become the future superstars that the game needs them to become.

    I can only hope that out of this crisis the governing body and clubs don’t neglect to see the forest for its grass roots (just to re-work one of your favourite sayings of late).

    1. sixties

      Ripper comment, Achilles, though I think that one of Bozo’s sons might be behind that wheel of the van.
      Excellent points. It’s interesting about those junior teams. I reckon that the Junior Program managers, coaches and selectors can mostly identify the few who will make it. But they need decent quality players to play alongside, and even to oppose and challenge them, for their development. And then sometimes you get that kid that wasn’t one of the pearls but had more drive and commitment than others. And they surprise everyone. I expect change, and perhaps it will impact who plays junior reps, but we shall see.

      1. Achilles' Eel

        I’ll be interested to see how the year lost to the game will affect the current twenty year-olds. Do they raise the age-bracket to twenty-one for next year’s Jersey Flegg? This has parallels with those sitting for year twelve exams. In relation to Parramatta, what happens to Kyle Schneider, Charbel Tasipale and Aitasi Matu’utu now? I think they show promise but can’t play for the minors any more. I’m sure clubs have contingency plans in place. It makes the next preseason worth following.

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