NRL Expansion: Souths boss Blake Solly confirms club won’t resist 17th team if finances add up
As the expansion process reaches its climax, the existing 16 clubs will next week seek assurances from the NRL that the numbers stack up - and, if satisfied, won’t stand in the way of a 17th team.
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The ARL Commission’s expansion hopes have received a massive boost with one of Sydney’s powerhouse clubs, grand-finalists, the Rabbitohs, insisting they are not leading a revolt against a 17-team competition.
ARL Commission boss Peter V’landys is set to stare down the clubs over expansion following Sunday’s NRL grand final after calling a meeting of chairs and chief executives to discuss the addition of a second Brisbane team for 2023.
V’landys has promised to take the clubs on the expansion journey and next week’s meeting shapes as the final step before the ARLC announces the addition of another team in south-east Queensland.
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While the Dolphins remain the prohibitive favourites to win the bidding process, the Brisbane Firehawks and Jets haven’t given up hope of coming from the clouds to secure the extra licence.
The clubs held a fiery meeting with NRL chief executive Andrew Abdo last Friday - the day after News Corp revealed an announcement on expansion would be made after Sunday night’s grand final.
They will now get their shot at V’landys as they seek assurances that the numbers stack up and the existing clubs won’t suffer with the addition of a new side.
It is understood the NRL has also told the clubs that they will provide them with updates on the broadcasting talks and their finances next week.
There have been suggestions that South Sydney are among the clubs chiefly opposed to expansion.
However, Souths boss Blake Solly denied that was the case and backed plans for a second Brisbane club to rival the Broncos if financial forecasts are strong.
“I wouldn’t say we are anti-expansion at all,” Solly said.
“We just want to get more of an understanding about why expansion would be good for the competition.
“To Peter and Andrew’s credit, they said they would always bring that business case back to us and take us through it.
“We are waiting for that before we make our minds up. The clubs just want the security over the funding model for 2023 as well.
“I don’t think you can say there is any real resistance towards expansion, there is just a process to go through and the clubs are waiting for that to take place.
“Andrew and Peter have said we will be better off as a result of expansion and if the finances show that, then none of the 16 clubs are going to stand in the way.
“We are just waiting now for evidence of that position.”
V’landys has already assured the existing clubs that they will be no worse off in a 17-team competition and they believe they have the security of an agreement struck five years ago that guaranteed they would not go backwards when a new side entered the premiership.
There is a genuine belief at Rugby League Central that adding a new side will only increase the game’s revenue, meaning they will all enjoy a share of the spoils.
At the heart of that belief is the value to the broadcasters of an additional side in Brisbane at a time when the NRL is enjoying bumper ratings through the finals series.
“The commitment that Peter and Andrew have given us is that there will be more money because that’s what they want expansion to achieve,” Solly said.
“They think the existing clubs will be better off because of expansion. As long as we have the security from the NRL that the game will be better off with expansion, we will be happy.”
Showdown: NRL clubs seek clarity on plans for 17th team
The NRL and its clubs are headed for an expansion showdown amid revelations that the ARL Commission is a fortnight away from announcing a second Brisbane team will be added to the competition in 2023.
It is understood that NRL chief executive Andrew Abdo called club bosses to a meeting on Friday to discuss a range of matters, although expansion was not believed to be among them.
However, the clubs have asked that it be on the agenda as they seek some clarity around the game’s plans to add a 17th team. It is understood the clubs have several concerns, chief among them how the financial landscape will change with the addition of another side.
The clubs are also in dispute with the NRL over the game’s future finances as they come to terms with the debilitating impact of Covid-19.
The clubs have been offered a $7m compensation package by the NRL to mitigate some of the financial damage caused by the relocation of the premiership to southeast Queensland.
However, some remain convinced they are owed as much as $24m in total on November 1 next year.
The issue threatens to drive a wedge between the clubs and powerbrokers at Rugby League Central as they also deal with the delicate issue of expansion.
ARL Commission chair Peter V’landys has promised to take the clubs along for the ride and Brisbane CEO Dave Donaghy confirmed they wanted more information before giving expansion their unconditional support.
“We haven’t heard from the NRL as yet,” Donaghy said.
“So it’s very hard to have an informed opinion around the business model for expansion at this stage.”
It is understood ARL Commissioners heard an analysis of expansion at a board meeting on Wednesday that showed a 17-team competition stacked up.
The final step involves V’landys presenting findings and funding outcomes to the existing 16 clubs. He has taken a cautious approach — and will not rubberstamp expansion until he meets with the clubs over the next week — but the commissioners are unanimous in their backing for a fourth Queensland club.
The commission plans to make an expansion announcement after Sunday week’s NRL grand final. It will be the code’s first growth venture since the Gold Coast Titans were added to the NRL premiership in 2007.
It is believed the commission will first agree to expand the league, before holding another round of talks with the Firehawks, Dolphins and Jets to land on the winning bid by late next month.
That would give Brisbane’s successful second franchise time to begin an aggressive recruitment drive from November 1, when off-contract players can attract offers.
There was talk of expansion being delayed until 2024 amid the Covid crisis, but the financials have been better than expected.
While the commission has the power to expand without the backing of the 16 clubs, V’landys is keen to have stakeholder support for one of the most significant strategic moves in the NRL’s history.
The NRL is locked in a sporting turf war with the AFL in Queensland and a second Brisbane club will give rugby league more ammunition to win a new generation of fans and participants.
The decision will send some of the game’s most powerful clubs into a mad scramble over the next six weeks as they look to lock away their biggest stars. The Dolphins are the favourites to win the 17th licence and three names are believed to be prominent on their list of targets — Cameron Munster, Harry Grant and Kalyn Ponga.
Among the players who enter the final year of their deals on November 1 are Melbourne stars Christian Welch and Brandon Smith, Parramatta pair Reed Mahoney and Junior Paulo, and Gold Coast and Queensland forward Tino Fa’asuamaleaui.
Storm chairman Matt Tripp threw his support behind the commission, saying a second Brisbane team was a “no-brainer”.
“Absolutely there is room for a second Brisbane team,” Tripp said.
“If I wasn’t chairman of the Melbourne Storm and I was Matt Tripp the rugby league fan and someone said to me should there be a second club in Brisbane, I would say yes, 100 per cent.
“Of course, those comments might be to the short-term detriment of the Storm but taking a long-term view, I don’t think it will be detrimental at all.
“Expansion will be great for the game. While the talent pool will be thin for a period, as long as the game continues to evolve and improve and stay an elite sport, it will then warrant better broadcast deals, better sponsorship, all the things that can drive revenue and bring people to the game.”
Revealed: Brisbane’s NRL expansion timeline
By Peter Badel, Brent Read and Travis Meyn
The ARL Commission is a fortnight away from formally announcing NRL expansion with a second Brisbane team to be added to the Telstra Premiership in 2023.
In a landmark moment for rugby league, News Corp can reveal the code is ready to embark on its first expansionary move in 14 years following a high-powered ARL Commission board meeting on Wednesday.
It is understood ARL Commissioners heard an analysis of expansion, conducted by both League Central and external firms, showed the financial forecasting for a 17-team competition stacks up.
The final step involves ARL Commission boss Peter V’landys presenting findings and funding outcomes to the existing 16 clubs, but after 11 years of expansion heartache, Brisbane will get a second team to rival the Broncos.
V’landys has taken a cautious approach — and will not rubberstamp expansion until he meets with the clubs over the next week — but the ARL Commission are unanimous in their backing for a fourth Queensland club.
The ARL Commission plans to make an expansion announcement after Sunday week’s NRL grand final. It will be the code’s first growth venture since the Gold Coast Titans were added to the NRL premiership in 2007.
It is believed the ARLC will first agree to expand the league, before then holding another round of talks with the Firehawks, Dolphins and Jets to land on the winning bid by late October.
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That would give Brisbane’s successful second franchise time to begin an aggressive recruitment drive from November 1, when off-contract players can attract formal offers, in preparation for NRL entry in 2023.
There was talk of expansion being delayed until 2024 amid the Covid crisis, but the financials have been more positive than expected.
While the ARLC has the power to expand without the backing of the 16 clubs, V’landys is keen to have stakeholder support for one of the most significant strategic moves in the NRL’s history.
The NRL is locked in a sporting turf war with the AFL in Queensland and a second Brisbane club will give rugby league more ammunition to win a new generation of fans and participants.
Melbourne Storm chairman Matt Tripp threw his support behind the ARL Commission, saying a second Brisbane team is a “no-brainer”.
“Absolutely there is room for a second Brisbane team,” Tripp said.
“If I wasn’t chairman of the Melbourne Storm and I was Matt Tripp the rugby league fan and someone said to me should there be a second club in Brisbane, I would say yes, 100 per cent.
“Of course those comments might be to the short-term detriment of the Storm but taking a long-term view, I don’t think it will be detrimental at all.
“Expansion will be great for the game.
“While the talent pool will be thin for a period, as long as the game continues to evolve and improve and stay an elite sport in this country, it will then warrant better broadcast deals, better sponsorship, all the things that can drive revenue and bring people to the game.
“The salary cap will increase and more people will want to play the game. There will be a knock-on effect.
“If the foundations are right and the game is being handled right at the top, which it is in my opinion, the NRL is ready for a second Brisbane team.”
News Corp understands Redcliffe are the raging favourites to be Brisbane’s second team. It will take an eleventh-hour miracle for the Firehawks and Jets to trump the Dolphins, who boast an asset base of $100 million.
It is believed the Dolphins also have $20 million in cash reserves, easily meeting the $10m bank guarantee required by the ARL Commission.
V’landys still has to meet with the clubs to sell them his vision but they already have a guarantee in place that their funding won’t be damaged by a 17th side.
NRL CEO Andrew Abdo and V’landys have told the clubs as much, but they have the security of a contractual guarantee which was included in an agreement struck between the clubs and head office five years ago.
That contract makes it clear that expansion can’t impact on the funding of the existing sides. A second clause in that agreement is currently at the centre of a dispute between the clubs and head office over claims that the existing clubs are owed $24 million on November 1 2022.
V’landys and NRL chief executive Andrew Abdo have attempted to ease some of the concern in clubland by offering a $7 million sweetener in recent weeks to compensate them for this season.
However, they still need to front the clubs and give them some insight into expansion and how the game will benefit from a 17th team. V’landys could do worse than show them the recent comments of former AFL chief executive Andrew Demetriou, the mastermind behind expansion in the AFL.
“We found that every time we expanded the competition … you had the same comments from clubs and they went something like this — where are they going to get the players from, you are going to dilute some of our distribution dividends, you are going to take some of our members, not enough sponsorship dollars, the standard and quality of the play will go down,” Demetriou told News Corp.
“Interestingly, we expended our competition three times and it was always though global financial crisis. The last one when the GWS Giants came in it came off the back of 2007 and 2008, and everyone thought this was our Armageddon.
“But what ended up happening was every time we expanded the competition, everything else grew – crowds grew, the number of players in the talent pool grew, all the revenues grew, sponsorships grew, revenue grew, broadcast rights grew, and interestingly the distribution to the clubs grew.
“So they didn’t go backwards. I think if you do it properly and you are bold – and I think V’landys is bold to be honest …. if you see it through, things should grow.”
Broncos chairman Karl Morris recently held expansion talks with V’landys and Abdo and last week welcomed a second Brisbane rival.
“I see great appeal in a second Brisbane team in the southeast Queensland market,” Morris said.
“The issue is: will the NRL competition be better off with a 17th team? Can the NRL afford it and is there enough quality players in the system? Will more kids in Queensland play the game if we have a second Brisbane team?
“They are some of the questions to be answered.
“But conceptually, I have no issue with another team in the Brisbane market. It would create a great rivalry with the Broncos.
“We have done some studies internally looking into the effects of expansion in other codes such as the AFL and we are quite confident in our brand.
“We feel our rusted-on Broncos fans will stay with the club.
“It will take quite some time for a second Brisbane team to build their own membership base.
“The Broncos have built a great base over the last 30 years, so we are very comfortable with our position and we would embrace a new rivalry with another Brisbane team.
“Any new Brisbane team will have its challenges because the Broncos have been so dominant for so long.
“The one thing I am appreciative of is that Peter V’landys and Andrew Abdo gave us an in-depth presentation.
“They promised to show us the full financials in relation to expansion and a critical component is the broadcast rights.
“We are waiting to hear what the change in revenue numbers are and once the NRL receives that, they will present the figures to the 16 teams.
“If the maths work, we are off and running with expansion.”
BENNETT’S SECRET TALKS WITH EXPANSION HOPEFULS
By Peter Badel
Wayne Bennett has held secret talks with the Brisbane Jets as the super coach plots his future beyond his quest to deliver a premiership to South Sydney.
News Corp can reveal Bennett met with officials from the NRL’s prospective 17th team, the Ipswich-based Jets, in the lead-up to Friday night’s grand-final qualifier between Souths and Manly at Suncorp Stadium.
The meeting, held on Saturday at South Sydney’s hotel on the Gold Coast, was instigated by the Jets, who outlined their vision to bring Bennett back to the Ipswich region where he launched his coaching career.
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The ARL Commission held a board meeting on Thursday and it is understood League Central’s analysis of expansion suggests the Telstra Premiership is ready for a second Brisbane team for the 2023 season.
That scenario would perfectly set the scene for Bennett to return to Queensland and spearhead a new second Brisbane franchise, taking on the Broncos club that famously sacked him in 2018.
Bennett’s unwavering focus is steering Souths to the 2021 premiership, including Friday night’s Sea Eagles sudden-death showdown, but that hasn’t stopped the Jets ramping-up their plans to snare the NRL’s greatest coach.
Jets bid chief Nick Livermore confirmed the meeting with Bennett, the Souths coach’s third catch-up with the western-corridor bid following their maiden round of talks in February.
“We believe Wayne is the perfect fit for our franchise,” Livermore said.
“I know the other two bids (Dolphins and Firehawks) will be looking to sign Wayne but he started his coaching career at Ipswich and has ties to the western corridor.
“It was an informal chat. We totally respect the fact Wayne has more important matters on his mind, he has two more games to try and win a premiership and we don’t want to distract him from winning the title at Souths.
“Our timing wasn’t ideal given Wayne is trying to win the premiership, but we know a final decision on expansion is imminent, so we wanted to get some clarity.
“We want Wayne to be an integral part of what we do. We wanted to give Wayne an update on our bid for the licence and the role we want him to play for us if we are successful in becoming Brisbane’s second team.”
Bennett declined to comment when contacted by News Corp, saying Souths’ grand-final mission is his priority, but Livermore believes the 71-year-old is open to coaching the Jets.
“Wayne is absolutely keen to coach us, that’s unequivocally clear, but we don’t have a licence yet,” he said.
“Wayne indicated he was interested in coaching the Jets.
“I asked him what his thoughts were and he said, ‘I’m not done, I have plenty to offer’. Wayne keeps showing that.
“Whichever team comes in, players want to be coached by Wayne. What he did in the Origin arena last year was remarkable and we would love to see Wayne reconnect with the western corridor and go head-to-head with the club he helped create at the Broncos.
“The reality is we don’t have a licence yet. Hopefully he can one day join us … Benny and the Jets sounds great, but if we miss out, Benny versus the Broncos with a second Brisbane team is not a bad narrative either.
“We’ll look to talk with Wayne again after the grand final.”
Souths skipper Adam Reynolds, who will join the Broncos next season, said Bennett would be the ideal figurehead for a second Brisbane team.
“Wayne is familiar with the area and knows what captures the love of all the Brisbane people,” he said.
“Wayne certainly has a love for the Queensland area. He has spent most of his life up here and would be a great ambassador for a second Brisbane club.”
Firehawks offer truce to Broncos, Titans
– Brent Read and Peter Badel
The Brisbane Firehawks have attempted to assuage the expansion concerns of the Broncos and Gold Coast Titans by vowing not to poach their players, staff and sponsors during their first two years of existence.
Firehawks bid chief Shane Richardson also wants the chance to stand in front of the existing clubs and state his bid’s case as he looks to strengthen their claims on the 17th licence.
The ARL Commission is expected to take another step towards expansion later this week when they hold a meeting to discuss the latest developments in the 17th team saga.
The Firehawks are locked in an arm wrestle with the Dolphins and Brisbane Jets to win favour from the ARL Commission and Richardson has sought to address the concerns of the Broncos and Titans by outlining plans to steer clear of both clubs as they build a new franchise from the ground up.
It is understood the Firehawks have informed NRL chief executive Andrew Abdo of their plans to give the Broncos and Titans some breathing space, their hope that doing so will ease some of the concerns over the cannibalising of existing outfits.
“We are there to get new sponsors and new people to the game,” Richardson said.
“On top of that we have guaranteed that we will not touch any sponsor … that is on their website. Every other player, staff member or coach we will to contact for two years unless both clubs are agreeable.
“We also made a commitment to the Gold Coast that we will not go to the Gold Coast or the Northern Rivers to pick up players for two years.
“They’re worried about us poaching their staff — their coaches and administration. There is not one person from Brisbane or the Gold Coast that we want on our staff.
“In our summary to the NRL we have talked about where we are getting our players from and it is not Gold Coast or Brisbane.
“It’s about trying to attract new sponsors and we have new sponsors in line who have nothing to so with the Gold Coast and Brisbane.”
The only exceptions to the Firehawks’ pledge would be alcohol and betting sponsors, who generally support more than one club.
The Firehawks will also go though the front door when it comes to players and back off if the Titans or Broncos give them the cold shoulder.
That puts a line through a host of players who could be potential targets should the Firehawks win the expansion race.
The Broncos alone have Patrick Carrigan, Herbie Farnworth, Jamayne Isaako and Jake Turpin off contract at the end of 2022. The Titans have the likes of Jarrod Wallace and Tino Fa‘asuamaleauii up for grabs at the same time.
The Dolphins and Firehawks are the clear favourites in the expansion race, having edged clear amid concerns over the financial viability of the Jets.
The clock is ticking to add a 17th team for the 2023 season given the new franchise will need to be given time to target and negotiate with quality players. A host of marquee names remain on the market for 2023, although the likes of Parramatta are expected to step up negotiations with their players in coming weeks.
The Eels have the likes of Reed Mahoney, Clint Gutherson, Marata Niukore and Isaiah Papali’i off contract at the end of 2022.
The final step for the commission will be to address expansion with the clubs. While they don’t need their approval to add a new team, their clear preference is to bring the existing clubs on the journey.
“We would love to be able to talk to the clubs generally, not just Gold Coast and Brisbane,” Richardson said.
“We would love to be able to point out or marketing plan is about an 18-44 category, which the NRL don’t have now anyway. It is about a string of people on the western corridor who aren’t attached to a club.”
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