NRL’s record revenue result declared as code dethrones AFL as biggest game in Australia

Fresh from delivering a record revenue result for rugby league, ARLC chair Peter V’landys has declared victory over the AFL in the battle to become Australia’s number one sporting code. SEE THE FULL FINANCIALS

Australian Rugby League Commission Chairman Peter V'landys. Picture: Getty Images

ARL Commission boss Peter V’landys says the game will buy up even more hotels as part of his ‘NRL Monopoly’ masterplan to make the sport a $1 billion empire.

The code is celebrating the greatest revenue in rugby league’s 116-year history, revealing on Wednesday record income in excess of $700 million as V’landys ramps up his strategic plan to expand on the NRL’s net-asset base of more than $260m.

The NRL purchased Brisbane hotel and pub Gambaro back in 2022 and recently added The Quest Hotel Woolooware Bay and Mercure Sunshine Coast Kawana Waters to its property portfolio.

V’landys revealed the hotels will generate a return of around 10 per cent per year, and also a return on capital - underlining the NRL’s fiscal strength ahead of their historic 2024 premiership kick-off in Las Vegas next week.

“The more hotels you have, you can spread your fixed costs over more properties with greater expertise and the return is greater,” V’landys said.

“At the moment, if you put your money in cash you get about four per cent if you want no risk, and we do ‘no risk’.

Australian Rugby League Commission Chairman Peter V'landys speaks to the media during a NRL press conference at Rugby League Central on September 03, 2020 in Sydney, Australia. (Photo by Mark Metcalfe/Getty Images)

“Our hotels are going to generate an excess of 10 per cent return per annum and that’s not including any capital growth. Gambaros has already significantly increased in capital growth. So it’s a dual return. It’s not just the annual return, it’s a capital return.

“Any investment we make has to be more than what we get from cash.”

V’landys and NRL boss Andrew Abdo will head to Sin City next week basking in the afterglow of a series of financial coups that has turned the game from the brink of bankruptcy to unprecedented riches in just three years.

While taking the game to an American audience is part of the NRL’s growth strategy, V’landys also has his eye on the betting market in the States.

The ARLC Commissioner revealed the governing body will execute a deal with a “major betting agency” as early as March in a bid to tap into sports wagering in America.

Over $23 billion was wagered on last week’s Super Bowl between the Kansas City Chiefs and San Francisco 49ers.

“The bigger one is sports betting, it’s becoming legalised in America in every state. I’d love to have $23 billion dollars in 10 years over in racing let alone in one game. It shows you the difference in the markets,” V’landys said.

NRL chief executive Andrew Abdo and ARL Commission chair Peter V'landys expect their big Las Vegas bet to pay off handsomely. Picture: Supplied.

“We are going to try to do an exclusive deal with one of the big wagering companies operating in America where we get a revenue share on betting on the NRL.

“We’ve got three major organisations and we’ll try to do the best deal we can. Hopefully it will be done straight after Vegas.”

V’landys, Megan Davis and Kate Jones, who is viewed as the next Commission boss, had their tenures extended for a further three years at Wednesday’s AGM.

On a landmark day for the sport, the ARL Commission released the NRL’s financial performance for the 2023 season as rugby league’s on and off-field prosperity hit record levels.

It can be revealed:

* The NRL’s total revenue reached a record $701.1 million;

* The 2023 revenue represented a whopping $107.3m improvement and represented an 18 per cent increase on the previous season’s mark of $593.8m;

* The ARLC announced a 2023 operating surplus of $58.2m, the third consecutive year League Central has recorded a handsome profit;

* Since 2021, the NRL has banked $164.2 million in profits;

* The NRL now boasts net assets in excess of $260 million, bolstered by the purchase of three properties, including Brisbane’s Gambaro Hotel near Suncorp Stadium;

* The NRL delivered record distributions of $447 million to stakeholders, an increase of $80m from 2022, with players receiving a record $216.3m, up 16 per cent from the previous year; and

* Rugby league is now Australia’s most-watched sport with total viewership of 171.8 million, up 14 per cent from 150.6m in 2022.

V’landys hailed the game’s remarkable fiscal resurrection - the code was eight weeks away from going broke during Covid - and has set his sights on turning the NRL into a $1 billion juggernaut after being handed a new three-year term as ARLC chair.

“They are remarkable numbers - no other sport is near us,” V’landys said.

“The other sports are battling, but the NRL has never been in a better spot.

“We are celebrating record revenues.

“The game nearly went broke during Covid. We were in the basement. But after Covid, we have gone to the penthouse and I’m very proud of the game’s recovery with the support of people like Andrew Abdo, Kate Jones, the Commission, the clubs and the great entertainers we have in our players.

“It’s always an honour to represent so many stakeholders in rugby league, especially the fans.

“The fans have never had a representative and I pride myself on making sure that we look after the fan.

“Without the fans, you have nothing. For many years, they were the last ones considered and I just want to make sure they are well represented.

“We will get to $1 billion in revenue.

“We won’t do it next year, but my aim is to get us to the $1 billion mark and I have no doubt we can continue to grow.”

V’landys brought riches to NSW Racing and the ARLC chair has presided over growth that has future-proofed the NRL in the wake of the Covid crisis that exposed the sport’s poor financial health.

Aside from record revenue, V’landys claims the NRL is now one of the most streamlined operations in world sport. The NRL’s expense ratio-to-revenue of 22.2 per cent is the lowest of any major Australian sport.

Significantly, the 17 NRL clubs received $98.2 million, a 33 per cent spike, while investment in participation and pathways rose 13 per cent from $73.1m in 2022 to $82.8m last season.

The AFL is widely regarded as Australia’s pre-eminent winter sports but V’landys is adamant the NRL is winning the battle of the codes.

“To be honest, we are already the No.1 sport. AFL is No.2,” V’landys said.

“They are behind us - despite what they think.

“In terms of viewing figures, we are No.1, you can’t dispute that.

“Look, the AFL has a national footprint and I respect them, they do a very good job at promoting their sport.

“I like the fact they are doing a great job because it makes us want to compete and get better.

“They know we are around and we will keep them honest.”

With the ARLC having recently purchased the 81-room Mercure hotel on the Sunshine Coast, V’landys is building a war chest that will underpin his next mission - delivering a 20-team NRL competition.

Mercure Hotel, Kawana Waters, Sunshine Coast. Picture: Patrick Woods/Sunshine Coast Daily.

Ever a visionary, V’landys is also eyeing expansion into America via the code’s five-year Las Vegas deal, starting with the 2024 NRL season kick-off at Allegiant Stadium on Sunday week.

“My aims during my next term is more expansion and getting a foothold in the American market. It’s crucial,” he said.

“Moving into America has the potential to give us tens if not hundreds of millions.

“I would like to expand to a 20-team comp in the coming years.

“Because the game has never been in such a good position financially, we can look at more expansion and take a few risks.

“We have made ourselves more cost effective. We have streamlined things. We have the lowest administration cost of any sport based on percentage of revenue which is outstanding.

“We have a very strong team and Andrew Abdo is the CEO presiding over all of this.

“I absolutely think we can expand our national footprint beyond the eastern seaboard and that’s what we are looking at.

“Expansion in 2026 or 2027 is absolutely on the agenda.

“My motto is ‘Defy Impossible’. My attitude is never say never.

“People always underestimate us ... but I’m determined to keep improving the game.”

Originally published as NRL’s record revenue result declared as code dethrones AFL as biggest game in Australia