NRL news: Brisbane Jets seal five-year sponsorship deal worth $20 million

The fight to be Brisbane’s second NRL franchise was seen to be a race in two — until now. Here’s how the third expansion hopeful rocketed back in the mix.

Brisbane Jets bid chief Nick Livermore. Picture: Lachie Millard

The Brisbane Jets have assured the NRL they will not be a financial burden on the code after brokering a $20 million commercial deal to ignite the battle for the NRL’s 17th licence.

News Corp can reveal the Jets have pulled off a five-year sponsorship contract, worth $4 million annually, in a deal that represents an expansion game-changer in the three-way fight with the Dolphins and Firehawks to become Brisbane’s second team.

Just 24 hours after the Jets rejected a merger offer from the Firehawks, the Ipswich western-corridor bid has finalised a multimillion-dollar corporate deal that scuppers any concerns about their financial viability.

The race to the 2021 NRL Telstra Finals Series is on and every game matters. Watch Live & Ad-Break Free on Kayo. New to Kayo? Try 14-days free >

By their own admission, the Jets are the poorest of the three bids, with the Ipswich consortium lacking the fiscal muscle of the Dolphins’ $100 million asset base and the Firehawks’ $25 million in cash reserves.

But Jets chief Nick Livermore says their $20m commercial deal puts the western-corridor bid firmly in the frame to win the 17th licence should the NRL choose to expand for 2023 or 2024.

Brisbane Jets duo Nick Livermore (left) and Steve Johnson insist they have the funds to bankroll a second Brisbane team in the NRL. Picture: Richard Walker

“With this commercial deal, we will have money from day one,” Livermore said.

“I cannot disclose the identity of the parties due to confidentiality, but we have a signed five-year agreement in place worth $4 million annually for our major sponsorship and other corporate arrangements.

“Our sponsorship deal would kick in the moment we are handed the licence.

“We have $20 million in commercial investment, so the talk about the Jets having no money is a fallacy.

“I accept we are not the richest franchise right now, but I can guarantee if the NRL gave us the licence, we would not be a drain on them.

“But, ultimately, we have the funding and the development catchment in the western corridor to stand on our own two feet.”

It is understood the Jets told the Expansion Assessment Committee at last Monday week’s formal presentations they have up to $12 million in start-up capital.

Factoring in a $13 million grant from the NRL, given annually to each of the 16 clubs, the Jets could arrive at the premiership starting blocks in 2023 or 2024 with $25m to kickstart Brisbane’s second team.

While the Dolphins and Firehawks are backed by wealthy leagues clubs, Livermore urged the ARL Commission to consider the benefits of a Jets franchise funded by private-equity investment.

ARL Commission boss Peter V’landys has warned the expansion hopefuls the NRL will not be bailing out clubs. Picture: Jonathan Ng

“The three most financially successful clubs in the NRL — the Broncos, South Sydney and the Melbourne Storm — are not bankrolled by Leagues Clubs,” Livermore said.

“In effect, we would be replicating the frontrunners, not the cellar dwellers.

“We don’t possess the financial strength of the Firehawks and the Dolphins but that doesn’t mean we can’t be a viable NRL club.

“The leagues club model is archaic.

“We are really proud that the money we have raised is not generated by taking money from everyday Australians putting money into poker machines, which happens under the leagues club model.

“On top of our commercial deals, we have a letter of support from the Ipswich City Council and they will provide financial support pending the ARL Commission awarding us the licence.

“I can understand the ARL Commission having concerns around the financial viability of a new team given the challenges the 16 clubs have faced with Covid in recent years.

“But the Jets are here to grow the game, not put a strain on it.”

Originally published as NRL news: Brisbane Jets seal five-year sponsorship deal worth $20 million