Overseas investment to help NRL infiltrate US sporting market
ARLC chairman Peter V’landys wants cashed up overseas interests to bring their money and knowledge to the NRL via private ownership of a club.
NRL
Don't miss out on the headlines from NRL. Followed categories will be added to My News.
ARL Commission chair Peter V’landys has laid out the welcome mat for American investment in the game and its clubs, insisting it would be a sugar hit for the code as it attempts to break into the biggest sports and gambling market in the world.
Speaking a day after San Francisco 49ers president Al Guido said his organisation would be interested in acquiring a stake or full ownership of an NRL team (see below), V’landys cryptically hinted that talks with potential overseas investors may be more advanced than anyone thought.
“I am aware that there is some various interest,” V’landys said.
“I think the Vegas thing has put it on the map now. We welcome any investment into our game and we welcome any investment that is going to lift its profile.
“He (Guido) is the perfect man to infiltrate America. He knows how to do it. He has not only done it with San Francisco, but he has been involved with Premier League clubs as well.”
Guido is regarded as one of the best sporting administrators in America, having presided over a period of sustained success in the NFL at the 49ers while also expanding their portfolio of investments to include English championship club Leeds.
The 49ers’ aren’t the only American sporting entity to look overseas for business opportunities – a handful of Premier League clubs boast American ownership while the licence for the Auckland expansion team in the A-League will be held by American Bill Foley, a billionaire who counts Premier League side Bournemouth and French club Lorient among his acquisitions.
Rugby league has its share of affluent private investors – News Corp majority own the Broncos; Russell Crowe, James Packer and Mike Cannon-Brookes control South Sydney; WIN boss Bruce Gordon has a share of St George Illawarra; the Penn family are majority owners of Manly; Rebecca Frizell and Darryl Kelly own the Gold Coast; and Melbourne are in the hands of Matt Tripp and Gerry Ryan.
American investment has been in short supply but that may be about to change with the NRL now on their radar after the booming success of the season-opening double header at Allegiant Stadium in Las Vegas.
A crowd of more than 40,000 attended the game, prompting Guido to suggest it was only a matter of time before Americans began casting their eye towards the NRL, particularly with head office and the clubs now enjoying a golden age of financial security.
Like V’landys, NRL chief executive Andrew Abdo conceded American expertise could help take the game to another level.
“Attracting the right international partners to the game is a positive, not just in terms of direct investment, but for the value those partners can bring to enhance fan experience and the exchange of technology, information and ideas,” Abdo said.
V’landys added: “Don’t forget some of these big owners in England of the soccer clubs aren’t English. Someone of Al Guido’s stature, it is unbelievable that he has shown interest. It is very encouraging.
“We welcome it and it will certainly lift the profile of the game, it will give us that pathway into the US.”
SAN FRANCISCO 49ERS READY TO BUY A NRL CLUB
One of the most powerful men in American sport is eyeing off a slice of the NRL. Al Guido is the president of the San Franciscos 49ers, the powerhouse NFL franchise that only weeks ago was beaten in the Super Bowl by the Kansas City Chiefs.
Under his leadership, the 49ers organisation has expanded their sporting tentacles, buying a share in English football powerhouse Leeds. Next stop could be the NRL.
Guido, who addressed ARL commissioners and club bosses at a conference in Las Vegas last week, has watched closely this week as rugby league has taken America by storm and says the 49ers may explore the opportunity to buy a stake or control of an NRL club.
He believes cashed-up private equity firms may do the same as they look to take advantage of the NRL’s financial golden age by grabbing a slice of the sport.
“At the Niners, we like the thought of multi-sport ownership,” said Guido, who is also chair and chief executive of sports consulting firm Elevate.
“It is not a new concept. We will look at anything that has a passionate fan base because to us it starts with that.
“If people are coming through the gates and supporting it, the reality is you have a pretty good commercial opportunity.
“That is the neat thing about Elevate – I get to wear two hats. We see a lot of deal flow. We represent a lot of people who buy some of these clubs.
“To us Leeds fit the persona. It was a team that has historical context, it had won championships, it fell on tough teams, it was a one team town, massive support even in the championship. It has worked out so far.
“If that worked in rugby (league) for the right club, would we take a look? Absolutely.”
BUYING IN
Guido has no doubt rugby league and their flourishing clubs are in the sights of private equity firms thanks to soaring NRL revenues – head office raked in more than $700 million last year.
With the game’s central administration in record shape, the clubs are enjoying the largesse in the form of record grants. Where once clubs lived on the breadline, they are now regularly returning multimillion dollar profits.
They are also now on the radar of American investors thanks in large part to their season-opening double header in Las Vegas at the weekend.
“I don’t have any data behind this outside of saying if you look at what has happened in call it European football, and the penetration of US buyer into that market, it is hard not to go back and correlate it to those games were being broadcast in America and those teams were coming here at rapid rates,” Guido said.
“American investors were seeing in their mind undervalued assets with passionate fan bases. There are discussion that are happening – we all see the same reports – with private equity coming into these leagues.
“This is not going to stop. That is why I think it is not just the NRL. It is the power of live sports and if you are looking at content, sports is the way to go.”
THE NRL’S AMERICAN STRATEGY
Guido played a pivotal role in the 49ers and NFL adopting a global strategy of expansion by playing games in England, Mexico and Germany.
Just as the NFL has made inroads on the world stage by taking games that matter to other countries, Guido has backed the NRL’s plans to do likewise.
“I think it is very ambitious,” Guido said.
“But I think it is an interesting move. I think it follows a lot of what the NFL went though when they thought about having an international strategy.
“A couple of things I think they are doing really well – having games that matter. I think kicking off the season in Las Vegas, the entertainment capital of the US, on the heels of playing the Super Bowl here is really smart.”
Guido believes the NRL can make its mark in America.
“I do think the strategy is sound,” he said.
“I think they are on to something. But I will tell them and tell all the fans, it is going to take time.
“The NFL, they call it the biggest league in the world, it took a long time for our international strategy to really pay off in those markets.”
IF YOU BUILD IT, THEY WILL COME
The 49ers’ home ground at Levi Stadium was built a decade ago for the princely sum of $US1.3 billion.
According to Guido, it is already out of date. Remarkably, the 49ers will spend $US300 million on the stadium in coming years to bring it up to speed.
The NFL is locked in an arm’s race when it comes to stadia and Guido insists that the 49ers can’t be left behind.
The NRL, meanwhile, is fighting an ongoing battle to convince the NSW government to invest in their stadia. Allianz Stadium has been a blessing but is underused by NRL clubs.
Penrith is about to get a new stadium in the golden west but Accor Stadium is an eyesore and suburban grounds are withering on the vine.
“I do think there is this whole field of dreams concept where if you build it, they will come,” Guido said.
“If you keep your stadium infrastructure top off the line, first class, people will pay top dollar for those and continue to support.
“I do think it helps brings tourism to a market …. Because stadiums are now what’s people would have thought of theatres in the past.
“People that are fans of rugby league, whether they live in America or across the globe, they will embark on visit a new stadium that is built.
“That’s why you all came here. There is intrigue in seeing the new stadium at Allegiant. There is intrigue in the game but there is intrigue use in the stadium.”
THE NRL’S AMERICAN FUTURE
The NRL will return to Las Vegas next year as part of a five-year commitment to open the season in America.
Beyond that, it is game on. Having watched the game flourish over the past week on foreign shores, Guido believes is it is only a matter of time before other cities start to woo the NRL.
In fact, Guido hasn’t ruled out the 49ers making a play to bring the double header to Levi Stadium.
“I wasn’t involved in any of the negotiations to come here,” Guido said.
“I think a proper strategy going forward – and again this is not a new idea – is leveraging US markets and figuring which ones are the best to go to and will support this league.
“I do think Vegas is the right first step given size of market and the strategy around gambling. As they get past next year, of course if I were counselling the commissioner I would say look around.
“There are a lot of great markets in America and there might be markets in America that have more penetration of young folks playing the sport itself, people who are passionate about it.
“But for the first two years I do think this was the proper strategy and proper market. We might wake up next year and this is sold out within 15 minute of putting it on sale because this is the market everyone wants to come to. But if I was them, I would leverage it as much as possible.”
Maguire, Cobbo relationship is Broncos’ most intriguing storyline
It was fire and brimstone as Michael Maguire took control of his first pre-season at Red Hill. But, reveals ROBERT CRADDOCK, the disciplinarian offered a much more gentle tone when he talked about Selwyn Cobbo.
The day cricket was outshone by rugby league in November
Australia needs to be careful as it manages an ageing champion team – and a potentially disinterested fan base. If this is the future, we can see why they’re clinging desperately to the present.