I found this article somewhere else, but not the link>



Expansion connected to new TV rights deal
April 19, 2012

Strong interest by broadcasters in a second Brisbane team may prompt the ARL Commission to ask TV networks to lodge a separate rights bid for an 18-team competition.

Both Fox Sports and Channel Nine are keen to televise a second Brisbane team and capitalise on the parochial ratings of Queenslanders.

With only three Queensland NRL teams in its 16-team competition - Brisbane, North Queensland and Gold Coast - Nine is frequently frustrated finding enough Queensland teams to schedule for its Friday night double header and its Sunday afternoon coverage.

Ratings are traditionally down in Queensland when Nine shows an all-Sydney game on Sundays, such as the recent Penrith-Wests Tigers match.

Fox Sports also suffers because the free-to-air coverage of the three Queensland teams means there is less incentive for northerners to take up Foxtel subscriptions.

While Sydney subscriptions are approximately 40 per cent of households, Brisbane is in the 33 to 35 per cent range.

Nine boss David Gyngell has intimated he would pay an additional $100 million over five years in broadcast fees should a second Brisbane team be accepted, even as a 17th team, meaning a bye and the existing eight matches each week.

Broadcasters bidding for TV rights have been told to tender on the basis of a 16-team competition but ARLC chief executive David Gallop has said expansion could be factored into negotiations.

''We obviously would be interested to know what value broadcasters place on a ninth match,'' Gallop said.

A ninth match, meaning an 18th team, would draw even more broadcasting revenue, with the AFL acknowledging it drew an additional $150 million from the introduction of the low rating Gold Coast Suns and Greater Western Sydney Giants.

Perth is widely regarded as the best option as an 18th team, given the opportunity it presents with an additional time zone. However, both Nine and Fox Sports have expressed lukewarm interest in a Perth team.

This may change if Channel Seven becomes an active bidder for the rights. Seven, unlike Nine, owns the Perth channel.

Gallop has told the Perth and Queensland bids that the commission would be unlikely to address the question of expansion until August and even then may announce there will be no new teams during the life of the next broadcast contract.

This has not deterred the Western Australia Reds spending significant sums rebranding the team.

The Brisbane Bombers, who are investing in financial modelling, are well advanced with their case to enter the competition in 2015. They point out there are only 12 games, barring finals, in Brisbane each year - compared with Sydney's 108 - and a second Brisbane team would mean the 52,000-seat Suncorp Stadium, one of Australia's best arenas, would be used for rugby league each week during the winter. A second Brisbane team offers the opportunity to break the seven-day cycle the Broncos enjoy, a privilege that antagonises other clubs.

Channel Nine's regular Friday night choice of the Broncos means the Brisbane club has a regular preparation routine, with players enjoying the weekend off, unlike teams that play on Monday nights and back up five days later on Saturdays.

If a second Brisbane team was introduced, along with fixed scheduling, the Broncos could play alternate Fridays and Sundays.

The Broncos also have cash reserves of $13.8 million, greater than the turnover of some of the NRL's poorest clubs, such as Cronulla.

Many sponsorship opportunities are lost to rugby league in Brisbane because of the exclusive deals businesses make with the Broncos, shutting out rivals.

Ipswich has also mounted a bid but the provincial city, given it provided the Walters brothers and Allan Langer, is perceived as a cheer squad for the Broncos.

A central Queensland bid is also well advanced and is led by one of the state's richest men, Geoff Murphy. A beef baron, Murphy says a Rockhampton-based team would be owned by the community, although he would maintain a significant shareholding.

''We want to capitalise on the huge playing numbers in the region,'' he said. ''The new Queensland government have promised us a 20,000-seat stadium if we win a licence.''

Murphy said a report he commissioned with LEK's Colin Smith demonstrated that an additional Queensland team would add significant extra value to a broadcasting contract. The ARLC will obviously monitor the financial health of the Titans before making any decision on a fourth Queensland team.

From what I understand other clubs and supporters want this:
Perth
and
Brisbane 2 or Ipswich (Ippie being the preference)

But eventually
Brisbane 2 under the right model (possibly Redcliffe)
and
Wellington / 2nd Auckland team (maybe the Lions)

Reality is the most valuable to TV is Brisbane2, Perth offers some value in terms of new timeslots for live game options but the viewing numbers are less than Brisbane will achieve. Fortunately we offer the NRL much more and Gallop has been very consistent in saying that he sees one expansion and one "growth" club in any expansion of the NRL. We are the only viable option for true expansion for some time to come, we have the stadum, the fanbase, the corporate support, the State Govt support, the support of the other NRL clubs, the support of Gallop now all we need is the ARLC to announce us in!

In terms of the "lukewarm" of Ch9, they do not own Ch9 Perth, WIN do so not surprising they aren't fussed, Fox already have all the RL subscribers here due to the poor showing of the game by FTA, however Ch7 are rumoured to be very keen to see a Perth side so i guess it depends on who gets the rights? The good thing is if Brisbane2 really is worth $20mill a year then expansion of two teams is self funding and the ARLC can afford to grow the game i a new capital city with little risk or expenditure.

IF there is expansion it WILL be Brisbane2 and Perth, I have no doubts.

Ideally I would like to see the Diehards come back.

Have also heard that Easts and Wynnum were a possible merger (but both teams hate each other just like Roosters and Souths do).

Redcliffe have apparently got a guarantee that a train network will be put in place so have that in there pocket.

Ippie have a major problem with being known as the Jets. Any team in Australia that's known as that will be compared to one and that's the mighty Blue Bags aka Newtown Jets.

Given pass results in the 20's, last years NSW Cup and test matches a 2nd NZ team isn't a matter of how its a matter of when

The bid isn;t called Ipswich, at the moment it is called Western Corridor but I expect any team will be called South Queensland

Redcliffe with the planned train line is still 40 kms from the stadium. They have a limited supporter base too. I can't see the ARL making the same mistake that the AFL did with Port Power, with the added negative of being so far from the stadium.



I really, really hope that they call themselves South Queensland but atm they're calling themselves Jagera, the Aboriginal tribe that inhabit[ed] the area south and west of Brisbane they'e representing.

lets just end this argueing and just settle for adelaide... a neutral choice lol

Sadly you just lost your only game of the year! A team is a long long way off.

I've heard AFL have pressured State Govt to refuse to allow NRL to be played at the redevloped oval, is this true?

With a Perth side and a south Queensland side favourites it seems to be the 2 new clubs to enter the NRL how much money would they add to any future TV contract once they have entered the Competition?

I've noticed it depends who I talk to as to who are the "two favourites"

Allegedly Ch9 have talked about a 2nd Brisbane side being worth $100million. Add in the value of a 9th game and a new audience/live time slot in Perth and expansion should be worth a comfortable $30million a year (unbelievably that is what the value of GWS and Suns has been quoted as for the AFL TV contract despite them being donkeys no one wants to watch). Given it will cost about $15-20mill a year, depending on club grant sizes, to expand to those two areas it is still a nice extra piece of income for the game to have an extra 2 teams and 9th game. Only frustration is the NRL not having the b4lls to announce announcement in 2011 so we could have gained full value for the whole 5 years fo the deal.

Didn't Pay TV already say that they have loads of subscribers in WA and aren't sure if going there would be worth that much in new subscriptions. Which for them, is what it's all about.

Yes they have due to the terrible fta Covg in wa. Where our tv value lies is in a new fta time slot for either fta on a Friday, Sunday or pay tv Saturday (stats show live games rate better than delayed) and an increase on fta capital city viewing figures that a much stronger rl in Perth will bring (around 5million on annual capital city audience)

Add in Perth offers real expansion of the game and the money this city has due to the ongoing mining boom, a population tipped to reach 3million etc and we are an obvious choice.

Has there been anymore talk of a PNG franchise ?.