The NRL has banked almost $50m thanks to an improved TV deal and sponsorship

The NRL has banked almost $50 million in the first year under Dave Smith’s leadership, riding high on a much-improved television deal and booming sponsorship.

Club CEOs were informed of the record result at Friday’s meeting in Auckland - a $60 million about face from 12 months ago.

The exact surplus of $49.6 million will be invested straight into the game’s future fund, which has already been used to supply financial aid to Wests Tigers and St George Illawarra.

The profit was no surprise to the clubs, given the new broadcast deal delivers rugby league an additional $100 million per annum. CEOs who spoke to The Sunday Telegraph were undecided on whether the surplus was enough, preferring to wait until future years to add perspective.

“It’s a massive thing for the game to finally have this money, but it’s too early to say whether it’s a good result in isolation,” one CEO said.

“They tell us the surplus is going straight into the future fund, but we still don’t know exactly what it will be spent on.”

Much of the chatter in the corridors of League Central since Smith’s arrival just over a year ago surrounded the recruitment of expensive new staff, as well as trouble-shooting consultants from outside the game.

But the NRL last night said operating costs were stable compared to 2012, chiefly because the game was being run more efficiently. NRL boss Dave Smith identified junior development “in grassroots and schools” as a key area for investment.

“The NRL and overall game are strong and healthy. We are in good financial shape, with a positive outlook for the coming years, and well-positioned to keep investing in grassroots and schools to grow the game,” Smith said.

“In 2013, there was significant revenue growth in both broadcast and non-broadcast revenues (such as merchandise, sponsorship and major game revenues), creating funds specifically for investment and strategic priorities.”

While TV ratings and crowds were down in 2013, game revenue from major events such as the State of Origin and grand final was up 14 percent.

The lone drop was last year’s finals series, which was reduced by one fixture thanks to the Allianz Stadium doubleheader. The fact there were no matches at Suncorp Stadium - generally guaranteed to sell-out 52,000 tickets in September - was also detrimental.

Smith and ARLC boss John Grant will table the full financials to club bosses at the NRL’s annual general meeting on Monday week.

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