NRL proposes radical co-ownership plan to help launch league’s 20th team
Peter V’landys has been handed a proposal that would see all 17 current NRL teams pitch in to help launch a 20th franchise, in an effort to avoid the traditional pitfalls of entering the competition
NRL: The ARLC has tabled an opening $60 million offer for a stake in the English Super League.
A radical proposal that would see all 17 clubs own a stake in the set-up of a 20th franchise, from grassroots to board level, has been submitted to executive NRL chairman Peter V’landys.
The forward-thinking and integrated plan proposes the NRL use the influence and power of all 17 clubs, along with their vast network of corporate relationships, business acumen and experience in operating rugby league clubs, to help deliver the game’s newest franchise.
The NRL is aiming to add a 20th team by 2029 - either a second team in New Zealand or a fifth team from Brisbane.
And this proposal is designed to help the NRL overcome the major risks associated with handing an NRL licence to unproven individuals, or a franchise bid team with little or no experience in the set-up of a rugby league club.
The clubs would give the entire code confidence to rely on its own people with proven track records to prepare the new franchise for sale.
V’landys has welcomed the proposal, with the clubs hoping to continue discussing the bold strategy with the NRL in coming weeks.
The plan would help Team 20 avoid the issues faced by expansion franchises such as the Perth Bears.
The plan would help Team 20 avoid the issues faced by expansion franchises such as the Perth Bears.
Under the plan, the 17 established clubs would own a 5.5 per cent stake in the 20th franchise, preparing it from the ground-up to a turn-key stage for the NRL to then on-sell to a private consortium.
As a potential guide for what a ready-made franchise could sell for, the Melbourne Storm - who are in negotiations to sell a major stake in their club to a private equity firm - is valued at over $200 million.
The clubs would appoint an independent board to oversee the structure and build of the 20th franchise from the ground-up.
The clubs would then walk away after receiving an equal percentage return from the sale.
The clubs aren’t dictating where the 20th franchise should be located, they will simply support the NRL’s decision.
The pitch, tabled by NRL consultation committee members - including Rabbitohs CEO Blake Solly, Warriors CEO Cameron George, Eels CEO Jim Sarantinos, Broncos CEO Dave Donaghy, Dolphins CEO Terry Reader and Storm CEO Justin Rodski - is designed to also assist with the incredible man hours and stretched resources that the NRL has endured in setting up and delivering the Perth Bears.
V’landys is said to support the initiative.
V’landys is said to support the initiative.
Instead of the NRL needing to rely on its own resources and people, the governing body can rely on the clubs’ know-how to help orchestrate the delivery of a 20th franchise.
The proposal also demonstrates that for once and for all, there is clear collaboration between the clubs and under V’landys’ vision to help grow the game.
“We’ve sent the information off to Peter, he’s going to have a look at it,” one leading club CEO confirmed.
“We can set up the infrastructure of a very good club by using our resources and knowledge of what is required.
“It is in all our best interests to deliver a professional club from top to bottom that is set-up for success and ready for sale.
“And in return the clubs we would receive the upside of the on-sell.
“It takes the risk out of the consortiums that don’t have the acute understanding of what it takes to establish a major sporting franchise in the best competition in the world.”
Following a record-breaking TV rights deal worth $5.3 billion across seven years from 2028, the competition is looking at bringing in a 20th side by 2029, following the arrival of the Perth Bears in 2027 and the PNG Chiefs in 2028.
Peter V’landys has been handed a proposal that would see all 17 current NRL teams pitch in to help launch a 20th franchise, in an effort to avoid the traditional pitfalls of entering the competition
NRL: The ARLC has tabled an opening $60 million offer for a stake in the English Super League.
A radical proposal that would see all 17 clubs own a stake in the set-up of a 20th franchise, from grassroots to board level, has been submitted to executive NRL chairman Peter V’landys.
The forward-thinking and integrated plan proposes the NRL use the influence and power of all 17 clubs, along with their vast network of corporate relationships, business acumen and experience in operating rugby league clubs, to help deliver the game’s newest franchise.
The NRL is aiming to add a 20th team by 2029 - either a second team in New Zealand or a fifth team from Brisbane.
And this proposal is designed to help the NRL overcome the major risks associated with handing an NRL licence to unproven individuals, or a franchise bid team with little or no experience in the set-up of a rugby league club.
The clubs would give the entire code confidence to rely on its own people with proven track records to prepare the new franchise for sale.
V’landys has welcomed the proposal, with the clubs hoping to continue discussing the bold strategy with the NRL in coming weeks.
The plan would help Team 20 avoid the issues faced by expansion franchises such as the Perth Bears.
The plan would help Team 20 avoid the issues faced by expansion franchises such as the Perth Bears.
Under the plan, the 17 established clubs would own a 5.5 per cent stake in the 20th franchise, preparing it from the ground-up to a turn-key stage for the NRL to then on-sell to a private consortium.
As a potential guide for what a ready-made franchise could sell for, the Melbourne Storm - who are in negotiations to sell a major stake in their club to a private equity firm - is valued at over $200 million.
The clubs would appoint an independent board to oversee the structure and build of the 20th franchise from the ground-up.
The clubs would then walk away after receiving an equal percentage return from the sale.
The clubs aren’t dictating where the 20th franchise should be located, they will simply support the NRL’s decision.
The pitch, tabled by NRL consultation committee members - including Rabbitohs CEO Blake Solly, Warriors CEO Cameron George, Eels CEO Jim Sarantinos, Broncos CEO Dave Donaghy, Dolphins CEO Terry Reader and Storm CEO Justin Rodski - is designed to also assist with the incredible man hours and stretched resources that the NRL has endured in setting up and delivering the Perth Bears.
V’landys is said to support the initiative.
V’landys is said to support the initiative.
Instead of the NRL needing to rely on its own resources and people, the governing body can rely on the clubs’ know-how to help orchestrate the delivery of a 20th franchise.
The proposal also demonstrates that for once and for all, there is clear collaboration between the clubs and under V’landys’ vision to help grow the game.
“We’ve sent the information off to Peter, he’s going to have a look at it,” one leading club CEO confirmed.
“We can set up the infrastructure of a very good club by using our resources and knowledge of what is required.
“It is in all our best interests to deliver a professional club from top to bottom that is set-up for success and ready for sale.
“And in return the clubs we would receive the upside of the on-sell.
“It takes the risk out of the consortiums that don’t have the acute understanding of what it takes to establish a major sporting franchise in the best competition in the world.”
Following a record-breaking TV rights deal worth $5.3 billion across seven years from 2028, the competition is looking at bringing in a 20th side by 2029, following the arrival of the Perth Bears in 2027 and the PNG Chiefs in 2028.
