The Awful Truth About The ARU's Financial Position

[mst]

People are on another planet if they are questioning why an Under 20s game isn't being shown on TV somewhere or filmed in a manner that it can be streamed online.

The potential audience would be miniscule.

Who do you propose is going to spend the money to create a broadcast package that is only going to be watched by a handful of diehards?

As I Like To Watch said, when they had a curtain-raiser involving lots of Super Rugby players, it was still only watched by a couple of hundred people.

Fair comment and good points. More than happy to be wrong as I am certainly not an experts with broadcast numbers / cost. But playing devils advocate, should the Tahs save the $$$ in advertising and promotion noting that there audience is low compared to population base, and especially when it comes to crowd numbers so there is little no no return on investment?

Maybe I am being optimistic hoping that the ARU and the fans can be initiative with its marketing and broadcasting / exposure so as the sustain and potentially grow the game.

Maybe when I watch the 8th repeat of round 2 of the 1992 AFL season then flick over to watch the cycling, bull-riding, athletics then pool / snooker, followed by the 4+ hour block of under 20's <insert car maker here> mungo ball I wonder why there is no ARU content for the diehards. Wouldn't rate compared to the audience numbers for the 8th repeat of round 2 of the 1992 AFL season,cycling, bull-riding, athletics then pool / snooker etc?

It has to start somewhere. Nothing is a sure thing when it comes to something new but at the moment I am pretty sure the game is not looking the best for the future.

 

[Braveheart81]

You are comparing Foxsports (and their other sports channels) broadcasting content that already exists or they otherwise own versus creating new content that will literally be watched by several hundred people.

Of course the ARU and Waratahs should spend money on advertising. Should they advertise a curtain-raiser or an under 20s competition? Probably not. They're not going to bring in new fans for those fixtures that weren't interested in going to the Super Rugby game already.

There is heaps of content for rugby diehards already on Foxtel.

 

[Train Without a Station]

The fact of the matter is that on Foxtel, Rugby is as heavily promoted as any other content. Despite that, there isn't a huge demand. So why would they pay for any more to show?

As previously also mentioned, showing Currie Cup and ITM Cup which is sold at a rate (Consider the negotiation factors - if Foxtel don't buy it, nobody else is going to in Australia - They take whatever they can get for it) that is far less than they could record and broadcast for. All these types of sports and competitions are cheap content that they can fill their sports networks with.

Obviously the ARU has to try and sell the product. But at the same time, if the existing product isn't performing that well, they are in no position to be able to sell more.

 

[mst]

You are comparing Foxsports (and their other sports channels) broadcasting content that already exists or they otherwise own versus creating new content that will literally be watched by several hundred people.

Of course the ARU and Waratahs should spend money on advertising. Should they advertise a curtain-raiser or an under 20s competition? Probably not. They're not going to bring in new fans for those fixtures that weren't interested in going to the Super Rugby game already.

There is heaps of content for rugby diehards already on Foxtel.

Again fair points - I concede to your points.

• there is no point creating new content like the mungo ball is doing to try to catch up with the amount of content the AFL has that justifies a dedicated tv channel on Foxtel - and why they got a massive $$$$ tv deal. The limited ARU content as a gap filler?
• marketing- the broadcast revenue is fixed, ARU has limited funds and Tahs attract 0.35% population (Sydney) to games in the heart land of RU. Brumbies have attracted 4.75% of total ACT population. QLD have good figures. Logic mandates that with a higher population available = better advertising revenue. Thus subsiding advertising and players like Folau in the NSW market by the ARU is a poor investment and could produce higher returns else where.

We can all argue the point many ways, and like above stir the debate as i have above but we, including you Braveheart better start think of ways and being optimistic or as the key element of this thread is simple - the game is not financially sustainable in its current form.
Mongo ball has more air time which equates to more advertising. We all know which car manufacturer sponsors the under 20's mungo ball but I have never watched a game, and I bet the its only ta handful of diehard NRL fans that watch it as well. But the ratings don't effect the advertising $$ they get.

 

[Braveheart81]

We can all argue the point many ways, and like above stir the debate as i have above but we, including you Braveheart better start think of ways and being optimistic or as the key element of this thread is simple - the game is not financially sustainable in its current form.
Mongo ball has more air time which equates to more advertising. We all know which car manufacturer sponsors the under 20's mungo ball but I have never watched a game, and I bet the its only ta handful of diehard NRL fans that watch it as well. But the ratings don't effect the advertising $$ they get.

The NRL has vast amounts more money than the ARU do and they also get substantially more TV viewers for their Foxtel games than Super Rugby do. Their Channel 9 games rate massively higher than that.

The NRL has the money to get the two Holden Cup games broadcast on Foxtel each weekend. I don't know what the deal is regarding Foxtel and the NRL but I would guess that Holden's sponsorship pays for the broadcast in part. Foxtel certainly wouldn't be paying for the right to film it and broadcast it as it would be a lossmaker.

I agree with you that ways need to be found to increase interest in rugby union in Australia but I really don't think it involves more content at the lower end of the spectrum.

Australia needs to reinvigorate the public into supporting the Wallabies and make test matches, particularly those against the All Blacks must watch events rather than things not many people care about. If we can't get the public to watch those then they aren't going to watch games of lower standard with less importance.

 

[Dave Beat]

The NRL has vast amounts more money than the ARU do and they also get substantially more TV viewers for their Foxtel games than Super Rugby do. Their Channel 9 games rate massively higher than that.

The NRL has the money to get the two Holden Cup games broadcast on Foxtel each weekend. I don't know what the deal is regarding Foxtel and the NRL but I would guess that Holden's sponsorship pays for the broadcast in part. Foxtel certainly wouldn't be paying for the right to film it and broadcast it as it would be a lossmaker.

BH an uneducated question, I'm not sure what provides a better financial return at Super Level, people attending the game, or people watching it on Foxtel?

• I thought the clubs would make more money through people going through the gate than sitting on their fat arses watching it on tele?
• I thought more money would be generated through the U20 comp referred to above if people could go to watch on the weekend rather than not going during the week because their at work.

 

[Braveheart81]

BH an uneducated question, I'm not sure what provides a better financial return at Super Level, people attending the game, or people watching it on Foxtel?

• I thought the clubs would make more money through people going through the gate than sitting on their fat arses watching it on tele?
• I thought more money would be generated through the U20 comp referred to above if people could go to watch on the weekend rather than not going during the week because their at work.

Certainly people attending Super Rugby games provides more money per head to the ARU than someone watching on Foxtel.

In relation to these U20 games, I'm pretty sure they're all free anyway, so no money is made. If attendance fees are charged, I'm sure you'd be talking peanuts and it would be completely inconsequential when they are held.

The driving force behind revenue generation is still the Wallabies and The Rugby Championship both from a TV rights perspective and from gate receipts.

The Super Rugby franchises can barely keep their head above water from gate takings and they aren't even providing money for players (the ARU provides this from the TV rights revenue).

 

[Dave Beat]

Certainly people attending Super Rugby games provides more money per head to the ARU than someone watching on Foxtel.

In relation to these U20 games, I'm pretty sure they're all free anyway, so no money is made. If attendance fees are charged, I'm sure you'd be talking peanuts and it would be completely inconsequential when they are held.

The driving force behind revenue generation is still the Wallabies and The Rugby Championship both from a TV rights perspective and from gate receipts.

The Super Rugby franchises can barely keep their head above water from gate takings and they aren't even providing money for players (the ARU provides this from the TV rights revenue).

Appreciate that feedback.

 

[boyo]

Maybe when I watch the 8th repeat of round 2 of the 1992 AFL season then flick over to watch the cycling, bull-riding, athletics then pool / snooker, followed by the 4+ hour block of under 20's <insert car maker here> mungo ball I wonder why there is no ARU content for the diehards. Wouldn't rate compared to the audience numbers for the 8th repeat of round 2 of the 1992 AFL season,cycling, bull-riding, athletics then pool / snooker etc?

This.

 

[RugbyReg]

Certainly people attending Super Rugby games provides more money per head to the ARU than someone watching on Foxtel.

a slight clarity, people going to Super Rugby games provides more revenue for the states/franchises.

More people watching ultimately means more revenue (hopefully) for the ARU.

 

[Crashy]

Thats what I dont get. If people want a rugby team in NSW then why arent they going to the games? If they get 15k on Friday night then perhaps we dont deserve a team. For fuck sake get to the game, spen money which ultimately determines how much the NSW grassroots gets.
Does everyone realise that the annual grant that goes to NSW rugby from the Waratahs is determined as a % of revenue. If you dont spend money on tickets / memberships then we are short changing grass roots.

 

[Quick Hands]

I'm not defending it, but many people aren't going to games because they lost interest during the win ugly era and have either found something else to do or just plain are now out of the habit of going to the rugby.

I can't get there tomorrow as work and family commitments make Friday trips into the city impossible. I'll probably make it home just after kickoff.

And yes, I realise that the Waratahs have no control over whether matches are played on Fridays or Saturdays and SANZAR couldn't care less.

 

[Tip]

Does everyone realise that the annual grant that goes to NSW rugby from the Waratahs is determined as a % of revenue. If you dont spend money on tickets / memberships then we are short changing grass roots.

Perhaps the NSWRU needs to rethink this model.
Guarantee the grassroots & the Tahs TEAM the necessary amount of funding. Whats left can be spread equally throughout the THREE oversized, overpaid & underperforming Boards.

 

[TOCC]

Perhaps the NSWRU needs to rethink this model.
Guarantee the grassroots & the Tahs TEAM the necessary amount of funding. Whats left can be spread equally throughout the THREE oversized, overpaid & underperforming Boards.

So you mean they can achieve greater efficiency by consolidating resources?
I don't think thats how they work in NSW

 

[I like to watch]

Yep,they should appoint a new board to properly oversee what the current three boards are doing.
Possibly appoint a facilitator to ensure the Boards are communicating with each other in an optimum fashion.

 

[sidelinesid]

I thought every shute sheild game was videoed.
What happens to those videos. Could they be uploaded somewhere for anyone to watch? That would be a start.
Then if the videos became popular you woould be able to sell them each week. Better than $200 pr club I think

 

[mst]

Thanks for the intro Boyo...take it away AGAIN ARU and the Tahs!!!!!

 

[Hugh Jarse]

Yep,they should appoint a new board to properly oversee what the current three boards are doing.
Possibly appoint a facilitator to ensure the Boards are communicating with each other in an optimum fashion.

Don't forget the Joint Steering Committee to establish the new board structure and draft the communication protocols, and appoint and oversee the facilitator. The Steering committee will need a consultant as well, if not a sommelier and an unpaid intern or two to do all the actual work and to wash up the empty glasses.

 

[Inside Shoulder]

I thought every shute sheild game was videoed.
What happens to those videos. Could they be uploaded somewhere for anyone to watch? That would be a start.
Then if the videos became popular you woould be able to sell them each week. Better than $200 pr club I think

You mean like a YouTube channel?
Top idea.
I'm going to raise with someone.

 

[Inside Shoulder]

Don't forget the Joint Steering Committee to establish the new board structure and draft the communication protocols, and appoint and oversee the facilitator. The Steering committee will need a consultant as well, if not a sommelier and an unpaid intern or two to do all the actual work and to wash up the empty glasses.

Some fruit and pastries too