Couldn't find an existing thread on this, figured heres the best place
12/16 clubs have commissioned a report into expansion. It came out yesterday but TItans seem to be on the front foot about it
Overall it seems more negatives than positives..surprise surprise
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Gold Coast chief executive Steve Mitchell insists the Gemba Group report into expansion isn’t designed to scupper plans to introduce a 17th team to the premiership.
On Wednesday The Australian revealed details of the report which suggested expansion could further dilute playing talent and exacerbate an already lopsided competition.
“If expansion is good for the whole of the game, we need to do it,” Mitchell said.
“But if expansion is done quickly at the cost to the game and the existing clubs, then we need to pause and think it through.
“This is about getting the analysis complete and not being romanticised by the fact that expansion is the be all and end all. If it is detrimental to us, you have to ask why.
“We would like to see some dialogue on a number of the potential risks to the clubs and game that have been highlighted by the report.
“This is a huge decision and not one we can unpack easily. It needs to be very thorough. All shareholders are due a decent consultation and understanding of the business case moving forward and there may be a lot of merit to it.
“At the moment there is not a lot of substance.”
The Gemba Group investigation, paid for by 12 of the games 16 clubs, is now in the hands of the NRL. Its findings have raised alarm bells in clubland, most notably among the existing Queensland clubs and Melbourne Storm, who rely on Queensland for much of their talent.
The Gemba Group found positives to adding another team in southeast Queensland, most notably an increase in viewing figures and as a result, a potential lift in broadcast revenue — Gemba estimated broadcast dollars could increase by $13 million if 12 additional matches were broadcast on Foxtel and $25 million if they were simulcast on free-to-air television as well.
They also found that an additional team in southeast Queensland could help pathways and participation, two areas that are of particular concern to ARL Commission chair Peter V’landys.
However, the positives were outweighed to a large extent by the negatives. The Gemba Group warned of a dilution in talent leading to more blowout scorelines.
They warned of the increasing pressure placed on Queensland clubs by another team in the region. They suggested there would be an inflationary effect on wages for players and coaching staff.
“Clubs believe that expansion cost implications could potentially be compounded if introducing a new team is rushed and the club doesn’t have sufficient time to recruit players and staff or develop young talent,” the report concluded.
“An additional team in Brisbane will create more competition for government funding among teams in Queensland for things such as the development of playing and training facilities.
“There will also be an increase in the supply of content which will reduce the opportunity for existing teams to play regional matches.
“The additional buying power in the market may result in the inflation of player salaries as well as players being able to sign contracts valued higher than they are currently
“The current issues related to the strain on certain clubs with significant level of injuries may be compounded as a result of expansion as a higher proportion of lists may be made up of lower-end or less experienced talent.”
Mitchell, whose club was among the 12 who contributed to the Gemba Group report, insists the clubs aren’t looking to do a hatchet job on expansion or the NRL.
They just want to make sure the game is armed with as much information as possible before they make a final call on whether to add a 17th team.
“This is all about doing a high level of due diligence around expansion,” Mitchell said.
“There is a potential commercial upside that has to be realised … with the fact a redraft of the draw with 17 teams will give us 12 extra games.
“The other part is that if there is some commercial upside in revenue, the greater fear is that upside doesn’t underwrite or annul the risks to the games - the quality of the product on the field, the dilution of the player group at a time when the competition is already going through an interesting transition.
“Then the pressure is on clubs. It is going to add inflationary pressures to the player group, it is going to add inflationary pressure to coaching resources and staff resources, it is going to cannibalise fanatical fans.
“We just want to state the risks that are there and that are real.”