NRL Chases $17m A Year Windfall

[Ryan]

NRL chases $17m a year windfall
Nick Tabakoff
The Daily Telegraph
November 17, 2010 11:00PM

Precession ... Racing NSW executives arrive at court yesterday. Picture: Phil Hillyard Source: The Daily Telegraph


THE National Rugby League could receive a $17 million a year windfall - or $1 million-plus per club - following a landmark court ruling yesterday.

Racing NSW had its right upheld in the Federal Court to charge all betting agencies and corporate bookmakers 1.5 per cent of their turnover as the price for allowing them to bet on their product.

Yesterday's decision has given the NSW racing industry an instant $120 million payday from money already collected but so far held in a trust account. It will also earn the body $50 million a year in future revenues.

But the decision will have ripple effects well beyond racing. It creates a precedent that will almost certainly bring a multi-million dollar windfall to the country's major sporting codes - including rugby league, AFL and cricket. These may now all look to put their own 1.5 per cent turnover levies on the betting agencies.


The NRL currently receives little more than $1.5 million a year from betting agencies, under a formula that is based on the profit the agencies make rather than total turnover. Industry experts say this is many millions less than what the code would make with a 1.5 per cent levy on betting turnover as has been applied in the Racing NSW case. Under a turnover levy, sports are paid the same regardless of whether betting agencies win or lose.

NRL boss David Gallop said yesterday: "We'll be reviewing the decision, and if there is an opportunity for us to be improving our return, we'll pursue it."

Gallop added it had so far been "early days for us in terms of getting any return" from betting.

Racing NSW boss Peter V'landys said of the judgment: "It is a perfect template for all the other sports to also get paid for the intellectual property."

The Daily Telegraph can reveal definitive Australian Racing Board statistics for betting on all sports other than racing will show 30 per cent growth to $3.3 billion for the 2009-10 financial year.

If this trend continues, this will grow to about $4.5 billion in the current year.

Tabcorp's sports betting statistics show the NRL is the highest-turnover sport outside of racing, with 16 per cent of the market.

But one former high-level Tabcorp official said many of these agencies take about 35 per cent of their turnover on rugby league alone. Based on a 1.5 per cent turnover levy, he estimated the NRL could recoup $17 million a year, which could be pumped back into the sport as part of a $70 million total windfall for local sport.

Other codes are also likely to gain millions of dollars from the decision. Both the AFL and Cricket Australia said they would look at the ruling to see "what, if any, implications it may have for us".

http://www.couriermail.com.au/sport/nrl/nrls-chases-17m-a-year-windfall/story-e6frep5x-1225955195614

They'd be mad not to go for it! $$$$$$$
We are getting all the negative spin-offs of gambling on our game, it's only fair that we take our fair share of the profits too.

 

[BUZ]

The things that strike me about the above photo is that all the people are male, white, all wearing suits, and all have some pretty little piece of fabric hanging from their necks.

As for the dude with a sheep on his head who's bringing up the rear

:sick

I forgot to mention, they are also all like the dudes on Australian Masterchef in that they are all overweight.

How bizarre.

 

[Master Sharky]

Bring it on, we need the help!

 

[ben]

How many years have you been able to bet on games for and this comes out now through the racing guys? What have you been doing gallop? Its kind of not appropriate the racing guys sue the tab etc as they are all intertwined to a certain extent. I bet there is an appeal an arrangement is made between the 2 sides and we will never hear about this again. It should be the nrl, aru, afl etc taking theses guys on.

 

[Ryan]

Why risk millions in a legal battle that we(NRL) might not win?
Gallop is sitting back rubbing his hands
Let the racing industry fight the battle and incur the costs - and if they succeed, then swoop in for the profits

 

[IronShark]

The things that strike me about the above photo is that all the people are male, white, all wearing suits, and all have some pretty little piece of fabric hanging from their necks.

As for the dude with a sheep on his head who's bringing up the rear

:sick

I forgot to mention, they are also all like the dudes on Australian Masterchef in that they are all overweight.

How bizarre.

Come on mate, you know as well as I that the world is run by male, white, corporate oppression!

 

[ben]

Why risk millions in a legal battle that we(NRL) might not win?
Gallop is sitting back rubbing his hands
Let the racing industry fight the battle and incur the costs - and if they succeed, then swoop in for the profits

The racing industry won so why wouldnt other sports? It should of been a united case against them and started years ago. This is my opinion only and a criticism Ive had since this thing started - the racing industry is dependant on the betting agencies and vice versa. One is suing the other. I even think there are betting agencies that are partially owned by racing people (not sure on this one though). It is going to be appealed and settled is my pick.

 

[Ryan]

The racing industry won so why wouldnt other sports? It should of been a united case against them and started years ago. This is my opinion only and a criticism Ive had since this thing started - the racing industry is dependant on the betting agencies and vice versa. One is suing the other. I even think there are betting agencies that are partially owned by racing people (not sure on this one though). It is going to be appealed and settled is my pick.

Your probably right to a point.
I don't mind having a punt but I have no attachment to the racing\gambling industry, they are big and ugly enough to look after themselves. From an NRL fans perspective, I wouldn't want us to enter a legal battle if we didnt have to - and from what I've read we don't have to. We can sit back and watch for now, and when it's all over there might be an opportunity to increase my clubs income another $1M. Whether that money goes towards Princeys next house extension, Birdy's next lawyer or contract upgrades to our under 20's to stop you pricks from poaching them - at the end of the day, it's $1M that we didn't have before and we didn't need risky legal involvement to get it.

The blokes at the barriers are in much better shape to front up at the courtroom than we are, and it's worth more to them than it is to us. I'm sure most supporters here would love to see an extra $1M to the Sharks without any consideration to the billion dollar racing\gambling industry.

 

[gosharkies]

Your probably right to a point.
I don't mind having a punt but I have no attachment to the racing\gambling industry, they are big and ugly enough to look after themselves. From an NRL fans perspective, I wouldn't want us to enter a legal battle if we didnt have to - and from what I've read we don't have to. We can sit back and watch for now, and when it's all over there might be an opportunity to increase my clubs income another $1M. Whether that money goes towards Princeys next house extension, Birdy's next lawyer or contract upgrades to our under 20's to stop you pricks from poaching them - at the end of the day, it's $1M that we didn't have before and we didn't need risky legal involvement to get it.

The blokes at the barriers are in much better shape to front up at the courtroom than we are, and it's worth more to them than it is to us. I'm sure most supporters here would love to see an extra $1M to the Sharks without any consideration to the billion dollar racing\gambling industry.

agree,well said

 

[ben]

I hope a judgement is made in the appeal so it can be used as a case precedent for other sports to get their hand in the cookie jar. I suppose what I was getting at is that during the appeal process an out of court settlement may be reached with no judgement made therefore no precedent, and if we want some cash we are going to have foot the bill anyway to present a new case to sue the betting agencies anyway.

But agreed, it would be good to get some more coin for the club. It would of been better to get the coin years ago but now is better than never.