NRL Must Embrace Community Ownership | Thebigtip

Private ownership of sporting organisations is nothing new around the world today. It has resulted in increased corporate support, success on and off the chosen field and financial stability with the respective teams.

While entrepreneurs have raised the stakes at clubs, their control means the average supporter can not have a say in the running of their team or the organisation that controls it.

This phenomenon, however, is only new to the Australian sporting landscape.

Earlier this year the Newcastle Knights members gave a 97% vote in favour of mining magnate Nathan Tinkler taking over the club, offering financial security for at least the next decade. This purchase has again sparked debate as to whether sport in Australia is losing its community feel and identity. But what structural model provides both community feel and financial security?

The existing NRL model is one that is struggling. The majority of clubs are run by Leagues clubs relying on revenue grants from the government by preying on addicted gamblers. Prior to 2005 this model was successful due to the financial stability of large leagues clubs. However, after the Pokie Tax was introduced, the revenue of the clubs suffered. So did the Rugby League clubs that relied on their grants.

A report earlier this year suggested the Penrith Panthers are in financial strife following the Leagues Clubs trouble and generating losses. However exaggerated by publications, multiple NRL clubs will now be under even more pressure following federal laws that are to be introduced to curb problem gambling. As such, clubs will be required to find alternative revenue streams. Hence the strong push for memberships never before seen in the NRL.

The structure of the NRL, on the most part, ensures the faithful fans keep ownership of the game they love. Their passion is not beholden to one person. Most international teams are privately owned by one owner and receive little input from fans in making decisions.

While this type of enterprise has turned English Premier League teams like Manchester City and Chelsea from also-rans to title contenders in a flash, their fans must surely be frustrated that their input is never sought. And when things go wrong, as we have seen in overseas codes, it is those loyal fans that are left to cry over the broken pieces and face a decade of pain during the “rebuilding years”. See fans of Leeds United for such an example.

But there is one example of an enterprise that embraces community and provides financial stability with opportunity of success. This structure is the ownership structure of one of the most successful NFL teams in the form of the Green Bay Packers.

In February they won yet another Super Bowl & Vince Lombardi trophy, named after the original coach of the Green bay Packers.

The business model for the Green Bay Packers is one centred on community-ownership. While this may seem similar to that of the Brisbane Broncos, it is different in that the Packers are the only non-profit, community-owned franchise in American professional sports while the Broncos are publicly owned and are able to be purchased on the share market.

The distinct lack of a single owner has been the reason that the Packers have never been moved from Green Bay, despite a small population base. In comparison to other NFL teams which are in cities containing millions, the Packers are in a city of only 102 313 citizens, with everyone of their games a sellout.

On top of this private share offering, not one single owner is allowed to own more than 30% of shares in the team, therefore meaning the power rests in the community vote.

This model also secures the financial future of the team due to the fact they are a non-profit organisation putting funds into the Packers Foundation. There are tax benefits being part of such an organisational tree, along with the fact revenue is brought in not only from share offerings, but also membership. With this financial structure and community based ownership the franchise itself is still consistently successful, despite being in a part of the country with notoriously bad weather.

This model is one the NRL could look to follow. The community ownership of an NRL team would give greater impact to the feeling that fans are part of the corporate decisions that affect their team. It also secures the financial futures of the NRL team and ensures that funds are allocated back to the team and their facilities, and most importantly, community charities and local initiatives. This is a business model that would be successful in the NRL and is certainly an option that must be reviewed instead of catering to the big pockets of corporate ownership.

Without the NRL’s ties to the community, the teams will lose their identity. Without the NRL being involved in each of their team’s communities, we would be robbing countless people of connecting with their heroes. Our competition is most definitely about community - let’s keep it that way.