Perth’s Bid for NRL Expansion Hits Roadblock Over Licence Fee Dispute
The Western Bears’ ambitious bid to join the NRL has been dealt a significant blow after ARL Commission boss Peter V’landys rejected their proposal, citing the absence of a licence fee as a major stumbling block. The decision has left bid chief Peter Cumins reeling, who insists that the NRL’s demand for a $20 million fee was unrealistic given the substantial start-up costs involved.
Cumins argued that the initial outlay of $16 million, combined with an additional $10 million for temporary facilities, would have pushed the total investment to $26 million before a single game was played. Adding a $20 million licence fee would have ballooned the investment to $50 million, making it commercially unviable.
The bid chief pointed to the example of the Broncos, valued at over $80 million, and noted that even the most successful NRL clubs only generate an average net profit of $900,000 after tax. Cumins believes that the West Australian bid would have brought significant value to the NRL, including new TV audiences, members, spectators, and sponsorship dollars, which would have justified waiving the licence fee.
The Dolphins’ admission to the league last year without a licence fee has added fuel to the debate, with Cumins suggesting that the NRL should have been more flexible in their negotiations. The West Australian government has already committed to providing top-tier facilities and development programs, but Premier Roger Cook has emphasized that the bid is independent of the government.
As the door remains open for further negotiations, Cumins has expressed concerns about the NRL’s potential ownership of a Perth-based franchise, citing conflicts of interest and rival clubs’ potential reluctance to support such a move. The fate of the Western Bears’ bid hangs in the balance, as the NRL and the consortium weigh their options in the ongoing expansion saga.
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