Why the Salary Cap is a joke

[Kingbilly]

I did some comparisons.

USA population 310million
Australia population 20 million

NFL average salary just below 800K
NRL average salary 4.1M / 25 (salary cap divided by # players) = 164K


divide 800K by 15 (differ in population) = 53K


Doesn't quite seem right does it.

Makes an interesting arguement against the idiots that thinkg RL players are underpaid

[supermario]

While the Aussie Dollar is at 90 us cents......have you considered exchange rate KB???

[Kingbilly]

Could do, by the alcohol exchange rate had more to do with that post

[Chook Norris]

I think the most revealing statistic is that NRL players get paid 24% of the game's total revenue.. in comparison to the AFL's 19%

Quite simply, the players are earning as much as the game can afford atm.. until the next tv right's contract (which should increase substantially). Until then will we see a larger rise in the salary cap, which won't come immediately after anywya

[Kingbilly]

But also why should the TV rights increase ?
That will only drive up foxtel price and even more ads (if possible) on Ch9

[stsae]

But also why should the TV rights increase ?
That will only drive up foxtel price and even more ads (if possible) on Ch9

I believe the TV rights should increase and it should be substantial mate.

According to ratings RL outrates gAyFL, yet they recieve more $$$ from TV rights and sponsors.

Also News LTD has an interest in the NewsRL, Foxtel and Telstra. Thats the major sponsor, the pay TV company and the NRL, who are actually doing the deal.

Also when the last free to air rights came up Ch9 were the only channel that were going to offer any real $$$, the rest were struggling. Since I believe Chs 10 and 7 have over taken Ch9s ratings stranglehold. Hence this time theres actual competition.

Of course we need to have the game run independently, like gAyFL is. They dont sit down with TV companies and sponsors who they have a vested interest in.

[Kingbilly]

I can def see the point regarding comparison to GAfl.
But how can these companies afford to spend $millions that they spend now, and not over charge the small population here is Australia

[stsae]

I can def see the point regarding comparison to GAfl.
But how can these companies afford to spend $millions that they spend now, and not over charge the small population here is Australia

Cos the advertising space they sell far exceeds what it cost them to put a game on. I cant recall the exact figures mate but I recall reading for Fox or Ch9 to cover a game the cost is very small in comparison to what they make selling advertising.

Think of Pay and free to air for that matter. Most of what they show they just buy from overseas. They make very little of their programming content here in Australia. Id gather that saves them alot in costs in comparison to what they make from advertising

I believe we are being overcharged for Pay TV anyway. The content is repeats and shit really. But without competition, remember swaptus to Optus, Fox have a monolopy. They charge what they want, we have no choice.

That said where else will RL go??? If Fox dont do a deal with RL they will lose many subscribers. That will affect them, units is their only worry. Id gather NSW and QLD are their major markets, dropping RL would kill Fox, their rating prove this.

IMO its taking News out of the equation when negotiating a new TV deal that will ensure the games rewarded. At least we have a chance of getting a fairer slice of the pie.