by Dip Fri Sep 23, 2016 4:23 pm
How much does it cost to run an NRL team? According to the annual report of Brisbane Broncos Limited, in the 2015 calendar year the Broncos had revenue of a bit over $40M, expenses of a bit over $36M, for a profit before tax of $3.7M, and tax of about $1.2M and an after tax profit of $2.5M.
Now I'm guessing the revenue and expenses of the Broncos is probably the highest in the league, and even though to get in to the comp would probably require some more costs for flights etc, but surely at most it would cost under $50M per year. Obviously a fair bit of that would be offset by sponsorship, gate revenue, NRL grants etc, but even if it didn't, given where PNG sits on the world stage, then for the PNG people, and what it could do for the psychology of their people as well as their economy, there would probably be a good argument for it to be a PNG government funded team (and that's without even a political argument that BHP or some other corporate could give very tidy sponsorship in recognition for the raping of their environment they've done in the past, while still making great profits out of some of the most profitable gold deposits in the world).
They would need a reasonable NRL standard stadium and probably some special gated community with security, but financially it probably isn't out of the equation. It probably is more the point that the NRL is not interested in expansion (If Perth, Central Coast, 2nd Brisbane team are told they're not in, then I don't think any other bid is going to be able to convince them.