NRL CEO Andrew Abdo enthusiastically announced that the 2024 Las Vegas matches will be a pivotal component of the 'Australia Week' in the city. The aim is to showcase rugby league and Australia to the US market, marking a significant milestone for the sport.
Andrew Abdo (NRL CEO) expressed ongoing collaboration with the four participating clubs, working diligently to finalize arrangements for the proposed matches in Las Vegas. The objective is to transform this event into a blockbuster spectacle for fans, focusing on optimizing travel, attendance, and overall enjoyment of a distinctive rugby league experience. NRL CEO highlighted that rugby league will be stepping onto a stage it has never graced before, presenting all clubs with unique opportunities in the years to come.
The chosen clubs—Broncos, Roosters, Rabbitohs, and Sea Eagles—bring a distinct connection to the US audience. The Broncos and Roosters, with Brisbane and Sydney in their names, provide geographic identifiers familiar to American viewers. Additionally, the Rabbitohs, co-owned by Russell Crowe, and the Sea Eagles, supported by high-profile figure Hugh Jackman, offer star-studded appeal.
This groundbreaking double-header will mark the first time matches are played for premiership points outside of Australia and New Zealand. The Rabbitohs have a previous American stint in their history, having faced Leeds Rhinos in the 2008 Australia Day Challenge at Hodges Field in Jacksonville, Florida.
Souths CEO Blake Solly reflected on the club's growing profile in North America, starting with investor Russell Crowe in 2008 and expanding through recent investor Mike Cannon-Brookes and his ties to the Utah Jazz NBA franchise in 2024. Solly expressed confidence in the widespread support for the club, evident in past international matches. Anticipating a robust fan and member base development post the Las Vegas event, Solly looks forward to contributing to the global growth of the club and the sport alongside fellow participating teams—the Sea Eagles, Roosters, and the Broncos.
In a bold proclamation before NRL club executives, Andrew Abdo, the league's CEO, painted a vivid picture of a lucrative future. He boldly predicted that by 2028, the NRL could rake in a whopping $60 million over five years through broadcasting into American living rooms.
The epicenter of this audacious endeavor is a season launch in Las Vegas, with the inaugural match slated for March 2. Anticipating a surge in interest from cable TV networks and streaming services, the NRL envisions multimillion-dollar windfalls from broadcasting deals. The NRL’s Las Vegas play is the brainchild of V’landys, who was appointed chairman of the Australian Rugby League Commission in 2019. But a move into the US has been talked about in NRL for some time, based on concerns that the game can’t sustain revenue growth by relying on local broadcast revenue, advertising sponsorship, and wagering turnover.
In 2021, Nine Entertainment, inked a substantial $650 million, five-year broadcast deal with the NRL. Concurrently, a separate arrangement with Foxtel, extending until 2027, is approximated to be in the ballpark of $1 billion. Nonetheless, the advertising market's frailty looms as a potential challenge, casting uncertainty on the remuneration networks might extend for content. The Australian government's pending prohibition on gambling advertisements during major sporting events introduces an additional layer of financial pressure on sporting codes within the country, potentially steering their gaze elsewhere.
NRL's Comissioner envisions a potential windfall of up to $200 million in gaming revenue alone for the NRL by expanding its footprint in the US market. Both V’landys and Abdo harbor the belief that demonstrating global popularity could enhance the NRL's allure for streaming services when negotiating the next set of broadcasting rights.
The NRL has recently brokered a deal with US sports channel Fox Sports to broadcast the two Las Vegas matches over the next five years on its primary channel. V’landys has also granted Foxtel exclusive rights to one of the US matches. American viewers can already access the NRL season for an annual fee of $229 through the Watch NRL app, with league executives harboring hopes that the Las Vegas venture will substantially bolster subscriptions among Australians based in the US.
NRL Chief Executive emphasizes that international broadcast rights constitute a small fraction of the NRL's overall revenue. The success of this venture, could elevate the value of NRL's broadcast rights, fostered by an expanding market for partnerships and sponsors.
A glimpse into the NRL's blueprint, documents obtained by AFR Weekend: The league will foot the bill for over 90 business-class flights, 32 economy flights, and a luxurious six-day stay at Resorts World in Las Vegas for at least 128 players and club staff. Although a single business-class flight on Fiji Airways costs nearly $16,000, the NRL's expenses are offset through advertising deals. The NRL's financial commitment extends to training venues, meals, VIP hospitality facilities, medical insurance, and licensing fees, collectively amounting to a substantial investment. The annual rental cost for Allegiant Stadium, the venue for the next five years, is estimated at $1.2 million, potentially elevating total annual expenses to a range of $6 million to $8 million, as per rugby league insiders.
Andrew Abdo (NRL CEO) unfazed by potential skepticism, asserts the project's self-sustainability, citing strong ticket sales, corporate hospitality deals, and sponsorships as initial revenue sources. The vision of a long-term payoff remains the primary focus. Chairman V’landys, the visionary behind the NRL's expansion to the US market, sees the move as a strategic response to concerns about sustaining revenue growth through local channels and governement's marketing prohibitions.
A pivotal development involves a broadcasting agreement with US sports channel Fox Sports, securing a five-year slot for the Las Vegas matches on its main channel. The NRL aims to leverage this exposure to increase subscriptions among US-based Australians through an app called Watch NRL.
While some logistical challenges loom with less than three months until the first match, the NRL's proactive approach involves partnering with another major US sport and exploring promotional opportunities with notable Australians. Yet, uncertainties persist, such as potential venue issues due to external events and the need for a deal with an American bookmaker for profitable wagering.
In a landscape where other sports, like Formula 1, have invested heavily in the US market, we could remains optimistic about the NRL's Las Vegas venture. With strong ticket sales already surpassing 17,000 for the opening match, the NRL seeks to defy skeptics, break even in the first year, and set the stage for a game-changing global presence. The NRL's Las Vegas gamble is a calculated investment, and its leaders are poised for growth and success on the international stage.
We are eager to see if the Rugby League (XIII) can conquer the US Market before the Rugby Union (XV). French Rugby Union world's greatest club, Stade Toulousain played in Utah last year, partnerships are on the way with Europe, may the US Major Rugby League be more attractive in the next years ?
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