TV money puts brakes on NRL expansion

While rival codes are trumpeting expansion announcements, the NRL has put any plans to introduce teams in new areas on hold after being advised it was unlikely to receive an increase in television revenue.

Despite the establishment of new AFL, A-League and Super rugby teams from 2011, NRL chief executive David Gallop revealed yesterday that the issue would not even be discussed again by the league's governing body before then.

''We've done some research during 2009 about expansion and whether we should be expanding to maximise television revenue,'' Gallop said.

''The answer that has come back thus far is that the best thing we can do to maximise television revenue is to have an exciting competition, a competition where there are no easy games, where people are genuinely backing their team every week because they think they are a chance of winning. Adding teams won't necessarily do that for us.''

Gallop made the comments at a forum with club members in Sydney yesterday during which he also outlined the pitfalls for the NRL's rivals if their new teams hit financial trouble.

After expanding from 16 teams to 20 in 1995, the game was torn apart by the Super League war. Of the four new clubs introduced, the South Queensland Crushers and Western Reds folded while the Auckland Warriors and North Queensland Cowboys had to be bailed out.

''To be frank, I think some codes are getting in a race to put dots on a map without carefully considering the impact on the remaining clubs, or their current clubs,'' Gallop said.

''I think rugby league has been down that road and made those mistakes, and I wouldn't like to see it make those mistakes again.

''There is nothing worse than to add teams to your competition and have them fall over. It's not only bad for the particular area, it has a ripple effect across the whole game and the confidence that people have in the game and the confidence that players have to play your game.''

The news leaves the Central Coast Bears with an uncertain wait in their quest to return to the NRL, while a Central Queensland consortium has been formed to lobby for a team in Rockhampton, and the Papua New Guinea government wants a side established in Port Moresby. Gallop said the issue would be reviewed in 2011 - a year before the NRL's television deals expire.

''There are obviously target areas we have our eye on - Central Coast, Brisbane, Perth, Adelaide and perhaps another team in New Zealand,'' he said. ''I think PNG is, quite frankly, a fair way off but our timeline now is to wait until the middle of 2011 before we have a real serious look at expansion again and whether it is the right thing for our competition.''

- © Fairfax NZ News