The Big Deal Weekly: Exclusive details on "Festival Of Golf" plans for SA, Lyon a Saint again, netball at crossroads, record audiences for T20 & F1, & more
Newsletter 7: October 23, 2022
Welcome to The Big Deal Weekly!
Before we get in to another monster wrap, a quick heads up that on The Big Deal podcast later this week we’re tackling Australian sport’s money and ethics issues with someone who knows it as well as anyone, former Executive Chairman of SKINS, Jaimie Fuller. As usual, Jaimie doesn’t hold back! So make sure you’re following the show on Apple Podcasts, Spotify or Google Podcasts to catch the episode when it drops.
Now, let’s rip into this week’s big deals .. starting with an exclusive on the latest plans to bring LIV golf to Australia.
IN THIS WEEK’S WRAP OF THE BIG DEALS
“Festival of Golf” coming to SA?
Lyon a Saint again
Netball prospecting for new sponsors
NBL wages rise but association sees red over leak
Demons board challenged in Supreme Court
Messi eyes new venture
Big Brother watching at World Cup
FIFA rejects lowball bids for Women’s World Cup
Barkley postpones TV retirement after monster contract
Nine to ace new tennis deal
T20 World Cup bonanza for meeting of subcontinent rivals
“Record” crowd watches US grand prix in Austin
EXCLUSIVE: “FESTIVAL OF GOLF” COMING TO SA?
The South Australian government is considering a proposal to host a three-week “Festival of Golf” in the state next October which would culminate in a LIV golf tournament in Adelaide.
World stars the calibre of Sergio Garcia, Dustin Johnson, Marc Leishman, Cam Smith, Phil Mickelson and Patrick Reed would be expected to compete in what could be the rebel golf league’s first appearance in Australia.
It’s one of two options the SA Government is considering with the other being a three-day tournament in April, potentially at Grange Golf Club.
April is the month favoured by LIV CEO Greg Norman who has flagged hosting up to three events in Australia next year.
The Festival of Golf would include regional qualifying tournaments at courses including Lady Bay at Normanville where club golfers could compete for the right to play with the likes of the world’s best.
It would also include a PGA event as part of the Asian tour, played in Adelaide with prize money of US$1.5m and broadcast on Foxtel, reaching up to 800 million households in Asia over four days.
And it would conclude with the three-day LIV golf team’s event, also in Adelaide, featuring 48 of the world’s best players.
The “Festival of Golf” looms as an attractive option to organisers because it gives LIV golfers the chance to earn ranking points at the Asian Tour event, which would help them qualify for majors in 2024.
LIV golfers have been denied the chance to earn rankings points which could see many of them fail to qualify for the world’s most prestigious tournaments.
The ability to showcase the Fleurieu Peninsula throughout Asia is also likely to be very attractive to the South Australian government, with a cost of something in the order of $7m in state and federal funding to bring the festival to South Australia.
The April tournament would also feature the world’s best players but competitors would not have the chance to earn ranking points and there is no TV deal on the table with only live streaming of the event planned.
It would also cost the SA Government around $5m, double the cost of the October event.
Labor MP Leon Bignell, Chair of the Major Events Attractions Committee, has a $40m purse to spend and has already spent around $14m on bringing the V8 Supercars back to Adelaide after it was abandoned by the Liberals.
Another $2.5m outlay for a three-week festival seems like a no-brainer given its potential to put the state up in lights throughout Asia, as well as fill hotel rooms in the city and country.
But curiously, The Big Deal has been told the one-off event in April remains the more likely option at this stage.
LYON A SAINT AGAIN
Ross Lyon has completed his incredible return to St Kilda, one almost more unbelievable than his shock and sudden departure 11 years ago.
Lyon coached St Kilda to 71 wins, three draws and only 36 defeats in five seasons at Moorabbin from 2007-2011.
In that time, he led the Saints into three grand finals - not bad considering the club has only played in eight in 125 years (two in 2010).
He also won minor premierships with St Kilda in 2009 and Fremantle in 2015 but has yet to conquer the game’s highest peak.
Former Sydney and Melbourne coach Paul Roos told The Big Deal podcast that working with the personalities of players and staff at a football club is often what brings coaches undone.
“You’ve got to manage so many people, probably the thing that coaches are least prepared to do, it’s that management of people,” Roos said.
He added that while players can often gain something from defeats, the same does not apply to coaches.
“There’s not a lot of joy in it. You can still find a little bit of joy in a young player playing well and all those sorts of things but as a coach it’s completely about the team, it has nothing to do about you as an individual.”
NETBALL PROSPECTING FOR NEW SPONSORS AFTER LOSING HANCOCK DEAL
Netball is again facing a serious financial crisis after losing Gina Rinehart’s $15m, four-year sponsorship deal.
It’s another classic case of a breakdown in communication between a sport’s administrators and their primary asset, their players.
The Diamonds released a statement in the wake of the pulled sponsorship underlining the reason for the team’s concerns declaring it was not Hancock Prospecting’s impact on climate change but the company’s historical attitudes towards First Nations people and how that affects squad member Donnell Wallam.
“The singular issue of concern to the players was one of support for our only Indigenous team member,” Diamonds players said in a statement on Saturday following Hancock’s withdrawal.
“We are fully committed to the Diamonds’ Sisters in Arms legacy and the values this represents, alongside Australian Netball’s Declaration of Commitment.”
Netball Australia announced a $4.4m annual loss in June, plunging it $7.2m in the red in the last two years with debts of more than $4m.
In originally accepting the sponsorship deal with Hancock Prospecting, it rejected a similar lucrative partnership with a private equity firm.
In a further blow to the game, West Coast Fever confirmed that Roy Hill, Hancock Prospecting’s majority-owned iron-ore operation, had also pulled its principal sponsorship arrangement with the club as a result.
Whether you support the players’ stand against its governing body or not, netball is now the poorer and scrambling to keep its head above water for not consulting its players before choosing a sponsorship partner.
Equally, these same players must now be prepared to accept the consequence of their actions, both in terms of their own financial positions and the flow-on to grassroots netball the Hancock money would have had.
It’s a fascinating discussion as to just where sporting teams and organisations should draw ethical lines when entertaining alliances.
Tobacco companies are gone. Energy companies are squarely in the gun. Gambling sites are under scrutiny. What of alcohol brands or fast food producers whose products, when abused, cost the country millions in health care?
Are there many companies that are prepared to part with the dollars elite sporting teams and organisations demand when seeking major sponsorships, that you couldn’t make a moral argument against?
There will be no shortage of other sports and teams in Australia walking a similar fine line, nervously hoping a player rebellion doesn’t put their own balance sheets in dire jeopardy.
Sponsorship expert Paul Kind, a former commercial boss of the NRL, told The Australian that Netball Australia’s experience could lead to many corporations rethinking their sponsorship plans.
“The positive intent of Gina Rinehart’s decision to invest in a sport that was financially struggling was being undermined by the public discussion,” Kind said.
“It only takes a single player of influence to make a stand – and then, in conservative sports like cricket or netball, it becomes almost untenable. In investing in sports, companies are looking for community goodwill as a result of their investment in the sport.
“If they don’t get that, it’s not surprising they walk away.”
We talk about these challenges on The Big Deal podcast this week with one of the pioneers of sports activism in the corporate world, former Executive Chairman of SKINS, Jaimie Fuller. So make sure you’re following the show on your favourite podcast player.
NBL WAGES RISE BUT ASSOCIATION SEES RED OVER LEAK
Australian Basketball Players Association CEO Jacob Holmes says NBL players are angered by the release of their wages in a News Corp report last week.
The report indicated that the leading NBL players earn similar money to the highest paid AFL players with the League’s top earner making close to $1m last season.
That included marketing and other off-court roles.
“The ABPA condemns the unsupported release of NBL players’ personal and private information,” he said in a statement.
“The ABPA will not agree to the public release of the players’ private information without the unanimous agreement of the players and with the appropriate protections in place.
“The players are able to access comparable salary information through the ABPA, which provides players with information to support their contract negotiations whilst also protecting their anonymity and privacy.”
The report claims six NBL players earned more than $500,000 last season.
The NBL salary cap last season was a little more than $1.6m per team, having risen more than 50% in the last six seasons.
While AFL players by and large earn more money, there is no doubt the NBL’s leading lights are closing the gap.
Six AFL players reportedly earned more than $1m in 2021 with speculation that figure rose to nine in 2022, headed by Dustin Martin on between $1.2-1.3m.
Several weeks ago, Warren Tredrea claimed on The Big Deal that new Crows recruit Izak Rankine will be one of the highest paid AFL players next season, earning $1.5m on a largely front-loaded contract.
DEMONS BOARD CHALLENGED IN SUPREME COURT
Members of the Melbourne Football Club have reacted with anger after a Supreme Court of Victoria ruling granting the release of their email addresses to a fellow member.
Former board candidate Peter Lawrence had been provided postal addresses of members by the club as the Corporations Act dictates, and had written to them regarding proposed changes to the Demons’ constitution.
But Lawrence’s court victory has also given him access to members’ email addresses which the club has originally refused to provide for privacy reasons.
Melbourne’s proposed constitutional tweaks include changing the title of the club head from Chairman to President, acknowledging its AFLW team and changing terms of board members.
Lawrence heads a group called “Deemocracy” which wants a greater raft of changes considered for the constitution.
The Demons released a statement lamenting the ruling and saying they had been bombarded by calls from irate members.
“We have received in excess of 350 phone calls, emails, and social media posts from members expressing their frustration that their personal information may be available for a member to contact them directly, without their permission.”
MESSI EYES A NEW VENTURE
Soccer superstar Lionel Messi is thinking about life off the pitch by forming his own venture capital company.
The 35-year-old hasn’t been banging in the goals at PSG at the same rate he was scoring them for Barcelona and is already planning for the next phase of his domination of the game.
He has founded a holding company that plans to have interests in sport, media and technology and how they intertwine.
“Play-Time Sports Tech” will explore “stage agnostic” opportunities, with a focus on soccer-based tech start-ups.
For those of you who don’t live on Wall St, that means they will consider proposals at any stage of their development.
“I am excited to extend our roots into Silicon Valley, and I am thrilled that Play Time will collaborate with daring entrepreneurs from all over the world,” Messi said in a statement.
The company already has a financial stake in soccer-based gaming venture Matchday.com as well as memorabilia platform AC Memento.
Messi’s US$110m pay packet this season places him second in the world behind Cristiano Ronaldo.
The Portuguese star might want to plan for his future too after refusing to come on as a sub against Tottenham last week.
Red Devils coach Erik ten Hag has promised there “will be consequences” with Ronaldo’s future at Old Trafford on thinning ice.
Ronaldo was left out of the entire United squad for the weekend’s 1-1 draw at Chelsea.
BIG BROTHER WATCHING AT WORLD CUP
Big Brother will be attending next month’s FIFA World Cup with the Qatari government requiring the expected one million visitors to the nation to download two tracking apps to their phones which some have labelled as nothing more than “spyware”.
Ehteraz is a COVID app which can alter content on a user’s phone, override the phone’s own apps and software, prevent it from switching to sleep mode and disable its lockscreen.
While Hayya, which is the World Cup’s own app, can share information with almost no restrictions.
The potential for the misuse of that information has raised alarms all over the world.
The head of security for NRK, the Norwegian Broadcasting Corporation, said: “It's not my job to give travel advice, but personally I would never bring my mobile phone on a visit to Qatar.”
Given the recent outrage at the potential for private data to be shared following the Optus and Medicare hacks, the level of concern is understandable.
For those attending the tournament, It might be a good time to pick up a throwaway phone for the month.
FIFA REJECTS LOWBALL BIDS FOR WOMEN’S WORLD CUP
FIFA is holding out for more money for the broadcast rights to the 2023 Women’s World Cup to be held in Australia and New Zealand.
FIFA President Gianni Infantino said some broadcasters had offered “100 times less” what they had paid for the men’s event.
"When broadcasters - often public broadcasters, but also private broadcasters - offer us 100 times less for the Women's World Cup than the men's World Cup, even more than 100 times in some occasions, that is not acceptable," he said.
He added the 2023 tournament would cost FIFA US$400 million (A$638m) and that it was determined to recoup its costs.
The guardian of the game has rejected a number of bids from Italy, Germany, England and France.
Optus Sport has already been awarded the rights in Australia with Matildas games on-sold to Seven.
The 2019 tournament drew 1.12 billion viewers with more than half a billion accessing digital platforms.
The final was watched live by more than 260 million viewers, more than double the audience of the 2015 final.
BARKLEY POSTPONES TV RETIREMENT AFTER MONSTER CONTRACT
Charles Barkley earned around US$40m across 14 years with the 76ers, the Suns and the Rockets - nearly a quarter of that in his final season.
But he could match that in the next two years, just to talk about the game!
American broadcaster TNT has just signed Barkley to an explosive 10-year contract worth an estimated US$200 million for their half-time show, Inside the NBA.
Shaquille O’Neal, Ernie Johnson and Kenny Smith have also re-signed but it’s Barkley who is seen as the star of this show.
The ridiculous money appears to have convinced him to remain with the network beyond the expiration of his previous deal which was due to expire in three years.
He remarked in February that he wasn’t sure he would continue beyond that point.
“I don’t want to die on TV,” the 59-year-old said.
“I want to die on the golf course or somewhere fishing.”
NINE TO ACE NEW TENNIS DEAL
One of the Nine Network’s own mastheads, the Sydney Morning Herald, reports the network is in advanced negotiations with Tennis Australia about extending its broadcast partnership.
The report says Nine has offered $85m per year over five years.
Tennis Australia is trying to secure close to $100m, around $40m more than the current deal.
Nine and Seven effectively swapped tennis and cricket rights in 2019.
But Nine hasn’t given up on regaining the cricket rights as well and is poised to bid, along with Paramount, owners of Network Ten, and the current rights holders, Seven and Foxtel.
Seven had interest in regaining the tennis rights but was locked out of the bidding process.
T20 WORLD CUP BONANZA FOR MEETING OF SUBCONTINENT RIVALS
The T20 meeting between long time protagonists India and Pakistan at the MCG has proven a TV bonanza with a record global viewership of 167 million people.
Some 15.9 billion watching minutes were recorded throughout India alone where broadcasters charged a premium of up to 20% to advertise during the match.
That you can quantify any cricket watching record in that many minutes is a sign of where the game has gone over the last 20 years.
Record ratings were observed throughout India, Pakistan, England, Australia and surprisingly the USA.
In Australia, viewing numbers climbed 175% on Fox Sports.
The match went down as the most watched in T20 history and lived up to the hype with India needing 16 off the last over and two off the final ball before securing victory.
The regular bickering between the boards of the two rivals adds spice to their irregular meetings with recent clashes confined to World Cups.
The sides have not met in a Test series since 2007, nor in a one-day series since 2012.
“RECORD” CROWD WATCHES U.S. GRAND PRIX IN AUSTIN
American sources are trumpeting more F1 grand prix attendance records with 440,000 people attending the race in Austin.
Not bad for a championship already decided in favour of Max Verstappen who duly won again and clinched the constructor’s championship for Red Bull into the bargain.
The crowd figure was 10% up from last year’s race with one online report claiming the US is proving to be the new home of Formula One.
But the word “record” tends to be extremely subjective.
Sure, the Austin number edged out the total who attended this year’s Australian Grand Prix in Melbourne - that figure 419,114.
But the real record crowd for a Formula One Grand Prix anywhere in the world was set in 1995 when 520,000 attended the final race in Adelaide.
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