Everything you need to know about the NRL's Las Vegas expansion
Everything you need to know about the NRL's Las Vegas expansion
Not yet a subscriber? Discover specialised sports marketing insights, tailored for sports industry professionals within Australia and across the globe. If you work in sports for an agency, brand or rights-holder then this is for you.
In case you’ve missed it, the NRL are launching their 2024 season in Las Vegas with a double-header at the $2 billion-dollar, 65,000-seat Allegiant Stadium on Saturday 2 March.
This move represents the first time in the NRL's 116-year history that a game will be played for premiership points outside of Australia or New Zealand, marking a strategic leap into the US market.
Las Vegas has experienced a wave of sports investment recently - Formula 1, UFC, NFL, NHL and MLB all have teams there and/or host major events there. The NRL has now joined the party, signing a 5-year deal that will see them play 10 games at the home of the Las Vegas Raiders.
The NRL’s significant investment
This move is one that’s been considered for some time. Although the NRL secured a new 5-year broadcast deal with Nine for $650 million in 2021, and a separate one with Foxtel estimated to be worth $1 billion, there’s concerns that the league can’t achieve sustainable revenue growth by relying purely on it’s traditional streams. So they’ve been exploring new ones and in true Peter V’Landys style, they’ve decided to take a gamble on a bold new venture.
As part of their Las Vegas expansion, the AFR has reported that the NRL will encounter significant operational expenses (some listed below), and the total investment is rumoured to cost the NRL $200m over 5-years.
Allegiant Stadium venue go hire (estimated cost $1.2m per year)
90 x business-class flights with Fiji Airways (average cost $16,000)
32 x economy flights
6 x days of accommodation for 128+ players and staff at Resorts World
Training venue hire
Meals
Medical insurance
The NRL have teamed up with Resorts World Las Vegas to accommodate players + staff, and offer fans accommodation + travel packages
Generating new revenue streams
Although the investment is heavy, NRL Chairman Peter V’Landys is confident that his bold vision will deliver a compelling return via contra deals (e.g. Fiji Airways have become a sponsor and will subsidise flight expenses) and new revenue streams.
In fact, in addition to ticket sales, travel packages, sponsorship and corporate hospitality, they’re expecting that by 2028 they could generate:
$200 million in gaming revenue
$60 million in broadcast revenue
New subscription revenue also presents as a commercial opportunity - People based in the US can already watch the NRL season for $229 per year through an app called Watch NRL, but the NRL is expecting a significant increase in subscriptions.
Looking at the short term, Andrew Abdo has mentioned that they’re being “fiscally responsible” however he’s also hinted that this venture will be running at a financial loss in its early stages:
“It’s an investment in year one that is aimed at bringing in new revenue streams over time.”
Wagering is key
The US sports betting market is now worth $30 billion a year and is a key driving force behind the NRL’s move. Despite being only 5 years old, demand is high and they’re looking for wagering content outside the usual US time zones - this is the opportunity that the NRL are trying to tap into.
In 2022, the NRL earned $50 million from bookmakers and are due to drastically expand this revenue stream through the US via either:
An exclusive partnership with a US wagering partner (FanDuel is the most likely prospect)
A collaboration with multiple US wagering partner’s
Either way, the NRL are leaning in to wagering partnerships at the same time that many leagues in Australia, and around the world (e.g. AFL and EPL) are aiming to reduce their reliance on them, due to the public backlash they’ve received.
The NRL’s Las Vegas marketing plan
The US is home to the world’s biggest sports and some of the most passionate fan bases. Since rugby league is relatively unknown to most people, there is a considerable task ahead to raise awareness of the sport and educate newcomers on what to expect. The NRL has conceded that they don’t have millions of dollars to throw at advertising each year to do this so they’re having to be strategic with their plans. To maximise reach and impact, they’ve adopted a range of tactics across paid, owned and earned channels.
Press conference at Allegiant Stadium
Recently, Spencer Leniu, Aaron Woods, Campbell Graham and Billy Walters joined NRL representatives visiting Las Vegas, Salt Lake City and Los Angeles, participating in media and community appearances.
One of these appearances was a press conference to formally announce the 5-year deal with Allegiant Stadium, unveil the official match ball (which is uniquely US-branded) and get potential US fans excited about what’s to come.
Sports partnerships - UFC, Las Vegas Raiders & NASCAR
Also at this press conference, the NRL announced a series of new sports partnerships with the Las Vegas Raiders, NASCAR and the UFC. Details on what they each entail are currently vague, however the UFC partnership will see the pair share content and publicity opportunities, featuring high-profile fighters and players.
This new partnership will provide a platform for the NRL to engage with the US audience like never before, whilst enabling the UFC to further embed themselves in the Asia-Pacific region.
Thanks to the UFC partnership, the Manly Warringah Sea Eagles will benefit from the opportunity to utilise the cutting-edge UFC training center in the week preceding their opening match.
The Brisbane Broncos will also be basing themselves at the the Los Angeles Rams’ training facility, so Billy Walters dropped-in to check out the facilities, and film some branded content with Kyren Williams.
*Australia is one of the LA Rams’ designated International Home Marketing Areas.
Media partnership - Fox Sports
Key to the NRL’s plan is their landmark deal with US channel Fox Sports which will see them broadcast 2 x Las Vegas matches for the next 5 x years on its main channel - reaching a potential audience of 90 million Americans. Given the games are taking place on the West Coast, the broadcast will be shown during prime time on a Saturday evening in the US, and on prime time Sunday in Australia. The deal was negotiated by Peter V’Landys and backed by News Corp Chairman and passionate Brisbane Broncos fan Lachlan Murdoch.
A partnership with a blue-chip sports media channel is also key because it can assist with pre-promotional activity…
Media appearances & integration
The players were involved in several media appearances, but a highlight was Aaron Woods and Campbell Graham featuring on Fox Sports' half-time coverage of a Las Vegas Raiders NFL match.
Further benefitting from their newly-formed partnership with Fox Sports, Rob Gronkowski delivered his famous ‘Gronk Spike’ during the ‘Fox NFL Sunday’ show wearing a Manly Warringah Sea Eagles jersey which also went viral on social media.
Wagering partnerships & platform integration
Although the financial benefits of a wagering partnership have been noted above, another benefit is that it can extend the broadcast coverage and increase the level of engagement with the game. The league is exploring the concept of providing live match footage to US sports betting companies for direct integration into their platforms.
Sports Betting and broadcast go hand-in-hand - if you’re betting on the game, you’re more likely to watch it.
“No Pads, No Helmets, No Fear”
To quickly capture American interest, the NRL are leaning into it’s point of difference - the players don’t wear pads.
To do this, they launched a major advertising campaign showcasing rugby league as a game with no pads, no helmets and no fear using a 30-second clip that includes a series of big hits and spectacular tries.
Where possible, they’ve also tried to expose current and former NFL stars to the game, and showcase their raw commentary and reactions via social media.
Provocative advertising: “Australia’s Biggest Sport”
Given the limitations on their advertising budget, the NRL has needed to think creatively to maximise their reach, and one way to get maximum bang for buck is to do something that has talk-ability…
To spark conversation, the NRL installed a high-impact sign on Allegiant Stadium claiming that they were “Australia’s biggest sport”. This stunt quickly caught the attention of the Australian media and triggered backlash from the AFL community, adding fuel to the ongoing “code wars”. Among those were key high-profile AFL identities such as former Hawthorn president and Victorian premier Jeff Kennett, and former player and outspoken media identity Kane Cornes.
Although many expressed their arguments against the NRL’s self-proclaimed label, this PR stunt was a success because the controversy generated earned media coverage, which extended their reach beyond paid advertising.
The NRL are not strangers to this tactic…
To create hype in the lead up to State of Origin, they launched an OOH campaign in Adelaide (AFL heartland) announcing that “Real Footy is coming soon to Adelaide”
The Sydney Roosters also previously took out billboards in the US, cheekily claiming they are ‘World champions of football’ ahead of the Super Bowl
Community & talent pathways
In an effort to grow the sport at the grassroots level and to complement their broader marketing activity, the NRL are working alongside USA Rugby League on two initiatives:
A talent combine, where 2 x top male and female athletes will win a trip to Australia to try out for rugby league teams
A “Rugby League Vegas Nines” grassroots tournament
Clearly, the NRL views community engagement as key to it’s growth strategy, but unfortunately they had a minor mishap along the way and sent Sydney Roosters star, Spencer Leniu to a high school that was the home of a rugby union club, not a rugby league club.
Business networks
To further fuel growth at the local level, the NRL are planning to create cross-cultural business networking opportunities by hosting a full week of events for businesses and fans such as food & wine, and golf day events.
High-profile Australian celebrities in the US
There are a multitude of high-profile Australian celebrities living in the US that have close ties to rugby league. Among them are Russel Crowe, Hugh Jackman and Mike Cannon-Brookes. Although the NRL are yet to formally engage them, on the NRL’s recent US roadshow Campbell Graham attended a Utah Jazz game and met with Mike Cannon-Brookes. Given their power and influence, it’s anticipated that the NRL will seek their formal support at some stage in the lead up.
White House connections
High-profile connections are priceless. Luckily for the NRL, the Australian Prime Minister Anthony Albanese (South Sydney Rabbitohs fan) previously opened the door to Peter V’Landys, placing him alongside some of the most powerful figures in the US and giving him the opportunity to further spruik the NRL’s 2024 season launch in Las Vegas.
Will the NRL’s Las Vegas expansion work?
It’s still early days, but it appears as though their plans are on track as Andrew Abdo has noted that:
“We are fortunate in that we have been able to achieve revenue milestones early.”
Importantly, they’ve locked in a significant broadcast partner and are highly confident that they’ll announce a wagering partnership (or multiple) ahead of the season opener.
In terms of ticket sales, they’re anticipating a strong mix of local and Australian fans in attendance but have admitted that “there’s a lot of work to do” as only approximately 17,000 tickets had been sold by early December.
Given this is the case, we should expect to see promotional activity (through PR, advertising, and high-profile partnerships) ramping up across the US and Australia as we draw closer to the event.
If everything goes to plan across the next 5 years, the NRL will see their expansion plans deliver both revenue and fan growth. As Peter V’Landys stated:
“We spend hundreds of thousands of dollars a year launching our season. If we do this right, it won't cost us anything.”
Not yet a subscriber? Discover specialised sports marketing insights, tailored for sports industry professionals within Australia and across the globe. If you work in sports for an agency, brand or rights-holder then this is for you.