The Australian
Saturday, March 28, 2020
ARL Commission chair Peter V’landys is ready to make further cuts to head office in an attempt to appease the clubs and the players and snap an impasse that was threatening to delay the game’s response to the coronavirus.
It is understood V’landys and NRL chief executive Todd Greenberg have found an additional $7 million for the players for the remainder of the season, meaning a sum total of nearly $20m is now on the table.
It translates to a pay cut for the players of around 45 per cent for the entire season, although they will only receive just over 20 per cent of their remaining contract money. They are being asked to sacrifice more $70m to help the game through the current malaise.
It is understood the clubs have also been guaranteed their grant for the next three months, easing some of their concerns. V’landys intervened amid growing ructions from the clubs and players over the state of negotiations with the NRL.
Publicly, they have been acting in concert. Privately, fissures have opened between head office and their stakeholders. The hope is that they have now been closed and the game can move forward.
The Weekend Australian understands the Rugby League Players Association were taken aback by revelations that payments to the game’s retirement fund hadn’t been made for up to three seasons, equating to almost $10m.
Under the game’s funding agreement, it is understood the payments do not necessarily need to be made at particular points. Rather, the money needs to be in the account at the end of the broadcasting cycle.
Regardless, the absence of funds is believed to have shocked the players union — they were planning to use that money to help lower paid players — threatening to heighten tension at a time when the players are being asked to take massive pay cuts to help the game through the COVID-19 crisis.
Fortunately, V’landys appears to have plotted a way forward, having addressed the players union on Friday morning. He will talk to the clubs on Monday before a commission meeting later in the day where it is hoped that an agreement can be rubber-stamped.
There also remains a chance that the commission will open a line of credit with the banks, although V’landys is optimistic they won’t be forced to rely on it. It will only be there as an insurance policy in the event that things get even worse than current projections.
“We’re going to have to find some extra money and there are a number of ways we can do that,” V’landys said.
“The players and the clubs I believe will be happy. We have to stay united in order to fight this. I believe we have come to an agreement in principle and the process from here is there is a commission meeting on Monday to sign off on the package we have developed.
“I have to give a presentation to the clubs as to what we are giving them. If they’re okay with it we are through the worst case scenario.”
Rugby League Players Association chief executive Clint Newton acknowledge headway had been made.
“We’ve had constructive dialogue with both Peter V’landys and Todd Greenberg again today,” V’landys said.
“We will continue to work through the process with players, agents, clubs and the NRL. The consultation with the playing group remains paramount to any agreement that would be reached.
“We are committed to providing the relevant stakeholders with clarity in a timely manner and are confident of reaching an agreement early next week. We’re confident that our ability to demonstrate what’s achievable during the game’s greatest time of adversity will safeguard our immediate future while also protecting the longevity of our code.”
News of a potential breakthrough in talks with the players and the clubs comes at a sensitive time for the code in its response to the threat of COVID-19.
The broadcasters — the Nine Network and Foxtel — are due to provide their next payment to the NRL on April 1.
The Nine Network has already indicated that money won’t be on the table given they have no games to telecast.
It is understood Nine is also lukewarm about the prospect of the game returning in September given they are committed to the T20 cricket World Cup.
Foxtel is more believed to be more sympathetic to the NRL’s situation. The governing body is desperate to get back on the field by September 1 as they attempt to play one round of fixtures, the finals and the State of Origin series.
The likelihood is that the grand final will be played at Bankwest Stadium should the competition go ahead in that timeframe given the SCG will be committed to the cricket season.
“I am confident we will recommence playing this year,” V’landys said. “We will play one full round, the finals and State of Origin. If we can do that we won’t need any extra money. We’re going to have a line of credit but at this point if all goes to plan we won’t need to borrow.”
Clubs have asked the NRL for clarity before Wednesday so they can start their long-term planning.
The rescue package comes as the NRL officially cancelled Magic Round in Brisbane.
The NRL plan for the event to return next year.
The Queensland Rugby League and NSWRL also cancelled their reserve grade, interstate carnivals and junior representative programs for the year.
The decision means for the first time in the game’s 112-year history, a second- tier premier will not be announced.
It also means hundreds of second-tier male and female players won’t return to the field this year and must begin preparing for 2021. The cancellation of the competition will also save NRL clubs hundreds of thousands of dollars.