How rugby league was stolen by self-interested clubs

By Gary Magpie / Roar Guru

The punters cheered as the ARL finally agreed to the terms of a new Independent Commission to control the game of rugby league in Australia from February 2012.

Soon they will cheer again at the removal of the ARL Commission’s John Grant – but the punters are largely blind to the reality of rugby league politics and the true money trail that underlies the power struggle – unwitting spectators in the latest chapter of the theft of the greatest game.

To be clear, the ARL Chairman, John Grant, is not proposing less money for the NRL clubs, just allocating more of the financial gains to help grow the game at grass roots levels.

That is indeed a worthy cause that is long overdue and, clearly, within the mandate of the Independent Commission’s charter.

Punters need to understand his position is not to take money from the NRL clubs nor to not give an increase – just to give them less of an increase than previously agreed so that the broader game can be nurtured.

When the ARL Commission was debated in 2011, the usual Channel Nine player celebrities ensured the proposed Independent Commission had the backing of the unwitting masses and also silenced those highlighting the constitution’s obvious shortcomings.

This tactic continues today with Channel Nine player celebrities supporting the NRL clubs’ position to receive a further $100M and not see any of it be spent on grassroots footy as proposed by the Independent Commission.

Before the Independent Commission was formed, the ARL controlled rugby league in Australia – except for the national premiership competition which was, unfortunately, half-owned by News Ltd as a result of the great Super League wars of the 1990s.

It was truly a massive decision for News Ltd to forego its stake in the game which it had offered since late 2009 – but it was a moment seized upon by a different group that sought to profit from the game.

With the ARL itself an equal partnership between the QRL and NSWRL, its voting system gave a tie-breaking casting vote alternately between the two custodian bodies. For the decision to disband the existing ARL and form a new entity called the ARL Commission, that casting vote was the NSWRL’s Colin Love.

The QRL’s Ross Livermore and Terry Mackenroth warned everybody of the proposal but were both attacked in Sydney amidst claims they were stalling change. Indeed they did oppose the proposed Independent Commission’s constitution, which would give 16 votes to the existing NRL clubs (one per club) but just one vote each to the QRL and NSWRL bodies.

These bodies together had a 50 per cent ownership in the national premiership and were responsible for the game of rugby league at all levels. The QRL, in fact, proposed an alternate constitution to limit the NRL clubs’ collective power in the best interests of the game in the broader sense.

This sentiment was not shared by the NSWRL – its directors still being determined by the Sydney district clubs, most of which were also NRL clubs. The QRL’s proposed model was rejected.

The resulting constitution sees the so-called Independent Commissioners fate at the mercy of the NRL clubs’ – hardly independent. The NRL clubs’ collective vote can oust any Independent Commissioner and the ousting can continue until they get what they want.

This fact was obvious in 2011 to the disbelief of the average punter. But, as they say, you should always bet on a horse called ‘self-interest’ and the NRL clubs, and the NSWRL by proxy, have self-interest in spades.

This week is the first real test for the ARL Commission – not for its Commissioners, but for its constitution. It is a test that it will fail, a test that will demonstrate the voting model does not promote independence of decisions for the game, a test that will demonstrate that the NRL clubs cannot be trusted to act outside their own interests and a test that will prove that the game of rugby league has been stolen from the many clubs by the few.

Constitutions matter and reversing a bad one takes years and takes courageous individuals to stand up in the face of enormous opposition and self-interest.

The Crowd Says:

2016-12-11T07:33:34+00:00

3_Hats SSTID 2014

Roar Rookie


Shane Richardson worked at the NRL. He is under the impression that it will be $10M BUT that is for a 36 man Roster which includes 6 Rookie contracts. The RLPA are working on a 36 man roster as well. Souths have 16 players signed up for 2018 so that is what Richo is working on! Players NOT signed up for 2018 include: all 3 Burgess Brothers, John Sutton, Aaron Gray, Alex Johnston, Bryson Goodwin, Kyle Turner, Jack Gosiewski and Dave Tyrrell. PLUS Newcomers Robbi Rochow, Brett Greinke, Luke Kelly and Anthony Cherrington.

2016-12-11T04:04:49+00:00

3_Hats SSTID 2014

Roar Rookie


Nobody wants those Sydney clubs who controlled the NSWRL and the ARL in the 70s and 80s and are the same clubs who tried to bury other clubs in direct competition with them for sponsorship and Juniors in the 90s and during the super league WAR to have any control of the ARLC today. This is a complete History of the Greed and Power structure within the NSWRL The Clubs with the power are also those clubs who do little for their own local grassroots juniors! Roosters, Bulldogs, Sea Eagles and the Tigers The Dragons do have a board member on the NSWRL and DO spend money on their grassroots juniors. Roosters (Politis) is still on the NSWRL board He tried to bury Souths and had them kicked out. It was purely only to take over the Souths Juniors Territory. Ha, it was the Souths Juniors Club at Kingsford who fought back because financially they are the 3rd or 4th RICHEST licenced club in NSW. They own the Juniors in souths territory, NOT the Rabbitohs. #Spend NOTHING on juniors in their area but is moving in on the Central Coast. Bulldogs (Peter Moore in the 80s) buried and stole juniors off the old Wests Magpies and at Campbelltown. (Dib) on the NSWRL board (Peponis) Chairman of the NSWRL #spend very little on Juniors Eels (Fitzgerald) tried unsuccessfully in the 90s, he tried a Takeover/Merger of BOTH Penrith and the OLD Balmain. The Eels have little control today. Penrith football club was broke at the time because the Panthers Leagues club was doing refurbishments thus gave less cash to their football operations. It forced Penrith to Join Super League to survive! They also received help from John Howard as it is in a Marginal electorate. Wests Tigers formed to counter Canterbury and Parramatta from taking over the old Wests and Balmain respectively! It was the only way for the 2 clubs to survive. (John Chalk) is also instrumental in Souths getting kicked out. (Dave Trodden) is NOW the CEO of the NSWRL. Wests at Ashfield has now taken over the old Balmain. # Don't have the CASH to spend on their Juniors. Sea Eagles (Arthurson, now Geoffrey Gerard) on the NSWRL board Still trying to steal the North Sydney Juniors moving in on the Panthers Juniors at Blacktown now. #Spend very little but they seem to be trying to fix that up. Dragons (Geoff Carr) also instrumental in getting Souths kicked out and did his level best to steal the Sharks Juniors and Moved in on the old Illawarra. As in direct retaliation, Cronulla joined up with super League! They had NO CHOICE otherwise, they would be extinct. Robert Millward is now on the NSWRL board #Do spend money at Wollongong but very little at Kogarah.

2016-12-11T02:31:06+00:00

3_Hats SSTID 2014

Roar Rookie


It is good to see Vincent that you have expanded on MY IDEA that I wrote on another thread. You used a $750k increase each year, I wrote a $500k increase. Administrators, how do you Copywrite your OWN COMMENTS on here?

2016-12-11T02:21:33+00:00

3_Hats SSTID 2014

Roar Rookie


The problem in Sydney is NOT that kids are playing other sports, it is more to do with fewer kids are playing sport full stop. There is so much choice these days. Kids these days prefer to play video games on their play stations and to play with their smartphones and to text their mates on where is the next party. In my day you had Rugby League in the Winter and Cricket and surfing in the Summer. That was basically ALL. The soft kids played handball and went to the cinema on Saturdays. NO Mobile phones, No computers. THESE DAYS there is so much choice the mind boggles! Can't you see that Gary Magpie? OPEN YOUR EYES MATE! Just outside my window, right now as I type there are kids outside playing ridiculous silly games. WHY aren't these kids on the Cricket field as we used to do? Soft parents = soft kids = soft choices!

2016-12-11T02:09:10+00:00

3_Hats SSTID 2014

Roar Rookie


OH Yeah? Which clubs? Souths, Brisbane, Melbourne, Canberra, the Warriors and Manly are Privately owned so their members have ZERO say on their respective boards. Gold Coast and Newcastle are owned by the NRL The Tigers and the Dragons are Merged entities so their Members have ZERO say Parramatta is in the process of banning factions. Not sure of the cowboy's structure. So that leaves the BAD OLD BOYS in Sydney Easts, Canterbury, Penrith and Cronulla who are controlled by factions who are told what to do! Some clubs can vote for board members but they can't instruct their control freaks Club Chairman like Dib and Politis how to think or what to say.

AUTHOR

2016-12-07T02:56:31+00:00

Gary Magpie

Roar Guru


Very true, Ferret...

AUTHOR

2016-12-07T02:46:28+00:00

Gary Magpie

Roar Guru


Hi The Barry, grassroots means the lower tiers of the sport and include all junior competitions and all senior amateur competitions (there's a blurry line on payments as some low grades pay $50 a win to their players - but I won't get into that...). Grassroots would NOT include the defunct NYC, the second tier Queensland/NSW Cup, the third tier Sydney and Brisbane comps. The term is used to highlight that the beautiful turf is only possible because of the parts you don't see (i.e. the roots) and if the roots aren't strong, the turf becomes patchy. But as any yard dwelling male knows, nurturing the roots is hard work and it is often neglected while accepting a lesser quality turf. I wish the ARL Commission had the independence to invest in and nurture the game's roots rather than the lazy tenants at the NRL clubs wanting to have their cake and eat it too.

AUTHOR

2016-12-07T02:34:44+00:00

Gary Magpie

Roar Guru


You avoided the issue - it isn't about the population of the country, it is about PARTICIPATION in the sport. So you can compare it to any MAINSTREAM sport in the USA and you will find that they dominate that sport. For example, their big three: baseball, basketball and of course NFL - and also ice hockey in the northern states. Being mainstream means you get the bulk of the sporty kids participating and developing. Rugby League is becoming LESS MAINSTREAM in Sydney. Talented sporty kids are playing other codes now so our "pool" of players these days do NOT include the best potentials. We need to make RL mainstream. This year's NRL ads "A different league - play junior league" are aimed at hitting the right buttons to make RL mainstream. Well done to the ARLC/NRL for this year's ad - I just wish there was $100M to get the ad off the internet and onto the television...

AUTHOR

2016-12-07T02:25:19+00:00

Gary Magpie

Roar Guru


Here, here, John - if you are pro-expansion ('spreading the seed'). I agree [smart] expansion should be a priority. I also agree John Grant hasn't been able to make that happen. But, I don't believe the lack of expansion is Grant's fault. If he can't even keep $100M for juniors without the clubs sacking him, how on Earth could he get expansion over the line? No existing NRL club has ANY benefit from expansion - and no existing NRL club would ever support the ARLC doing it. THIS IS THE POINT! The NRL Clubs control the ARL Commission through their ability to oust Independent Directors which makes the ARL Commission unable to make independent decisions for the greater good of the game.

AUTHOR

2016-12-07T02:08:12+00:00

Gary Magpie

Roar Guru


Of course they can.

2016-12-04T03:37:56+00:00

ferret

Guest


Spot on analysis. Unfortunately megaphones like Phil Gould will get what they want and we'll go back to the bad old days of the clubs running the game in their, and only their, interests.

2016-12-03T21:39:31+00:00

Norad

Guest


NFL owned by its clubs = GOOD. NRL owned by its clubs = BAD. The rugby league media at its best yet again.

2016-12-03T11:17:24+00:00

3_Hats SSTID 2014

Roar Rookie


NO, Members can't tell their chairmen how to vote or what to do!

2016-12-02T22:56:17+00:00

Pomoz

Roar Rookie


"I want the game of rugby league to thrive!" Well, we both want that Gary. The CRL is extremely important and deserves support. Althpugh I support Penrith, it wasn't my premise that it is the heartland, it was just an example I'm familiar with. I want every district to get the right level of support. Clubs like the Roosters and Manly frustrate the hell out of me because they couldn't care less about their own district. The CRL and other areas can receive support from the clubs. It would make sense to split the areas up and get the clubs to support their allocated areas. A central team could also created to support the CRL and that would require funding. The best way to decide is to get the clubs in the room and put up the various models that can be used. The clubs then have an opportunity to say "the NRL can do CRL support, its too hard for us. What budget do you need?" or "we will do it, you give us funding for it and then we can make sure it is done properly". Perhaps a combination of the two makes sense where those clubs that take on a CRL district get additional funds. The districts without an allocated club are supported by the NRL. In any case, it doesn't matter what the solution is, the commission need to be collaborative and consult with the clubs to solve the problem. Not announce decisions without input. The clubs are a great source of knowledge and of they are approached properly, they will buy into the solution. Decisions made by head office without input from the people who actually do the work, are usually doomed to fail, even with the best intentions.

2016-12-02T22:42:36+00:00

Pomoz

Roar Rookie


I don't wish to be difficult but you said "To be clear, the ARL Chairman, John Grant, is not proposing less money for the NRL clubs, just allocating more of the financial gains to help grow the game at grass roots levels.". Actually, he is. As I understand it, there is a written memorandum of understanding regarding funding and it was not just a verbal agreement. I believe the principles were outlined (130%) but not the exact dollars. We will have to disagree about the club's share of funding. The clubs should get a much bigger share of the massive increase in line with other sports. What you suggest means that the players will once again not get a fair share of the revenue. It is the players who are in hospital in their sixties with worn joints and arthritis, not the commission or the media. It the players whose bodies are smashed every week. I resent every single dollar that is wasted on giving another head office executive a salary, unless it is for a good reason and will improve the game for everybody. I do agree there should be more funding at grass roots level but not by a centralised big brother. I think it would be better done through the clubs by encouraging them with incentives and making it compulsory to commit to various grass roots activities in order to receive funding. Right now, it would mean clubs like the Roosters and Manly would receive lower grants because of their failure to invest in junior development. However, the idea is not to punish them. The idea is to make sure they get out in the local community and build a strong relationship in their area and a junior pipeline. One they realise their level of funding is depending on supporting the community at grass roots level, they will start making the right level of commitment. Money talks and all that.

2016-12-02T22:11:42+00:00

3_Hats SSTID 2014

Roar Rookie


With my Manly comment in regards to Cash, I think that they are better off than I first thought. Especially for 2017 as they will have NO Monday Night Games as they were scrapped. Manly has increased their revenue through sponsorships and memberships. I expect that their home crowd average will also improve for 2017.

2016-12-02T22:03:42+00:00

3_Hats SSTID 2014

Roar Rookie


The Sharks have gone from a $4m deficit in 2015 to a $500k deficit in 2016 so winning the comp with all of the extra sponsorship and Merchandising Dollars has helped them.

2016-12-02T21:37:41+00:00

3_Hats SSTID 2014

Roar Rookie


REALLY? More is better? I am not so sure about that... In the Olympics Australia with a smaller population wins far more medals per capita than the United States do. SURE, the USA always win more medals but they have a population of 324,118,787 Australia has 24,289,200 so in effect America has 13.34 Times our population BUT do they win 13.34 Times more Medals... NO WAY! At the 2016 Olympics, Australia was NOT at our best but we won 29 medals to the USA 121 ONLY 4.17 Times better even though their population is 13.34 Times larger. SO in effect, Australia was better than the United States per population. SO MORE is NOT always better!

2016-12-02T07:28:01+00:00

VN

Guest


Great comments lately. I do not 100% favour moving clubs but wests is prime and one more. I think before any of that can happen they need to sort out the juniors and funding. If stG goto woolongong more full time and one to central coast, thats positive direction, and a perth team, 2nd nz and 2nd brisbane. The comp could use that badly, and adelaide. At the end of the day if they get the foundations in place moving will become a no-brainer for a club hopefully

2016-12-02T04:28:27+00:00

Mister Football

Roar Guru


Good post 3 Hats. We've had a similar debate in Melbourne for decades now, about 9 Melbourne clubs being too many, etc, but the truth is that Melbourne continues to underpin the whole competition, and all 9 clubs are an important part of that. It's pretty much identical for the league clubs in Sydney. Ratings have never been higher, another rich broadcast deal on the horizon, and the Sydney clubs are a part of that. Amazingly, both the Sharks and the Western Bulldogs have been hotly tipped forever to end up on the scrap heap, and lo and behold, they both break premiership droughts in the same year. What's the bet that both their financial positions will be looking pretty good in this year's annual report? If the NRL is to expand to 18 teams, then the commencement of the new 2018 broadcast deal is the perfect time to do it - but that will be an absolute impossibility if the current clubs are going to wrangle most of the money.

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