The spread of the COVID-19 virus is a declared pandemic, having massive worldwide impacts that go well past sport. It’s a virus that doesn’t care about borders, sports or balance sheets.
Right now, there’s no vaccine or cure and from latest reporting it seems the most likely candidates to pass it on are people with no obvious symptoms. All the advice we’ve been getting is that numbers of infected people can jump rapidly unless precautions are taken.
In light of this, it was an incredibly poor decision to continue to play NRL Round 1 in front of crowds and then to continue to play at all, especially following the advice we have all received about avoiding large gatherings.
We’re all being asked to take care of ourselves and each other and for mine, making the players continue to play is the very definition of creating an unsafe work environment.
If there was a serious Rugby League Players Association out there, you’d expect they’d be more than vocal on behalf of their cohort. But the RLPA hasn’t posted a news item on their website since January and their last media release was about their annual general meeting.
Being a professional sport doesn’t grant you immunity from COVID-19 and some of the comments I’ve seen from administrators and punters alike have been mind-bogglingly naive at best.
Australian Rugby League Commission chair Peter V’landys couldn’t help himself whenever someone put a mic in front of him this weekend, coming up with gems like “There are no cases of the virus in the area and I don’t think it should be blanket policy when it comes to this” when pushing the case for Friday’s North Queensland versus Brisbane game to go ahead with a crowd.
(Mark Evans/Getty Images)
He followed that up on Saturday with a request for Federal government cash though the media. “In this situation, the government has to assist us if things go pear-shaped. Rugby league is a crucial part of Australian society. It’s our relaxation. It’s our escape.
“We are in battle-gear ready to go. This is an extraordinary scenario for rugby league and I will do whatever I need to do.”
How about protecting your players and fans?
When the equine influenza outbreak hit Australia’s horse racing industry in 2007, V’landys was able to get $235 million out of the federal government and this is being referred to many times over as rugby league tries to position itself at the from of the sporting welfare queue.
But this time around, everyone is affected. The AFL will lose millions. Cricket will lose millions. Horse racing will lose millions again. Other smaller leagues are going to lose hundreds of thousands of dollars and be in genuine existential peril.
And that’s not to even mention local clubs of all sports, who often run month to month, wondering how the hell they’re going to make it through season 2020.
Just a few weeks ago the NRL was boasting of a $30 million profit in 2019, after a $45 million profit the year before. If the game was in such a fantastic financial situation, why go cap in hand to the government for a lifeline?
Make no mistake – the entire rugby league year is at risk right now, the whole NRL regular season and finals, State of Origin, and the end of year Kangaroo tour of England.
Origin might be cancelled. (Photo by Matt King/Getty Images)
So all bluster and bullshit aside – what kind of state are NRL clubs in right now? Let’s look at some numbers publicly reported by NRL clubs (and very helpfully compiled by the wonderful @SportsIndustry on Twitter).
In 2019, Penrith Panthers made $2.13 million from memberships and ticket sales and just over $1 million from merchandise. Those revenue streams would be in serious trouble.
But Panthers also took almost $64 million in gaming revenue and they have a lot of assets. They’re robust enough to handle a pretty big whack.
Gaming revenue is a massive part of almost every NRL club and it looks like that’s what might keep New South Wales clubs in particular alive.
A team like Cronulla, though, relies on the annual NRL $13 million funding distribution to keep things moving along. In 2019 the Sharks got $5.6 million in sponsorship, and $7.6 million from gaming.
They only sold $360,000 worth of merchandise and reported an overall loss of about $3.2 million. Can they withstand a season with no crowds or no play at all? It’s not looking so great.
The NRL gives every club about $13 million dividend each year, drawn from broadcast cash, income from State of Origin, tickets, sponsorship, merchandise, all of it.
State of Origin is a key part of annual revenue and as it stands we’ve got no way of knowing if it will go ahead, how it will go ahead or where it will go ahead. That’s the grey area all sports are now operating in.
Is it hysterical to get into thinking this way? No – this is the new normal.
Chad Townsend of the Sharks (Photo by Matt King/Getty Images)
No one has any idea how long this COVID-19 pandemic will last, how much more or less dangerous the virus may get, how many more people are going to get infected, and how badly they’ll be affected. There’s no vaccine expected until some time in 2021 (hopefully sooner!) so this is going to be our reality for a whole to come.
Flu season in Australia peaks in May, and that’s when COVID-19 is supposed to as well. This isn’t going away and it’s only a matter of time before a player tests positive or a club has a swathe of players and officials affected and that’ll be that for season 2020.
If you’ve spent cash on a membership, tickets, travel to a game, magic round or whatever, you’d better make your peace that the money is likely gone. If you’re lucky enough to have some spare coin, maybe 2020 is the year to buy a club membership and give some support.
It’s certainly an unprecedented time and things are changing daily, but a lot of people won’t forget how some folks’ first reaction was to cover their arse rather than make strong decisions for the health of the fans and the players.
Ralph Malph
Roar Rookie
where is papi smurrf.....Woody
Nicholas Belardo
Roar Guru
Eh depends. I have taken 2 weeks off work, mainly to protect my wife who was in hospital and the ICU the last two times she got the flu, and because she has the ability to work from home (I don’t) Sport would be good to watch for me, but there is plenty of other things to do than sport on TV
DP Schaefer
Roar Rookie
I tend to think the main thing that would stop the league is the fear of legal action.
DP Schaefer
Roar Rookie
"It’s a virus that doesn’t care about borders, sports or balance sheets." But is apparently temperature affected. “There are no cases of the virus in the area and I don’t think it should be blanket policy when it comes to this” That may have some basis. I understand the instances of infections are next to nothing in north Queensland. In fact, very low in warm areas. LOL, Covid-19 greatest enemy is 'global warming'.
Outsidethebox
Guest
A different perspective might be that most people in Australia are still going to work why is an AFL or NRL player any different. They are now playing in front of empty stadiums so risks a lot lower for the players themselves and probably no more than for anyone catching public transport to work and being in office with other people. If they use private planes to transport players and supports staff then risks are lower than using Qantas or Virgin to transport interstate. Basically it could be managed well. The other factor might also be the mental health of a nation. In allowing footy to continue those stuck at home or cannot go out have something they love to watch on TV, something to look forward too. It takes the mind off all the other panic being stirred up around the nation and may well do more good than harm.
Womblat
Guest
How infuriating. You are dead wrong. Stop spreading hysterical propaganda. That 3.5% figure is rubbish. Only one country has done meaningful research into infection versus fatality rates, South Korea, and their confirmed mortality rate for Corona is 0.7%. Your other figure is wrong too. Seasonal flu kills 0.4%, mostly the elderly. Stop the hysterics. Get the facts. Then spread your hard earned "sang froid" before we panic everyone in the nation to their doom.
Nick
Roar Guru
Look, a lot of businesses are going to struggle. There will be a lot of belt tightening. But any good business builds into it capacity to withstand an economic shock as best as they can. The NRL absolutely has done none of the sort. That's entirely their own fault. Their automatic response when ever they get a surplus is to give it to the players and then to the clubs. Nothing saved, nothing invested. It's atrocious business management. George Calombaris-esque.
Footy Fan
Guest
Fair point. But it's maybe more nuanced. How many businesses could be out of the market for a year, still pay employees, suppliers and various bills a large chunk, and still survive? Maybe the biggest profit earners globally over the past 10 years?
Footy Fan
Guest
Just to clarify - the sports grants were well dodgy. By accounts, 150M frittered on replacing racks at Mosman rowing club, giving huge subsidies to the richest private schools for olympic-level facilities (where multiple swimming pools, footy fields with grandstands, indoor gymnasiums and many tennis courts exist), and building female change room blocks for clubs without female teams. I agree 100% that was attrocious. My comment is towards the hint that all available funds must go to healthcare.
Footy Fan
Guest
The health system needs a large enough slice of the spending pie, too true. But that will never be remotely near 100%. Black and white thinking, trying to reduce many needs to an either-or choice, doesn't reflect the complex reality of various ranked needs and the interests of the community in how they live their lives. Yes, we need a high volume of the best quality hospitals, schools, roads, infrastructure, etc. But there's more to life than that, even if it all amounts to a few percentage points, and even during a crisis. And believe it or not, the spending generated in the non-essential economy keeps going round and round the economy and in taxes to government, and ends up supporting all parts - kill off one part and even the essential parts suffer.
Seymorebutts
Guest
If they play behind closed doors whats the problem? Cities are already being locked down.. what is everyone supposed to do... write a novel, ..learn to code? Cant we at least have the footy on TV to provide a bit of relief? Fact is.. .people still need to eat.. earn money.. how long can they lock down a society for? Two weeks? In Wuhan they welded people into their apartments.. they are probably dead now.. is that what is in store for us? Most people have very mild symptoms.. and kids are the least affected.
zonecadet
Roar Rookie
Surely TV money is in jeopardy the moment they cease playing? which must eventually happen, it has everywhere else. Without it how financial is the NRL? Is that the real reason they’ve decided to keep playing? This could be the rationalisation the League has needed for some time. If we lose the less financial clubs, so be it. Makes room for expansion to places like Adelaide and Perth where decent facilities exist and growth potential lies. This might mean we’ve seen the last of Leichhardt Oval, Brookvale Oval and Shark park (or whatever it’s called this week), and that is surely a good thing.
piru
Roar Rookie
Fair point GrayHand, I think Soapit has probably nailed it.
mushi
Roar Guru
Also having the entry point in Southern Europe was always going to be a worst case scenario, they aren't the best with social regulation - which is core to the charm of the various nations.
Josh
Roar Rookie
force majeure clause just about in every commercial contract.
Josh
Roar Rookie
worst comment from a chairman in ages "an australia without rugby league is not australia", time to get a new job.
Josh
Roar Rookie
A bit like records of bradman batting during the great depression. Definitely escapism.
Josh
Roar Rookie
The difficult thing is your top 5 take up a significant part of your salary cap. It would surprise a few people just how great the range is for players in the grand final lowest to highest salary.
The Spectator
Roar Guru
I can’t believe the articles I see are Taken seriously by some, take care of your family and good day peoples , peace !
Monorchid
Roar Rookie
TWAS, what are those assets? I don't mean this in a smart alec way, but I was under the impression that RL had little or no assets on which they could realise a return. I'm only looking for education.