Rugby league great Phil Gould has warned he can’t see all 16 NRL clubs surviving the suspended season due to the coronavirus pandemic.
All 16 clubs have woken to a new reality on Tuesday, with no football in the foreseeable future and a significant hit to their bottom line.
Several clubs made moves to stand down staff or place them on annual leave on Monday night, with no-one safe as the clubs searched for ways to save money.
The impact of the coronavirus on clubs who have previously walked the financial tightrope in the past could be dire.
Without games being played, there will be no gate takings, corporate boxes sold and a significant dip in merchandise sales.
Nine separate clubs also have links to leagues’ clubs, which were indefinitely closed from Monday due to new laws aimed at preventing the spread of the virus.
Sponsorships could also take a hit without games being played and a number of businesses doing it tough, while the NRL’s losses could also impact on grants.
And Gould, who most recently filled a role as general manager at Penrith, admitted he feared for several clubs’ futures.
“I can’t see every club surviving,” Gould told Nine’s 100% Footy.
(Photo by Brendon Thorne/Getty Images)
“If this competition doesn’t get back on the field this year, and there is no broadcast income coming into the game, I don’t know how clubs are going to survive.
“Unless the criteria is so small next year to come into the competition, that they somehow find themselves in it.
“It depends what the funding arrangements are going forward. What the competition and salary cap looks like going forward.”
One hope for clubs is that franchises take a one-in, all-in approach, with Canberra coach Ricky Stuart confident all teams wanted to fight the issue together.
Costs could also be cut by a reduction in the salary cap, while NRL chief executive Todd Greenberg said all clubs had to find a way to reset the cost base.
Chairman Peter V’landys was also adamant the game would do its utmost to ensure all 16 clubs got through the issue together.
“We will do our best to keep all our clubs viable,” V’landys said at Monday’s press conference.
“We’re a family, a rugby league family. When one needs help, we will support them.
“We will do everything in our power to ensure every single one of our clubs remains viable and exists.
“We have some pretty tough decisions, but the main objective is to keep everyone within our game viable.”
Train Without A Station
Roar Guru
Yep. The NRL is a success in spite of their management rather than because of it.
josh
Roar Rookie
you've described business as usual, how's that working for them? Clubs in debt, NRL with zero cash reserves. This is about a professional sport. The cessation of super league should have seen a complete reset instead its an over-wrought amateur league run by people calling them professionals. The whole system is stuffed. My main point is there should have been a separation between the NRL and the local services club based teams.
Munro Mike
Roar Rookie
Newcastle is NRL heartland surely? Plonking a side in WA to create a 'national comp' is interesting. You're still advocating a comp that has 10 of 12 sides in NSW(ACT) & QLD. That's aeven worse than when the A-League started out with 6 NSW-QLD, 3 Vic/SA/WA and 1 NZ and called it a national comp. The reality is - it's not about the pins on maps to determine that it's a national comp - - it's simply that it is the peak national comp of that sport. The NRL is the peak national comp of RL even if it seriously is a 2 state proposition.
Munro Mike
Roar Rookie
#Onside The NRL and for that matter the AFL are not 'normal' businesses. Amalgamation of 4 might look okay in theory on an accountants spreadsheet - however - that would likely be a medium term greater negative than doing all possible to ensure the survival across the board. First step is chapter 11 conditions to allow for clubs (as businesses) to hold on through what is a known reason for lack of cash flow rather than being a poor on going business model.
Nick
Roar Guru
Actually, Dave Smith was focused on turning the game into something sustainable....which I think we've seen proof abound that the game is currently not. two investment bankers resigned in disgust about the management of the game. These are the people who were trying to help. Cricket didn't implode in 2018. 3 cheaters got caught and lead to an overdue review into the culture, not the financial management of the game. Football players are players, not managers.
Train Without A Station
Roar Guru
The head body is also dictated to by the poorly run clubs.
Paul D
Roar Rookie
So long as the NRL doesn't get a cent of taxpayer money I don't really care what they do. What a farce down in NSW. 2 billion spent on stadiums that can't be used for a sport that is rapidly frittering away whatever public support it still had through its grasping, financially irresponsible behaviour.
mushi
Roar Guru
Imagine the home ground advantage!
Nick
Roar Guru
Like the theory in principle. Legally almost impossible to pull off.
Nick
Roar Guru
I mean - Phil Gould is someone as a perfect example who should not be left near the management keys of any football club, or worse national administration. Why people think he's the answer to the NRL management problem is beyond me.
Nick
Roar Guru
That's got nothing to do with the business management of CA, Paul.
Nick
Roar Guru
Fine... but players should be confined to advisory or distinct board roles. They should never be left in charge
Rellum
Roar Guru
I know little of running a business and "HATE" paper work, but even a useless clown like me would run these franchises better than some of the current Franchise heads. I can't call them clubs anymore by the way. I reserve that for the QRL and NSWRL clubs and lower tiers, who have locals involved and are part of the local community, not just a business model.
Rellum
Roar Guru
That is more down to JL and Tim Paine. CA is just the same with different bodies warming the deck chairs.
Paul
Roar Guru
Not sure whether it's changed inwardly, but that win at all costs mentality they fostered under Peever has outwardly gone. Any mention of this Peever approach now, only comes from journos who haven't got the message
Chris Kettlewell
Roar Guru
Probably the best option for all the clubs to survive is actually to fully call off the whole season, not even consider trying to keep things afloat hoping that at some point we can get back, and basically cancel all player contracts, they can join the unemployment lines like everyone in entertainment and hospitality industries. Basically the clubs reduce their expenses as close to zero as possible. Then when we've come through all this there is suddenly a big hiring frenzy where all the clubs have to get out there and sign up players again for the new season. It's harsh, but unfortunately, everything is harsh at the moment.
Rellum
Roar Guru
Has CA's focused changed since 2018?
Paul
Roar Guru
Not sure you're right in your past comment, Spruce. I look at how cricket was run when Peever and co were in charge. They cared little about the game because their whole focus was on the cash. They were a pretty big part of the reason cricket in this country imploded in 2018. I completely agree the NRL is a business and needs to be run on sound business principles, but a the same time, it's a game and needs input from those who have experience in that area. Clearly a tough balancing act.
elvis
Roar Rookie
Sydney is where the money is, 5 teams at least. And “covering SEQ” is meaningless.
Big Daddy
Guest
What's annoying is the reaction of the players. Some of them are so selfish. It's not the end of the world. The world doesn't revolve around a lot of overpaid rugby league. They're now one of the every day people that have to struggle with this crisis.