South Sydney football boss Shane Richardson hopes the NRL’s postponement due to the coronavirus pandemic forces the league to recalibrate funding, saying it is currently “not a workable business model”.
Richardson said clubs and players were paid too much and that the NRL would need to cut funding by “at least 25 per cent” across the board to ensure the sport’s future in the next 18 months.
Richardson spoke out after an emergency meeting with all 16 club bosses on Tuesday with ARLC chairman Peter V’landys to discuss the fallout over the decision to postpone the 2020 season due to the health crisis.
Richardson was hopeful the season would resume after clubs were told of possible start dates at the beginning of June, July and August and as late as September 1, with a possible grand final just before Christmas.
But Richardson hoped the powers that be used the postponement to reassess club funding going forward.
“What we have to do now is make some sensible decisions to recalibrate the game, how do we disperse the money and cut back the overheads and ridiculous money that has been spent over the last period of time,” he told Fox League.
“We have a wonderful opportunity because of this to recalibrate players’ wages, to recalibrate the way clubs are running which is not successful because like it or not …. four clubs only are making a profit now.
“This is a wonderful opportunity to take the game to the next level.”
Richardson said he tried to call for change in 2017 before the NRL and players union (RLPA) announced a historic Collective Bargaining Agreement that delivered a $980 million deal for players – the biggest in the game’s history.
“I am not involved in CBA discussions but over the next 18 months this game needs at least a minimum of 25 per cent cut across the board,” Richardson said.
“Tough decisions have to be made because the game can’t sustain the wages of the football departments and the players’ payments as it is now – it is not a workable business model.
“(In 2017) we capitulated, we showed plastic balls and made decisions based on pressure from clubs and players.
“This is a chance to start again. We want to stop the bleed.”
The likes of Manly, Gold Coast Titans and the Warriors are expected to be hardest hit by the postponement.
V’landys informed clubs that they would receive their scheduled $1.2-million monthly payment next week with more expected in May and June.
However it is unclear whether the league can continue the cashflow from July.
It is understood the game has around $150 million in reserves but it could lose roughly $500 million should the entire season be cancelled.
Richardson did not believe a 16 team competition was the ideal NRL model but stopped short of clubs being culled.
“I am not advocating to get rid of clubs,” he said.
“What I am saying is what is the business model?
“At the end of the day the player payments and football departments are a major part of the business.
“Unless they are brought down there is no chance of us going forward in the next 18 months.”
Hard Yards
Roar Rookie
My life is very uneventful now that sport and everything else is locked down. I spent the day alone again, listening to the odd creak in my house; wondering whether I could have been a better husband to my late wife. I spent the day remembering the birth of my children and my pride in them as they grew, torturing myself as to whether a word here or there in their lives was for their better or for their hindrance. I looked at all the goals and dreams I had as a young man and realised that things had turned out very differently. But then, that’s what we all find. I spent the day contemplating that that the only thing that matters in life is relationship with others, whether those relationships be rocky at times or not. Not this job or that job, or the pursuit of wealth. Not disappointment. Not success. But how I have dealt with others. And I hoped the scales were tipping in my favour. That’s what I did in a nutshell. But for me every day is a good day for me now considering the alternative, and I’m grateful for the banter that I get to have with a bloke like you who, although we have never met, I know to be a good man. Mate, you’re into the footy - that’s worth 90% on its own!
Nick
Roar Guru
I'm impressed
mushi
Roar Guru
Maybe he didn't want to usurp the process. It's like board meeting you don't expect a director to run around under cutting everything they got out voted on a derailing the company right?
mushi
Roar Guru
He just resigned to save the club the salary. What did you do today hard yards?
mushi
Roar Guru
Well he resigned to save the club his salary so they sure seem like some actions
no one in particular
Roar Guru
the time came
Big Daddy
Guest
One other thing that make it difficult for the NRL to obtain funding from the government. The centres of excellence which a number of clubs have built or are being built have already had substantial funding from various state governments so it is unlikely . If any of the governments give them grants or interest free loans all sporting codes will have their hand out and at the moment the country cannot afford it. I think any funding on ANZ stadium should be suspended but go to more worthy causes.
Christo the Daddyo
Roar Rookie
If they survive it will be because someone's given them a handout they don't deserve.
scrum
Roar Rookie
The NRL Commission was set up to funnel even more of the pie to the NRL clubs to satiate their irresponsible spending. Each new broadcast deal was met with immediate claims from clubs and players for more money. Meanwhile grassroots and Junior league struggles. The game has had ever increasing revenues and through incompetence and greed these funds frittered away for the benefit of a few. Now the price for this unfettered greed has to be paid. Zero sympathy from me.
Train Without A Station
Roar Guru
The issue is instead of using this extra $3M to fund a football department, they are using it to subside much bigger, more extravagant football departments which they can't afford.
Andrew
Guest
Richardson is right - the model is broken. Starting with a team called South Sydney that hasn't played a game in South Sydney in coming up to 25 years.....
Tom G
Roar Rookie
Me too.. but maybe I’m just a little jaded by every setback the NRL has faced being met with the same doom and gloom predictions of armageddon. Now that there’s a genuine crisis it seems it’s still the same solutions of less teams in Sydney emerging as the major talking point.
Peter
Guest
You remind me of that crack: A coffee for me and a clue for my friend. But I’m sure you feel like a big tough warrior. Enjoy.
Randy
Roar Rookie
Certainly won't be around? that's a bold prediction I'll be surprised if a single club folds
Paul
Roar Guru
Richardson is one of the most influential CEOs in the NRL and was on the committee for the 2017 bargaining agreement, yet I've not been able to find anything anywhere, that talks mentions him doing this". I don't doubt he's telling the truth, but who ever he spoke with,or in what forum, it's doesn't appear to have been a very public comment. The NRL will not be allowed to simply crash and burn, so Yes,I think the salary cap will be reduced in favour of a rainy day fund and TPAs will still exist.
Big Daddy
Guest
While not a big fan of Richardson what he says does make some sense. The NRL grant of $13 million is far too much. It gives clubs that false sense of security and many have been so reliant that many of them haven't made much effort to cover costs over and above the salary cap. If the grant was say $10 million which would cover salary cap that's an extra $48 million that could have been put to other use. The clubs need to take some responsibility for their own finances instead of being propped up by NRL handouts. I don't feel sorry for clubs as it's of their own making and the NRL have made it easier for them
Cadfael
Roar Guru
He did say that he "tried to call for change in 2017 before the NRL and players union (RLPA) announced a historic Collective Bargaining Agreement." He's saying the same thing again now. Will it happen? Will they cut the salary cap and still allow TPAs?
Big Daddy
Guest
Isn't Richardson head of football. I thought Blake Solly was CEO and would have thought he would have been the spokesman for South's.
Nick
Roar Guru
Well, I agree. But want those words backed up by action when the time comes.
Big Daddy
Guest
Not as bad as it sounds. There's going to be a lot of retirements or contracts not renewed at the end of this. When they do comeback I think contracts for some will be only 1 year. Trouble is guys on long term contract will want to see them out. Also if NRL decide to reduce salary cap when they do comeback that throws another spanner in the works. So many scenarios so restarting again in 12 months ? Is not a bad idea.