Cost restructuring begins at NRL HQ

By Matt Encarnacion / Wire

The cost restructuring at NRL headquarters has begun after chief executive Todd Greenberg warned employees of their need to “reshape the business”.

It’s been almost a month since league central sent home 95 per cent of its staff following the suspension of the NRL season due to the coronavirus pandemic. 

But as the league forges ahead with its intention to resume the competition on May 28, staff were told that their operations team would remain scaled back. 

In an email sent to staff late last week, Greenberg moved to address internal plans in the short and long-term future. 

“As an update, I can confirm that the Commission last week endorsed May 28 as a target date for the restart of the competition,” the email read. 

“That means a lot of preparatory work is being done now by a small team at RLC in terms of logistics, club and player health protocols, competition structure and broadcast arrangements.”

The development comes after heavy criticism of the NRL financial management.

Channel Nine has been particularly vocal at what they described as a “bloated head office” for “squandering” their lucrative broadcast deal. 

Nine and Fox Sports are currently in delicate negotiations with the league over the restructure of this year’s competition and resulting broadcast revenue. 

Players last month agreed to a 72 per cent pay cut and clubs guaranteed just $2.5 million each should the rest of the season be wiped out.

The league has also reportedly been forced to apply for a $250 million loan from overseas financial institutions because of COVID-19.

Both ARL Commission chairman Peter V’landys and Greenberg have already conceded that the league will need a long-term cost restructure. 

And it appears it has already started at Moore Park, with Greenberg admitting its competition restart is almost certain to be done behind closed doors. 

“What this means is that our operations will remain leaner and as I have said previously, we’ll need to reshape the business for both the short and long term future,” the email continued. 

“The reality is that it won’t be business as usual on May 1, and we will need to implement the government’s JobKeeper subsidy program across multiple departments.”

The NRL will look to finalise discussions with broadcasters early this week before the commission meeting on Tuesday. 

The innovations committee is also believed to be scheduled for Wednesday, the same day the state government is expecting to hear the NRL pitch to resume.

The Crowd Says:

2020-04-21T06:44:15+00:00

Train Without A Station

Roar Guru


It’s mind boggling. But it surprising that a nation that doesn’t value access to healthcare has seen this happen.

2020-04-21T06:37:31+00:00

Rob

Guest


Sorry Train you are correct, 10 times. I must have just had trouble getting the head around the 500 times Covid totals the might US are racking up compared to Australia at present.

2020-04-21T06:02:25+00:00

Nick

Roar Guru


Fair point. I suppose there is remuneration deserved just for having to be torn apart by Paul Kent and Buzz Rothfield for doing nothing other than existing.

2020-04-21T02:55:20+00:00

Train Without A Station

Roar Guru


The USA has over 10 times the population. So 50x the salary seems reasonable given the greater footprint within that population.

2020-04-21T02:53:37+00:00

Train Without A Station

Roar Guru


But senior public servants don't have their reputations trashed by the media. Get the wrong person offside and you can find a public campaign to ruin your career and your reputation with future employers. There is a value to that.

2020-04-20T12:07:14+00:00

Nick

Roar Guru


No, I mean a public servant, not a politician. The deputy Secretary level would be ideal for this role. The public service isn't as wasteful as people think. And in this instance, they couldn't be. There is a finite level of revenue.

2020-04-20T10:29:33+00:00

Gray-Hand

Roar Rookie


What like a former State Premier? Public servants have certain skills that are useful for an NRL CEO job, but making money to fund themselves in a competitive marketplace is not one of them. Government departments are funded by the treasury. They don’t have to make money. They might be effective at their jobs, but they are seldom efficient, particularly in relation to costs. They are just as if not more prone to budgetary bloat as private enterprise.

2020-04-20T10:03:49+00:00

Rob

Guest


Australia has a population of 25 million and only 2 states possibly 3 million support Rugby League. The US have 100 times the population and NFL is a national obsession that multi national companies advertise on yet we compare pay packets? Like I said people would love to be running a Rugby League competition rather than a country.

2020-04-20T07:34:44+00:00

Nick

Roar Guru


All the more reason to engage a senior public servant to do the role...people who know government best. Goodell earns $70 million a year which is both ridiculous but also reflective of the fact that the NFL is obscenely profitable.

2020-04-20T07:29:25+00:00

JGK

Roar Guru


That said, it is less a financial role and more a political one because you have to deal with the clubs, players, media, governments and fans all under intense spotlight. It is a pretty unique skill set. The broadly equivalent role in the NFL is the NFL Commissioner, Roger Goodell. He earns nearly $70m a year, more than any player.

2020-04-20T06:45:22+00:00

Nick

Roar Guru


Agreed. There are public servants who manage 3-4 times the amount of people Greenburg does, are responsible for gobsmacking amounts of money Greenburg manages and do it for a quarter/third of what Greenburg is on. I'd pluck any senior public servant and put them in the role. They are far, far more fiscally responsible. Funnily enough, the AFL bunker copped a lot of stick precisely cause it pays $200 a game.

2020-04-20T06:42:51+00:00

Nick

Roar Guru


Every club CEO should be sacked. It's simply embarrassing that these people - in roles where historically a CEO is charged with managing a profitable organisation, can preside over year after year of losses, where they depend almost exclusively on NRL handouts and poker machine revenue from the affiliated leagues club. Can you imagine a CEO of a non-football company that would be able to find employment at another company with that type of management record?

2020-04-20T05:25:28+00:00

Paul

Roar Guru


That period when Smith was CEO seemed to coincide with the Clubs deciding they were the real rulers of the game. I reckon you're right, Smith was excellent for the game but because he didn't see things the way the Clubs thought he should, they forced him out and the game's been poorly run ever since. Love that last sentence!

2020-04-20T03:55:11+00:00

Rob

Guest


I realise I have early commented about players being a little narcissistic in their attitude towards money at this pandemic time but the fact many are paid double the PM’s salary 500k is probably ludicrous when you consider the job profile. Toddy Greenberg is apparently on $1.2 million dollars annually? This is exactly why the game is in financial trouble IMO. You could get 1000’s of people that would happily do what Todd a and other in the game are currently doing for 1/3 their current wage IMO. For instance I’d go and man the bunker for $200 a game doing a far better job than the seeing eye dog bunch that do it at present.

2020-04-20T03:19:34+00:00

LeftRight

Guest


Agree. Player and coach contract pay outs are just bloody eye watering. Clearly too much money & too freely available money has made RL wasteful from top to toe. Let's see how their new found austerity lasts.

2020-04-20T03:14:01+00:00

Rob

Guest


That’s interesting when you consider the fines handed out to clubs, players and coaches in that time. So who pocketed the fines? Gee it would be really handy if someone had of put it away. So that money is savings the game has magically lost.

2020-04-20T03:10:49+00:00

Train Without A Station

Roar Guru


I get what you are saying but surely those people would have an indication if they are at risk and be looking now. The problem being that other work will be unlikely in the current environment. My understanding is the Job Seeker is $565.70 P/f and the Coronavirus supplement $550. So $1,115.70 p/f. Surely receiving $1,500 p/f Job Keeper payments is better. Even if you pay Super, Fee-Help and income tax, that's still $1,217.86 p/f. And you will still have to wait to receive the job keeper payment now. The waiting period will be the same when job keeper ends.

2020-04-20T02:52:23+00:00

Nick

Roar Guru


I think history will ultimately show Dave Smith to be the best CEO the NRL ever had. He shook more money out of the broadcasters than anyone else. He at least set up a future fund, he had an eye for the long term future and financial stability of the code. It's the club geese that floored the NRL...people far too myopic and short sighted to see the bigger picture, and gutted the NRL of all the spare money, and kicked out Smith because he "wasn't a league man". Insanity. Greenburg has tried his best, but you can't pick club figures to be game administrators. And for the love of God, that means keeping Phil Gould as far away from the role as possible.

2020-04-20T02:47:56+00:00

Nick

Roar Guru


Keep them on JobKeeper for as long as possible until they can't. No one is going to be able to get a job at the moment anyway. I think there is a responsibility by the employer to care for the employee as long as possible.

2020-04-20T01:46:55+00:00

Noosa Duck

Roar Rookie


well I suggest that it is not just the NRL itself. However Grant was throwing money around like confetti but we also need to remember this point made in this mornings Telegraph. Quote: "'As the NRL faces its biggest financial crisis in history, an investigation reveals the clubs have lost $396.7 million since 2000, money burnt on dozens of coach sackings, over-staffing of football departments, player contract payouts, salary cap fines, the peptide scandal and legal expenses."' No not all clubs have squandered money in this way but the clubs that have been prudently managed and managed to stay scandal free you could probably count on 5 fingers. Methinks the whole box & dice needs a big re-adjustment.

More Comments on The Roar

Read more at The Roar