Was Todd Greenberg a good chief executive officer for the NRL? Does it matter?
When Peter V’landys took the job as Australian Rugby League Commission chairman, Greenberg was cooked – it wouldn’t have mattered if the CEO was Greenberg, Gil McLachlan, Bill Gates or Jesus Christ. V’Landys is not someone who plays well with others.
Now there’s a lot of garbage flying around now as journalists with scores to settle whack away, still wiping tears from their eyes after Greenberg called them “crisis merchants” in 2018.
There’s also a lot of crap being spouted across social media from mouths who obviously have no idea what a chief executive officer does or what’s involved in the operations of a business, they just hated Todd Greenberg ‘cos he was ‘head office’.
I daresay there are a few types like that across the NRL too.
Let’s start assessing his legacy by checking the numbers.
According to the NRL’s annual reports, on Greenberg’s watch between 2016-2019:
• Non-broadcast revenue grew from $144 million to $204 million, up 41 per cent
• Distribution payments went from $220 million to $317 million, up 44 per cent
• Club memberships rose from 301,809 to 319,375, up around six per cent
• Magic Round was created
• The NRLW and standalone women’s State of Origin were created
There’s also the 2017 collective bargaining agreement between the NRL and the Players’ Association, worth $980 million and including the highest minimum wage, salary cap limit and player payment pool in the game’s history.
The game posted a $45 million surplus in 2018, and a $30 million one in 2019.
Todd Greenberg and Peter V’landys (Matt King/Getty Images)
Obviously Greenberg didn’t do all this on his own, but if he’s going to be saddled with the bad, he can be given some credit for the good.
Greenberg was relentlessly belted for ‘poor economic management’, despite feeding NRL clubs more money than ever, which in some cases kept organisations afloat.
But clubs want more, more and more, and that’s a big reason why the game is in the situation it’s in right now after the COVID-19 pandemic came from nowhere.
The NRL’s administrative spend has rightly come under the spotlight at $181 million – the ‘$500,000 a day’ as it has breathlessly been reported.
It’s a truckload, but to introduce some reality it’s still less spend as percentage of revenue than Cricket Australia and Rugby Australia.
Greenberg and the NRL holding back a reported $10 million in player superannuation was a bad move.
The decision in 2017 to liquidate the game’s $55 million ‘sustainability fund’ to pay for the NRL’s digital platform and split the rest between the 16 clubs is a retrospective disaster, especially if rumours about reducing digital offerings are true.
Total crowds between 2016 and 2019 were down 51,565 or 1.6 per cent, not really worth firing up about but still down.
Buying a $15,000 ring for Cameron Smith’s wife to celebrate his 400th NRL game was a baffling move.
For me, the worst part of Greenberg’s time as CEO was his abject failure to support the game’s referees in the face of media scrutiny during the 2018 ‘rules crackdown’. This cost the game badly and the impacts of his backdown are still being felt and will be for years to come.
Referees have had a hard time in the NRL. (Photo by Cameron Spencer/Getty Images)
Despite all this, the long and the short of all these numbers is that until the coronavirus knocked sport around the world into a coma, the NRL had never, ever been in a stronger financial position.
The simple fact is that V’landys and some powerful club figures just didn’t want Greenberg in the way.
V’landys and his fanbois in the News Limited media have got their man. Paul Kent keeps panting frantically on his keyboard, celebrating the chair’s magnificence. Phil Rothfield launched a months-long attack typically supported by zero facts, memorably being slaughtered by Greenberg in an attempted ‘gotcha’ interview about the NRL’s finances.
Channel Nine’s writers and broadcasters toed the line as well, attacking Greenberg at every opportunity.
Possible replacements are being floated, names like Broncos boss Paul White, Melbourne Storm CEO Dave Donaghy, South Sydney CEO Blake Solly, and Simon McGrath from Accor hotels.
All accomplished professionals, all highly motivated and proven achievers. But how would they fit in with V’landys? Why would they want to be such an obvious second fiddle?
Why would they want to take the poisoned chalice that is the role of NRL CEO?
V’landys has made no secret of the intention to cut costs at head office, and it wouldn’t surprise to see the man himself come out of this with an executive chairman role, essentially in full control of the competition and its finances.
(Mark Evans/Getty Images)
He ruled out becoming executive chairman in the media a couple of weeks ago, around the same time he was saying Greenberg was safe for 2020.
If the Australian Rugby League Commission allows V’landys to become executive chairman, then they should be next to step down. Right now it would be another retrograde step for the competition and the game.
It’s an interesting time. Sports around the globe are scrambling to survive, clubs looking at ways to dump costs like they never have before.
A lot of people are also using the COVID-19 shutdown as a cover to get rid of things they didn’t really want to do in the first place and it looks like NRLW might be in the firing line. The Roosters have said they’ll pull out of the competition, about a year after complaining that running their NRLW team cost too much.
I’ve said before that I really, really hope I’m wrong about the apparent backwards direction the game is taking. When the crisis merchants are happy, that should be setting off alarm bells.
I really want V’landys to be the driver for an NRL that takes on the world and understands the game has the power, not the broadcasters.
Todd Greenberg may have jumped to save his long-term career as an administrator, but rugby league in Australia is left with an uncertain future.
Ian_
Roar Rookie
This goes well with my concept of good governance. If they are doing a good job I should barely know who the executives and board are. I should never hear or read about them. When they are well known, its almost always not a positive sign.
Slapsy
Roar Rookie
As I see it,rugby league needs to forget about any competition this year. When possible,players need to go back to the local competitions,while administrators sort out any future elite competition. They might even discover a better product.
ScottWoodward.me
Roar Guru
There are 2 ex TV station CEO's would make my shortlist. Either would be outstanding and a real coup for the game.
AJ Mithen
Expert
HOw do you think I felt writing it! :silly:
AJ Mithen
Expert
Agree 100% Scott. So much of the 'must have a rugby league background' talk just shows so many people out there have no idea what a CEO does day to day and is what they're responsible for long term. I still reckon it'll be PVL.
ScottWoodward.me
Roar Guru
AJ A high profile corporate exec told me yesterday how embarrassed he was for the game that some of the well-known rugby league names were suggested for the NRL CEO. "Are they kidding", he said. Like most things, you tend to get what you pay for and the game has a golden chance to recruit an outstanding CEO. What many don't get is if he/she cost $5m and they boost growth and the bottom line then they will turn out to be cheap. It is the most important decision PVL and the Commish will make; like when we recruit a key on field general for a team, it makes or breaks you.
Nick Symonds
Guest
"Not quite sure where capitalism has been exposed as a failure, here?" - America facing depression. Europe projected to lose a quarter of all jobs across the EU. China still has massive debt from the GFC and now they have to deal with this. Global debt is now over US$250 trillion. The virus is exposing all of that and more.
Dutski
Roar Guru
The mental image of Paul Kent panting over his keyboard is NOT one I needed at breakfast time. Thanks for that AJ...
AJ Mithen
Expert
Thanks Busty.
Sham
Roar Rookie
Not sure who is doing it but there appears to be quite a bit of back grounding going on to journalists. Where is Paul Kent getting all his mail, for example?
Nick
Roar Guru
Not quite sure where capitalism has been exposed as a failure, here? All modes of governance seem to have been crushed hard by this virus.
Nick
Roar Guru
You don't need that. That's problem number one right there Ben. You pick someone from "inside the circle" you are just begging for the same problems to remain. Todd Greenberg is a nice man, but it was a mistake to pick a person from inside the circle. The NRL is a billion dollar business. Build a cadre of footy people to advise, but not make the decisions.
Rellum
Roar Guru
Capatalism has been exposed as a failure. Franchise sport is just a small part of that.
Nat
Roar Guru
1 or 2 new teams though? Do we go to a bye system for one more team? Can they ask anymore $ from the broadcasters for that? To your point, splitting WT does give balance but I can't see any significant additional crowds or TV audience from them as indivual clubs again. 1st option is obviously Brisbane but if the 2nd isn't Perth, surely not Sydney-ish.
Nat
Roar Guru
Fair points Rob. 1, I agree. I can only assume the business case for Perth didn't stack up to warrant those statements. Who done them and the validity is up for discussion. The fact these statements were made before the virus took hold were concerning. 2, IMO, he's not pandering to the clubs. Right now he can position himself on their side because it doesn't change the scenario. With no accountability he can agree all he likes with their grievances to appease them but it doesn't put cash back in the bank. In their mind, he's given them every last cent but if they don't agree to get back on the park under his plan, there's no more money at all. 3, The broadcasters are super important. They have the right to want to renegotiate the deal for 2020, nothing is normal. Why they have to play it out in public I don't know. Same as Pt 2, he can pander to them now, to get something for 2020 but next year and final year of the deal should be the same. That buys him 18 months to organise the next deal. Right now he has to be a little subservient to those who pay the bills. Not so much to those who spend it.
AJ Mithen
Expert
Every sport has been exposed financially John, globally.
JOHN ALLAN
Guest
Does anybody agree that Corona Virus has not only exposed the NRL for top heavy staffing & financial wastage but perhaps Cricket Australia & ARU are guilty of the same "sins". So had the Virus not exposed what has been going on, things would have continued on as before & perhaps the media & the public would have been none the wiser.
Big Daddy
Guest
One thing that comes out of this is if Greenberg wasn't delivering on all these projects what was the commission doing while all of this was (wasn't ) happening. This commission was put together for the betterment of the game and on some things probably were but in the big picture they sat back and did nothing until V'Landys came along.
JOHN ALLAN
Guest
I can Nat. His bank balance.
Albo
Roar Rookie
I just don't understand the flak attack on V'landys here ? Have people no appreciation for the administrative achievements of the bloke ? He dragged the horse racing industry of NSW out from oblivion during the EI epidemic in 2007 / 2008 and secured a $235m rescue package from the government to keep the industry viable through that long quarantine period time. He forced corporate bookmakers and wagering operators to finally pay for race fields information worth $1b over 10 years. He has steadily increased the prize money and conditions for all the participants in the NSW racing industry. He has maintained the NSW racing and all the employment it supports even through this Covid 19 period when nearly all other sports disappeared without a whimper. Now as chairman of the ARL Commission he is once again leading the way to get the best deal for the NRL even under such difficult circumstances. He may be overly ambitious at times and can ride roughshod over lesser players, but in a competitive sports environment that exits in Australia, I would want him in the NRL's corner more than any other administrator. I hate to think where our NRL prospects would be today if we still had the likes of Beattie & Greenburg leading the fight for the NRL. We would be lined up well behind AFL's Gillon McLachlan's coat tails waiting for him to give us directions and hoping there is something left for us !