Fed-up clubs are resorting to threats of a possible yet highly unlikely repeat of the Super League breakaway competition as the funding feud with the ARL Commission gets even uglier.
ARL Commission chairman Peter V’landys and NRL CEO Andrew Abdo have aborted plans to fly to the UK for the World Cup final as the stalemate with the clubs and RLPA drags on past the November 1 start of the league’s financial year.
According to a NewsCorp report, Panthers chief executive Brian Fletcher and several other club bosses are warning head office that with the licences expiring at the end of next season, the threat of rebel clubs forming a breakaway competition could not be ruled out.
“We won’t be dictated to,” Fletcher warned in his Daily Telegraph interview. “Peter has got to realise we need some answers and we need some transparency.
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“We put on the show but we never see anything. It’s actually deplorable. Show us the figures. It’s hard to support them when you think they are robbing you.”
Andrew Abdo. (Photo by Mark Metcalfe/Getty Images)
Dolphins coach Wayne Bennett says a mooted breakaway rebel league outside of NRL jurisdiction “won’t happen” and predicts the 17 clubs, RLPA and NRL hierarchy will eventually smoke the peace pipe.
Speaking at the Dolphins’ historic first day of pre-season training, Bennett knows what a breakaway league looks like. He was a key figure in the Super League war where Brisbane were an integral part of the new competition, but he said talk of another episode was wide of the mark.
“That’s rubbish,” Bennett said. “I only heard three months ago that the CBA was on again. Every time they have the CBA, there’s drama. But at the end of the day, we will get it all together and there will be one competition next year. They will sort it all out.”
At the centre of the dispute is the fact that the NRL has not been able to strike a deal with the RLPA on a new collective bargaining agreement with the players despite months of negotiations.
The clubs are yet to be informed of the salary cap for the 2023 season and they do not know how much they will be funded from the NRL for the next 12 months and beyond.
They want $5 million each on top of whatever the salary cap figure ends up being.
Several clubs are known to be frustrated over the drawn-out nature of talks, with no salary cap or funding figure meaning they cannot plan budgets.
“That (delay) is because we have taken a tougher line on a full-distribution model,” V’landys said. “What became apparent during COVID-19 is distributing all your money out is not good when you have a crisis.
“I am confident this will resolve itself. With the clubs, I don’t know that we are that far apart.”
Crucial to any resolution will likely be greater grants for the women’s game. All 10 clubs with women’s teams have written to the NRL to say the proposed $1.2 million in funding for those clubs next year would still leave them $500,000 out of pocket by participating in the NRLW.
Newcastle Knights after winning the NRLW Grand Final. (Photo by Cameron Spencer/Getty Images)
But V’landys said the gap could be bridged and that would keep most clubs onside.
“That (deficit) is not going to happen,” V’landys said. “The Commission is very passionate about the women’s game, and we want to invest in it. That is one area we want to do. I would like to see clubs kept whole on the women’s game. At the moment they are losing a bit, so if we fix that I think the majority of clubs are fine.
“Then you will have one or two clubs who want more money, which they won’t get. You have to put your foot down at some point.”
There is still far more to resolve with the Rugby League Players Association, with no key item agreed upon after months of talks.
V’landys made clear on Monday the NRL would be unwilling to cede to several requests, with players wanting greater agreement and consultation rights on matters such as integrity after the implementation of the no-fault stand-down policy, as well as governance reform on welfare and education.
“The players need to reduce their levels of demands, because you will get nowhere on those,” he said. “There are 26 pages of demands.
Australian Rugby League Commission chairman Peter Vlandys. (Photo by Mark Kolbe/Getty Images)
“We’re not going to agree to them because they are not commercial. Each one of them is to abrogate your power away from your organisation – which no-one does.”
The union also wants additional money from outside the likely $10.4 million cap to fund the past player and transitions program, which would include a medical hardship fund long after retirement.
“We’re not far apart on the money, it’s just how it’s distributed,” V’landys said. “We want to see the money go to the players now where they want to have retirement funds and injury funds.
“Someone like (Joseph) Suaalii won’t get that for 10 or 15 years. He would be more interested in having it now. So they’re the arguments we’re going to have. How the money is going to be distributed – should it all go in the salary cap and the cap would be massive?”
The 2023 draw, which is usually announced in October, still has not been released while the Commission’s ongoing legal battle with the NSWRL and acrimonious relationship with the state body is causing angst among the NSW-based NRL franchises.
There has been speculation suggesting the clubs are agitating for Abdo to be sacked due to the financial stalemate which has affected all 17 clubs, however V’landys is backing his CEO.
(Photo by Cameron Spencer/Getty Images)
The RLPA, with former Knights, Storm and Panthers forward Clint Newton at the helm, has been at loggerheads with the NRL over a number of issues relating to a lack of transparency and consultation between Rugby League Central and the players.
When the pandemic caused severe disruptions to the premiership in 2020 and 2021, the players took substantial pay cuts while also being blindsided by various rule changes introduced with little notice by the ARL Commission.
In 1994, ARL bosses Ken Arthurson and John Quayle returned early from a Kangaroo tour of the UK when the first threats of a breakaway league started coming from clubs.
That feud eventually led to the formation of the Super League involving 10 clubs not aligned to the governing body but it only lasted one season in 1997 before the warring parties struck a truce to form the NRL.
Dolphins CEO Terry Reader said he expected a resolution on the 2023 salary cap figure, likely to be between $10m and $11m plus concessions, to be imminent.
“There is a working committee that is working on that with the NRL in more detail. As a group, we get together and talk about what’s happening, where we are going and what’s going,” Reader said.
“Nothing has changed and we are looking forward to getting to the end of those negotiations, hopefully with a good result for the clubs, players and the NRL.”
Whatever the cap turns out to be, Reader said the Dolphins still had money in the kitty to spend.
“We’ve been working off a cap and we haven’t spent our whole cap which has been well publicised,” Reader said.
“There’s been no complaints from our club. We continue on and we are happy with the squad we have put together. There is still a lot of time before we run on the field in March.”
JennyFromPenny
Guest
Dog track (grass) went by the way mid 90s. This was the inside of the trotting track which still runs, Thursday nights but it's on very borrowed time. It's the block adjoining the current stadium, so still opposite the League's Club, kind of, but it's bigger, probably more than twice the size. The State Government is compulsorily acquiring the land for use as it wishes ie knock down the small adjoining club at the track, build a new stadium, effectively no bigger than Dairy Farmers turning into QCB. The reduced funding down from 800M to 300M was just State Government backflips and meant totally canning plans to upgrade Leichhardt, Kogarah, and Brookvale. They could still easily have upgraded all four grounds for 75M each (imo), but instead gave the lot of the reduced amount to Penrith. Hardly winning the tall poppies any new fans. Find it hard to believe you weren't aware, that all teams are allowed to play at their home ground week 1. It's weeks 2 and 3 that's long been the sticking point. Not sure how fans felt when Lang Park got rid of the standing areas, but plenty have only ever stood to watch at Penrith. Sitting down for the standers too confining. Like sitting down at a rock concert. Very different experience. Soon there won't be a choice, so just have to live with it.
Brett Allen
Roar Rookie
Name one professional sporting club that would even break even without broadcast revenue ? But as you pointed out Big Daddy's example isn't a professional sporting club, it's not a valid comparison, it's a licensed club business that supports a semi professional sporting organisation, very different to a professional league. it doesn't have to pay $10m in player salaries, nor does it have to fund it's football department to the tune of another $5m plus annually. Broadcast revenues aren't handouts, they are collectively earned revenues. The Commission might negotiate the value of the contracts, but it's the clubs who make the money, not the Commission. No one pays to watch Andrew Abdo tap away on his laptop all day, they par to watch the players play footy for their clubs. The money is theirs, every last red cent. The clubs are happy for the ARLC to continue to administer their league, they just want to be kept apprised of the games revenues and how they are being spent. Not the least bit unreasonable.
Brett Allen
Roar Rookie
Yes, but we do have the right to vote out our governments if we are dissatisfied with them. I'm not for a second advocating that the clubs should breakaway, I'm saying they don't need to, and PVL needs to be reminded of that. He serves at the clubs pleasure, nothing more. And it's not just this administration, RL has been plagued by one administration after another over the decades who view the games money as theirs, not the clubs. The commission is there to advocate for the clubs interests, not to dictate to them.
Brett Allen
Roar Rookie
It's important to understand the difference between the ARL Commission & the NRL, they are too often used interchangeably, but they're not. The ARLC is the governance body for the sport in Australia, the NRL is the professional league at the top of the pyramid, much the same as the relationship between the FA & the Premier League. The 16, now 17, clubs are equal & joint shareholders of the NRL, and as such own all the commercial right to the NRL's operations. The NRL clubs don't need to breakaway from the ARLC, they can just assume control of all the league's football & commercial operations any time they want, releasing the ARLC to concentrate on governance & the lower tiers & pathways. Now of course there would have to be a contractual agreement in place for the NRL to revenue share with the ARLC to invest in the pathways, but that is a relatively straightforward thing to do, virtually every major professional sport globally operates this way. The NFL, NBA, NHL, MLB, all the major European football leagues like the EPL, La Liga, Serie A, Bundesliga etc, they all operate that way. Governing bodies and professional leagues have very different priorities, and should be released to operate separately.
mushi
Roar Guru
The money doesn't though it's the league and ARLC that have the legal right to the big $ the clubs have licences to operate underneath that. They (the commission and league) also take on a broader funding role and have been forced into lender of last resort for multiple teams. Yes you could argue the clubs "generate it" but if you go that philosophical route over rights it's the players or even further it's actually the fans. When you boil it down what is sold is our attention, everything else is just a manufacturing process for that attention. Now what complicates this is the club's as a group have effective control of of the arlc (horrendous decision in structure) Which is why a breakaway comp is unlikely, they can fire PVL whenever they feel like it. It's why grass roots football is starved of funding because club's as a group will always be short term focused.
Nick Maguire
Roar Rookie
:laughing:
Noosa Duck
Roar Rookie
well what can I say ......? Then again some days later the NRL is not denying it so who knows at least no one can blame me for making it up :happy:
Nick Maguire
Roar Rookie
:laughing: MAFS!
Nick Maguire
Roar Rookie
:laughing:
Cricket fan in SG
Guest
Souths Juniors has 500 poker machines though...
Cricket fan in SG
Guest
They are entitled to have say, but they aren't entitled to kick, scream and threaten. Your comparison to politics - yes, we the people are entitled to have a say. We have that say every 3 years and through varying degrees of community consultation. What we don't do is threaten to break off and form a new country when the government passes a bill SOME disagree with. Our entitlement to have a say has limitations.
Red Rob
Roar Rookie
They don’t give up their rights and interests though. They are entitled to have a say in how things operate, just as citizens have a right to have a say in running the county. Otherwise it’s back to the days of Qld under Joh.
Red Rob
Roar Rookie
It would make MAFS look dignified, Nicko. Great Netflix series though, I’d cast Nick Cage as PVL :silly:
Nick Maguire
Roar Rookie
ND, "according to Mr Rothfield" I think that was your first mistake.
Nick Maguire
Roar Rookie
:laughing:
Nick Maguire
Roar Rookie
RR, :laughing: wthout someone telling them to "play nicely" like now! It would be like "Lord of the Flies" and within a couple of years there's probably 3 - 4 Clubs broke and out of business. The press would love it, imagine the backgrounding and leaks about what shonky stuff each club is up to when self interest reigns supreme.
Noosa Duck
Roar Rookie
I can only go from the newspaper report of 415,000 per day. I took it as per week I have just gone and read it again and it says according to Mr Rothfield $415,000 per day purely on administration If that is correct then it is $ 2.9 mil per week and $150 mil P/A The income is generated by the clubs and yes not all clubs are run well but at least half are well run so your comment about a breakaway league not lasting may have some merit but that depends on who actually runs it. If run by 2-3 of the more highly competent and business literate club Chairmen it could be a goer. However my point is that the money is going on huge admin and not to the grass roots to grow the game. When any organisation becomes top heavy they generally fail or requite a huge restructure.
Adam
Roar Guru
The referees wages would come from the football department. But I see your point.
Nat
Roar Guru
I didn’t know that. It does seem like a waste because it won’t hold that many more people, however, it doesn’t sell out consistently enough to warrant going too big. Maybe, and just speculating, they had to reduce the size because of the dog track? At least the facilities will be better and you might even get a roof over most of it (I haven’t seen the plans). If Sharks still got their home final this year, Panthers should with a new venue.
JennyFromPenny
Guest
Bennett is mostly praying that there's no breakaway, as he is well aware how long a new team lasts in such an environment. The way the economy is, 17 teams in '23 could easily be 14 teams by '25.