Fears clubs could be forced to fold over funding stalemate with NRL

CONCERNED club chairmen hold grave fears some teams could fold unless the ARL commission reinstates its now broken funding deal.

There are fears clubs could fold if the ARLC does not reinstate its promised funding deal.

CONCERNED club chairmen hold grave fears some teams could fold unless the ARL commission reinstates its now broken funding deal.

Two prominent NSW-based chairmen told The Daily Telegraph that the prospect of clubs financially collapsing was an “absolute reality”.

The NRL and clubs reached a strong financial funding agreement last December only for the ARL Commission to renege on the deal — leaving irate clubs wanting chairman John Grant’s head on a platter.

DEBATE: Should Semi stay or should he go?

IGNORED: ‘Selfish clubs need to give Grant a chance’

A desperate Grant sought further meetings with the clubs on Wednesday but club chairmen have boycotted all dealings until Grant stands down.

There are fears clubs could fold if the ARLC does not reinstate its promised funding deal.

An NRL media release issued on Wednesday stated: “The ARLC and NRL clubs said on Wednesday that they have agreed to postpone any meeting to give both parties time to consider their options.”

One option for some could turn out to be financial ruin.

“Clubs going under is an absolute reality. It’s very real if the MOU (memorandum of understanding) isn’t enforced,” said one chairman. “If the MOU doesn’t transpire in its current form then there is a significant risk that clubs who are already under financial pressure will be under even more pressure.

“We haven’t discussed it openly as a group because it’s not territory we want to get to. But we all know it could happen. That money was to balance the books for clubs and make sure they were financially sustainable going forward.”

Another Sydney-based chairman was equally worried about the clubs’ future.

“It (clubs sinking) is certainly a potential outcome, yes. No question,” he said.

“What has happened now is that clubs have made investments for the future based on that money. Everyone wants to invest in centres of excellence and grow their businesses. If that money isn’t going to come, it will be a massive problem. A lot of us have made strategic decisions based on the outcome of the meeting 12 months ago. We need a fair payday.

Damien Keogh of Cronulla, Laurence Lancini North QLD, Ray Dib of the Bulldogs and Bart Campbell of Melbourne Storm after storming out of an NRL meeting at League Central. Picture: Brett Costello

“Ultimately, everyone has created long-term forecasts based on the MOU.”

The Daily Telegraph reported three weeks ago that Sydney-based NRL clubs had lost a combined total of around $36m this year. Parramatta lost the most money — $11m — with premiers Cronulla achieving the best result but still losing $500,000.

“This absolutely demonstrates just how much clubs need the money,” said one chairman. “Everyone is desperate for money and that is exactly what the broadcast agreement has done, to ensure that all clubs are financially viable going forward. That’s the whole point.

“To suddenly backflip on it, it makes no sense. If they’re (ARLC) not running the central body well enough, then that’s something they need to address. But don’t take it from us. That’s where there is no transparency. They’re saying they can’t afford to pay us what they agreed to without any justification for that. If the reason behind this is that they are making a loss at the NRL, they have to fix it. That’s their problem.

“We agreed to a funding model that the game could afford and left plenty of money for grassroots. So I don’t know what the problem is. The easy route is to strip money away from the clubs. Someone has to be accountable. This isn’t the club’s doing.”

Originally published as Fears clubs could be forced to fold over funding stalemate with NRL