NRL club bosses to follow players and accept pay cuts amid coronavirus crisis
While the focus has been on how NRL players and backroom staff will survive the game’s growing financial crisis, Rabbitohs boss Blake Solly is setting an example for other club CEOs.
NRL
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South Sydney chief executive Blake Solly has given himself a $50,000 pay cut to try to ensure the club’s staff members retain their jobs.
Apart from his extraordinary gesture, two other club CEOs are considering significant pay cuts to help save staff jobs.
While Solly would not comment, it is understood he left staff members stunned on Friday when he told them he would sacrifice two months’ pay to reduce pressure on club costs.
The median NRL club CEO salary is around $300,000 a year.
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South Sydney are expected to cut back staff numbers as NRL clubs feel the financial heat of coronavirus.
Solly asked staff to keep his financial offer private but it leaked out on Monday.
The Daily Telegraph has been told one Sydney chief executive and one interstate CEO will also look at shaving their generous pay packets to keep staff in jobs.
Solly has been mentioned as a candidate to become the next NRL chief executive should Todd Greenberg’s contract not be renewed.
But he has removed himself from an NRL working group which is assessing the financial issues threatening rugby league’s future.
NRL chief financial officer Tony Crawford told Solly it would be a conflict of interests for him to continue in the role.
Concerned staff members have contacted senior management at NRL clubs after The Daily Telegraph revealed that one-third of all football employees faced bleak futures.
Around 240 staff members at NRL clubs are this week facing possible redundancy.
Staff members have four options: being made redundant, told to take annual leave, offered leave without pay or asked to take accrued long service leave.
Clubs believe the available options will prevent staff being sacked.
The cutbacks will allow clubs to collectively save around $350,000 a week — around $10 million for the rest of this season.
One CEO said: “We have to look at the expenses to make sure we are still alive after all this is over.”
Just a few days ago, Solly issued a message to club members and stressed: “The health and safety of members, supporters, players and staff is at the forefront of any decisions that we are involved with.”
While coronavirus has engulfed rugby league, the Rabbitohs have to try to prepare for a big match against bitter rivals the Sydney Roosters on Friday night at ANZ Stadium.
Souths star Latrell Mitchell will line up for the first time against his former club.
V’LANDYS: PLAYER PAY CUTS WILL HAPPEN
Peter V’landys has revealed the NRL’s top paid stars could be asked to cop the biggest pay cuts amid the coronavirus crisis because “not everyone is on mega bucks”.
With fears a suspension of the competition will result in a $500 million loss, V’landys confirmed pay talks with the Rugby League Players Association would start this week.
The ARL Commission chairman also revealed senior NRL executives would also take pay cuts, while some clubs have initiated redundancy talks and some senior club administrators were also ready to cop pay cuts of up to 20 per cent.
While some leading players have suggested they should not have to take a pay cut regardless of the game’s precarious financial state, V’landys said it was time to face reality.
“It will happen this week,” V’landys said.
“We are not the magic mushroom where we can be isolated. And if we form part of the stimulus package we need to have shown we have done our bit.”
As part of the most recent Collective Bargaining Agreement the governing body and RLPA agreed both parties would have to act in good faith if there was a reduction in revenue.
“The Players Association naturally want this measure (pay cuts) as the last resort,” V’landys added.
“I can understand that. That is who they are representing.
“But they are also realistic. They understand that there are a lot of people who are losing their jobs. We are not immune to this.
“We have to make sure the clubs stay viable. You have to be ahead of the game, not behind it.
“I think we have shown that we have been the most proactive of everyone and we will continue to be the most proactive.
“The thing is we need to survive and we will do everything we can to survive.”
But V’landys said people must also understand not everyone in the game is on elite money, and staff as well as players needed to be helped as much as possible.
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“The thing that annoys me is that everyone is focused on the high-end players but there are a fair few players who are earning $80,000 and $90,000 a year that have mortgages and have to pay their rents,” V’landys said.
“That is the point I want to get across. Everyone is blowing up and saying, ‘Oh, you are looking after these blokes who are on elite salaries’.
“But they are missing the whole point that there are also thousands of people who work at the clubs and thousands in industries associated with the NRL. And not everyone is on mega bucks.
“Everyone is in it together. So the executives at the NRL are prepared to take pay cuts and we may do pay cuts a little bit different.
“The lower end players may get less of a pay cut. I don’t know.”
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There is also a growing push to axe all NSW Rugby League competitions including State Cup and under 20s Jersey Flegg for the remainder of the season. Those competitions are currently suspended.
This would effectively save each club in the vicinity of $1 million, money that would potentially cover the financial black hole left by crowd lockouts this season.
V’landys said the NRL had held talks over the weekend with the RLPA about implementing more stringent self-isolation guidelines and players would be potentially sanctioned if they don’t follow the tough protocols.
“If they self-isolate they keep themselves safe, they keep their families safe, they keep their fellow players safe and they keep the game safe,” V’landys said.
“I am going to just keep hammering that message and let them know everyone has to make a sacrifice.
“On Monday we will be in a position to tell the players these are the protocols.
“The second stage of the process is how we monitor it and the third stage is what if someone is reckless.
“We have to have some deterrent.
“In these times you need to go with everyone together.
“You need to consult the players, you need to consult the clubs. You need to make sure they are comfortable with what we are going to do but there needs to be some tough measures.”
Originally published as NRL club bosses to follow players and accept pay cuts amid coronavirus crisis