NRL offered $100m emergency fund to bail out struggling clubs

With the NRL facing an uncertain future a British equity group has offered a line of credit to help save clubs from potential bankruptcy.

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The NRL has been offered a $100 million emergency loan from a British private equity group to bail out struggling clubs facing an uncertain future and possible bankruptcy.

The deal has been secured by Melbourne Storm director Bart Campbell and would be used as a line of credit for the clubs but distributed by the NRL on a case-by-case basis.

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ARLC Chairman Peter Vlandys says the NRL has had multiple offers of financial support. Picture: Getty Images.

The loan would be guaranteed by funding from the broadcast deal once the game resumes.

The offer is on the table for the next meeting of the independent Commission to consider.

“We’ve had lots of offers for finance and we’re looking at a number of options,” Commission chairman Peter V’landys said.

“Things are changing so dramatically we will need to have access to a line of credit just in case.

“It’s like having some insurance but it would be nice to think we don’t have to use it.”

The poker-machine-reliant NRL clubs in Sydney are the most likely to need the credit facility.

The NRL will slash costs and should have enough to provide the $1.1 million monthly grants to each of the 16 clubs for several months.

Departing Melbourne Storm chairman Bart Campbell has helped secure the line of credit for the NRL. Picture: AAP.

However, Channel 9 has cancelled future funding and Foxtel is still to make a decision.

The NRL needs to lock in a finance deal as soon as possible, Campbell said.

“Having those reserves would be extremely valuable for the game,” he said.

“If we don’t play again this year, we’re in big trouble. We need to plan for every eventuality because at some point we might need it.

“The more tools they have at their disposal, the more flexibility there is for the game in these difficult times.”

The finance company was prepared to lend “north of $100 million”, Campbell said.

An interest rate would be negotiated.

“They’re a finance house in London and a credible institution with the capital available,” Campbell said. “They’ve got expertise to put together deals like this.”

There is enormous pressure on NRL finances. The Sunday Telegraph understands the NRL is more than $12 million behind in payments to the RLPA for a player retirement fund.

Bart Campbell hands the reigns over to new chairman Matt Tripp, with Cameron Smith and Craig Bellamy. Picture: Ian Currie

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The money is supposed to be paid quarterly but payments have fallen behind in the past two years.

In the current climate, they have little hope catching up.

The AFL is in discussions with NAB for a half-billion dollar loan to support clubs during the crisis.

They own Marvel Stadium in Melbourne, which can be used as a guarantee, and have more than $120 million in the bank.

The code and clubs are under severe pressure and feel the loss of game-day attendances far more than NRL clubs that have average crowds of only 15,000.

Originally published as NRL offered $100m emergency fund to bail out struggling clubs