ARLC boss Peter V’Landys slashes head office costs as part of funding package to be presented to NRL clubs
Savage cuts to head office costs are behind the funding package the ARLC will present to NRL players and clubs as the games tries to navigate through the coronavirus crisis.
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Update: Peter V’landys is expected to savage the NRL’s head office costs as he looks to provide some much needed funds to the game’s clubs and players.
The ARLC chairman is confident he has found sufficient savings to bring some clarity for the clubs and players ahead of a highly anticipated meeting on Monday.
It is understood V’landys has found an additional $7 million for the players for the remainder of the season, meaning a sum total of nearly $20 million is now on the table.
The clubs have also been guaranteed their grant for the next three months, easing some of their concerns.
“We’re going to have to find some extra money and there are a number of ways we can do that,” V’landys said. “The players and the clubs I believe will be happy. We have to stay united in order to fight this. The players, I believe we have come to an agreement in principle and the process from here is there is a commission meeting on Monday to sign off on the package we have developed.”
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“I have to give a presentation to the clubs as to what we are giving them. If they’re okay with it we are through the worst-case scenario.”
A large portion of those savings are expected to come from the $182 million it takes head office to run the game according to the NRL’s 2019 annual report. The NRL has already taken an immediate hit, running on a skeleton staff this week with the bulk of its employees told to take annual leave. More are expected to be told to do the same next week.
Clubs are virtually running unmanned with most operations only having a handful of staff at best. The grim picture was laid bare for the players this week but V’landys’ rescue package is expected to dispel fears players would take an 87 per cent pay cut should they not return to the field this year.
That number is understood to be about 75 per cent with clubs likely to be given their $1.2 million club grant for the next three months. Players had been told there was just $12.4 million remaining for them this year. That figure will now be as high as $20 million now.
It translates to a pay cut for the players of around 45 per cent for the entire season, although they will only receive just over 20 percent of their remaining contract money. They are being asked to sacrifice more $70 million to help the game through the current malaise.
Privately, V’landys is still hoping for the season to resume by July 1. Should that occur and marquee events such as State of Origin be played in front of capacity crowds then players and clubs can expect a massive bump up in pay.
Clubs have asked the NRL for clarity before Wednesday so they can start their long-term planning.
The rescue package comes as the NRL officially cancelled Magic Round in Brisbane. The NRL plan for the event to return next year.
The Queensland Rugby League and NSWRL also cancelled their reserve grade, interstate carnivals and junior representative programs for the year.
The decision means for the first time in the game’s 112-year history, a second-tier premier will not be announced.
It also means hundreds of second-tier male and female players won’t return to the field this year and must begin preparing for 2021. The cancellation of the competition will also save NRL clubs hundreds of thousands of dollars.