Clubs to hit NRL with $30 million Covid compensation claim

An enormous bill is about to land on the NRL’s doorstep — with rugby league clubs seeking millions in compensation.

Peter V'landys and an empty Suncorp Stadium.

The NRL will have a $30 million bill from clubs land on its front door sometime this week.

News Corp has been told all 16 clubs have collated the individual cost of having the NRL competition relocated to Queensland and are seeking compensation from the game’s governing body.

Clubs have differing financial losses ranging from $1.5m to $4m.

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The majority of that missing revenue is due to relocated home games — and shifted blockbusters — along with associated financial erosion in commercial, corporate and merchandise.

It is understood Parramatta, Penrith, Manly and St George Illawarra have been hit the hardest.

The Eels would have sold out Bankwest Stadium for last Friday night’s match against South Sydney while St George Illawarra was scheduled to play their final four games at home.

Newcastle Knights v Canberra Raiders played at an empty Suncorp Stadium (Photo by Handout/NRL Photos via Getty Images )

Penrith’s round 16 home match against Parramatta — which was a sellout — was instead played before an empty stadium. The round 25 return match will be played in Queensland rather than a packed Bankwest.

The clubs have worked with each other to compile a spreadsheet indicating how much each club has lost financially through the Covid-enforced move north.

The combined invoice will come to between $25m and $30m.

Clubs told the NRL about the lost costs last week and are expected to lodge their claim this week to NRL CEO Andrew Abdo, NRL chief financial officer Richard Gardham and NRL head of partnerships, Jaymes Boland-Rudder.

The relationship between clubs and NRL has never been stronger or tighter. And clubs want to acknowledge the NRL is spending around $12m a month for Queensland hubs to house players and families, along with the cost of running matches.

NRL CEO Andrew Abdo. Picture: Brett Costello

The $30m bill is another reason the NRL is working desperately hard to find a location for the finals and grand final where paying crowds can attend. Money banked through the finals will help pay the clubs.

Once they secure some certainty and revenue around the playoffs, the NRL can then determine exactly how much each club could receive.

Inundated with work to keep the competition running, the NRL even agreed that clubs could work together to accumulate a final figure.

The $25m to $30m is a projected budget based on the game remaining in Queensland until the end of the season. While still playing in their home state, Gold Coast, North Queensland and Brisbane may, at some point, be forced to play matches behind-closed doors.

Clubs don’t want to be painted as greedy but do want the NRL to be aware of their lost revenue for the back-end of 2021. And the NRL has, to date, been supportive, the clubs having enormous trust in Abdo and ARL Commission chairman Peter V’landys.

ARL Commission chairman Peter V’landys. Picture: Sam Ruttyn

Blockbuster games between Sydney sides can generate between $300,000 and $400,000 for the home club. Clubs dependent on annual licensed club grants are also struggling.

The clubs, given the exceptional circumstances, won’t be demanding money or pressuring the NRL but they do hope an accepted outcome can be reached.

The NRL grand final is still likely to be played in Brisbane although Melbourne remains a chance with New Zealand at long odds.

“Make no mistake, I see the value in generating revenue because revenue allows us to invest back into the game,” Abdo told the Big Sports Breakfast Weekend.

“But, ultimately, the grand final is the climax of the season and you do want to be able to play your grand final in front of crowds. Giving fans the opportunity to enjoy the game live is obviously what’s driving us. We want to get the best result possible for the game.”

Asked if Sydney had been abandoned as a possible grand final venue, Abdo said: “No, I wouldn’t say we’ve given up but I think it would be very difficult, purely on the fact that we see the Delta variant being very difficult to control in a lockdown situation. For Australia now, it’s a race for vaccinations as a way out of this.”