NRL 2020: Peter V’landys set to cut $50m from League Central
NRL headquarters is bracing for the biggest cuts in its 22 year history, with $50 million to be slashed in order to preserve $208 million in funding to the NRL clubs.
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The NRL will be subjected to the most savage cuts in the organisation’s 22-year history with $50 million to be slashed from League Central to ensure the survival of its 16 clubs.
The Sunday Mail can reveal ARL Commission chairman Peter V’landys will take a financial axe to NRL headquarters in an unprecedented shake-up of the governing body to preserve $208 million in funding to the NRL clubs.
For months there has been uncertainty over the level of cost-cutting that would take place amid a savage attack from broadcast partner Channel 9, which last month lashed the NRL’s “bloated” organisation and financial wastage.
The broadcast broadside led to the demise of NRL CEO Todd Greenberg.
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Today, the extent of the financial blow can be laid bare. The ARL Commission will look to trim $50 million from the NRL’s operating costs, which were $182m last season. That amounts to a saving of almost 30 per cent, the benefits of which will be passed onto cash-strapped NRL clubs.
More than 100 jobs could be lost at an NRL organisation that employs approximately 400 staff, but the ARL Commission would prefer to address “cost inefficiencies” before sacking employees.
There were fears NRL clubs could revolt against the governing body if their annual $13 million grant was reduced by 20 per cent to $10.4 million in the wake of this year’s coronavirus ordeal.
But V’landys has assured clubs they will not suffer financially, with League Central instead bracing for the most ruthless financial overhaul since the birth of the NRL in 1998.
“The entire NRL organisation will be streamlined,” V’landys revealed.
“The cuts will be significant.
“We will slash expenses at the NRL before we even think about touching the clubs.
“We won’t be short-changing the clubs – that is my commitment.
“The NRL clubs will actually be getting more money than usual this year, because the NRL will be paying the players for the rest of this season, so the clubs will retain their income.
“We will be slashing costs at the NRL to ensure that the clubs will be looked after, so there is no problem in my view.”
An NRL source added: “League Central will look a shadow of itself when Peter V’landys is finished with the place.
“There will be mice running out from desks everywhere.
“People are naive if they think the NRL will get to the other side looking like it is now.”
V’landys took the first fiscally-prudent step on Friday when the Project Apollo committee recommended the axing of the two-referee system. Reverting to one match official will save the NRL up to $3 million this year.
The NRL’s head office last year cost $20.3 million, while the integrity unit and salary-cap auditing amounted to $3.3m. Development, player and community programs cost the code $60 million.
The biggest expense was events and game management at $103 million. That includes the NRL bunker, travel and accommodation for players and general expenses related to game-day costs.
Of the NRL’s 400-plus staff, about 200 are development officers. Cutting that employment sector in half would save the NRL a further $8-10 million.
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While V’landys pledged to support the clubs, he warned them not to be financially complacent.
“The distribution model was set for five years, so we won’t be cutting funding next year to the clubs,” he said.
“There won’t be any cuts, but the clubs still have to make cuts themselves, though, because their cost structures, like the NRL, are too expensive.
“They now have the opportunity to reduce their cost structure.”
Gold Coast Titans chairman Dennis Watt said clubs are sweating on the outcome of the broadcast deal, which is expected to be finalised this week.
“Everyone is tightening belts across the game,” Watt said.
“We’re all in the dark as clubs, but there’s a lot of faith in Peter V’landys to deliver the right deal.”
Originally published as NRL 2020: Peter V’landys set to cut $50m from League Central