NRL to save $50 million after moving to streamlined workforce due to massive job losses

The NRL says it was left with little choice but to make brutal job cuts as the fallout from COVID-19 continues, but is confident the difficult decisions will safeguard the game’s future.

Andrew Abdo has had to make some ‘tough decisions today’.

It was the dark day that rugby league had to have to help save the people’s game.

After an era of outrageous spending at the NRL, the cruel financial reality of the COVID-19 crisis was finally brought to a head on Monday.

And it was left to NRL chief executive Andrew Abdo to inform staff via a Zoom conference meeting of plans to slash 25 per cent of the governing body’s current workforce as part of a savage overall spending cut of $50 million.

It is understood the NRL’s plan is make sure this does not impact fans, but that will come as cold comfort to many staff.

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Andrew Abdo has had to make some ‘tough decisions’.

Already chief operating officer Nick Weeks and head of media Liz Deegan have been made redundant with many more to follow.

It is understood such were the astronomical salaries under previous administrations that Ms Deegan and general manager of media Daniel Meers had a combined salary of close to $1 million, highlighting how executive salaries across the board had blown beyond acceptable levels.

Mr Abdo replaced former chief executive Todd Greenberg earlier this year and was left with no alternative but to make tough decisions to ensure the game’s financial future.

“Our business, like so many others, has been hit by a hurricane called COVID which caused substantial damage,” Mr Abdo said.

“Our strategy moving forward is to stabilise, renovate and grow. In order to stabilise, we must secure revenues and reduce our expenses to ensure a strong foundation.

“Then we will renovate by considering ways to make our products more entertaining and dynamic for our fans.

“Finally, we will develop bold plans for growth, looking at new products, new markets and how we can grow the game internationally.

“Our game is part of the sports entertainment industry and we are aiming to transform faster than others to remain competitive in a dynamic market.”

Mr Abdo said he had “genuine empathy for all employees affected” but ultimately this was about making sure the “game must remain strong for future generations”.

The NRL is looking to employ a more streamlined approach next season.

“We will lose some very good people during this process,” Mr Abdo said.

“Talented people with a genuine love and passion for our game who have all contributed in some way. This is painful but necessary process to ensure we survive.

“I have genuine empathy for all employees affected and we will listen to their feedback. Our game must remain strong for future generations.

Andrew Abdo and Peter V’landys have overseen a great season despite the virus threat.

“We all want to leave the game in a stronger position than when we first joined the sport. What has inspired me most during the pandemic is how our game has come together.

“We have shown what we can achieve when we work together. Rugby league, under the direction of the Commission, has led the way in Australian sport and I am confident we will continue to do so.”

It was recently revealed that the NRL and its clubs were budgeting to lose as much as $400 million in revenue over this season and the next two years due to COVID-19.

And it was looking to mitigate some of the damage by slashing the running costs at head office and striking a new pay deal with players.

The NRL and the players union continue to haggle over whether the pay cut should be 5 or 10 per cent.

The NRL said the changes already announced had resulted in their executive team being reduced from 11 members to eight.

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Originally published as NRL to save $50 million after moving to streamlined workforce due to massive job losses