NRL’s $40m survival package revealed by Peter V’landys
A week after enraging club bosses with an ‘embarrassing’ relief package, the NRL has come to the party to save the season. FULL DETAILS FROM MONDAY’S EXTRAORDINARY MEETING.
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Peter V’landys has given Todd Greenberg a stay of execution after orchestrating a last-ditch pay rise for the embattled 16 NRL clubs.
On one of the most significant days in rugby league’s history, the ARL Commission chairman masterminded a $40 million rescue package that will give clubs some hope as they batten down the hatches for some miserable months ahead.
The clubs were in uproar last week after the NRL had offered up an embarrassing deal that is understood would have netted each less than $1 million in total after player payments.
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But under V’landys’ plan they will now each receive in the vicinity of $2.5 million which will help significantly with most Sydney clubs already standing down between 90 and 95 per cent of football staff.
While V’landys is still pushing for the competition to be back up and running by July that would be absolute best case scenario.
The consensus among club bosses is that August or September would be more likely if the NRL can get approval from the government and chief medical officers.
But there is no question that in this crisis V’landys has stamped himself as the leader rugby league has been crying out for.
The pressure on Greenberg and the game’s executive staff has increased after the governing body’s outrageous spending habits of recent years were laid bare.
But Monday’s package has eased the clubs’ anger... for now.
What remains to be seen is how V’landys will go about slashing the $181 million the game currently spends annually that does not include club grants or player payments.
“You can argue as to why we don’t have more money but that is irrelevant, that is not going to help,” one club boss told The Daily Telegraph.
“At the end of the day (the NRL has) $100 million in the bank.
“We need to make sure we spend it as wisely and it lasts for as long as we can.
“We can argue all we like once the game gets back up and running.”
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There is no question the majority of clubs were “happy” with the outcome of Monday’s meeting given they now have some clarity and can work out a plan to move forward.
This is how rescue package works:
* All clubs get three months of the $1.2 million grant for April, May and June;
* They will also get another payment in July, while that is not yet set in stone it is estimated to be between $300,000 and $400,000;
* Out of the April $1.2 million grant clubs will be required to pay players their full salary earnings, estimated around $900,000;
* In May clubs only have to pay players half their salary entitlements, about $450,000;
* In June the clubs get to keep the entire $1.2 million grant and don’t have to pay the players;
* That adds up to the clubs keeping $2.5 million — that does not include player payments;
* This allows the players to get one and a half of full salary as well as a further half a month of pay accessed through a hardship fund; and
* The players will also get access to a retirement fund that has just short of $20 million that players will be able to access if they choose to.
For every first grade game there is a sum of money that goes into an individual’s retirement fund ($12,750 per player this year). Normally they can’t access this until after their first year out of game but given the situation that will change in a case-by-case basis.
The hope is that the competition will be back up and running at some point so more revenue can come in or otherwise it will be a case of each club drawing its own line in the sand and just hanging on for as long as they can.
While every club is in a different situation at least now they know what the revenue is they can work with their respective boards and other partners on survival plans.
The NRL is also sourcing a line of credit reported to be in the vicinity of $100 million should it be required.
While two months of full salary pay doesn’t seem like a great win for the players given the circumstances it is about as fair as possible given most football club staff including coaches have been stood down with mostly no pay.
While the deal is still not signed off on that is expected to happen within days.
Players will also get their 29.5 per cent share of any future funds, and the match payments from rounds one and two will need to be paid along with royalties.
“This is horrendous … horrendous,” said one chief executive.
“But this is why this week was so important for the clubs.
“Not because we were all fighting over how much we get.
“We just needed clarity ... and at least now we can sit down, take a breath, we will still be in the dark, but there is a little bit of light now.”