Cash crunch: ARL Commission vows to fund grassroots rugby league
The feud between the NSWRL and ARLC is deepening and while there are fears grassroots footy will be the victim, Peter V’landys has offered up hope.
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The fight between the ARL Commission and the NSW Rugby League continues to hurtle towards the courts. Barring a miracle, the ugly impasse will be decided by lawyers in overpriced suits, potentially costing the game millions in the process.
The NSWRL released an emotional and incendiary statement late on Thursday demanding that their funding be paid by April 17 or they would be left with no option but to enforce their rights. In other words, legal action.
They singled out ARL Commission chair Peter V’landys, describing his attitude as lamentable. They claimed that V’landys had shut off contact. They said that funding was being taken from grassroots at a time when the state was trying to recover from bushfire, floods and COVID-19.
V’landys was none too impressed when contacted by News Corp late on Thursday, describing suggestions that grassroots would be hurt financially as “the most laughable thing I have ever heard in the game”.
“We are going to be funding them (grassroots) directly and they will get more money than they have ever got,” V’landys said.
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“The irony of this is that they (NSWRL) are going to waste money that is supposed to go to junior rugby league and juniors in defence of this indefensible action.
“All they have to do is hold fresh elections and all this goes away. To try to personalise it and single me out is a diversion because I wasn’t the one who caused the corporate governance deficiencies, I wasn’t the one who didn’t run an election properly, I wasn’t the one who disqualified a person to run for the board who shouldn’t have been disqualified.”
The fight between the ARL Commission and the NSW Rugby League began over boardroom elections when Cronulla chief executive Dino Mezzatesta was told he was ineligible to run for the board due to a conflict of interest.
Sydney Roosters supremo Nick Politis and doctor George Peponis walked away in disgust and the ARL Commission brought in respected lawyer Bret Walker to review the situation.
Walker found that the elections had been invalid and the commission called for them to be held again, warning that the NSWRL’s funding would be withheld and head office would take over the State of Origin side.
Sydney clubs met V’landys on Thursday where they reiterated that they were united behind the ARLC and its chair. V’landys was acting with their imprimatur.
The Sydney clubs are believed to be hesitant to nominate new directors as it stands. The meeting had barely broken when the NSW Rugby League hit back, issuing a statement demanding that their funding resume and claiming that threats against them were being contrived for political reasons.
“It is a matter of the greatest regret to the board of the NSWRL, that absolutely none of the above assists in the propagation of rugby league in New South Wales, which is really the one and the only thing which any of us are interested in,” the statement said.
“The damage which is currently being done to our game is significant, in circumstances where the game in New South Wales is desperately trying to recover from recent difficulties over the past couple of years including bushfire, floods and COVID-19.
“As a member of the ARLC, NSWRL legitimately expects to be supported by the ARLC in meeting these and other challenges, instead of being subject to funding suspensions and other threats in relation to the termination of the right to participate in the State of Origin series, such threats which are made for contrived political reasons.
“The board has done everything within its power to try to resolve the position taken by the ARLC, all to no avail. Such an attitude from the leadership of the game is lamentable.
“When commentary takes place, regarding how money which would otherwise have been available to grassroots participants is being spent, remember that these funds have already been taken from the grassroots of the game by the suspension of NSWRL funding.
“If it is necessary to commence proceedings against the ARLC in order to protect the grassroots of the game by recovering that funding, then the board of NSWRL will not be ‘wasting’ grassroots funds.”
ARLC HIT BLUES BUTTON IN FUNDING BATTLE WITH NSWRL
The ARL Commission will take over the running of the NSW State of Origin side from Monday as their battle with the NSW Rugby League edges towards the courts.
The spat between the commission and the NSWRL dramatically escalated late on Friday when the state body rejected legal advice that they had breached their services agreement and demanded that they be paid their funding in full.
The NSWRL stance leaves the code on the brink of civil war — a wedge was driven between the commission and head office when Cronulla chief executive Dino Mezzatesta was told he was ineligible to run for the NSW board due to a conflict of interest.
That decision prompted Sydney Roosters supremo Nick Politis and doctor George Peponis to walk away, and led to the commission to bring in respected lawyer Bret Walker to review the situation.
Walker found that the NSWRL had breached their own constitution, prompting the commission to demand steps were taken to rectify the situation. The NSWRL rejected those assertions and issued their own statement where they made their own demands, namely that the commission withdrew its letter claiming there had been a breach.
The two parties are now at an impasse. At stake is not only the NSWRL’s funding, but also control of the NSW State of Origin side.
“I am shocked and surprised that they wouldn’t accept one of Australia’s leading counsels in Bret Walker,” ARL Commission chair Peter V’landys said.
“The thing that astounds us is all we’re asking for is to hold fresh elections so if there are any concerns, they are remedied. It is all about the integrity of the elections.
“So I don’t understand why they are so concerned. We are quite surprised. We won’t be withdrawing any letters. For us, integrity is paramount.”
Asked about the NSWRL funding, V’landys said: “It stops, it will stop on Monday. We’re not asking for anything other than running a proper election process. I don’t think we are asking for much. As from Monday, we will be stopping their funding.”
V’landys also confirmed the commission would also take over the running of the NSW Origin side from Monday, leaving coach Brad Fittler and his players as the meat in the sandwich between head office and Blues headquarters.
The NSW Rugby League gave little indication they were ready to back down on Friday afternoon as they responded to the ARL Commission barely an hour before the deadline that was put in place by head office.
Their response put both organisations on war footing.
In their retort, they accused the ARL Commission of publicly distributing the letter that was addressed to them earlier this week and the accompanying legal opinion.
News Corp obtained a copy of the ARL Commission letter from club sources — it was sent to the member clubs by the commission.
“The NSWRL is plainly and obviously not in breach of the Services Agreement, either as contended by the ARLC or otherwise,” said John Anderson, the acting chairman of the NSWRL. “Further, the NSWRL is not in breach of any other contract or agreement between it and the ARLC.”
Anderson said the NSWRL had formally demanded that the ARLC by Monday afternoon withdraw its letter of earlier this week “insofar as it constitutes a breach notice for the purpose of the Services Agreement”.
In terms of future funding, Anderson said it was due to receive an instalment on Friday and expected the total amount to be paid on Monday “without any deduction or set-off”.
ARLC’s funding cut warning to NSWRL
Brent Read & Phil Rothfield
The ARL Commission has given the NSW Rugby League three days to rectify its ill-fated boardroom elections or have its funding cut.
In a dramatic escalation to the boardroom imbroglio, The Daily Telegraph can reveal ARLC chair Peter V’landys sent an explosive letter to NSW lawyer Darren Kane late on Tuesday outlining the steps that needed to be taken to save the state’s funding.
He also warned that the commission would be writing to the members of the NSWRL inviting them to consult on a potential direct-funding model to metropolitan and country regions.
The NSWRL has been given until Friday to confirm that it will take the steps outlined in the letter. If not, the commission has reserved the right to cut funding to the state body in a move that could have ramifications for the State of Origin side.
There has been speculation that the NRL could take control of the Blues if necessary.
It is further fallout from the sensational move that saw Sydney Roosters supremo Nick Politis and respected figure doctor George Peponis walk away from the NSWRL.
The commission called on respected silk Bret Walker to conduct a full investigation into the NSW elections after Cronulla chief executive Dino Mezzatesta was told he was ineligible to run for the board because of a perceived conflict of interest.
Walker found that the NSWRL had “fundamentally failed to follow its own constitutional processes”. That was all the ammunition the commission needed to act against the NSWRL.
“The Commission’s view, supported by advice from Bret Walker AO SC, is that the NSWRL has fundamentally failed to follow its own constitutional processes in relation to the February elections to the NSWRL board,” V’landys said in the letter.
“If the NSWRL fails to remedy the matter … the Commission can have no confidence that the NSWRL is capable of properly discharging its obligations under …. which the Commission provides funding to NSWRL in respect of the administration for rugby league in NSW and the State of Origin respectively.
“The Commission will not approve funding to the NSWRL ... in circumstances where it has no confidence in the governance and administration of the NSWRL and where to do so would be in the Commission’s view contrary to the best interest of the game.
“As a result, as matters stand the Commission is not obliged to provide funding to the NSWRL under the Services Agreement.”
The commission provides millions in funding to the NSW and Queensland Rugby Leagues each year, that money used to run the state leagues, Origin sides and finance development.
The pressure is now on NSWRL chief executive David Trodden to adhere to the commission’s demands.
The commission says the NSWRL should hold a fresh election for the two metropolitan directors; that the two expert directors should vacate their positions pending the election of the two metropolitan directors, and that after the election of the two new metropolitan directors, the two expert directors and chairman be appointed.
News Corp first revealed the fracture in the Blues boardroom last month after Trodden and Peponis butted heads over the decision to sideline Mezzatesta.
“As a result, the Commission has the right to terminate the services agreement if the default is not rectified by taking the steps set out above within 30 days,” V’landys said.
“The Commission will be writing to each of the NSWRL members concerning recent events and inviting them to consult with the Commission concerning a potential direct-funding model to metropolitan and country regions to ensure the continuity and growth of rugby league in those communities.”
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