NRL 2022: ARL Commission launches investigation into controversial NSWRL board elections

Key players, including Dave Trodden, George Peponis and Nick Politis, will be interviewed after the ARL Commission launched an investigation into the controversial NSWRL board elections.

The ARL Commission will launch an immediate investigation into the controversial NSW Rugby League board elections after an official complaint was lodged with head office on Monday.

ARL Commission chair Peter V’landys declined to reveal whether he had been furnished with the complaint but club sources confirmed to News Corp that an email had been sent requesting that head office review the matter.

The NRL is expected to interview the key players in the saga, including NSW Rugby League chief executive David Trodden, former chair doctor George Peponis and ex-director Nick Politis.

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George Peponis quits the NSWRL board.

They will also speak to Cronulla chief executive Dino Mezzatesta, who was told he could not run for the NSW board because he was the paid employee of a club.

The election has driven a wedge through the NSW Rugby League and led to two of the game’s most respected and powerful figures - Politis and Peponis - walking away. V’landys confirmed an investigation would commence if a complaint was made.

“If we receive any complaint we will take it very seriously,” V’landys said.

The NSW Rugby League took legal advice that Mezzatesta was unable to run for the board under the constitution.

Clause 31 of the constitution states that “prior to anointment as a director a prospective appointee shall provide to the company a schedule of potential conflicting interests with the company. If a prospective appointee has a potential material conflicting interest with the interests of the company then that person must not be appointed as a director.”

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ARL Commission chair Peter V’landys says rugby league is remarkably on track to emerge from the Covid pandemic in a financially stronger position.

V’landys and his fellow commissioners rubber-stamped their 2021 finances on Monday morning, the good news headlined by revenues of more than $575 million.

The code also finished last season with more than $170 million in cash reserves, allowing them to share more money with the clubs and hand an extra $5.5 million back to the players.

“The Commission is proud to report that despite almost $30 million in Covid costs, the game will report a strong surplus because of significant revenue increases and ongoing efficiencies at NRL head office,’’ V’landys said.

Australian Rugby League Commission Chairman Peter V'landys has announced a huge financial windfall for the NRL. Picture: Getty

“Most importantly, the Commission has made it a priority to ensure club members and players received increased distributions. Many clubs were facing significant financial challenges due to the pandemic.

“We have ensured $5.5 million will be returned to players from 2021, with a further provision of $5.5m for 2022. These amounts were not guaranteed and linked to an out performance bonus calculated at the end of 2022, but the players sacrificed a great deal financially and personally to ensure we completed the season and we wanted to reward their efforts.”

V’landys said the Commission’s revenue growth and cost reduction strategies had placed the game in a stronger position than other codes.

“We have grown our revenues, continued to save costs and have set the game up to make long term investments over the next year,” he said.

“In 2019 our costs as a percentage of revenue were 37.5%. In 2021 after making the NRL more efficient the costs as a percentage of revenue dropped to 27.6%.

“On behalf of the Commission, I would like to thank our members and our players who have led the way in ensuring we completed a full season in 2021.”

NRL CEO Andrew Abdo hailed the news. Picture: Liam Kidston

NRL Chief Executive Andrew Abdo said the commercial investment in rugby league had grown over the last year and acknowledged the support of key partners.

“2021 was an incredibly strong year for the growth of our game,” Abdo said.

“Revenues returned to over $550 million and we have secured long term broadcast agreements which will see broadcast investment increase to over $400 million a year from 2023.

“We have received tremendous support and loyalty from our media partners, sponsors and fans, who have stuck by us. We have also been innovative in the way we have approached new commercial partners and we have continued to look for efficiencies in our cost base.

“I would also like to acknowledge the support we received from the Queensland state government for the competition relocation and finals series. Our fans in Queensland showed their support for the game, especially in regional locations and our fans across the country showed their support, as evidenced by the overall TV audience increasing by 7%.”

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The ARL Commission is expected to receive a formal complaint over the ugly stoush in the NSW board room on Monday morning as the split in the Blues ranks threatens to overshadow a day of financial success for the code.

The commission will hold a hookup with club chairs and chief executives on Monday where they will finalise their financial figures for 2021.

Remarkably, rugby league is on the verge of crashing through the $600 million barrier in the next 24 months as a new broadcasting deal and increased sponsorships begin to take effect.

Peter V'Landys is expected to get a complaint on his desk on Monday morning.

The game had revenue of $575 million in 2021 and finished the year with more than $160 million in the bank, although those figures were enhanced by the inclusion of two State of Origin series.

That said, the NRL has already announced a multimillion dollar sponsorship deal with crypto dealer Swyftx to start this season and they are expected to finalise an extension with naming rights partner Telstra before the season kicks off.

There is every chance the game passes $600 million in revenue this season. If not, it seems a formality in 2023 as new deals with Foxtel and the Nine Network come into effect.

The remarkable finances should be cause for celebration but the battle for control of NSW threatens to overshadow Monday’s meeting.

Sources told News Corp that a complaint had been prepared and would be sent to the commission on Monday morning, escalating the bitter dispute that prompted respected figures Nick Politis and doctor George Peponis to walk away from NSW on Friday.

ARL Commission chair Peter V’landys has already indicated that he will review the matter and he will be left with little choice once a complaint lands on his doorstep.

At the heart of the issue is the NSWRL’s decision to prevent Cronulla chief executive Dino Mezzatesta running for the board, citing a conflict of interest because he is the paid employee of a club.

It is understood Mezzatesta has legal advice that suggests rules surrounding conflicts of interest only relate to independent board members. Sources said he was running as a metropolitan member of the board and, as such, was not subject to the conflict of interest rules.

Dino Mezzatesta wasn’t allowed to run for the NSWRL board.

It is understood Mezzatesta was taken back when the NSWRL demanded copies of his member database and employment agreement as part of their inquiries into his eligibility, particularly given paid club officials have been on the NSWRL board in the past.

Of most concern to V’landys was the decision by Peponis and Politis to walk away, and the matter will be discussed by the commission on Monday as they determine their next steps.

Before that happens, the commission will approve their financial returns for 2021, having shared the information with the clubs last week.

Revenue was up more than $150 million, passing $575 million last year. More than $240 million was distributed to the 16 clubs. Money from broadcasting and gambling skyrocketed by more than $70 million last season while sponsorship, game receipt and government revenue was up close to $100 million.

The report notes that more than $11 million was due to players because the game had out-performed on its financial targets, although payment would be made in 2023 subject to how the game performed this season.

Originally published as NRL 2022: ARL Commission launches investigation into controversial NSWRL board elections