Can your NRL club survive the coronavirus crisis?
The NRL and its 16 clubs face the fight of their lives to survive the coronavirus crisis. We analyse the financial health of all the teams plus the reactions from club bosses to see how they’ll all fare.
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Rugby league is on the brink of financial disaster.
Following Monday’s decision to suspend the 2020 season, the NRL and its 16 clubs face the fight of their lives to survive the coronavirus crisis.
NRL boss Todd Greenberg insists pay cuts across the board are a very real possibility for players and staff.
Several clubs have already made moves to stand down staff or place them on annual leave, with no-one safe as they search for ways to save money. The impact of the coronavirus on clubs who have previously walked the financial tightrope in the past could be dire.
We take a look at the financial health of all 16 NRL teams along with the reactions from club bosses, coaches and administrators.
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BRONCOS: Brisbane is the NRL’s richest club, with $14 million in the bank and amassing revenue of $52 million last year to confirm their status as the game’s off-field benchmark.
But coach Anthony Seibold admitted not even the Broncos were immune from the effects of the competition’s suspension and uncertainty surrounding the game.
“I’m really unclear on what it means for our club,” he said.
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“Clubs are going to be bleeding money with no games and no crowds. I’d imagine there’s going to be some challenging times ahead for the NRL.
“We’re at a really good club that cares for its people. I’m sure our leaders will set a clear pathway for us. The priority is the health and wellbeing of people in our communities.
“We’ve put a lot of planning in place for if the season was suspended.
“Our priority is to get some clarity over the next few days from the NRL about what some contingencies are in regards to completing the season and what that looks like.”
BULLDOGS: Are the controlling entity of the Canterbury Leagues Club with a conservative worth of well over $200 million that also consists of six houses and blocks of land.
Worryingly, with Gladys Berejiklian shutting the doors of all licensed premises on Monday, the Leagues Club cash cow could dry up.
“It means the likes of Canterbury, Parramatta, Penrith and Wests Ashfield would now struggle to prop up the football clubs,” writes Phil Rothfield.
“In recent years these four NRL teams have relied on grants of between $3 million and $10 million to stay afloat. That cash is now gone.”
Like all NRL clubs rely heavily on the broadcasting cash for the day-to-day running of the football club.
COWBOYS: The true toll of the NRL’s decision to postpone the 2020 season remains unknown for North Queensland, the Townsville Bulletin reports.
The club, which has been profitable in the past two years, only a fortnight ago opened the state-of-the-art $293.5 million Queensland Country Bank Stadium, which was expected to be the jewel in the crown of North Queensland sport. It has also begun works on the club’s Community, Training and High-Performance Centre, which was expected to be opened ahead of next season.
Coach Paul Green said the Cowboys had become adept at rolling with the punches, and his players would be ready to go if the season resumed in 2020.
“I think once we get a bit of a time frame around how long we will be out for that will make things a lot easier for us and then we can make plans around a training point of view,” Green said.
“I have got full confidence in our staff here. Once we know that we can make some plans around that.”
DRAGONS:The Dragons are solid financially thanks to being partially privatised by WIN Corporation, whose owner Bruce Gordon boasts a listed net worth of $702 million.
WIN owns a 50 per cent stake in the joint-venture club, with the other half owned by St George District Rugby League Club.
EELS: While the Eels boast financial backing from Parramatta Leagues Club, it has been publicly reported that the footy club lost $10 million in 2017 and then $4 million the following year.
With the Leagues Club set to be hit hard by closure, that spells trouble for the Eels.
The Parramatta Leagues club has nearly $70 millions worth of net assets including investment properties and its two major venues.
“Everyone in our community is facing a challenge that no one could have been prepared for, and we understand as a Club and community that the priority at this time is to follow the recommendations from the health experts and support our friends, colleagues and families,” Eels CEO Jim Sarantinos.
“We will meet this challenge head on and I am sure that we as a club will come through the other side and ensure the Parramatta Eels remain at the forefront of our game and community for years to come.”
KNIGHTS:Prior to the NRL season being temporarily halted, Newcastle CEO Phil Gardner declared the club was financially “secure” and said it was far better placed than at any time in its history.
“The Knights are in the fortunate position of being one of the most financially stable clubs in the NRL,” Gardner said of his franchise.
In the recent years of Nathan Tinkler private ownership, the Knights were a financial basket case — with players and staff not paid their monthly salaries, which ultimately led to him relinquishing control of the club in 2014.
But those days are long gone and current owners, The Wests Group, heavily invested in what the Knights mean to Newcastle.
“Part of the reason Wests Group took on the Knights is because we saw the importance of the team to the town,” Gardner, who is also the Wests Group CEO, told the Newcastle Herald.
“So right now, we are probably the best people to have it. Our board will manage all that as we go through the year.”
The Wests Group, however, will not be immune from wearing some financial blows due to the closure of clubs across NSW — taking with it the pokies revenue that helps power their profits.
“(But) we have been building up the reserves of the clubs for a long period of time and we are probably in a good position to withstand what is coming our way,” Gardner said.
PANTHERS: Penrith’s football club and five licensed clubs are bracing for a $40 million loss over the next six months.
Penrith’s five leagues clubs — Panthers at Penrith, Panthers Port Macquarie, Bathurst Panthers, North Richmond Panthers and Glenbrook Panthers — are facing a combined $30 million loss through until mid-September.
And with the suspension of the NRL competition, Panthers football club will lose around $9 million this season.
Penrith had already budgeted for a $5 million loss this season due to playing home matches at an empty Panthers Stadium. That will skyrocket now the team will not be playing at all.
“It’s a 100 per cent downturn,” Fletcher said.
“They’ve closed all the clubs. There’s no income. All there is is expenses.
“But there are a lot of people a lot worse off than us. We’re all alive. We just have to get through it and we will.
“We have to be smart enough to come out the other end and we will do that.”
RABBITOHS: As safe as any club is at present. Have the financial clout of Russell Crowe and James Packer behind them. The Rabbitohs have been prudent in recent years resulting in a $4m cash reserve. Most of that money has come through the club’s 29,000 members. Crowe and Packer own 37.5 per cent of the club, the remaining 25 per cent owned by South Sydney Members Rugby League Football Club.
RAIDERS:Owned by the powerful Queanbeyan Leagues Club that runs six licenced clubs with a new $20 million asset in the recently opened high performance facility.
But it is important to note that the Raiders are run separately and would be in a world of hurt within two to three months without the broadcast money.
Club CEO Don Furner expressed his disappointment with the NRL’s decision on Monday night.
“Although we’re disappointed with the outcome of today’s decision, we agree with the NRL that the health and wellbeing of our players and staff remains paramount during these tough times,” Furner said in an email to Raiders fans.
“We will be working through the implications of this decision over the coming days, but I can assure all of our members and fans that we will be doing all we can to ensure the future of our club.”
ROOSTERS: The Eastern Suburbs Leagues Club, which pays the football club an annual grant, recorded a very healthy net asset position of almost $129 million for the year ending October, 2019. On top of a financially successful leagues club, the Roosters have the backing of Nick Politis, who made a fortune selling cars.
SEA EAGLES: Live hand to mouth, according to majority shareholder Scott Penn. There simply isn’t a cash reserve to cover financial hardship. Each year the shareholders, primarily the Penn family, inject around $1 million to balance the books. The club dealt with an outstanding $2m tax bill last year. Have a modest budget and battle through financially every year. Rejected an offer for the club last year said to be worth $18m.
“Whilst disappointed by this news, the safety of our players and staff will always be our number one priority and so, when the advice of the NRL’s biosecurity and pandemic experts changed, the NRL made the right decision,” Manly CEO Stephen Humphreys said in an open letter.
“We now need to take stock of this decision and its consequences for our Club. We will work through these details with the NRL and the other Clubs over the coming days.”
SHARKS: According to their annual report, the Sharks have $16 million in the bank as a result of $25 million in property sales from their Woolooware development site. Loans have been reduced from $4 million to $500,000.
They also own their own home ground, the leagues club and Kareela golf club.
Income will be affected over the next two years while the Leagues club is closed and the team is playing out of Kogarah.
However that would’ve been anticipated, and factored in, prior to the coronavirus crisis and could leave the Sharks better placed to cope with the closure of leagues clubs than some of their rivals.
Like all clubs, the Sharks have been forced to step down staff as they slash operating costs in the immediate future.
Among them is club great, who has been used in a mentoring role by the club this season.
“Today I’ve been stepped aside by the Sharks and told I’m not needed for the time being. I’m sure unfortunately for a lot of people in rugby league that’s going to be the case,” Gallen told Channel 9’s 100% Footy.
STORM:Backed by the strong ownership group of Gerry Ryan, Bart Campbell and Matthew Tripp, Melbourne was recently independently valued in excess of $30 million after the Storm’s owners agreed to allow prominent Victorian businessman Brett Ralph on board.
“The NRL has made the right call in suspending the season, given the seriousness of the situation,” Storm CEO Dave Donaghy said.
“Like many others in businesses, industries and the general community, this is an incredible and unprecedented challenge.
“All of us will feel the impact of this pandemic and I’d like to thank our members, sponsors and corporate partners for their enormous support, understanding and well wishes.”
TITANS: Privately owned by the Frizelle family, who are already experiencing tough enough times in the car industry.
The Gold Coast Bulletin reports the Titans have already begun asking staff to take leave to ease the financial burden on the club.
Chief executive Steve Mitchell penned an open letter to members thanking them for their support.
“Right from the start of this crisis, the Gold Coast Titans have been fully supportive of the NRL in their direction and handling of this extraordinary situation. That support remains absolute in light of this unprecedented announcement this afternoon,” the letter read.
“As a club, we are currently working through the details of this decision and the next steps we will take on this historic day for rugby league in this country.
WARRIORS:Owned by Autex Industries, a New Zealand-based manufacturing and product development company specialising in textiles and advanced fibre technology that has a staff of around 500 employees – giving them some flexibility outside of the lost broadcast revenue and gate takings.
Warriors chief executive Cameron George put on a brave face following the NRL’s announcement – saying it was a disastrous time for the club – but refused to concede defeat just yet.
“It’s devastating for our club, it’s devastating for our sport, it’s devastating for New Zealand, it’s devastating for our fans, members and sponsors, but no more devastating than to our players, their family and our staff,” George said.
“The impact it will have on our club – short, mid and long term – will be felt for a long time.”
Encouragingly, however, George said the Warriors wouldn’t need to go cap in hand just yet.
“We don’t need any more funding at this stage,” he said.
“The comp only got called off yesterday.
“At this point in time, we’re certainly in a position where we’ve just got to manage ourselves sensibly over the forthcoming month. Like any business in New Zealand, we’ll be facing the same challenges.”
WESTS TIGERS:Don’t carry any debt but the club would be severely impacted by the season being postponed.
Wests Ashfield Leagues Club has a healthy net asset balance of $60 million but, following the state government-enforced closure of all clubs and pubs, it too is feeling the brutal financial impact of the coronavirus.
Any consideration given to using the assets of Wests Ashfield to ensure the survival of the Tigers would be a last resort.
“Never in the 100 plus year history of rugby league has it faced a threat of this kind,” said Wests Tigers chairman Lee Hagipantelis.
“It is of course not only rugby league but the broader community that is having to deal with the ramifications of COVID-19 and the disruption to our daily lives.
“The NRL and Wests Tigers are a part of a broader community that has been impacted by this pandemic. All of us are facing extraordinary challenges. It is times such as these that strength is found in numbers and at Wests Tigers, we know that we can rely upon the resilience and support of our corporate partners, members and fans, as has always been the case, to enable us to survive these challenges.”
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Originally published as Can your NRL club survive the coronavirus crisis?