NRL Commission chair Peter V’landys still to finalise details with Foxtel and Nine
Despite the 20-round season being announced the biggest fight lies ahead for the NRL’s chair with broadcasters Foxtel and the Nine Network.
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ARL Commission chair Peter V’landys will personally address a selection of players on Friday as he looks to put out one brushfire before moving onto a raging storm in the shape of talks with the game’s broadcasters.
V’landys has pledged to work his backside off to ensure the players receive 80 per cent of their salaries for this season, his determination coming amid dissension in the playing ranks over the uncertainty that continues to surround the code’s return.
Broadcasting talks are at the heart of the matter, discussions with the Nine Network and Foxtel dragging on despite the NRL’s decision to announce a 20-round schedule that will stretch the competition into November.
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It is understood Foxtel and the Nine Network are largely aligned on the season’s value.
While Foxtel has largely kept its powder dry, leaving Nine to do the heavy lifting in public, News Corp understands there is a view in both camps that the season is damaged and the value simply isn’t there in the product.
No crowds, questions about the status of the competition and the constricted advertising market mean that Foxtel and Nine want to pay significantly less for the product. The NRL has a fight on its hands to extract enough money from the broadcasters to make the competition and its clubs viable.
V’landys’ best hope would have been to divide and conquer the broadcasters. Yet it appears they have adopted a united front on the value of the competition and what they should pay when the game returns on May 28.
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There were reports on Thursday that the Nine Network wanted to pay $28m less for this season because its preference was for a 17-round competition.
Foxtel pays about $1m for each game during the year, meaning a 20-round competition would equate to about a $32m saving for the broadcaster - the existing agreement was based on 24 rounds - before there is any discussion over the damage caused by an absence of crowds and atmosphere.
Should Foxtel push for equal terms with Nine and look to pay for only 17 rounds, that would mean it could potentially save another $24m - more than $50m in total.
It means even a worst-case scenario would result in the code having more than $80m shaved off its broadcast deal this season.
Battling with the broadcasters has become a daily occurrence for V’landys. The last thing he needed was to be confronted by a player revolt, although players union boss Clint Newton recoiled at the use of that term on Thursday.
Regardless of the terminology, Newton could give no guarantees during a conference call with journalists that either the Warriors would leave Auckland on Sunday or that players at other clubs would show up for work on Monday.
V’landys will talk to the players on Friday morning in an attempt to resolve the issue but if he can’t settle the matter, there is every chance the situation could escalate. Club officials are spoiling for a fight, the game having already pledged to pay the players their full amount for the month of May.
It could be that they are fined or have their pay withheld if they refuse to show up for work on May 4.
V’landys will look to assuage their concerns on Friday morning and avoid a potentially ugly confrontation early next week.
“The target for the players is 80 per cent of their contract so someone on $1m is getting $800,000,” V’landys said. “If we can procure it, it is a monumental achievement for the players. That is what we have been trying to do — always consider the players, the clubs and the fans.
“You wouldn’t be human if you didn’t say you were disappointed. We’re working so hard to try to get them their revenue. I would not be human if I didn’t say there was an element of disappointment.”
Club officials were mortified at suggestions the players were even contemplating the idea of staying away from training next week.
There was genuine shock in clubland that they would question the money side of things when clubs are bleeding.
Some clubs would be better off if the game didn’t come back and they were able to shut down completely for the year.
Others point out that the game stands to miss out on upwards of $150m through lost broadcast revenue and gate takings, yet the players still stand to take home 80 per cent of their salaries. The NRL has a line of credit through Oakwell Sports Advisory at their disposal and they may be forced to press the go-button on that unless they can find some middle ground with the broadcasters.
The Nine Network is agitating to pay less given the loss of four rounds and the prospect of State of Origin being played in November. It would be folly to think Foxtel would not follow suit given they too could save themselves millions. Against that backdrop, V’landys and the NRL find themselves potentially at loggerheads with the players. Newton was at pains late on Thursday to stress rugby league wasn’t in the midst of a pay dispute. Nor, he said, was it gripped by a player revolt.
The Rugby League Players Association chief executive insists their concerns stretch beyond money. They want more clarity around the biosecurity measures the game will bring into effect and the heath and safety rules that are being put in place before the game’s return on May 28.
“We just want to make it very clear there is no player revolt,” Newton said. “There is no pay dispute right now because we don’t actually have any numbers, we don’t have the figures to know what is available to distribute.
“We can’t be in any pay dispute if we don’t know the numbers. Players are absolutely committed to getting the competition up and running.’’
Originally published as NRL Commission chair Peter V’landys still to finalise details with Foxtel and Nine