NRL players face pay cuts as game’s financial crisis grows
NRL players believing their contracts will see them ride out the job losses and pay cuts affecting everyone else in the game are set to have their bubbles burst when rugby league’s money runs out.
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NRL players could face financial ruin if they are stood down within the next four to eight weeks and all wealthy contract payments stopped.
Coaching staff at all 16 clubs could be next.
“At some stage, sorry, there’s no money,” one NRL chief executive said. “I can’t pay you. The whole world has stopped, boys.”
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The RLPA has ensured a battle over money by proposing that players receive full pay while not playing.
Clubs were told during a CEO phone hook-up on Tuesday they would receive next month’s monthly $1.2 million NRL broadcast grant.
Club officials said that would ease the pressure on paying players for at least the next four weeks. After that, the money could dry up.
The NRL will hold discussions with Fox Sports and Channel 9 this week to try to formulate a future financial plan.
However, the broadcast money will cease now the games have been suspended. Clubs are seeking “clarity” on the reformed payment structures players might seek.
“If the grant stops then there are no player payments at all,” one CEO said.
“Some clubs are cutting 400 staff from their leagues club and football club because of coronavirus. We’re cutting back everywhere.
“Players might be the last ones to get touched but it’s coming. You can’t just keep paying money you don’t have. It’s not days away but it’s coming. It’s an argument that has to start today.
“It won’t matter if you have a contract. There won’t be a club. I don’t know why players would think they are going to get paid. There’s no other revenue coming in, there’s no more money.
“The penny is finally dropping for the players — if there’s no broadcast money then where does the money come from? And leagues clubs have closed.
“We’re paying all this money for blokes not to do anything. One of our biggest outlays of costs is player payments. You can only spend money that you’ve got or that you’re allowed to spend.
“How many months can you keep on spending more than what you’ve earned? You can’t.
“You might do it for one month, two months, that would be it. And the coaching staff will be next.”
NRL clubs are laying off up to 85 per cent of staff in an attempt to remain solvent.
Clubs don’t believe players will be able to sue for breach of contract.
“It’s called a stand down,’’ one CEO said. “Have a look at the Fair Work Act around stand down.
“It’s what all businesses are doing. Qantas have stood down 20,000 employees. They are not sacked, they are just not getting paid anymore.
“Under the Fair Work Act, when your work is closed or adversely affected through no fault of your own, coronavirus, employers can stand down employees. That’s what happening.”
At the chairman and chief executive conference hook-up on Tuesday morning, clubs sought answers from ARL Commission chairman Peter V’landys and chief executive Todd Greenberg about player payments and a slashed salary cap when the NRL resumes.
Few answers could be offered due to the game’s unprecedented circumstances.
After the hook-up, CEO’s spoke among themselves about the probability that players would no longer be paid from June or July.
“There would have to be discussions in the next 48 hours about what financial sacrifices the players will have to make,” an NRL club chairman said.
“The clubs have to do what is achievable for themselves.”
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The Daily Telegraph can also reveal:
● Clubs believe the earliest the competition can resume is June premiership, and no later than September;
● NRL management will ask Nine and Fox about their thoughts the competition extending into November and possibly December;
● Discussions have started around the structure of a reduced and revamped competition over 15 weeks;
● Lower-grade competitions must stay closed to avoid additional costs; and
● Most clubs are spending around $25 million a year — money they do not have anymore.
One CEO said: “We will need to find out whether we could go into November, December and what other commitments do the networks have around that time, like cricket.”
Originally published as NRL players face pay cuts as game’s financial crisis grows