Clubs raise fears about NRL expansion as game faces fresh Covid uncertainty

Clubs have raised further questions over the timing of expansion as the game finds itself once more in the grips of Covid-19.

Broncos chairman Karl Morris is concerned about expansion plans. Picture: AAP

The ARL Commission is facing fresh pressure to delay a call on expansion for at least 12 months as some clubs raise concerns over the impact the latest Covid outbreak will have on the game’s finances.

The game’s existing 16 clubs are poised to suffer significant losses after the NRL introduced level four biosecurity protocols this week, locking out crowds at many venues in the process.

The hit to the game will be measured in the millions, particularly if the final match of the State of Origin series is impacted by the current climate.

So concerned was the ARL Commission, they postponed meetings with the three bidding parties this week and devoted their discussions on Tuesday to navigating their way through the ongoing Covid-19 situation.

Talks are expected to resume with the three expansion aspirants in coming weeks as the commission targets a final decision in August on whether to add a 17th team in 2023 – and who that team should be.

While ARL Commission chair Peter V’landys and NRL chief executive Andrew Abdo have given assurances that they will consult the existing clubs, there is genuine concern about adding another team in such an uncertain environment.

“The fact is we are back where things are quite unpredictable again,” Brisbane chair Karl Morris said.

“So until the adoption of the vaccine is higher than what it is at the moment and these sort of short-term shutdowns stop taking place, how can you make a decision?

“It is also not fair on the entities that are pitching for it. The environment that is in front of them is completely unpredictable.

“That is the issue. If you are going to continually have these shutdowns, how are you able to provide some certainty to their revenue streams.”

The bid teams were asked to provide a $10 million guarantee as part of the application process, although question marks have already been raised over the financial strength of at least one of the respective aspirants – the Brisbane Jets.

The Australian last week revealed that the Jets had circulated a document asking for potential investors in the club. Redcliffe and the Brisbane Firehawks are on more solid footing – both are backed by leagues clubs with millions in the bank.

That said, it won’t take long to chew through that money if Covid-19 continues to wreak havoc with the game and its clubs. On Tuesday, Canterbury were forced to name three debutants for their game at the weekend after they had five players ruled out for breaches of the Covid guidelines.

Cronulla centre Josh Dugan was also under investigation after he breached biosecurity protocols by going out for dinner at the weekend. The existing clubs were already asking questions about expansion, although they had many of them answered when they commissioned the Gemba Group to piece together their own investigation into a 17th team.

The Gemba Group report conceded a 17th team had the potential to attract new money to the game, but also raised concerns over the impact a new club would have on the existing sides, particularly those based in Queensland as well as the Melbourne Storm, who rely heavily on Queensland for talent.

The report also suggested a new side would have an inflationary impact on football department costs and playing wages because the 17th team would drive up salaries by creating competition.

So concerned are the clubs, they have asked the ARL Commission for a meeting to discuss some of the issues.

“We’ve asked the commission to confirm the criteria that they will consider when looking at the business case or feasibility of expansion,” South Sydney chief executive Blake Solly.

“For example, what is the amount of new broadcast and commercial revenue needed for expansion to be approved, how many new fans or participants will the extra team be expected to attract.

“The 16 clubs want to be assured that any expansion to the competition will create immediate and long-term value for the existing club shareholders.

“These are reasonable requests that a shareholder in any company would be making in these circumstances.”

The clubs are members of the ARL Commission but they have no direct power to influence the decision on expansion – the commissioners themselves decide whether to add a new member.

“There are 16 stakeholders who are going to be significantly impacted and I am surprised that they haven’t got a vote,” Brisbane chair Karl Morris said.

“I understand why the ARL Commission was set up in that way but surely we have moved on from then.”