Covid leaves NRL clubs with $22m blackhole

Clubs have told the NRL exactly how much money they expect to lose this season as they are ravaged yet again by Covid-19.

NRL chief executive Andrew Abdo says the game will make a decision at the end of the season on how much money they can give the clubs. Picture: Sam Ruttyn

The final number has come in and it paints a dire and disturbing picture for the clubs. All told, they have informed the NRL that they stand to lose $22 million this season after being forced to move en masse to Queensland to ensure the competition could continue.

The Weekend Australian revealed the clubs were in the process of putting together a document for the NRL that broke down the financial implications of the move north.

The Australian can now reveal the document is in the hands of ARL Commission chair Peter V’landys and NRL chief executive Andrew Abdo, and comes to the conclusion that the clubs will be $22 million lighter in the pocket due to the impact of Covid-19.

The ball is now in the court of the NRL and the ARL Commission as they decide whether they can afford to come to the aide of the clubs beyond what they already have.

The NRL is bleeding as well. They handed the clubs extra money last year and absorbed many of the costs this season in order to help them navigate the further affects of Covid-19.

They won’t be in position to know whether they can spare additional cash until the end of the season and it is likely to hinge to a large extent on whether the game will have crowds through until the grand final.

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The NRL will finally welcome back crowds on Thursday night when Melbourne meet Canberra at Sunshine Coast Stadium, where they will be allowed 50 per cent capacity. The remainder of the games will be played before similar crowd capacities, although North Queensland will be allowed a full house on Saturday night when they host Wests Tigers in Townsville.

The hope is that by the time the grand final comes around, crowds across the board will be back to 100 per cent and the Queensland government will come to the party with a big, fat cheque to ensure the final game of the season is played before a packed house at Suncorp Stadium.

The NRL will also mitigate some of the financial damage this season by including two State of Origin series in their financial accounts – last year’s series was played after the end of the rugby league financial year on October 31.

That said, the NRL have bled cash in recent weeks after being forced to uproot the entire competition and move it to southeast Queensland. They have also paid for families to move, the cost measured in the millions.

The issue at the end of the season will not necessarily how much they can spare, but whether they can spare any money at all.

The clubs are certainly counting on it given the toll the season has taken on them. It is understood the $22 million figure combines club losses on gate receipts, sponsorship and merchandise.

“We have provided the details of our losses to the NRL,” South Sydney chief executive Blake Solly said.

“Peter and Andrew have always said that they would ensure there was financial support for the clubs if required.

“We’re confident in their leadership and we will give them the time to read the information and come back with any questions so that we work together on what we can do.”

Abdo said it was too early to say where the game would be placed financially at the end of the season given the potential for Covid-19 to create havoc in coming weeks and months.

Ultimately, he said it would be up to the ARL Commission to decide whether they had the financial ammunition to come to the aide of the clubs.

“We have offered to help work with the clubs to try to get support from state governments but there are no guarantees on that,” Abdo said.

“There is no financial package coming now but once we get through the grand final, we will know what we have to play with … and the board will make a call.”