NRL and players in $20m pay war

The NRL and its players are about $20 million apart on pay for the next two seasons.

NRL CEO Andrew Abdo: ‘We will continue to work with the players association in a positive manner so we can resolve it’

The NRL is on the verge of another pay war only weeks from the grand final as they find themselves locked in a $20 million stalemate with the players union over the salary cap for the next two seasons.

The Weekend Australian understands the parties held talks again on Friday but are no closer to a resolution as they haggle over whether the cap should drop by five or 10 per cent for the next two years.

The five per cent difference between the parties equates to about $500,000 per club — or $8 million across the game. Over the 2021 and 2022 seasons, that adds up to $16 million. With other player entitlements factored in, the figure is expected to soar north of $20 million.

NRL chief executive Andrew Abdo has been leading the fight on behalf of the game and clubs, meeting regularly with Rugby League Players Association chief executive Clint Newton.

However, they have been unable to settle the issues, much to the chagrin of club officials who are desperate to begin budgeting for next season.

The sense is that both sides are digging in their heels, the RLPA making their views clear in a text message sent to their members on Thursday night.

In the text, the RLPA rejected suggestions the cap could drop by 10 per cent in 2021 and 2022. They acknowledged squad sizes were set to stay at 30 — they were disappointed the decision had been leaked — but denied there had been any agreement over pay.

The union also accused the NRL of shifting their proposal by $10 million within a week after they had not agreed to the previous position.

On squad numbers, the text said: “This position has been tentatively agreed between the NRL and RLPA in negotiations and we had anticipated making a joint statement about it soon.

“It appears that someone at the NRL may have jumped the gun. That is annoying but the good news is that we have preserved as many contract positions as practically possible.”

In terms of the pay dispute, the text said: “The report also stated that there will be a 10 (per cent) reduction in players salaries. That is not accurate. The 10 (per cent) is the NRL’s proposal at the moment.

“Our position (as mentioned on club visits) is no more than 5 (per cent). Clearly there is further negotiations that need to happen around this.

“We will keep you updated on negotiations as they progress but rest assured that we have not agreed to a 10 (per cent) reduction in player salaries.”

The issue has the potential to drive a wedge between the NRL and clubs on one side and the players on the other. Clubs have already slashed costs and put off staff to ensure their financial wellbeing as they continue to feel the impact of COVID-19.

The NRL is also poised to unveil their restructure as early as next week, having vowed to slash as much as $50 million from their operating costs for next year and beyond.

The players were subject to hefty pay cuts this season but ARL commission chair Peter V’landys had promised to do his level best to ensure they received their full entitlements next season.

As covid dragged on and the game and the clubs suffered ongoing financial damage, it became apparent that would not be possible.

The NRL has tried to limit the cost to the players as much as possible — at one point there was talk they would be forced to sacrifice as much as 40 per cent of their pay.

They are pushing for a 10 per cent drop which would be shared across the playing group. It would mean the game’s highest earners — the million dollar men — would lose about $100,000 in each of the next two seasons.

Abdo, who has been at the forefront of plans to cut costs at head office, was sympathetic towards the players. At the same time, he has told the players union that $400 million will be wiped from the game’s bottom line in 2021 and 2022.

“You have to make changes that are responsible,” Abdo said.
“We completely acknowledge the players and the value they bring to the game. We will continue to work with the players association in a positive manner so we can resolve it as quickly as possible so everyone has certainty.”