NRL could be entitled to cut players pay by $100m over next two years

The NRL could be entitled to take back as much as $100m from player payments over the next two years.

RLPA director Daly Cherry-Evans says the NRL’s position is confusing. Picture: Getty Images

The NRL’s own financial projections suggest they could be entitled to gouge more than $100 million from the player payment pool for the remainder of this season and the next two due to the ­financial damage caused by the COVID-19 pandemic.

The Australian recently revealed that the NRL had told the players union that as much as $400 million could be stripped from the game’s bottom line as a result of the coronavirus on not only the NRL, but its clubs.

In the agreement between the players and the NRL, the former are entitled to 29.5 per cent of the game’s total revenue pool.

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The genuine partnership was hailed as a breakthrough in the relationship between players and head office because it meant as well as sharing in the upside, they also sacrificed money if they game suffered a downturn. No-one could have envisaged the world would be battered by COVID, but rugby league is feeling the strain as much any code as they attempt to negotiate a safe and secure future.

The NRL has offered the players a 10 per cent pay cut but they are digging in their heels as they look to give up only 5 per cent.

ARL Commission chair Peter V’landys remains confident an agreement will be reached despite the haggling, although the clock is ticking as the season rapidly draws to a close.

“The reduction isn’t going to be dramatic and it is certainly going to be better than any other sports,” V’landys said.

“It is not just the revenues of the NRL (that have dropped), it is the revenues of the clubs. They are doing it a bit tougher than we first thought.

“There is a CBA (collective bargaining agreement) there anyway. It says they get a certain percentage of revenue.

“If we did that, they would be getting a lot less than what the offer is. We’re giving them a better deal than what they negotiated in the CBA. So legally, if they want to continue with the CBA, they will be worse off.”

NRL chiefe executive Andrew Abdo. Picture: Phil Hillyard

The NRL has conducted its own round of cost-cutting, although the details are yet to be disclosed. NRL chief executive Andrew Abdo confirmed an announcement was set to be made at the end of the month in an internal email shared with NRL staff.

“A hurricane called COVID-19 has swept through our house,” Abdo said.

“Our strategy is to stabilise, renovate and then grow our business. Stabilise so we can repair the damage, fix the windows and doors and survive.

“We need to secure revenues, reduce expenditure and reorganise with all stakeholders. Then renovate our house so we can begin to thrive.

“We need to make our existing products and experiences even better for our fans. Finally, we can begin to think about growth again in new products, markets and revenue producing assets.

“I’m working hard with a small team and the commission to revise what the structure of our business will be so you can have the certainty you need.

“We are aiming to have this process completed before the end of the month. The decisions we make now, however tough, are necessary to safeguard the game for the future.”

That sentence also applies to the pay talks. The pain needs to be shared and the players will have to play their part, something they are willing to do as long as it is fair and reasonable.

“They repositioned themselves so obviously that’s a bit confusing when you’re in a negotiation and you go backwards,” Manly captain and RLPA Director Daly Cherry-Evans said.

“That’s why as a playing group we need to come together and be clear on what we want. I’m really certain as a playing group we know what we want, and that’s just a fair deal for both the game and the playing group right now and for the future.

“As a playing group you’ve got to remember this is a game within a game.

“We’re just doing what’s right for ourselves as a playing group.”