NRL’s $112m club rescue package

The NRL is set to hone in on the salary and football department caps after striking a $112m compensation package with their clubs.

The NRL continues to push for fans back in the stands. Picture: David Swift

The NRL is set to hone in on the salary and football department caps after striking a $112 million compensation package for clubs designed to ensure they survive this season and start next on an even keel.

The clubs held a phone hook-up with NRL powerbrokers on Wednesday afternoon where the latest offer was shared with chief executives.

While the deal still needs to be rubber-stamped by the ARL Commission, it is understood the clubs will receive $6.25m in cash, $500,000 in contra for things such as stadium rental and insurance, and a further payment of $250,000 contingent on crowds returning for the grand final and State of Origin series.

The agreement comes after several weeks of negotiations which began with the NRL offering each club $5.4m. The clubs agitated for more and it appears they got their way, largely thanks to the negotiating powers of Brisbane chief executive Paul White, South Sydney’s Blake Solly and Melbourne’s Dave Donaghy.

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The trio, along with Penrith’s Brian Fletcher and the Sydney Roosters’ Joe Kelly, held further talks with NRL chief executive Andrew Abdo on Tuesday where it is understood they finally reached agreement on the way forward.

The clubs have taken a massive financial hit due to COVID-19 — they supplied the NRL with estimates that suggested they would lose upwards of $60m in membership, ticketing and corporate support due to the coronavirus.

The Broncos alone earned more than $16m through those avenues in 2018 — the last time the NRL conducted benchmarking of their clubs. The financial package means the clubs have some security over the remaining months of this season and heading into 2021.

The NRL’s next challenge will be reaching an agreement with the players over the salary cap and the clubs over the football department cap for next season.

ARL Commission chair Peter V’landys has already indicated he would like the salary cap to stay where it is but the expectation is that the total player payments will drop, potentially by reducing the number of players in NRL squads.

That would allow the game to protect the salaries of their higher earners and ensure the average wage didn’t drop.

Prior to COVID-19, each club was required to have 30 players in their NRL squad. The expectation is that number could gradually drop over the next two years, potentially arriving at 26 players.

That would in turn shave about $400,000 off the cap. The football cap is also expected to undergo a gradual transformation. It currently stands at $6.17m but the expectation is that it could drop by as much as $1m over the coming years.

Clubs are likely to be given time to work their way under the cap, as they were when it was first introduced. The decision to make some of the club payment contingent on crowds returning later this year for the grand final and Origin series comes as the game prepares for spectators to return on Thursday night when Manly host Brisbane at Central Coast Stadium.

A limited number of supporters and corporate backers — likely less than 200 — will attend the game between the Sea Eagles and Broncos.

South Sydney have begun calling for ticketed members to enter a ballot as they welcome fans back for their round five and six games against the Gold Coast and Warriors at Bankwest Stadium.

“Government regulations regarding social distancing and event capacities are still in play and, for this reason, spots at the games at Bankwest Stadium are extremely limited,” the Rabbitohs said.

“Only 500 people are allowed inside Bankwest Stadium to watch the game spread across Rabbitohs ticketed members, Rabbitohs corporate partners and VIPs, venue associates and the NRL.’’

While NSW deputy premier John Barilaro was pushing for fans to be able to attend Thursday night’s game in greater numbers, premier Gladys Berejiklian continues to adopt a patient approach.

“No, not this weekend, no,” she said on the Today Show.

“However, as we’ve said, the use of corporate boxes and the like is the first stage of that engagement.”

V’landys has been pushing hard to have the game opened to crowds and clubs have been working on protocols to determine who should be given priority to attend matches.