NRL to cut 25pc of its staff in savage job cuts

The NRL has announced savage cuts at head office, with 25 per cent of staff to go following high-profile redundancies.

NRL boss Andrew Abdo announced 25 per cent job cuts in a Zoom call with staff

The NRL made the painful decision to slash head office staff after it emerged the organisation had burned through $80m in cash reserves to keep clubs and the competition afloat and it could take at least two years to recover from this year’s anticipated $120m dip in revenue.

The financial pain has been well documented. On Monday, it was accompanied by personal pain as chief executive Andrew Abdo hosted a zoom conference with NRL employees to inform them that 25 per cent of the workforce would lose their jobs.

One in every four employees at the NRL will be ushered out the door in coming days and weeks as the NRL slices $50m from operating costs. Abdo, having performed the most difficult task he is likely to face as NRL chief executive, will now turn to the players and the task of striking a pay deal with them for next season and the year after.

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The NRL wants the players to take a 10 per cent pay cut. The players union only want to give up 5 per cent.

There will be little sympathy at NRL headquarters given head office has just bid farewell to 25 per cent of their staff.

The players risk alienating fans and officials if they continue to dig in their heels. The financial toll of COVID-19 has been devastating across the game.

Aside from the $120m dip in revenue this year, the game has forecast the total losses to be $400m across the clubs and head office over the next two seasons.

“Our business, like so many others, has been hit by a hurricane called COVID which caused substantial damage,” Abdo said.
“Our strategy moving forward is to stabilise, renovate and grow. In order to stabilise, we must secure revenues and reduce our expenses to ensure a strong foundation.

“Then we will renovate by considering ways to make our products more entertaining and dynamic for our fans. Finally, we will develop bold plans for growth, looking at new products, new markets and how we can grow the game internationally.

“Our game is part of the sports entertainment industry and we are aiming to transform faster than others to remain competitive in a dynamic market.”

Abdo said the pandemic had forced the NRL to make difficult decisions.

“We will lose some very good people during this process,” he said. “Talented people with a genuine love and passion for our game who have all contributed in some way. This is a painful but necessary process to ensure we survive.

“I have genuine empathy for all employees affected and we will listen to their feedback. Our game must remain strong for future generations.

“We all want to leave the game in a stronger position than when we first joined the sport. What has inspired me most during the pandemic is how our game has come together.

“We have shown what we can achieve when we work together. Rugby league, under the direction of the commission, has led the way in Australian sport and I am confident we will continue to do so.”

The NRL’s head of football Graham Annesley added: “It is obviously a very difficult day for everybody in the building. We are not the only business going through this.

“Other major sports in this country have been through a similar process.

“We are devastated for many of our colleagues that will no longer have jobs.

“I have two daughters who work in completely different industries who have lost their jobs. So it is a difficult day for everyone in the industry, but it is a difficult year for everyone in the world.”

Meanwhile, the NRL has finalised their investigation into allegations that Penrith centre Brent Naden was abused by spectators at a much on the NSW Central Coast last month.

The NRL facilitated a conversation between Naden and a representative of a number of the spectators involved, where apologies were offered and accepted for the abuse.

Abdo and the integrity unit also consulted Naden, the Australian Rugby League Indigenous Council (ARLIC) and community partners to determine an appropriate course of action.

A program of education will be offered to the people involved.

“The game will not tolerate any form of abuse against our players — be it physical, verbal or online trolling. I commend Brent Naden for taking a strong stand on this matter and the way in which he has conducted himself throughout the process,’’ Abdo said.

“I’m pleased Brent had the opportunity to share how he feels and I’m pleased that an apology has been made and accepted.”