NRL 2022: Clubs set for record $300m funding as CBA saga winds down

NRL clubs are set to celebrate a record boost to funding, as warring parties move closer to brokering peace and putting an end to rugby league’s CBA saga.

NRL CEO Andrew Abdo is set to table the richest funding deal in rugby league history, with clubs set to receive up to $306m a year. Picture: Jonathan Ng

NRL clubs are set to celebrate a $300 million bonanza with League Central to deliver record grants as the warring parties move a step closer to brokering peace in rugby league’s funding negotiations.

News Corp can reveal the 17 clubs will receive an annual grant of between $17-18 million, with ARL Commission boss Peter V’landys and NRL CEO Andrew Abdo to table the richest funding deal in the code’s 114-year history.

The NRL’s proposal is worth up to $306 million collectively for the clubs.

The parties hope to formally agree terms within a fortnight in the first significant step towards delivering the code’s new Collective Bargaining Agreement.

In the previous agreement, the clubs were receiving $1.62m above the salary cap. This is expected to now rise to $5m per club - an extra $85 million from the NRL representing a 208 per cent increase.

NRL CEO Andrew Abdo is set to table the richest funding deal in rugby league history, with clubs set to receive up to $306m a year. Picture: Jonathan Ng

Before the V’landys-Abdo regime, the 16 clubs were incurring $38m in losses as a group.

During Covid, the NRL substantially increased funding by a further $86 million, meaning the clubs, as a collective, returned $30 million in profits.

News Corp has learned that both V’landys and Abdo have visited most clubs during the past two years promising to return much greater funds to the clubs.

It now appears they have delivered on their promise.

Panthers boss Brian Fletcher confirmed the NRL clubs are set to receive more money than ever - scuppering any threat of a Super League-style breakaway.

“It is record funding and it had to be record funding,” Fletcher said.

“Before the previous funding agreement, Penrith lost $50 million in a decade on rugby league, but now we are getting to the point where every club can make a healthy profit.

“The clubs have never tried to rob the NRL.

There were fears the NRL were facing a full-scale revolt following revelations several leading club officials were fed-up with CBA negotiations with Abdo and wanted to deal directly with V’landys.

Penrith Panthers CEO Brian Fletcher says any deal reached had to be a record given the losses clubs have made over the past decade. Picture: AAP.

But a fresh round of talks between Abdo, Souths boss Blake Solly, Canberra’s Don Furner and Melbourne’s Justin Rodski is set to finalise the club-funding agreement.

The NRL’s current funding offer stands at around $4.87m above the cap, but if they reach the $5m mark, the 17 clubs will shake hands with V’landys and Abdo.

Under the stewardship of V’landys and Abdo, every club is now turning a profit and the beefed-up funding deal will ensure the 17 teams enjoy a record surplus heading into the code’s expansion era next season.

Solly said the clubs have not agreed terms with the NRL at this stage, but is hopeful of a funding resolution this month after confirming tensions with Abdo had eased.

“We had a productive meeting with Andrew,” Solly said.

“The clubs have always been willing to work with the NRL and RLPA to deliver the right outcome for the whole of the game.”

Rabbitohs CEO Blake Solly says clubs have not yet agreed to the NRL’s terms abut are hopeful on reaching a resolution in the next month. Picture: Lyndon Mechielsen.

As revealed by News Corp, the NRL will announce record revenue in excess of $600 million and Abdo said recently the governing body is determined to reward the 17 clubs.

“Player payments are going up,” Abdo said.

“Our current proposal is for a significant increase in salary cap for both male and female athletes.

“A couple of years ago, the situation was very different for clubs financially. Clubs were making significant losses in aggregate, so it was important to provide a strong financial base for clubs.

“The funds available for distribution have gone up significantly.

“The clubs have never been stronger or more profitable.”

Originally published as NRL 2022: Clubs set for record $300m funding as CBA saga winds down