Clubs' rebellion threatens future of NRL

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John Fahey pleads with clubs to defer demands for extra $34m

FORMER NSW premier John Fahey has called on NRL clubs to delay their demand for more money until the new TV deal is finalised, warning the game will wither if cash is taken away from grassroots development.

Cash-strapped NRL clubs want an extra $34 million next season, although they have given no indication as to where that money should come from.

However, it has been suggested money could be redirected from other areas in the game. One of those potential areas is the game's grass roots.

World Anti-Doping Agency president Fahey, a former league player and current board member of Australia Rugby League Development, said a short-term grab for cash had the potential to damage the game at the lower levels. "We have a budget of $10m," Fahey said. "If they think there is room to take some money off the development at grassroots level, it would be a short-term fix that would guarantee the game would wither.

"There will be money in the game when the television contract is ultimately resolved. That won't happen until the (independent) commission is in place."

The commission is expected to take over running of the game on November 1, although the latest dramas between the clubs and the NRL have raised doubts over the deadline date being met.

The commissioners-elect will hold their next meeting on Tuesday and by then it is hoped

the latest impasse will be some way towards being resolved.

"It's nice to look after the 500 best players in the game but what about the other 150,000 that ultimately contribute to those 500 players being the elite," Fahey said. "It's a bit of the chicken and egg. We need the elite level to encourage young players to take up the sport. At the same time, let's not forget the junior development and grass roots of the game."

Meanwhile, salary cap auditor Ian Schubert will decide the fate of Wests Tigers utility Tim Moltzen after his contractual dispute was passed on to the NRL by St George Illawarra.

The frustrated Dragons thought they had Moltzen for the next three season but were forced to call in the game's governing body when the Tigers insisted he was staying with them.

Dragons chief executive Peter Doust detailed the talks involving Moltzen in a statement on the club's website.

Tigers chief executive Steve Humphreys responded yesterday. "The St George-Illawarra club has expressed their views on inter-club protocols and specific events in relation to Tim Moltzen," he said.

"Wests Tigers retain a very different view of both items. We will continue to work with both parties to resolve this matter as expediently as possible."

Doust accused the Tigers of not acting in good faith: "Our suspicions were raised earlier last week when (Moltzen's manager) Martin Tauber and Tim Moltzen did not return phone calls to Dragons staff and Tim failed to front for a pre-arranged meeting prior to his departure for an end-of-season overseas trip with other Wests Tigers players."

http://www.theaustralian.com.au/

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Eagles 'not being greedy'

SEA Eagles chairman Scott Penn insists his club is not being greedy in seeking its NRL funding be increased to from $3.8 million to $6 million a year.

He said Manly was still losing money despite winning the premiership and, along with other clubs, was putting its hands forward as it looks to protect its future.

The funding drama has threatened the start of the Independent Commission and Penn’s comments drew a swift response from NRL partners, News Limited, publishers of The Manly Daily.

“We don’t have an issue with the clubs asking for more money, but we have an issue with clubs asking for money now just as the commission is about to get up,” News Limited Corporate Affairs Director Greg Baxter said.

He said there was not sufficient money to be able to guarantee that extra funding the clubs were seeking.

Penn said the current NRL business model just doesn’t work, with 14 of the 16 clubs losing money.

“So clearly there is not enough revenue from the game coming to clubs,” he said.

“Therefore we need to make sure that our funding is guaranteed under a new license agreement, whereas at the moment that is not the case.”

Penn said Manly was certainly not in a dire position, but the reason it was making losses was arguably because not enough revenue of the game was coming to it.

“We know the NRL currently have some financial reserves and we know there is going to be strong interest in the new TV rights,” he said.

“Based on the information we have at the moment we are of the opinion the game could fund a distribution of about $6 million to each club.

“We are not looking to be greedy at all, it’s not about asking for money that isn’t there.”

But Baxter said that the NRL has cash reserves of $17 million which was for contingencies such as clubs losing sponsors - not as a slush fund clubs could dip into when they felt like it.

He said one of the major points in setting up the Independent Commission was to give the clubs a lot more say in the running of the game and they will have that when it is formed.

“These are the sorts of issues they should be debating with the new commission when it is in place,” Baxter said.

“It is not appropriate for the clubs to come to us or the NRL or anybody else at the 11th hour with this ridiculous demand for a 50 odd per cent increase in funding.”

Baxter said everybody was very optimistic about the new TV rights deal for the game.

“When that deal is negotiated then the clubs will sit down with the commission and have another negotiation about what amount of money should go back to them.”

Code13

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NRL partners reject $8m club demand

THE game will have to come up with yet another date for the independent commission to take over, with the NRL partnership committee planning to meet clubs on November 1 to resolve a funding impasse - the same day the new governing body was meant to be sworn into power.

The partnership committee - which controls the financial arm of the game - met yesterday to discuss a demand from the clubs to prop up their own coffers by asking the NRL to go into debt by $8 million before flatly refusing them.

That means another date will come and go for the formation of the commission - it had been forecast the game's new administration would be up and running last year.

The clubs last week asked for a sustainability grant of $2.15m to complement their existing grant of $3.85m and have baulked at signing agreements to play in the competition until the funding issue is resolved.

They met again on Monday and proposed the NRL could meet their demands if they gave them each a $500,000 special purpose grant - which would require the game to take out a $8m loan - and $1.6m media rights bonus to be paid at the end of next year when the next broadcast deal is done.

Until the independent commission assumes power, financial decisions about the game must be made by the game's current owner the Australian Rugby League and News Limited (publisher of The Australian).

The partnership committee consists of three directors from the ARL - John Chalk, John McDonald and Colin Love - and three from News - Peter Macourt, Ian Philip and Stephen Loosley.

It is understood the decision not to plunge the game into debt to service the clubs' financial problems was unanimous.

The six men were unwilling to lumber the commission with any pre-existing deal to give the clubs a bonus once the media rights deal is negotiated. It is estimated the next deal could net the code up to $1.4 billion.

"The partnership committee made a unanimous decision today that it would not be prepared to borrow money to fund increased grants to the clubs, nor would the partnership committee entertain a commitment to make a pre-payment of television revenue that is yet to be negotiated," a statement said.

http://www.theaustralian.com.au

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NRL rejects loan idea to raise club funds

THE battle between the NRL and the clubs over funding will come to a head next week, after a meeting of the league's partnership committee yesterday rejected calls for a massive increase to the grant for next year.

A media release issued on behalf of the committee by the NRL made it clear that finding just an extra $200,000 for each of the 16 clubs to lift the grant to $3.85 million for next year was a difficult rather than straightforward process.

The clubs were looking for an increase from $3.85 million to $6 million, or, alternatively, they wanted the league to take out a bank loan of $8 million and give the clubs $500,000 each. But it is clear the committee has no intention of authorising anything like that.

''As a first step, the partnership committee examined the draft operating budget for the game in 2012 and has asked the NRL to revise the budget so that the current proposed increase of $200,000 per club can be accommodated to allow a grant of $3.85 million,'' the release read.

''The partnership committee made a unanimous decision today that it would not be prepared to borrow money to fund increased grants to the clubs, nor would the partnership committee entertain a commitment to make a pre-payment of television revenue that is yet to be negotiated.''

When asked by the Herald if he could elaborate on the meeting, John Chalk, an ARL representative on the committee, replied: ''Read the press release, it's all in there. I haven't got any further comment to make.''

Said Wests Tigers chairman Dave Trodden: ''The press release needs proper consideration before we respond.''

The clubs are likely to say more today, but, obviously, they would be angry with the decision. Club chairmen and chief executives will meet on Monday, and the release said the partnership committee would call a meeting with clubs for Tuesday.

http://www.smh.com.au

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Let's set the date for November 13, my birthday!

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Help plan for troubled NRL clubs
The Australian

NRL chief executive David Gallop has provided the game's cash-strapped clubs with an assurance that the governing body will consider emergency funding for any team that strikes troubled waters in the next 12 months.

Representatives from the clubs will meet on Monday to discuss their next step after their demand for increased funding next season was rejected by the NRL partnership committee, made up of representatives from the game's co-owners News Limited and the Australian Rugby League.

A further meeting will be held on Tuesday with the partnership committee over the clubs' push for a sizeable increase in their grants next season --an additional $34 million in funding.

The NRL has insisted the money is simply not there, although the clubs reacted to that by tabling a proposal that would have resulted in the bulk of that money being provided once the game's next television deal was finalised.

Yesterday, the clubs dragged the NRL's new administrative headquarters -- due to be completed later this year -- into the bunfight. Clubs spokesman David Trodden, a director of Wests Tigers, pointed out the game had ploughed money into the NRL's future home, adjacent to the Sydney Football Stadium, when it could have been used to aid clubs.

The building cost $19 million, although the bulk of that money came from taxpayers.

The NRL chose to pay for the difference with its cash reserves, preferring to use its own money rather than take advantage of a pre-approved $6m bank loan.

Trodden suggested the NRL could have used the loan and instead directed the cash to the struggling clubs. Gallop rejected that notion yesterday but said his administration would consider helping any club that found itself in financial trouble next year.

"The building is primarily being funded with government money," Gallop said.

"The bank did approve a loan for the balance but ultimately we could afford to fund that balance without a loan. If the clubs wish to convince the partnership committee to reactivate that loan for the purpose of paying the clubs, then they will get the opportunity to do that at the meeting on Tuesday.

"We all know more money is going to come into the game for the 2013 season and the clubs and players will be major beneficiaries of that.

"In the meantime if any club is in serious trouble the game's governing body will look closely at their plight and consider emergency funding.

"At this stage no club has come to us in a dire position."

Trodden said the clubs were also disappointed the partnership committee had rejected their latest request for financial aid by issuing a press release.

He said the clubs would formulate their next step at the meeting on Monday, the same day the NSW Rugby League will hold a meeting which could have repercussions for the ARL.

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The Board of the Australian Rugby League met today and resolved to support the 16 NRL Clubs in their funding application.

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I do believe the clubs deserve more funding much more. But only what the game can afford and that includes loans. I have no problem with that. But I am so very cautious about clubs lobbying as a block. And there needs to be caveats placed on this funding.

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Oh and Colin Love has quit the ARL after John Chalk and the ARL have flipped on this. After previously siding with News Ltd.

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Hopefully we can get everyone to agree and we can have our ARLC in a matter of weeks or maybe even..... November 1!