Clubs' rebellion threatens future of NRL

[DIEHARD]

Clubs' rebellion threatens future of NRL

RUGBY league's hopes of an independent commission are in tatters after the 16 NRL clubs last night issued a $34 million ransom note to News Ltd and the ARL.

The Daily Telegraph can reveal the clubs have demanded an extra 55 per cent in funding from next season - a move the NRL said it could not afford.
The threat came in the form of an email sent from South Sydney chairman Nick Pappas on behalf of the clubs to News Ltd, ARL and NRL powerbrokers at 1.39pm yesterday. It insisted on a staggering increase in the clubs' annual grant from $3.85 million to $6 million from 2012.

Given that the NRL has only $18 million in cash reserves, it was last night being considered an attempt to sabotage the formation of the independent commission.
If the demands were met, the new commission would effectively inherit a game drowning in debt.

"You can only draw the conclusion that they are trying to blow the whole thing up before a commission is formed," said one source close to negotiations.

'We aren't sure what they are trying to do but it looks like they are holding us to ransom."

The situation is so sensitive that no key figures were prepared to elaborate on the demand from the clubs when contacted last night. While a News Ltd spokesman refused to comment, it is understood the media organisation is furious at the 11th-hour bid to scuttle the peace process.

Asked if the cash grab from the clubs was an attempt to hijack negotiations, ARL chief executive Geoff Carr would only say: "You can draw whatever conclusion you want. This is at a delicate stage, so for me to make any comment would be inappropriate."

The chairman-elect of the new commission John Grant was equally tightlipped.
"Sorry but I can't offer any comment on your article," he said.

Clearly, the NRL clubs want a guaranteed slice of the potential $1.4 billion bonanza the game will received from its next television broadcast rights deal, which is up for renewal from 2012 onwards.

"However, the clubs are not content to defer a revised funding arrangement until that time," Mr Pappas says in the email obtained by The Daily Telegraph.
As one NRL powerbroker said last night: "We just don't have that amount of money yet."

It has long been hoped that two years of complex negotiations between News Ltd and the ARL would finally result in an independent commission formed on November 1 this year.

In recent months, the major sticking point has been a push from the clubs for News Ltd to agree to a non-compete clause, which would prevent it from trying to form a breakaway competition.

Yet there was no mention about that concern in Mr Pappas's email yesterday and the presumption was it is no longer a condition. In fact, there are fears within News Ltd and the ARL that the clubs could be in negotiations with another entity.

http://www.news.com.au/national/club...-1226164403734

[DIEHARD]

Hang your heads in shame!!!

What a disgrace, what an outrage. Who do you think you are?

Any break away competiton formed by the clubs would NOT serve Rugby League!

I'm FURIOUS

[DIEHARD]

I wont be supporting ANY break away competition.

We do this TOGETHER or not at all.

[DIEHARD]

Reverse Super Leaugue? Dont make me sick. Super League was a rebellion against the traditional caretakers of our game for $$$$$$$.

And what are we gonna do? Support Gold Coast Tritons? Brisbane Bucks? Cronulla Dolphins? That's a very Super League suggestion.

I hate to be the bearer of bad news, but I rate the over all administration of clubs in Rugby League a C at best.

Clubs have proved time and time against that they are self interested, they won't lift their hands to promote away games, that they don't co-operate on a day by day basis, that they ignore other areas of the games including State and International footy.

They have done a very silly thing here. People fear the clubs self interest and they have just delivered one of the most arrogant examples I can remember.

[DIEHARD]

Rugby league's independent commission could collapse as NRL clubs threaten rebellion

Rugby league's independent commission could collapse and a breakaway competition form as the NRL's clubs threaten rebellion, according to reports on Wednesday.

Clubs have demanded their annual grants be increased from $3.65 million to $6 million next season before they sign a licensing agreement with the NRL for the 2012 season.

That claim would represent an injection of more than $34 million, but the reports say the NRL has only $18 million in cash reserves.

The independent commission was expected to finally take control of the game on November 1.

Delays to its start-up have angered the clubs, who are eager for negotiations on a rich new broadcast deal to be accelerated.

The reports said the cash grab from clubs could cripple the commission, while clubs could even consider starting their own breakaway league if News Ltd and the Australian Rugby League don't accept their demands.

South Sydney chairman Nick Pappas, who has represented the clubs in negotiations over the commission, outlined their concerns in an email sent to News and the ARL on Tuesday.

"The clubs, as one, embrace the concept of 'good faith' in all their dealings with the NRL, and they are content to allow this over-riding principle to govern the anticipated increased level of funding for them from the 2013 year, when renegotiated media revenues will permit a significantly greater level of appropriation," Pappas wrote.

"However, the clubs are not content to defer a revised funding arrangement until that time, and seek a commitment now from the competition organiser that will take effect from the 2012 playing season and will be enshrined within the new contractual arrangements commencing on November 1, 2011."

foxsports

[DIEHARD]

Yes yes, we have invented a money tree.....

[Smakked]

I think the clubs are being unreasonable? If they haven't go tit then not alot they can do. the question i ask is why don't they have alot of cash compared to Rugby Union, and Afl ? Just doesn't add up.

[DIEHARD]

Well union actually doesnt have much cash, the ARU had to significantly bail out the QRU recently. They have the twin strengths of a strong international game and stable of sponsors (Bringing in World Cup bumpsin profits) and the strong support within the private school system.

AFL, well to cut to the chase, we out rate them but we get ripped off by broadcasters and have been for nearly 20 years. The money they use to war on us should actually be ours. In my opinion.

One of the reasons for the commission was to make Rugby League look less volatile and more united and professional. One reason why I find this latest episode so disagreeable.

We need an independent third party that represents all the game. The current plan best serves this end. And it makes ALL stakeholders happy.

[DIEHARD]

Cash-struck NRL clubs told to sign agreements or lose funding

CLUBS have 17 days to call off their $34 million pay demand and strike agreement with the NRL or face having their funding cut off.

And The Courier-Mail can reveal four of those clubs - Cronulla, Gold Coast, St George Illawarra and premiers Manly - are sweating on advance payments of $320,000 from their annual grant to avoid financial collapse.

The revelation comes less than 24 hours after South Sydney chairman Nick Pappas had told News Ltd (publisher of The Courier-Mail) and the ARL that the 16 clubs would not sign agreements to play next season unless they received a whopping 55 per cent increase in funding.

Brisbane chief executive Paul White said the Broncos were hopeful the issue would be resolved as soon as possible.

"We were not privy to the most recent meeting, but at the previous meeting with all of the clubs it was very positive and conciliatory. Everyone was very supportive of the new commission," he said.

In another day of anger and uncertainty about the game's future, it also emerged:

Several club chairmen did not know Pappas was going to demand such a hefty increase in the annual grant of $2.15 million per club.

There are fears some of the eight commissioners-elect will walk away in frustration if a new governing body isn't formed soon.

Reports in the Fairfax press of clubs organising a "reverse Super League" were way off the mark with Kangaroos captain Darren Lockyer weighing in to say: "A breakaway competition? We did that 15 years ago and it was a debacle. I don't think we'll go down that path."

As revealed in The Courier-Mail yesterday, Pappas notified rugby league powerbrokers via email on Tuesday the clubs wanted an increase in their annual grants from $3.85 million to $6 million from next year - or they would not be signing agreements to join the NRL next season.

Those deals expire at the end of this month, with the NRL expecting new ones to be signed on November 1, and if they are not it is understood News Ltd and the ARL will turn off funding immediately.

Last night, NRL partners News Ltd and the ARL released a joint statement condemning the clubs' cash grab.

"It would be completely unrealistic to saddle the commission with club grants of $6 million that simply can't be funded at this stage," the statement says.

"Ultimately, the club agreements underpin stability in the game and the funding for the clubs themselves.

"It is important that these are finalised before the commission is put in place."

The issue remains extremely sensitive among all parties, although several chairmen privately said they did not know that Pappas - who is part of a working committee negotiating with News Ltd and the ARL - was making such demands.

"We don't know where those numbers came from," said one prominent chairman.

http://www.couriermail.com.au/sport/...-1226165328577

[DIEHARD]

League: NRL says there is no way it can meet clubs' demands for hike in grant

The NRL claims it doesn't have the funds to meet a demand from clubs for the annual grant to be raised to A$6 million in 2012.

As the battle for a larger slice of rugby league's money pie intensified yesterday, NRL clubs backed away from claims they could form a breakaway competition if their requests weren't met.

But they did warn the future of some clubs would be at risk if the grant - which stands at $3.85 million - did not rise substantially, and they were willing to stand together in the fight.

Just two of the 16 clubs at present make a profit.

"What the game needs to do is assess what the funding priorities are and at the moment the clubs are at the very bottom end of the funding priority," Wests Tigers chairman Dave Trodden said.

"Everyone gets their money before the clubs get their money.

"You can't have a business that's got 16 departments, 14 of which are making $30 million losses annually.

"All the clubs did was make the very obvious point that if we're going to be viable long-term, something has to change."

The NRL said yesterday afternoon that there was no way it could match the clubs' demands.

While there is plenty of debate over whether the new independent commission will be up and running by its proposed November 1 start date, the NRL said handing out funds ahead of the commission's implementation was not feasible.

"It would be completely unrealistic to saddle the commission with club grants of $6 million that simply can't be funded at this stage," it said.

"Ultimately the club agreements underpin stability in the game and the funding for the clubs themselves."

At the moment the clubs are refusing to sign those agreements.

They denied their demand was some sort of threat, but rather a realistic summation of the situation they faced.

The licence agreements they were asked to sign set out funding for the next six years.

The bid would represent an injection of more than $34 million for the clubs, but the NRL claims it has only $18 million in reserves.

Having played through the Superleague war, Kangaroos skipper Darren Lockyer was horrified at suggestions NRL clubs might look to form a breakaway competition

"We did that 15 years ago and it was a debacle," Lockyer said in the buildup to this Sunday's test against the Kiwis.

"I don't think we'll go down that path.

"The Independent Commission has been a big talking point for the past 12 months or probably longer and I am pretty confident it will form in the near future.

"And I am pretty confident they will run the game very efficiently."

Lockyer also said there was an element of the clubs jumping the gun by demanding more money before a new TV rights deal had been completed.

http://www.nzherald.co.nz/

[DIEHARD]

NRL Combined Club Statement Regarding Independent Commission

All the NRL Clubs including St George Illawarra support the introduction of the Independent Commission as soon as possible.

All NRL Clubs on Wednesday sought to clarify their position in respect of their financial position and preparedness to move forward.

A Joint Statement is as follows:

The 16 NRL Clubs fully endorse the establishment of the Independent Commission and enthusiastically support the proposed commencement date of November 1, 2011.

In fact, the Clubs (particularly Club CEOs like Michael Searle) have been driving forces for the creation of the Independent Commission.

Quite properly, all NRL Clubs, on behalf of all their respective stakeholders, must be diligent in the all-important area of their long term financial viability.

For many years the vast majority of the NRL Clubs report annual losses (last year 14 of the 16 Clubs reported losses totalling in excess of $30 million).

This is an unsustainable business model.

Significantly, the Clubs are the only stakeholders in the game who are required to fund the losses.

It should be noted that despite other parties negotiating for over 12 months,

Clubs received the draft Club Agreement less than one month ago. Clubs have been asked to sign off on the Agreement by October 31, 2011.

Clubs and their members are the cornerstone of the game from grass roots participation through to commercial revenue generation.

Clubs carry most of the fixed costs in the game and pay for and provide the assets which generate the material revenues in the game.

Collectively, our aim is to ensure that Clubs become financially viable to ensure sustainability so that future generations can enjoy the greatest game of all.

[DIEHARD]

Kangaroos captain Darren Lockyer warns against any rugby league rebel competition

KANGAROOS captain Darren Lockyer has cautioned against any rebel rugby league competition being formed in the wake of the 16 NRL clubs demanding a $34 million increase in annual grants for next season.

In camp with the Australian team in Newcastle, Lockyer said the formation of the Independent Commission was essential to ensure rugby league continued to build on its outstanding growth since overcoming the Super League war.

"A breakaway competition? We did that 15 years ago and it was a debacle," Lockyer said.

"I don't think we'll go down that path. The Independent Commission has been a big talking point for the last 12-18 months, probably longer.

"I'm pretty confident that it will form sometime in the near future and they'll run the game very efficiently.

"I also saw that the clubs might be demanding a lot more money as a grant. That's for the Independent Commission to work out how much money they give to the clubs.

"I know that not every club is financially strong and I think my thoughts are that we're all waiting for that new TV rights deal and hopefully that will ease the pressure on the game and clubs."

Asked had the 16 NRL clubs jumped the gun by demanding an increase in the annual grant before the Commission is formed, Lockyer said: "We need to know the number that's coming in from the TV rights before we start distributing it out.

"In footy sometimes we all prefer to play simple game plans and to a lot of the players it just seems like a simple formula.

"Get the Commission going, they're independent, they run the game and they're knowledgeable people."

The Australian five-eighth, who will play his final Test on home soil in Newcastle this Sunday, said a Super League-style breakaway competition would completely ruin international rugby league.

"After Super League, international football was on its knees. I believe it's now back to where it was before that and I just hope it keeps getting bigger and bigger," Lockyer said.

http://www.dailytelegraph.com.au

[DIEHARD]

A breakaway competition was over before it even started

IT IS true. Earlier this year, some clubs did consider setting up a company that might one day be used to threaten the NRL with a breakaway competition.

But the folly of the idea was realised before they logged on to the ASIC website for registration details.

With their participation agreements expiring at the end of this season, the clubs had enjoyed a substantial bargaining chip on the poker table which has hosted these lengthy Independent Commission negotiations.

Put simply, they could refuse to re-new if their demands weren't met.
And their demands were lengthy.

Starting out as an informal meeting of powerful Sydney-based chairmen 18 months ago, the clubs gradually mobilised themselves into a unified bloc as the talks dragged on. They exerted pressure on negotiating partners News Limited and the ARL to appoint their preferred commissioners and also reconsider installing David Gallop as inaugural CEO

And when some of those demands were resisted, they spoke about upping the ante to maximum.

"Some of the chairmen did look at the possibility of setting up a company that could effectively run a breakaway competition and negotiate a new TV rights deal independently," a well-placed source said.

"But that was some time ago and it definitely wasn't followed through to the stage where a company was registered.

"In the end, no one wanted it to ever get to that stage."

Even if it did go so far, a rebel competition would effectively have been stillborn. The code's two most geographically vital clubs - Brisbane and Melbourne - could never support the concept because both clubs are controlled by News Limited.

The chairmen quickly realised this, in addition to the fact the overwhelming majority of the remaining clubs struggle to survive each season. Consequently, the breakaway idea was shelved.

But that hasn't stopped sympathisers to their cause from conveniently reviving it as a potential threat when the time suits them.
Such as now.

Understandably, the clubs want a guaranteed grant figure built into their new participation agreements before they extend.

But with the new TV deal still being negotiated, the Commission is loath to make guarantees and can only promise to increase the current $3.85 million hand-out "in good faith".

"If you were negotiating a new workplace contract, would you sign up without knowing how exactly much you are going to be paid?" one club sympathiser asked yesterday.

http://www.dailytelegraph.com.au/

[DIEHARD]

I hope we can get this commission over the line soon and we can give our game the funding and structure that it is entitled to. And start to kick ass and take names.

[DIEHARD]

NRL Independent Commission impossible in climate of silence regarding latest claim by clubs

IF ANYTHING surely proves that rugby league needs an Independent Commission, it is the dogfight presently at play as rugby league tries to form an Independent Commission.

Yesterday, with the game's immediate future shrouded in uncertainty, now 16 days and ticking with club agreements about to expire, the most important powerbrokers in the sport were either on holidays, at a sports law conference in Queenstown or not saying a word.

As reported this week in The Daily Telegraph, NRL clubs have told the ARL and News Limited they want their annual grants increased to $6 million per club, or they won't be joining any shiny new competition.

Could someone explain to the poor old fans - remember them? - how things could get to a point where their beloved clubs haven't signed on to participate in the competition from next year so close to their present agreements expiring?

Why have the clubs waited until now, just before a new dawn for the code, to make demands for money that doesn't seem to be there? Not yet, anyway. As Rome burns, very few want to explain this.

Wests Tigers chairman Dave Trodden is speaking on behalf of the clubs, and he told Sky Sports Radio that no demands had been issued.

That the email from Souths' Nick Pappas on Tuesday to News Limited and the ARL was nothing more than "a comment" and that their position was being "misrepresented".

One significant powerbroker has been telling others the issue is a media-driven "beat-up".

Try telling the ARL and News Limited - publishers of The Daily Telegraph - that it is a beat-up.

They considered the Pappas email for exactly what it was: a demand for more money.

Yesterday, there was a belief the stalemate will be resolved through compromise. That the clubs won't get the $6 million annual grant Pappas called for, just a little less, and sign on.

News Limited and the ARL are willing to listen to what is offered, while the eight commissioners-elect must be wondering what they hell they are about to inherit.

Meanwhile, Rome burns. And nobody says a word.

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