$396M OF CLUB CARNAGE

Probe finds huge losses since 2000

NRL clubs have squandered almost $400 million in a decade of financial mismanagement that has led to an astonishing turnover of 117 different chief executives and chairmen at the 16 clubs.

As the NRL faces its biggest financial crisis in history, an investigation reveals the clubs have lost $396.7 million since 2000, money burnt on dozens of coach sackings, over-staffing of football departments, player contract payouts, salary cap fines, the peptide scandal and legal expenses.

And some are even blaming NRL CEO Todd Greenberg for the explosion in operation costs which date back to his days at the Canterbury Bulldogs when he poached Des Hasler from Manly on the first million dollar coaching contract in 2012 and handed him an open chequebook to sign the most expensive support staff in the game.

With the salary cap levelling the player rosters and backed by a thriving Leagues club, Greenberg’s move was seen as the beginning of an arms race that blew costs out of control.

The bleak figures from a decade of financial failure raises concerns about the NRL’s recently acquired $250 million line of credit from UK financers and plans to hand out the funds to struggling clubs.

“They will never be in a position to pay it back,” said one senior official.

The clubs that have lost the most money – Parramatta, Penrith, Canterbury and Cronulla – can no longer rely on multi-million dollar grants from their Leagues clubs for survival.

The bigger licensed clubs, Canterbury and Penrith, used to make annual profits of up to $35 million to support their NRL teams, but both lost money last year.

They have wasted millions sacking coaches and moving on players in recent years. Making their position even more vulnerable is the fact licensed clubs are no longer trading during coronavirus.

Explaining how the management instability of having 117 different bosses has contributed to the disaster, one long time official says: “Inexperienced CEOs have made some really poor business decisions.

“They haven’t stood up to coaches and said ‘enough is enough’ as far as cost go. There’s been this obsession to win premierships with irresponsible spending.”

In fairness there are a number of clubs that run a good business. The Broncos, Rabbitohs, Roosters, Storm, Cowboys and Raiders have all been well managed. Others are improving but they still lost a combined $31 million last year despite getting $208 million in grants from head office.