NRL $1b wage bill war could ‘destroy game’
Player payments would break through the $1 billion mark in the next collective bargaining agreement and will ‘‘ultimately destroy the financial viability and structure of the game and its clubs’’ if a proposal from the players’ union is accepted, a leaked NRL document claims.
In an explosive email distributed to clubs obtained by Fairfax Media, the NRL claims the Rugby League Players’ Association demands – totalling $A1.06 billion ($1.1b) over five years – would cost it and the clubs more than $200 million more than what the governing body tabled in their initial offer in March. ‘‘The RLPA/player proposal is unaffordable and shows an apparent disregard for the game,’’ the NRL stated in its email.
In a series of inflammatory remarks, the NRL claims the deal ‘‘if accepted in any form will result in the NRL and clubs ceding control over the game and … would also consume club margins that were secured as part of the Club Funding Agreement in December last year to sustain the game’s viability and make NRL funding arrangements and the survival of the game impossible to sustain.’’
The NRL also took a shot at the $5 million the union will require to run its operations, which will expand to include the costs of being involved with integrity and agent accreditation matters. Rugby League Central claims the figure is a 537 per cent increase, three times that secured by the Australian Cricketer’s Association and twice that of the AFLPA.
The RLPA strongly refutes it is holding the game to ransom and believes the NRL is misrepresenting its position in an attempt to drive a wedge between the union and the clubs.The association feels they should have been consulted directly for clarification of contentious matters rather than having a head office spin put on its first proposal.
The union believes not all revenue streams have been included in the NRL’s calculations and that, contrary to the governing body’s opinion, the players are prepared to share in the upside and downside of the game’s financial performance over the term.
The document highlights how far the parties are apart and raises the prospect of a fiery meeting when the parties return to the negotiating table on June 5. Several of the game’s biggest stars will be in attendance to represent a playing group that believes the NRL is doing a poor job of managing the game. Unless concessions are made on both sides, the prospect of industrial action will loom large ahead of the 2018 season.
The RLPA is seeking a base salary cap of $A9.1 million for next season, which would increase by $A200,000 a year to $A9.9 million by 2022. The NRL claims clubs will be slugged at least a further $A450,000 a year under such a scenario. The union claims the NRL’s figure doesn’t reflect the sharing of welfare and educations costs and still includes club funding of the RLPA, which will no longer be a requirement.
Under the RLPA proposal, the traditional top-30 player list for clubs will be replaced by a top 26, who are entitled to a minimum salary of $A120,000 (up from $A85,000). There will also be 14 additional ‘‘supplementary’’ players that can be called upon throughout the course of the season. There would be no restrictions on how much players under the age of 20 are paid.
The biggest sticking point between the parties relates to revenue sharing. The union wants players to get a guaranteed 29 per cent share of total revenue during the next five years. The NRL claims its offer is equivalent to 26 per cent – or nearly $A900 million – with the parties arguing which revenue streams are included and how many players it will cover.
The RLPA is also pushing for more time off, during and after the season. The players are seeking eight weeks off a year. They also want two mandatory days off each week, compared to the one day they are currently allowed, plus an extra half-day off in season for personal development. The Sun-Herald