Squandered money and a lack of planning puts NRL on precipice
Rugby league does not stop. It played on during both world wars. It played through the Great Depression. It fought on through the Spanish flu outbreak. Not a round was lost during the Super League war. The Sydney Olympics merely required some matches at the edges to be shifted.
It is not a game that gives up. The show must go on, to quote the Australian Rugby League Commission chairman Peter V’landys. And for more than a century, this has been a mantra as much steeped in desperation as it is in any noble notion of courage, valour or public good.
Rugby league has, since its foundations, struggled financially. A game that was spun up out of the coal mines and mills of northern England has always suffered from elitism, class oppression and a lack of strong financial nous. Corporate sponsorship has historically been difficult. The rich choose other sports to both play and financially support. The game has classically been poorly connected politically.
The nature of the game has always been more about surviving today than concern for thriving tomorrow. This is as ingrained in the DNA of the game as physical toughness, a sense of community and a need to hang the referee out to dry on all occasions.
It is a legacy that has left the game as financially vulnerable to the greater machinations of the world, be it an economy on the brink of collapse or a black swan event that will force the entire world to isolate. When the rainy day arrived, there was not enough money put aside, despite a string of sizeable television deals, increasing corporate support, heightened political influence and a significant rise in memberships over the last decade.
Despite the record broadcast deals and the promise to set up a future fund, the NRL is now in very real danger of going out of business. The league did not put away for a black swan event. It did not invest in any actual assets such as football grounds or even its own HQ. For all intents and purposes, it has squandered broadcast funds by enabling clubs to live well beyond their means and splashing out on largesse that would deliver questionable returns, including a major increase in executive salaries and a major digital platform.
V’landys was not proclaiming that rugby league would go on out of any want. He was doing it out of a need. A
hard man not used to losing, he knows the future of the game he is charged with protecting is on the line and he can only operate on the landscape his predecessors had left him.
It may have seemed unpalatable to many but the future of rugby league in this country swung on his ability to keep the game going as long as it could. It seems only since the seriousness of seeing the NRL suspend its season has the realisation set in that the game truly is on the precipice.
Not only could the NRL fall over but any number of clubs may not see their way through what is rightly being labelled as the darkest days in sport.
Clubs that rely heavily on gaming machines such as Canterbury, Penrith, Parramatta, Newcastle, Canberra and even Wests Tigers are going to take an immediate hit with licensed clubs having their doors shuttered. The Bulldogs, Panthers and Eels are amongst the most financially strong in the NRL but with the well drying up their future is uncertain.
Manly and Cronulla were both financially struggling before the Covid-19 pandemic. While neither needs broadcast funds immediately, they will struggle to survive an extended period without playing. The Titans and the Warriors are only marginally better off with the Titans funded by a car business that is sure to take a hit.
Only Brisbane and Melbourne would be truly safe if rugby league was to remain suspended for any significant time, while the Dragons, Rabbitohs and Roosters are likely able to absorb the financial hit as a result of a notable time away from the paddock.
These are dark and desperate times for rugby league. And the NRL was completely unprepared that a day like this could come.