Final expansion hurdle
EXPANSION is set to face its final multi-million dollar hurdle on Thursday as the NRL prepares for a showdown with the clubs over plans to add a 17th team in 2023.
The commission has vowed to provide some insight at the meeting on the game’s finances, negotiations over a new deal with the Nine Network, and most importantly, some clarity around the financial implications of adding a new team.
The clubs’ response could
torpedo expansion at the 11th hour, although the expectation is that NRL chief executive Andrew Abdo and ARL Commission chair Peter V’landys will leave the meeting intent on adding another side in south-east Queensland.
Senior figures in clubland on Wednesday confirmed that they would arrive at the meeting with an open mind, although other sources close to the clubs said they wouldn’t be surprised if there were fireworks.
The push for expansion is expected to be strengthened by revelations that the game has enjoyed a surprisingly bumper financial year.
After losing money in 2020, the NRL is poised to inform the clubs that they have recorded a significant surplus, no doubt in part because last year’s State of Origin series fell into this financial year. With the game back in the black, it should mean Abdo and V’landys are armed with the financial artillery to assuage any concerns of club over the impact of expansion on their own finances.
“I think every chairman and CEO should go in with the open mind,” Brisbane chair Karl Morris said.
“There are really only two aspects to it. One, is the benefit to the game. I think we’re still waiting to see how the 17th team will benefit. Secondly it is the financial benefit overall for expansion - if it grows the participants and the interest in rugby league.”
Gold Coast chair Dennis Watt added: “We welcome the commission honouring its commitment to take the clubs through the case. There is always an imperative to grow.”
“I think everyone is prepared to listen to the case as it is put forward. At the enc of the day the clubs just want to see the rubber hit the road.
“The commission has been working hard behind the scenes with the broadcasters ti shape up the case for expansion. It will be good to see the results of all their hard work.”
The commission is understood to have agreed terms on a deal with News Corp Australia that will generate an additional $100 million in broadcasting money over the five years from 2023 to help cover the cost of a 17th team.
That alone was expected to ease the expense of adding a new team, although the existing clubs also believe they are owed at least $24 million a year in extra funding from 2023 under the terms of a pre-existing agreement.