News about current financials....
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https://www.theaustralian.com.au/sp...s/news-story/1ce9c2f9b598441d88daaa8cc2b44dc1
The NRL is set to finish the season on a high after stunning financial results
Rugby league boss Peter V'landys has successfully steered the NRL through a financial crisis Picture: Getty Images
The NRL is set to emerge from the COVID-19 crisis better than anyone could have imagined thanks to savage costs cuts, a late-season surge of people through the gates and a tsunami of gaming revenue.
The ARL Commission is set to discuss in detail the year’s financials at a meeting on Wednesday but The Australian understands the deficit for the 2020 season could be less than $20 million, a remarkable result when you consider the doom and gloom that enveloped the code earlier in the season.
There were fears at one point that the sport would be decimated by the impact of COVID but the remarkable work of chair Peter V’landys and chief executive Andrew Abdo has ensured rugby league will finish this season with its head well and truly above water – and begin next in better shape than expected.
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The result has been achieved despite revenue dropping by more than $100 million over the past 12 months – in 2019 it was $528 million, this year it is believed to be just over $400 million.
A large portion of the drop in revenue is a result of the discounts handed to the game’s broadcast partners. It is understood the Nine Network and Foxtel were given savings of around $50 million this season after tense negotiations between television bosses and rugby league powerbrokers over a reduced schedule and the impact an absence of crowds would have on the product.
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It is believed wagering revenue played a significant part in mitigating the damage. Multiple sources confirmed to The Australian that wagering revenue was at least $8 million and potentially $10 million above forecasts.
The results will only enhance V’landys’ standing – he is already considered by many to be the finest sports administrator in the country. A year ago he talked to the game’s stakeholders about the potential to earn more money from wagering on the game’s premium products and he has been true to his word, the influx of cash coming at the ideal time given the way COVID has ravaged the bottom line of all sports across the country.
The damage was further offset thanks to a late deluge of money from gates being thrown open for the grand final. Crowds were also able to attend the State of Origin series but those games took place in November, meaning they are likely to be included in next year’s accounts.
What makes the result even more remarkable is that the NRL gave the clubs more cash than they have at any point in their history as they looked to ensure they finished the season with 16 solvent teams.
The alternative would have been a disaster given the code is committed to providing eight games a week for the broadcasters. The commission is yet to finalise payments for the clubs moving forward, largely due to the fact that they are yet to strike a deal with the players for the next two seasons.
The NRL initially offered a pay cut of 10 per cent in 2021 but the union responded by asking that it only be five per cent. The parties are believed to be close to a deal, although the vast majority of clubs and players have already been paid for the month of November.
It means that the clubs will have to claw that money back from the players once a deal is struck. The NRL’s strong financial results are likely to ease concerns over a range of issues moving forward, including the prospect of expansion.
There were fears the game would take years to overcome the lingering impact of COVID-19 and therefore would be reluctant to expand by adding a 17th team via southeast Queensland. However, the game’s leadership through the pandemic has meant that officials will finish the season with a degree of confidence that they can navigate any challenges in the future, even allowing for the introduction of another team in 2023.
The NRL has a line of credit available, although they are unlikely to need it given their robust returns in 2020. At the same time, the positive financial outcome is likely to pique the interests of private investors, who have been circling the code in recent months.
The ARL Commission has been investigating the potential of private equity investment given other sports around the world have sold stakes in their competitions.
