Snubbed clubs want seat at table as powerbrokers discuss direction of NRL leadership
Date: May 21, 2015 - 10:00PM
Adrian Proszenko
Chief Rugby League Reporter
Newcastle chairman Brian McGuigan has called for the four snubbed clubs to be included in discussions about rugby league as powerbrokers gathered to discuss the NRL's handling of the game.
As revealed by Fairfax Media, representatives of 12 of the 16 club were invited to a meeting at the offices of accounting firm KPMG in Sydney to view an independent appraisal of the governing body's books.
Some of league's most influential names, including NSWRL chairman George Peponis, Roosters supremo Nick Politis, South Sydney counterpart Nick Pappas and Penrith's executive general manager Phil Gould attended the briefing. For at least a day, powerbrokers put aside their differences to discuss grievances with Rugby League Central.
The NRL's financial reports were just one of the topics discussed. Other issues raised included crowd numbers, stadia strategy and the potential imposition of NRL-appointed independent directors.
"We had a good meeting today, it was fruitful," said Bulldogs CEO Ray Dib. "We are going to work together, all 16 clubs, with the NRL."
The NRL trumpeted a $50 million surplus for the financial year, but the independent audit suggested the figure was overstated by about $30m. Should the clubs band together to challenge the Australian Rugby League Commission about that and other gripes, Thursday will go down as a landmark day. However, four clubs - Wests Tigers, Newcastle, St George Illawarra and Gold Coast - were not invited because of a perception they are beholden to the governing body. It's understood the four omitted are frustrated by the stance, believing they are also truly independent.
McGuigan, the founder of McGuigan Wines, said he was disappointed a quarter of the clubs weren't offered a seat at the table.
"This is the ridiculous part, we should all be one," McGuigan said. "We should be together and harmonious. Anyone who tries to put a splinter in that harmony should answer to themselves 'Why am I doing this? Why am I trying to exclude some other people?'
"We don't always agree on the course of actions you take but you need to talk about issues that are there or might emerge in the future.
"We have a responsibility to do all in our power to see our code expand and be fully functional and effective. A good personal relationship between us all is very desirable. After all, you get a lot more with honey than vinegar."
NRL chief executive Dave Smith said he was unaware of the meeting and defended the financial performance of the code and how it was reported.
"We've got $50m under professional funds management," Smith said. "I'll give you the chitty though, you can see the interest we have earned on the $50m.
"We distributed $28m last year - $20m of that was, from memory, to the clubs. Half of the $8m was to welfare and the other half was to other projects.
"We retained whatever the balance is in the bank account as cash. Those numbers exist.
"The way any business works - we're a serious not-for-profit - is you have your operating costs. Anything you make above your operating costs - let's park tax and other things for a minute - is called a surplus.
"In business it's called profit, here it is called surplus. Because we are a not-for-profit, every single dollar goes back into the game.
"So in two years we generated surpluses after operating costs of $100m. Those have been distributed - $50m to the funds, $28m to the clubs and welfare and the residual is cash in the bank. Fact."
To affect change at ARLC level under the constitution, the clubs would need a 75 per cent consensus, requiring at least 12 to act in unison. McGuigan said that made it all the more important to engage all 16 stakeholders.
"If I had an issue with the commission, of course I would bring it to their attention," McGuigan said.
"I'd say to these people, 'If you've got an issue, talk to us about it. Include us as well because we're playing the same game'."
Smith said he encouraged clubs to meet frequently to discuss ideas and didn't view the gathering as a mutiny "behind my back".
"The game is going through a big change but I don't think it's ever been in better shape, whichever dimension you look at it," Smith said. "It's big and getting bigger. I'm pretty proud to be the person in charge of that. I'm not saying it's perfect, by a long shot, but I can tell you it's big and getting bigger.
"The game is in great shape and if I get feedback to make it even better, I'll take it every day of the week."
