Don’t know about the cowboys but the perth club owners reckon the travel costs weren’t a problem and were factored into their business case until the ARL added the extra side at u21’s and paying for three travelling sides wasn’t viable. That was key decision in deciding to accept SL funding.
The whole reds were in debt is a total furphy according to the chairman of the time, they were only in debt because of the massive inflation of players and coaches salaries due to SL and news ltd happy to spend to cover those ridiculous costs. As justification for their cutting they then said they were in massive debt, no sht Sherlock that’s what happens when you pay five to ten times the salary costs than was budgeted for!
The Cowboys had to spend $800k per annum flying opposition teams to Townsville and providing them with accommodation. On top of this, they needed to build a brand new stadium and pay their players. The annual grant back then was just $500k. The salary cap was $1.6m. The Cowboys had a self-imposed salary cap of $1.3m.
In all honesty, the Cowboys and Reds should have been denied entry into the 1995 ARL premiership. The ARL didn't have the finances to cover travel, accommodation and the salary cap for either club. Neither the Reds nor the Cowboys had a sugar daddy to bail them out. It's why they signed with News Ltd in 1995 when the exorbitant costs sent them over the edge.
The West Coast Eagles were saddled with the travel and accommodation costs of all VFL clubs that played in Perth. It bankrupted them by the end of the 1980s. They were bailed out by a local company called Indian Pacific.
The ARL should have learnt from the Eagles' example before heaping the same stipulation on the Reds and Cowboys.
Arthurson and Quayle should have waited until 2000 or later before expanding. The broadcast deal they signed with Packer only provided $10m per annum and didn't end until 2000.