NRL won't force directors on clubs that have their houses in order, says Dave Smith
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NRL chief executive Dave Smith has told apprehensive club supremos that independent directors will not be forced upon them if they already have their houses in order, saying the competition's landmark governance reform would be implemented on a case-by-case basis.
Smith met with club chairmen on Wednesday, tasked with trying to quell an increasing mood of discontent in club land towards League Central.
Central to the concerns of club heavyweights has been the belief that they would have to adopt a standardised directorship model based on what is being assembled at Wests Tigers, with three independents on a seven-member board. But Smith said teams would not be compelled to comply with a one-rule-fits-all policy.
After meeting with a delegation that included Canterbury's Ray Dib, Sydney Roosters boss Nick Politis and St George Illawarra's Warren Lockwood on Wednesday, he indicated that some clubs would not even have to install independent directors to meet the minimum standards required under the soon-to-be-introduced new funding model.
"Every club is going to be different because every club is at a different stage of evolution," Smith said. "It's got different members, it's got a different junior structure.
"We will have three independent directors in Wests Tigers, we're likely to have four independent directors in Newcastle. We may or may not have independent directors in other clubs."
With some club bosses having feared they would be cast out due to a perceived push for independent chairmen, Smith will hope his assurances will appease powerful figures from whom he was beginning to lose support. In reality, what the NRL has had is as much a communication problem as anything else, but it was one that had spun out of control.
According to the clubs, they were pleased with the proposals that were conveyed to them in formative meetings more than four months ago about the governance overhaul.
Along the way, though, the message mutated. They were stunned to read in later news reports that clubs would have to have a board comprising three independent directors, including the chairman, to be eligible for a $1 million conditional portion of funding each year.
Even until Wednesday's meeting, many were in the dark about what would be demanded of them.
That is now more clear after Smith explained his intention was simply to have boards that are appropriately skilled.
Some clubs are unlikely to be significantly affected. The Roosters, for instance, already have an enviable cast of business and financial experts on their board, from Politis himself to Mark Bouris, former David Jones chief executive Mark McInnes and former FremantleMedia Australia boss Mark Fennessy.
South Sydney are another that will have few worries. Their seven-member board not only comprises the likes of real estate tycoon John McGrath, but their structure allows owners Russell Crowe and Peter Holmes a Court to appoint four of the directors.
There will be more attention on club boards who do not have directors who cover a range of skill sets the NRL will deem necessary in their particular circumstance, and clubs whose constitution is a stumbling block to change.
Parramatta are a prime example of the latter and will be in Smith's sights as a result.
In May their members voted down a proposal to install former Macquarie Bank executive Bill Moss as an independent director on the leagues club board that runs the NRL club.
It was reported that dozens who attended the annual general meeting for the vote did so with fraudulent memberships, a legacy of a systematic tampering of the membership system that allegedly took place in the final weeks of former chairman Roy Spagnolo's administration last year and which continues to be investigated by NSW Police and the Office of Liquor, Gaming and Racing.
"As a principle, what we want to make sure is [clubs] have the ability to strengthen those boards with their own nominated directors when they can," Smith said.
"Anything that we do will be principles based. It won't be prescriptive. The boards are there to govern football clubs and that's their job. That's not my job and I have no control over that.
"It will be down to the clubs to make sure their boards are properly skilled. Some are, and depending on the circumstances – if they're going to undertake a property development or whatever – some may choose to strengthen their boards. All we're trying to do is make sure we strengthen the game for the future."
