THE NRL is facing a club revolt over disputed claims the code made a $50 million profit last year in its recently released annual report.
The chairmen of 12 independent NRL clubs have hired their own team of accountants and called an emergency meeting to challenge chief executive Dave Smith and the commission on the profit figures released with much fanfare to the media.
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A closer inspection of the report indicates the use of some good old fashioned spin doctoring.
Official ASIC documents shown to The Sunday Telegraph reveal the NRL’s net surplus was in fact only $20m — a 55 per cent drop in profit on the previous season and nowhere near the $50m gross figure announced.
All chairmen, apart from those at NRL-aligned or -owned clubs the Titans, Wests Tigers, St George Illawarra and Newcastle will attend the meeting amid growing anger over the game’s financial position.
The group of chairmen had accountants inspect the ASIC documents and compare last year’s figures to the pre-independent commission David Gallop days which showed annual operating costs have increased by a staggering $75m, excluding the grants to clubs.
In order to declare the $50m profit, the NRL identified $28.1m of “Significant (expense) Items’’ which was, in fact, money given to the clubs and other operating costs.
“A $20m surplus is actually a poor result,” said one of the chairmen.
“They had $230 million alone from TV revenue and $350 million in overall revenue from increased State of Origin gate takings and other items.
“Where is all the money going?
“Why aren’t we being told what the top executives are being paid like the AFL and other major businesses?
“The clubs are shareholders of the game and are entitled to more detail.
“We’re all struggling but no one knows where all the money that we generate is going.”
Even crowd figures in the annual report are being challenged by the major stakeholders.
The NRL announced a 2.4 per cent increase in “Crowds across the full year” with 3.8 million attending compared to 3.7 million in 2013.
It seems the NRL added the 120,000 that attended the Four Nations, the 89,000 that attended the Auckland Nines and the 31,000 that watched the Roosters play Wigan in the World Club Challenge to boost the numbers.
BUZZ ROTHFIELD ‏@BuzzRothfiel https://twitter.com/BuzzRothfield/status/573816290881617921
Todd Balym @balym_CMail
