RUGBY League's civil war over funding for clubs yesterday claimed its first high-profile victim - senior official Colin Love.
And the on-going saga took another dramatic twist with the ARL back-flipping on its original stance by agreeing the 16 clubs should now receive an additional $500,000 in funding for next season.
Love resigned in frustration after a 90 minute meeting yesterday between NRL club chairmen and chief executives at the NSWRL in Phillip St.
The ARL and News Limited - who comprise the NRL partnership committee - agreed last week the NRL would not seek an $8 million loan for the funding. Yet the ARL yesterday split the partnership committee with News Limited remaining reluctant to hand the new independent commission an immediate $8 million.
The matter will intensify further today with a NSWRL board meeting at 10am, an ARL meeting at midday with the clubs to then front a partnership meeting this afternoon.
With the ARL now supporting the clubs' demands, News Limited has been left as the sole voice in protesting against the proposed cash advances.
An ARL press release issued at 3.41pm yesterday - quoting John Chalk - read: "My personal view is that the clubs'
funding request represents an affordable and sustainable increase in club funding for the 2012 season."
When contacted by The Daily Telegraph last night, Chalk said: "It's not a back-flip in any way. After talking to the clubs and looking at the accounts, the clubs aren't after any more than they are entitled to.
"If and when the television deal comes in, they can expect some further revenue and that's fair enough."
Asked what would happen if News continued to reject the funding requests, Chalk said:
"No means no. There is no casting vote on the partnership."
Tired of the funding issue, Love, the former ARL and NSWRL chairman, walked away yesterday. "It's a hornets' nest and I think Colin has had enough," Chalk said.
Love confirmed he had quit but preferred not to comment.
Clubs yesterday reaffirmed they would not sign the NRL's licensing agreements by November 1 unless the funding was approved. They still maintain the money can be advanced from the impending television deal.
Told the partnership was now split over the funding, clubs' spokesman and Wests Tigers chairman Dave Trodden said: "That is an issue for the partnership but the clubs won't be signing the licensing agreements in their current form. The clubs don't want to take money that doesn't exist but if it cannot be accommodated then I'd love someone to tell me why."
Trodden stressed the clubs were not pursuing any "radical agendas".
Clubs are also seeking to have their current annual grant of $3.85 million increased to $6 million to cover the costs of funding NRL and NYC teams.
Privately, some NRL officials are curious why the clubs themselves don't take out individual loans.
Furthermore, there are also fears that if the clubs are given the money, they will return in another year seeking additional cash.
News Limited could approve the funding and then exit the game and not worry about rugby league funding. But News has constantly maintained it wanted to leave the NRL in a strong and viable financial position - not with an $8 million debt.
