Cash is only hurdle remaining for NRL Commission
by: Brent Read
From: The Australian
November 05, 2011 12:00AM
NRL clubs and the game's owners are still working through their funding dispute but they appear to have resolved the other major issue standing in the way of the independent commission - a non-compete clause.
It is believed the clubs are willing to accept a non-compete clause to the end of 2018, short of the initial request they made of the game's co-owner News Limited (publisher of The Weekend Australian) but a compromise likely to appease both parties.
In effect, the clause would stop News setting up a rival competition within that time frame, although the media giant has made it clear on numerous occasions that another Super League is not in its plans.
Given the next broadcasting deal will run until 2017, the non-compete would come to an end while the game was at the start of another television contract. If the game was to agree to another five-year term, there is a belief among clubs they would effectively be protected until the end of 2022.
The issue of a non-compete clause was revealed by The Australian in March and it was widely considered the most significant stumbling block to the commission's formation until recently, when the clubs went public with a demand for more cash.
That issue is still to be worked through, with further meetings expected to take place next week when NRL chief executive David Gallop and Australian Rugby League chairman John Chalk return from England, where they attended a board meeting of the Rugby League International Federation.
Wary of constant delays in the commission's formation, the parties are working behind the scenes to clean up all the outstanding issues standing in the way of News Limited and the ARL's departure from the game.
The commission will only be given the green light once all the issues have been resolved, guaranteeing an end to the false starts that have plagued the process.
With the non-compete clause appearing to be resolved, that leaves funding as the single-biggest impediment. The clubs have requested an additional $2.15 million next season - an initial payment of $500,000 and a further $1.65m in the form of an advanced payment when the game finalises its next broadcasting deal.
Club representatives are also likely to seek further meetings with the independent commissioners-elect. Although the club sub-committee has held talks with representatives of the commission, there is a school of thought that all the clubs should have a chance to speak to the commission.
That is likely to take place in coming weeks. The commission was due to take over the game late last week but the handover has been delayed. Officials are reluctant to put a new date on the formation but there is still a belief it will be up and running before the end of the year. It could be confirmed as early as next week should the clubs agree to a funding counter-offer put to them. It is understood that offer would guarantee them an additional $500,000 next season depending on the size of the new television deal.
The NRL is optimistic broadcasting rights could net the game $1 billion over five years from 2013, although the entire process has been delayed.
