COVID-19 has cost NRL $100m, but game will weather storm, says V’landys

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COVID-19 has cost the NRL $100 million, but Rugby League Central insists the game remains in “good financial stead” due to a huge reduction in costs since the virus arrived in Australia in early 2020.

The game continues to bleed money as a result of recent coronavirus outbreaks, particularly in Sydney, with the expense of relocating players and their families to Queensland coming in at $12 million to $15 million a month. Hopes that revenue could be recouped by staging the final series and grand final in front of crowds in Sydney have effectively been dashed by a disastrous spike in cases in the city and across NSW. There were 466 cases reported in NSW on Saturday alone, taking the weekly total to 2376.

The cost of completing the season in south-east Queensland will be more than $40 million.

COVID-19 will ultimately dictate where the grand final is staged, but the most likely outcome is a historic first decider in Queensland. Even if fans can attend Suncorp Stadium, the fact its capacity is half that of Stadium Australia will result in a huge loss in gate takings.

Last year’s NRL shutdown resulted in five competition rounds being shaved from the schedule. That forced the NRL to negotiate down its broadcast deals with Channel Nine and Fox Sports, another financial hole the game has been struggling to fill. Given each round of football is estimated to garner $13 million in broadcast income, $65 million of revenue was lost.

The governing body also spent about $16 million just in costs related to the pandemic last year, which included the implementation of biosecurity measures and other expenses, such as relocating the Warriors to Australia.

COVID-19 has cost the NRL $100 million, however, Peter V’landys still says the code is in a better state than last year.Credit:Getty, Getty,

The outcome is a nine-figure black hole for the game since the start of last season, a huge impost on a code that doesn’t have a single asset to its name.

“That’s the negative,” ARL Commission chairman Peter V’landys said. “The positive is that the game is in good financial stead because we have reduced our expenses by over $50 million a year.

“We have also procured some new commercial revenues and the deal with Sky New Zealand is going to be helpful.

“Overall, it’s not going to be as bad as last year.”

The NRL would not have survived had it not cut a quarter of its staff, part of $50 million worth of the savings that V’landys alluded to. In a bid to ensure all 16 clubs survive the pandemic, head office is giving them record grants.

“The clubs are still getting more money than they have ever received,” V’landys said. “When you compare that to the AFL in Victoria, where they have given their clubs significantly less, we’ve given ours significantly more.

“We paid the clubs substantial additional money last year and substantially more this year.”

The clubs, however, are putting their hands out for even greater assistance. They have come together to calculate their total financial losses for the season. As a result of having to relocate to Queensland, many haven’t been able to stage scheduled home games in front of crowds. The total in lost revenue has come in at $22 million and the clubs are expecting the NRL to make up the difference.

Whether they are in a position to do so remains to be seen. Much will depend on whether the final rounds of the season, as well as the finals series, can be played in front of fans. The capacity for most matches in round 22 was capped at 50 per cent, although there were no restrictions on the attendance for Saturday’s Cowboys-Tigers clash in North Queensland.

The NRL’s latest financial result will be helped by the fact last year’s State of Origin series was delayed until after the year-on-year accounts were tallied, but much will depend on the remaining games of this season being well attended.

The players have shared in the financial pain as well, although their salary sacrifice is less than players from Australia’s other major sporting codes.

“This year it’s only been six per cent and last year was basically for the five rounds they didn’t play,” V’landys said.

The NRL hasn’t completely shut the door on expansion, although existing clubs question the wisdom of introducing a 17th franchise given the difficult financial climate.

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