NRL players to get shock pay rise after kicking the tin in pandemic

Players will receive an unexpected pay rise next year after the NRL emerged from the pandemic in better than expected financial shape.

Despite the challenges that COVID-19 has presented in the past two seasons, the NRL has generated income substantially greater than budget forecasts. Head office posted a profit of $50 million for the financial year, a figure that would have been $80 million had it not been required to relocate the competition to Queensland.

The players took a 6 per cent wage cut in the form of a reduction in the salary cap when the pandemic hit. Entitlements including representative payments, the injury hardship fund and the retirement account were also slashed significantly.

Under the terms of the revised collective bargaining agreement struck between the NRL and the Rugby League Players Association, the parties agreed that the players would share in the upside. Sources with knowledge of the deal told The Sun-Herald that players were entitled to a share of the spoils once profits outperformed forecasts by $40 million between 2020-22.

Now that has happened, the union has written to the players informing them they can expect to make up some of the money they sacrificed to keep the game alive.

“The NRL provided the RLPA with a financial update on the 2021 financial performance,” the union said in a communique to the players, which has been obtained by The Sun-Herald. “Despite the season being significantly impacted by COVID-related costs, SOO [State of Origin] and finals being played in Queensland, the game has exceeded its projected forecasts. They have also indicated that revised forecasts for 2022 are looking better than originally expected.

The NRL has come out of a difficult season in relatively strong financial shape.Credit:Getty

“On that basis, we are discussing with them the possibility of players receiving a share of the additional revenues in line with the agreed revenue share arrangements we agreed under the revised CBA. Discussions are ongoing, but we remain optimistic about securing a positive outcome for players and we will keep you updated.”

How much extra the players will get is still to be determined as the NRL pores over its figures and completes its budgets for 2022. Once the numbers are crunched, the union will decide whether the increase to the players’ pool will be divided up by a salary cap increase or other means.

“Like what we sent in the member communications, despite the significant impact of COVID and relocation costs, the game has performed really strongly in 2021,” RLPA chief executive Clint Newton said.

“Therefore, depending on the final wash-up of the figures and the financial position of the game, we’re optimistic about what could be redistributed to players based on the agreement we reached with the NRL.

“The players have done a sensational job over the last 12 months in ensuring we were able to bring rugby league to the fans. The essential role they played in generating that revenue can’t be underestimated.

“The clubs did a great job in managing relocation and ensuring the players were ready to perform. And obviously the NRL continued to maintain its position on its cost base, which goes a long way in improved outcomes.”

The NRL has already shared some of the spoils with the clubs. The majority received a bonus payment of about $1 million above projections for the financial year.

Australian Rugby League Commission chairman Peter V’landys said the players wouldn’t miss out.

“They will be getting a payment, no two ways about it.”

“Because we performed a lot better than expected and were able to manage the year financially extremely well – naturally we will reassess and give the players some money,” V’landys said.

“That was always the agreement, and we will honour that. We want to look at all options, but they will be getting a payment, no two ways about it.

“We are one of the rare sports that are able to do this – most are paying substantially less. We’re proud of the fact we’ve been able to navigate the season in a way where we’ve come out financially exceptionally well.

“All credit to [NRL CEO] Andrew Abdo, who has been able to implement the financial policies to get there.”

V’landys said the distributions to players and clubs for 2022 would be announced in coming weeks.

“Before COVID, the clubs as an aggregate made a $33 million loss,” he said. “That’s unsustainable. They should have been getting more distributions than what they were getting. That was because the game had too big a cost base, and we’ve been able to get the cost base right and those savings go back to the clubs so they don’t sustain those losses.

“The clubs last year, for the first time ever, had a surplus. That’s remarkable.

“What that does is secure the future of the game. You don’t want a club going broke.”

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