The news of Shane Richardson’s departure as General Manager of the Rabbitohs is one of the first of what could be many high profile casualties from the financial catastrophe currently facing the NRL.
Though the questions have already been asked by the media and the fans, his parting words have signalled the first “inner sanctum” criticisms levelled at the NRL’s hierarchy.
Richo’s words of advice have placed a focus on the inability of the NRL’s administration to future proof the game due to its acceptance of what can only be described as a greed is good principle.
Reflecting back on his time at NRL HQ, Richardson was clearly annoyed that his report on the future direction of the game was ignored before the last player collective bargaining agreement.
“We gave all the money to the clubs, 130 percent,” he lamented.
“We put ourselves in bankruptcy from the word go. What business in the world goes into a new deal and has to borrow $49 million just to pay the bills?”
Shane Richardson
These strong words from Richardson are difficult to ignore given that he has spent extended time as a club CEO, with experience at multiple clubs as well as the game’s governing body. He understands the motivations of clubs, coaches, players and player agents and the pressure that they place on the NRL during good times.
And let’s face it, the NRL product has been excellent, drawing record broadcasting deals and thumping opposition sporting codes in free to air and subscription ratings. But the finger is now being pointed at stakeholders who drank from a sweet tasting well that they believed had no bottom, and the custodians who allowed it to happen.
Who do you want to blame? The player agents that arguably wielded too much influence but whom the players trusted explicitly, the wealthy clubs who found ways of staying wealthy in a game that is mostly non profit, the struggling clubs who pushed themselves to the financial brink on a yearly basis, or the leaders of the code who have apparently overseen an organisation that has accumulated few assets in their quest to keep everyone happy?
Any business would want leaders who realise that investing in future growth should also involve protecting the operation from the bad times. Whilst nobody could predict the enormity of what the world currently faces, Richardson’s comments shine the light on those NRL decision makers who have overseen a billion dollar business that cannot withstand even a short term loss of income.
No matter who is to blame, the lessons are about to be tough ones. The learning needs to be quick, and it needs to be the NRL administration who are at the head of the class.
Significantly, Richardson doesn’t see the current crisis as all doom and gloom, but rather an opportunity to “recalibrate and do the right thing”.
But his words come with some scepticism.
“It is up to the leaders of the game to do that. Do the right thing….You have to make the right decisions to get the game back on its feet and I hope there are some people who can make them.”
When it re-starts, the game won’t be the same. Even in an impossible, ideal world which would see all revenues restored in 2021, clubs won’t get the same grants, and the salary cap wouldn’t be the same. If it wasn’t previously understood that such expenditure was not sustainable, there’s no doubt now. And we know that it will take some time for revenue streams to be restored.
Peter V’landys
Peter V’landys has stepped into insanely difficult shoes as Chairman of the ARLC. Though he’s not responsible for what has happened in the past, he’s the one that all stakeholders are looking to as the NRL begins the tough journey that lies ahead.
His leadership pedigree is there, but everyone else needs to be helping to navigate the same path.
But there is an incredible positive for V’landys and everyone else charged with getting our beautiful game to the other side of this crisis.
There are millions of people across Australia, New Zealand, and the Pacific at the grassroots of this game – local clubs, volunteers, players and supporters – who won’t lose their passion.
When the game returns, they/we will be there.
Probably more passionate than ever before.
And for that reason, the game’s decision makers must heed Richardson’s words and get things right.
Eels and NRL forever!
Sixties
Fair call for mine. i can only presume hes referring to john grant whos been the head of the snake prior to a short stint by beattie. either way the poor judgement by all concerned has blown away. is it 3 billion? with absolutely nothing to show for it! I do think V’landys is the man to fix it when the crisis is over but who knows what the game will look like. going forward i see a more compact regulated concept run by the nrl not the MANAGERS ,and therein lies the real culprits. they need to be put in their place once and forever. greenberg and weekes were going to do that after they crucified our club but as usual all talk and in my opinion maybe a little bit of fear. V’landys will do the job but as far as I’m concerned greenbergs lost the right to be by his side. The people that will help rugby league back are the ones the made it in the first place , the volunteers ,mums and dads ,the people who just do it for the love of the game. God i hope we treat them with the gratitude and respect they deserve this time.
Agree 100% about who will make the game great again. They always have. And yes, the big wigs have that responsibility to ensure that the game is in a position for the grassroots people to do what they do best, as they are the caretakers who make the big financial decisions.
I too have faith in V’landys. Let’s hope that those alongside him show the necessary strength.
Sixties the thing thats going to show up more than anything is the neglect and greed at the top that has left grass roots footy in a state of desperation that cant be overstated , the club that BA played all his junior football for 7hills folded 2 weeks ago , ias a boy i played against them back in the 60,s , they are no more and probably never again .
That’s devastating news. Hard to imagine a club like that folding.
What is happening is not good news for the NRL, moreso the talk that some clubs will not survive and have read from more than one expert that a competition with 12 clubs/teams is what is being called for. Means, that if it happens there will be a lot of players out of a contract, unless a decent 2nd division comes as a result and from a personal perspective for that to survive it will need to be run in conjunction and at the same ground and day as the main team, put it down as value for money for the clubs and the paying public.
If nothing else the Coronary virus, (my words as for NRL the virus has struck at the heart of RL) may well be immediate major surgery that the game has needed, it means basically 4 clubs may be culled, and the bun fight as to which ones they will be in order to go back to 12 team comp.
That is going to be a big issue for the NRL, and for me the way it works out needs someone with quality at the head, and I like the way Vlandy’s has been handling the situation and all of the main details and spokesmanship since he has taken on the job has been much more positive, owing to finally having a man in charge who knows how to run a big business which the NRL is.
Of further interest is the way that the mouths have shut re Greenberg and any talk of an extension, it is shown (at least from what I see) that Greenberg has primarily been put to the side and he will not get an extension, here’s hoping that his replacement will be a person who compliments V’landys.
I hope that no club disappears, mostly from the point of view of their fans. But if it’s the only way to survive, it might be hard to argue. Which is why strong leadership is essential.
Likewise sixties, that I hope no club disappears, on reflection, I read where Penn has said Manly wont fold, another mentioned was the dogs and that has had cold water poured on it. One mentioned also was the Warriors owing to their costs with travelling etc. but I can’t see them going either. If nothing else it will put a clamp on expansion unless a club folds which would open the door to a new franchise.
As you said and I agree with the aspect regarding strong leadership, V’landys is the right man at the right time I believe,
Agree with Richardson about the need to reset, what a good operator he’s been for Souths. The need to reset will be bought about by the challenges Nine & Foxtel now face; advertising and subscriptions have collapsed with no imminent return by advertisers because consumers have their hands in their pockets – and the economic fallout is just starting. It’s likely Covid19 will have a permanent impact on consumer behaviour. Nine & Foxtel are vulnerable and whether they survive unknown but what is clear is if they do survive they’ll need to reset their budgets to suit the new reality and therefore the renegotiate the deal the NRL was receiving (ie lower) leading to the salary cap being reduced.
The greed and hypocrisy of several club CEOs who only a month ago were looking to cut Greenburg because he had the audacity to hold back $30m for the NRL Future Fund and not distribute it to the clubs. Not a massive fan of Todd because he seems to play favourites and head-office overspend but the larger than expected surplus suggests he has been relatively competent.
Additionally agree with the cynicism about change, today Frizell announced a move to the Knight on $2.1m!!
That Frizell contract won’t happen at that price.
However, moving ahead, the NRL know that they will have a big audience waiting – TV and stadiums – so it doesn’t have to go completely cap in hand to Nine or Fox. If it means that all negotiations restart, then let competitors bid. It won’t be like before but they should still get a fair price because people will be watching.
While the free to air deal is generally regarded as 9’s and they have it locked up, if 9 pushes for a new deal, and not wanting to continue with the existing one, it could very well open the door to 7 or even 10 to make a big offer. A deal with 10 could open the game up to a wider audience as the new owners are from the U.S – good expansion offer, especially as with this virus issue the RL game has been shown to more Americans who have put out favourable comments after seeing just the first two rounds this year.
The thing is, their audience won’t disappear. So would negotiating a new deal mean that competing bids might be attracted? Would there be less advertising revenue as sponsors will be spending less on television advertising?
Many many questions that will come, before any answers arrive.
The primary interest is on the actual games, doubt enough interest in RL TV shows, given many of the ? experts who argue amongst themselves to have a dedicated RL channel, at least one that would attract fans.
As for the game & advertising rights, I think the balance is ok at the moment, but there will need to be watchfulness as to more adds coming in during breaks in the game.
The exclusiveness of a pay tv operation is not for everyone. I say that as I cannot afford to pay for Foxtel, also the streaming services are not much cheaper. I realise I shoot myself in the foot owing to this but, its how it is.
At the end of the day, It appears John Grant had little undrstanding of the economics of the game and wanted to leave his position beingseen by the clubs in a favourable and glowing light. Not sure how the so called commission supported what he finally came up with, the $13 million hand out and no future fund. Having said that, who foresaw the virus that is plaguing the world financially and mentally as well as medically.
As Eels fans we need to stand by our club and ensure the support is ongoing. Still not sure how competent Greenburg is, this is his final test of his leadership. With all footy cancelled by the NSWRL from Canterbury Cup to U6, these are dark days indeed for rugby league and basically all sports.
How bad is our luck, we build under BA an extremely competitive roster and this happens, thank goodness TCT is doing its best to alleviate the hole in our lives. Go the Eels.
Knew you’d be staying strong Derek. As things unfold, we’ll have our say.
It is startling to reflect on a business that has not banked enough to survive a couple of months.
As you say sixties, the game has a strong supporter base and for this reason alone will survive. This current demise was clean and swift, a global pandemic and no financial reserves, the perfect storm. From early signs when Tuquiri, Rogers,Sailor and co took the money from RU and set new elite player expectations, to the Storm winning a comp with an extra superstar all year, to our good selves imploding via a range of ills, (…insert more here…)the game struggled on the administration side. What is really disappointing, is the introduction of ‘professional’ overview mattered for s..t in the end. Let’s hear from the 2 ARLC commissioners who resigned 3 or 4 years back, rumoured to be in protest of strategic/financial direction, they are probably the people we need now. And send Donnelly in to help VLandys. He’s right up the learning curve.
Hope BA can stay active, keep this roster together, see out the trouble. Geez, he’s had some experience at it. We’ve got our house in order, great base to re-emerge.We will.
Important historical points BDon. Glad you raised them. And in terms of BA, what a bloke to have at the helm.
Whilst I agree the NRL and Rugby League in general has been run like a basket case with conflicting power bases….but if we compare ourselves to the AFL, whom are meant to the epitome of sports management and low and behold, they are in the same sinking ship as us. I agree, we need to improve. But geez, whom is not on the same ship at the moment?
Too many it would seem 10 year. As far as Australia is concerned, I guess our professional sports are fortunate to have their grassroots which are based on mums and dads and volunteers without whom the games could not exist.
Unfortunately the RL landscape will probably change forever after this crisis is over. If it is indeed a 12 team competition this will mean a re-negotiated financial agreement between Foxtell and Ch 9 as well as many sponsorships simply disappearing. Parra will most likely survive as a very popular club but they still have large annual losses which the Leagues Club is currently unable to fund. That is a concern and with the loss of sponsorships the loss will be even larger than normal.
Our only saving grace is that Chemist Warehouse is a major sponsor, and if the sponsorship is still continuing, and this business is one of the few to thrive in the current conditions.
Glenn, I believe the NRL will do all it can to keep the current format and team numbers, if the game comes back this year its more than probable the full number will stay.
The primary concern I have though is going into the future especially with Channel 9 and probably Fox would look at the contract renegotiation point to their advantage, & why wouldn’t they? meaning less on the table for the NRL and clubs, the least viable clubs will face issues with it though.
Who would the least viable options be? & lets not forget that while expansion was still mooted a short while ago its said to be off the table, perhaps the old call for amalgamations will raise its head again, perhaps the goal may be if amalgamations take place it could be to allow new teams into the game to keep the team numbers at 16, which raises the bar on who amalgamates.
For me, the argument of there not being enough first grade/NRL standard players to go round in Sydney is a dead set furfy for mine, as one only has to look at the number of different lower grade clubs and competitions that were playing and now not there, no 3 team grade games a week at every game, also the Jnr rep competitions that no longer exist, those measures have punted kids to soccer and AFL.
Our saving grace will be bankwest glenn , every game thats played there no matter what club or code our club and carpark make money .
And if we see rationalisation of grounds, and SFS staying like a hole for an extended period, Bankwest will get more matches.
They might become front of jersey after all of this!
If it is true or even anywhere near true what I just read, that is that it costs the NRL $181 million a year to run the game then that is an absolute joke.
To restate a famous league saying, ‘ there must be an investigation’. This money is excluding any money paid to players, clubs or state bodies such as NSWRL. The broadcasters pay for the costs associated with production.
Therefore that leaves $181 million being spent to do what, referees, bunker, integrity and administrators. I fear the games money has been waisted on jobs for the boys, committees to review decisions that other committees have already made and not to forget the NRL taking on every social issue and pouring money into causes that it has no responsibility for and giving jobs to former players to promote those causes.
The NRL administration should be overseeing the game, increasing participation, acquiring assets to assist in rainy days and it has not done that but has managed to spend $181 million a year to RUN the game. It has run it into the ground.
Unbelievable.
Difficult to argue about money being squandered.
As I have mentioned before, i would love to see a list of all NRL staff and their roles and total cost of wages and I am not talking about Dev officers and the like. Lots of CEO have been on this gravy train exhibition. While i am on it, the focus on the womens game whether PC or not may need to be pushed back in some respect (build up HS levels etc. first), and so may some of the ‘special rounds’ the NRL has introduced (if they cost $$$$).
I also would like the NRL to go back to one bloody ref…….i watch the super league and IMO it goes well with the one ref, as there seems less stoppages (may be wrong but it seems ok).
The NRL should also look at other FTA stations if Ch 9 wish to play hardball. The fox sports show should continue as they need the NRL i believe.
I don’t know what the FTA landscape will be like, but you’d have to think that going back into the market (if that’s what 9 pushes) would be interesting. I doubt that the viewers will have disappeared. The networks would all recognise that a market exists.
Wonderfully put Sixties. Very few commentators from the mass (rugby league) media including ex players and administrators have chosen to see past their accusation of “a potential conflict of interest” which has been leveled against Shane Richardson. Having elected to character assassinate.They batter an opponent who doesn’t see these celebrity commentators as heroes, just very gifted athletes who are or have been the recipients of great largess who live in a bubble of ignorance until forced to view “life” from the same perspective as the rest of us. That is why Mr Richardson was able and convicted to declare what the core of the problem with our game really is. Not just greed, but the blatant encouragement of it. It was also the mechanism used by John Grant to seduce the 16 NRL clubs to support his incumbency to a position of leadership he was unable to perform.
The problems of the NRL are but a microcosm of an endemic sickness in the western world and that is sin. Multiplied by the selfish greed and an attitude of entitlement to the incredible abundance of blessing bestowed on the mainly English speaking nations of Great Britain and the USA for the last 300+ years.
Rowdy, I’d probably have to hit the confessional first f I attempted a comment on sin, and I’m not even a Catholic. But could I agree with you in another way. Many abuse what Western democracies value most- freedom. They think freedom is doing what you want, whatever you like. Freedom is the privilege of having options, but understanding the consequences.
Couldn’t agree more BDon, in our world today, there are so many people who demand their rights, but in the end in their demands they ignore the fact that others they make their demands on, are just as entitled to their rights as much as the other person.
I saw a classic pic and caption that went with it last week in a paper, where a fellow in a budgie costume went down to Bronte beach and police tried to stop him from going on to the beach, his response was that it was HIS beach and no one was going to stop from going there. I don’t know how he fared but that’s the attitude of today.
Well said. I can’t disagree with you there BDon. If I may elaborate on the issue of Freedom. That gift to choose carries with it an awesome responsibility to temper ones options with consideration for your fellow man. Realizing I was as much a self-centered, prideful individual as anyone in the NRL was quite uncomfortable. PS: BDon. I discovered many years ago, that I didn’t need to be a catholic to confess my sin to Him. Being a personal thing, I continue the practice confession regularly, it’s refreshing and gives me better perspective on the great chasm between (me) the created, and (Him) The Creator!
Could it be that weve tried to become to big as a product , maybe a better run and tighter controlled 12 team comp is the way to go , titans and warriors are a joke , stg cronulla should not be a seperate entitys , manly struggle to survive and their supporters only support brookvale oval , what do others think ????
Good post Higgsy. I reckon supporters of the remaining 12 clubs that you propose would be not too distressed at that outcome, but sadly the fans, players and staff of the other 4 clubs might justifiably have an issue with our selfish support (the winners in this re-alignment of the game) of this proposal. The problem in the past while trying to rationalize the game will be the same again. Who decides, who will survive and who will fold? What is the criteria for measure of worthiness to prevail. I for one wanted less clubs back when the got rid of first Newtown, then Norths and again when they got rid of Souths then Wests/Balmain but I didn’t necessarily be those particular clubs.
Problem is that as supporters, of the eels and this applies to those at other clubs as well, is none want their team/club to be put out or amalgamated. The two big amalgamations as such are STG & Illawarra, Wests and Balmain, while there may be a case to have Cronulla merge with the STG/Illawarra team that means one team operates at the expense of two others, same would be said if the Wests/Balmain merge was looked at to pull another team into the group
I have seen Norths, Newtown, Balmain. Illawarra each go out of the competition, along with Souths who came back, & that does not include the amount of old 2nd Division teams that have folded over the years, and for what benefit to the game overall??
I suggested early in this discussion about going to a 12 team comp, that way each team play the others twice in the season, with SOO probably somewhere in the mix. Which four would go? even if it was only two making a 14 team comp, which two to go?
Currently there is a 25 week comp, with the bye for 2 rounds, with a 16 team comp, to play each other twice in a season is out of the question on that number, whereas a 12 team comp allows for a 24 week comp with the SOO games on top, does the comp have a break in the middle? Maybe playing on non comp weekend would suit many as against the Mid week event???
A 14 team comp, may be more palatable, or even a 13 team comp, meaning less games but all competing clubs having a bye, but which 2/3/4 would go???
Also col we’ve had quite a few failed experiments , west red, adelaide rams , northern eagles, goldcoast crushers , chargers , tunas , sardines etc , i dont have answers but hard times call for hard calls , my other bane is the neglect of the team we should have introduced and nurtured back in the 70,s ,” WESTERN DIVISION “ all the nrl clubs didnt want it simply for selfish reasons , the wealth of juniors provided for no outlay , ive worked in junior talent and for every kid you brought down to the city in those days there were 9 others just as good who simply didnt want to become city dwellers and move away from family and the country lifestyle , so they just never got to realise thier dream or show us who they were , its not to late and it could potentially re invigorate country rugby league , mudgee seems central and prosperous enough but thats a debate in itself , the CENTRAL WEST who ???, just a thought , we need to put teams where they are the most benefit to the growth of the game-not channel 9 , grow the game first then let the bidding begin . In relation to teams folding , roosters jun rep teams now from central coast , manlys cc cup side blacktown workers , somethings wrong somewhere !!!!!!
Good points Higgsy.. Wasn’t the first of the xtensions to the Sydney comp the Riff and Cronulla in 1967? then we had the Illawarra Steelers & the knights come in in 82, that brought 2 teams into the Sydney comp that were realistically country teams, and the CRL fought against them going into the Sydney comp by way of their geographic surroundings? But the two clubs won out. and where did it head from there?
The game increased with 4 new teams, for the first grade and IIRC did not have the 3rds or reserves, could very well be wrong in that arena though.
The eventual loss of Newtown, Norths along with Balmain and Illawarra, really provided no real gain for the NRL as it is, in fact I would say that the Illawarra region went backwards in regards to their competition which was very strong prior to their entry, but since then and today there are several clubs down there no longer in existence.
I have mentioned in the past how many district/group comps there were back then, but how many today? The demise of strong league teams is incredible, where combined group competitions took a round robin type comp and the groups picked players from various teams in their groups to play against each other, for the group trophy. When the mid week Amco cup was first played it also had group teams in it, one notable player Ted Ellery was around 80 and still hit like a 30 year old (that’s a bit far fetched, but Ted was from one of the Lithgow teams and became a crowd favourite. Amco shield for the high school RL teams to play against each other.
The bringing in of some new teams, the amalgamation of some and demise of many in different areas, and groups has shown how far the RL game has really dropped off. More amalgamations, less lower grade quality football is to be seen, especially when they are separate to the NRL. The way the game is formulated these days is from my perspective a giant leap backwards and I wonder more often then not where it is going and how long it will survive the way its going.
I was fortunate to see the first premiership game against Newtown, we won, & deserved it, but so did Newtown as they played hard and tough and led us for a while, my dad didn’t live long enough to see the eels win the premiership, I sincerely hope that I will see another trophy win before I kark it, but I do have concerns about the game today and moreso than ever.
Western division actually beat penrith in amco cup , i met tv ted ellery , he was even older in person , another aspect of the neglect and selfishness shown towards crl was the standard of footy they played against touring british teams , these guys just came together for a week from all over and gave as good as they got and the sydney teams just stripped them bare , the biggest culprit of the state footy is in is footy itself , but thats all academic now , it used to be the peoples game now it belongs to the corporate world and as is their nature we are in the hands of the recievers!!!!!!
Big Hearted Greendome is accepting a 50% pay cut, bet that hurts!! doubt it will hurt him much though. When the announcement of the NRL staff at their HO was told they were being stood down, I’m sure I read that there were around 175 people employed there, what was their wages bill like ? I did not think they had that many staff there.
I wonder when the game comes back to something of normality how many will get their jobs back, and if that number is really required. That number of staff is the same number of players that play at 5 NRL teams, with some spares.
I have a suspicion that once this coronary virus is cleared that many of those stood down will not be employed again.
Very astute observations Higgsy. Perhaps this is the opportunity to implement some of those very rational suggestions, especially regarding a team from the Central West. It was a trumpet call to watch TV Ted Ellery and his mates in the Amco Cup. There is ample evidence that a team from anywhere within 100 klms of Bathurst would be as Terry Hill would say “Shenshashonal” Look at what Canberra, Newcastle and the Illawarra has done for country kids.
When it comes to leadership? I wonder if we have actually been blessed in that regards recently. Dave Trodden has done an excellent job leading the NSWRL and he should stay there. His professional and personal leadership skills have already overseen the amalgamation of City and CRL. He is a bloke I believe will help us expand the game into country NSW and make RL the biggest game in the bush once again.
With V’Landys now firmly entrenched at the head of NRL the right candidates will emerge to replace Todd Greenberg also. He knows how to make individuals accountable too!
I thought greenberg was a goner anyway but now his incompetence and fraudulent misuse of-funds is there for all to see , he must be gone or the commission will lose any small semblance of integrity it may still possess, the players and clubs will be in upheaval if this prince of clowns stays , this is a guy who had the hide to preside over salary-cap frauds while performing far more worse with the players super funds , your an insult to the game todd.
Mr holyman richo quit souths 2016 to join nrl and was reportedly paid 650 k to draw up a plan for the future of rugby league , 2 years later he presented and was laughed out of the nrl hq so he quit and ran back to souths where hes made goose of himself again ,since then others at the nrl have silently been trying to clean up his mess , dont fall for his “ good guy me routine “ hes a poor administrator and has been shown to tell the odd porky , good riddance .