Under a new television rights agreement, the migration of stars from the NRL will become a thing of the past, as the salary cap will rise to $7 million for the 2013 season, along with a guaranteed minimum pay increase of $100,000 for senior players.
As part of this initiative, at least 80 new “jobs” will be available for stars who have departed for the English Super League and rival codes in recent years, with the NRL’s annual grant to clubs expected to double from $3.65 million to $7.5 million. This financial boost will ensure that the league does not lose players of such high caliber as those listed opposite again.
The anticipated television agreement, projected to be worth approximately $1 billion over five years, will empower clubs to expand their current 25-man NRL rosters to 30. This move aims to mitigate the critical player burnout issue arising from a packed season featuring 26 rounds, finals, Origin games, Tests, and City Country matches.
The insights stem from an investigation that included conversations with NRL management, club CEOs, coaches, and player managers.
For the first time in the history of the game, club grants will surpass the salary cap, which should enhance the long-term sustainability of all 16 clubs. The potential expansion into Perth, Central Coast, or Brisbane is not expected to affect the financial support to clubs, given that additional television revenue will be generated from an extra game each weekend.
Even after allocating substantial club grants and the player payment surplus, the NRL would still have enough funds to establish a development war chest of up to $20 million per year for the future of the sport.
This financial strategy would at least position the league to maintain its presence in core areas and counteract the AFL’s advances into the Gold Coast and western Sydney.
Despite these provisions for a $20 million fighting fund, the NRL would still have $60 million annually available for operational expenses—a significant enhancement to its current budget.
Additional savings will ensue from a more efficient organization structure that eliminates redundancy in administration stemming from the existing NRL, ARL, NSWRL, QRL, and CRL setups.
The ambitious new plans aiming to safeguard the future of rugby league will be thoroughly discussed and examined in detail once the new independent commission is operational—ideally by this year’s finals series. Player agents across the league are advising their clients to refrain from signing long-term contracts in light of the anticipated financial windfall accompanying the 2013 salary cap.
Not all the funding from the new television deal will be allocated to superstar players like Greg Inglis, Johnathan Thurston, Billy Slater, and others.
However, there will be efforts to draw back recent code-switchers into rugby league.
The players’ union is advocating for— and is likely to succeed in achieving— a rise in the current minimum wage from $55,000 to $70,000. The need to accommodate additional salaries for five extra players in expanded 30-man squads will also absorb some of the differences arising from the existing $4.3 million cap.
“First of all we need to finalize the television deal,” stated NRL spokesperson John Brady, “then, there will be substantial discussions involving various parties to ensure players, clubs, and fans achieve the best possible outcome.”
Even clubs facing financial difficulties, such as Penrith, Cronulla, and Gold Coast Titans, will be positioned to thrive and compete with the premiership powerhouses under the new grants and salary cap.
by Buford Balony
