The NRL will save $ 80 million annually on the largest and most important cost overhaul in game history.
The Sydney Morning Herald The Australian Rugby League commission reportedly met on Thursday to develop a financial strategy to ensure the game survived the effects of COVID-19.
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Shockwaves were sent through the rugby league community when it was revealed in March that the board of directors had spent $ 181 million, the equivalent of $ 500,000 a day in operating costs, to the competition, the final series, and the State of Origin series.
When the season was suspended because of the pandemic, ARLC chairman Peter V’landys revealed how unprofitable the game was and said there would be “catastrophic” financial repercussions if the competition couldn’t restart.
Now V’landys says the NRL is “not messing around” with a cost structure overhaul that will change things for the clubs but mainly affect headquarters.
The Herald According to reports, the commission and interim CEO Andrew Abdo are aiming to cut spending to less than $ 100 million a year, which would save the game more than $ 200 a day.
“There will be significant cost savings. It will be significant; We don’t play around the edges, ”V’landys said the herald.
“The board and the game need to understand that this is a golden opportunity to get your cost structure right.
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“COVID-19 has shown us that the cost structure is wrong. The clubs made accumulated losses of $ 33 million a year. It’s not sustainable.
“We need to make sure we’re running the game profitably so the days of spending and spending and spending are long gone.
“You’re not going to attack every problem by throwing money on it. You need to come up with better strategies.
“That’s what the game did (before), it looked at itself and threw money on it, and hopes it will fix itself. Sometimes, even though they threw a lot of money into it, the return didn’t come about because what they wanted didn’t come true. “
As spending pulls back across the board, V’landys is confident that fans won’t notice a difference in performance. In fact, he does not refer to the restructured budget as cutting costs, but as improving efficiency, “doing the same for a lower price”.
The cap of $ 9.9 million is expected to be lowered slightly for 2021 and the cap of $ 6.17 million per year for the football department is expected to be lowered to $ 5 million. But the game will save the most from changes in Rugby League Central.
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“(Expenses) need to be cut significantly, there are no two options.
“Andrew Abdo does an excellent job identifying the areas that we can do right now and other areas that we can do incrementally.
“But nobody will notice the difference. The services will be the same. We don’t see it as cutting costs, we see it as efficient – doing the same thing for a lower price.
“The fans won’t notice a difference. Our goal with all changes is that no one notices changes other than improving the entertainment value of the game.
“Nobody will notice a difference because we get the same performance for a much lower price.”
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