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NRL set to force clubs to relocate or risk folding under new clause in licensing agreement
NRL PREMIERSHIP
The NRL are set to enact a clause allowing them to relocate clubs.Source: AAP
The NRL are set to enact a clause in the game’s licensing agreement that gives the governing body the right to relocate clubs.
Under the proposed new agreement, clubs that do not meet certain financial commitments risk being relocated or dissolved.
“Under the new agreement the NRL will have the ability to move clubs that are under financial stress to other markets,” Paul Kent told NRL 360.
“The NRL is back in talks with the clubs about the licensing agreement.
“What is going to be put into this agreement is a clause and if any of the clubs come under financial stress, the NRL has the ability to relocate them without the clubs say so.
“Essentially it gives the NRL power to say that we will help you financially, but you are going to Perth or Brisbane or New Zealand or wherever. Otherwise it is move or die.”
Cronulla, one of the clubs under the most financial strain and believed to be at threat under the relocation proposal, appears to have alleviated concerns after selling their share in the Woolooware Bay development, worth $40 million.
However, a handful of clubs are financially unstable, most obviously Manly, and will be vulnerable if the new conditions are ratified.
The licensing agreement was last signed off on when former chair John Grant gave each club a $13 million grant.
It begs the question why would clubs want to change their position, but Kent believes they will struggle to fight it when the licensing agreement comes up for review.
“There has to be a renegotiation of the licensing agreement every five years or so,” Kent said.
“This will be a perpetual license where if the clubs say they are financially in trouble, the NRL will help them under the condition they move to another state, city or market.”
Under the proposed new agreement, teams will be offered financial reward for potentially relocating to another market.
NRL Chief Executive Todd Greenberg has made expansion a priority over the next 12 months.Source: AAP
Once the new broadcast rights deal is signed, the NRL can allocate those extra finances to teams willing to help the game expand.
“There is also talk of a competition expansion up to perhaps 18 teams,” Kent explained.
“The NRL will explore what the financial value of a second Brisbane team or a Perth team is and will put that as an incentive on the table for clubs to entice them to move.
“The NRL also want greater control over the licenses, so that if one of the private owners wants to sell their club, the NRL has the ability to say where and who the private owner can sell his club to.”
The new licensing agreement is aimed at forming a partnership with the clubs to take the pressure off, if clubs are forced to relocate.
“The unspoken part to the agreement is that once you get the clubs to commit, the NRL has the opportunity to start setting the financial criteria that the clubs need to meet,” Kent said.
“If they don’t meet that criteria, they risk being moved or being dissolved.”
https://www.foxsports.com.au/nrl/nr...e/news-story/5496817855eab310fa6973d8c8941adb
NRL PREMIERSHIP
- March 21, 2019 8:59am
- by STAFF WRITERS
- Source: FOX SPORTS
The NRL are set to enact a clause allowing them to relocate clubs.Source: AAP
The NRL are set to enact a clause in the game’s licensing agreement that gives the governing body the right to relocate clubs.
Under the proposed new agreement, clubs that do not meet certain financial commitments risk being relocated or dissolved.
“Under the new agreement the NRL will have the ability to move clubs that are under financial stress to other markets,” Paul Kent told NRL 360.
“The NRL is back in talks with the clubs about the licensing agreement.
“What is going to be put into this agreement is a clause and if any of the clubs come under financial stress, the NRL has the ability to relocate them without the clubs say so.
“Essentially it gives the NRL power to say that we will help you financially, but you are going to Perth or Brisbane or New Zealand or wherever. Otherwise it is move or die.”
Cronulla, one of the clubs under the most financial strain and believed to be at threat under the relocation proposal, appears to have alleviated concerns after selling their share in the Woolooware Bay development, worth $40 million.
However, a handful of clubs are financially unstable, most obviously Manly, and will be vulnerable if the new conditions are ratified.
The licensing agreement was last signed off on when former chair John Grant gave each club a $13 million grant.
It begs the question why would clubs want to change their position, but Kent believes they will struggle to fight it when the licensing agreement comes up for review.
“There has to be a renegotiation of the licensing agreement every five years or so,” Kent said.
“This will be a perpetual license where if the clubs say they are financially in trouble, the NRL will help them under the condition they move to another state, city or market.”
Under the proposed new agreement, teams will be offered financial reward for potentially relocating to another market.
NRL Chief Executive Todd Greenberg has made expansion a priority over the next 12 months.Source: AAP
Once the new broadcast rights deal is signed, the NRL can allocate those extra finances to teams willing to help the game expand.
“There is also talk of a competition expansion up to perhaps 18 teams,” Kent explained.
“The NRL will explore what the financial value of a second Brisbane team or a Perth team is and will put that as an incentive on the table for clubs to entice them to move.
“The NRL also want greater control over the licenses, so that if one of the private owners wants to sell their club, the NRL has the ability to say where and who the private owner can sell his club to.”
The new licensing agreement is aimed at forming a partnership with the clubs to take the pressure off, if clubs are forced to relocate.
“The unspoken part to the agreement is that once you get the clubs to commit, the NRL has the opportunity to start setting the financial criteria that the clubs need to meet,” Kent said.
“If they don’t meet that criteria, they risk being moved or being dissolved.”
https://www.foxsports.com.au/nrl/nr...e/news-story/5496817855eab310fa6973d8c8941adb
