How the NRL defied Covid to return massive season surplus
The NRL has reported a $43.1 million surplus for the 2021 season, with ARL Commission chairman Peter V’landys declaring the competition’s finances are healthier than they were before the COVID-19 pandemic.
With revenues of $575.1m last year ā a $155.4m (37 per cent) increase on 2020 ā the NRL has begun to reimburse players, as agreed, for taking pay cuts.
The Rugby League Playersā Association said the players were contractually entitled to a percentage of the profit for their sacrifice under collective bargaining agreement revisions.
An NRL statement said $5.5m will be paid to players, āensuring the majority of their 2021 pay reductions are returned ā¦ even though no payment is required until after the 2022 seasonā.
There is a further provision of $5.5m for the players in 2022.
āThese amounts were not guaranteed and linked to an out performance bonus calculated at the end of 2022, but the players sacrificed a great deal financially and personally to ensure we completed the season and we wanted to reward their efforts,ā Vālandys said.
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Cash grants of $9m to the 16 NRL clubs increased by five per cent to $239.6m.
Prior to COVID-19, the clubs received $203.2m in the 2019 financial year.
The NRL finished last season with $171m in cash reserves, up from $126m at the end of the 2020 financial year.
Vālandys said that despite almost $30m in COVID-19 costs, including relocating teams to Queensland hubs to finish last season, the game was in a great position thanks to āsignificant revenue increases and ongoing efficiencies at NRL head officeā.
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āMost importantly, the Commission has made it a priority to ensure club members and players received increased distributions,ā he said.
āMany clubs were facing significant financial challenges due to the pandemic.ā
Vālandys said the NRL will now look to āmake long term investments over the next yearā.
āIn 2019 our costs as a percentage of revenue were 37.5 per cent,ā he said.
āIn 2021 after making the NRL more efficient the costs as a percentage of revenue dropped to 27.6 per cent.ā
NRL CEO Andrew Abdo thanked media partners, sponsors and fans for their support and described 2021 as āan incredibly strong year for the growth of our gameā.
āRevenues returned to over $550 million and we have secured long term broadcast agreements which will see broadcast investment increase to over $400 million a year from 2023,ā Abdo said.
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