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NRL boss Todd Greenberg says players may be asked to take a pay cut as the league grapples with the fallout of the coronavirus pandemic.
Key points:
- Todd Greenberg said a league-wide shutdown would be "catastrophic" for the NRL
- The NRL will play matches behind closed doors from round two
- Greenberg would not rule out paying reduced salaries to players, but said it would be an "extraordinary measure"
"The word catastrophic is not one that we use lightly," Greenberg said on AM when asked about the impact a shutdown would have on the code.
"This will have significant financial and commercial implications, not just for the game and the centre as a governing body, but our clubs and more broadly as an industry."
Melbourne Storm captain Cameron Smith called for the league to be suspended after playing in his side's 18-4 victory over Manly Sea Eagles in front of 10,315 fans at Brookvale Oval on Sunday, saying the COVID-19 crisis was "bigger than rugby league."
Greenberg said Smith "certainly had a point".
"As you'd imagine, there are lots of voices in this issue," he said.
"But we'll always do what's best for the players. You can rest assured that is at the forefront of our decision making."
Players could be asked to take salary cuts
Greenberg said the prospect of not playing matches would have several knock-on effects, including on payment of players.
"We have a huge, fixed-cost base," he said.
"There's very, very few businesses that I know that can continue to get by when their fixed costs are higher than their revenues.
"We have a number of games we have to fulfil to provide content to our broadcasters, and the broadcasters pay us a fee for that.
"Clearly, if we don't provide the content as scheduled, there are commercial impacts to that.
"That's an issue we're facing."
Your questions on coronavirus answered:
Greenberg said the league's collective bargaining agreement allowed for players' pay to be cut, but said that would be an "extraordinary measure".
"We haven't done that yet," he said.
"We have got … provisions around what we would call material adverse change.
"That's something that is available to us, but it would be an extraordinary measure."
Later, at a press conference on Monday afternoon, Greenberg moved to clarify his comments, saying that players would still be paid.
"No-one is saying at the moment players are taking pay cuts," Greenberg said.
"That's not what we're saying.
"What we're saying is in the funding agreements with every constituent in the game, when the revenues drop, there's an ability for us to renegotiate some of the deals.
"We're not suggesting that is what we're doing, but we're saying that is in our contracts.
"Of course everyone is looking to tighten our belts. We're looking in the central administration where we can stop and save costs.
"We're doing those things as you would expect and as I would expect all 16 club also be doing now."
Greenberg said the NRL would not rule out continuing the season without the Warriors should the club choose to return to New Zealand.
The Warriors are based in Kingscliff in northern New South Wales ahead of their round-two match against Canberra in Robina on Saturday that had initially been scheduled to be play at Auckland's Eden Park.
But the club has not confirmed whether they will remain in Australia beyond this weekend and a return to New Zealand would mean players and officials would be subject to a 14-day self-isolation period.
Greenberg said the NRL and the Warriors would reassess the situation and it might be inevitable the league was forced to continue with a 15-team competition.
"At the end of round two, they're going to make some key decisions. None of those decisions are made yet," he said.
"We understand that they have to make their own decisions. But we are trying to look at it in the context of the whole competition."
NRL still wants help from the Federal Government
In the meantime, Greenberg echoed the comments of ARLC chairman Peter V'landys in saying that the league would call on the Government to provide assistance.
What the experts are saying about coronavirus:
"Rugby league is an enormous industry providing enormous economic impact to our country," he said.
"The principle, and I understand there will be public commentary against us on this, but the principle is that sport in this country … is a huge economic multiplier and we're a part of the social fabric of this country.
"It's really hard to put a figure on it [how much playing behind closed doors will cost the league] as the impact is very much unknown.
"We do have money put aside but … that will only last a very short amount of time in an issue like this.
"At the moment, what we're facing is just playing in empty stadiums. If we move from playing in empty stadiums to no games … then that will only fast-track that problem for us.
"I think every sport will be facing very difficult economic circumstances, so a conversation with the Federal Government and the state governments is an option that we would like to take forward.
"At the moment, we're doing everything we can to make sure our industry stays afloat."
However, Prime Minister Scott Morrison told Sydney radio that: "The NRL is not high on the list at the moment."
Greenberg acknowledged that response, and that he agreed with the Prime Minister's stance.
"I would anticipate that would be his response and it's probably the right response," Greenberg said.
"There are a lot of people who will require assistance.
"What we said yesterday is our sport and amongst all sports is a big industry and there's a discussion to be had with government at the right time.
Topics: infectious-diseases-other, respiratory-diseases, sport, rugby-league, nrl, australia, nsw, sydney-2000, qld, vic
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