News Ltd Signal Intention to Leave

28th November 2009

The game of rugby league is on the verge of being handed back to the people with the long-awaited independent commission just weeks away from becoming a reality. In the most stunning administration shake-up since Super League, News Ltd and the Australian Rugby League are putting the finishing touches to an agreement that will see independence day arrive before the March kick-off of the 2010 season. "It could be sorted by Christmas - if not before the start of next season," said a prominent official who has been involved in months of negotiations to deliver a watershed moment in the code's history. A series of high-powered meetings has resolved the major sticking points and lawyers for both parties are now nutting out the finer details. As part of establishing the commission, those details are:

  • Melbourne Storm is likely to be sold to a consortium for just $1 in a paperwork transaction that allows News Ltd to leave the game;
  • David Gallop will remain as CEO for three to five years;
  • ARL supremo Colin Love will be the inaugural chairman for two years;
  • The 16 NRL clubs will have an equal share in all profits after grants are paid to the respective leagues to look after the grass roots, and;
  • Two new clubs will be added by 2013 to increase bargaining power when the commission negotiates the next television deal.

    The key to any agreement has been the future of the Melbourne Storm and the reluctance of the Queensland Rugby League and the NSW Rugby League to come on board.

    CEO Brian Waldron has been told by News Ltd to pull together a consortium to buy the club. He has approached several investors in recent weeks and it is believed he already has Gerry Ryan, the founder and managing director of Jayco Caravans, on board.

    The key negotiators are still waiting for final sign-off from the state bodies NSWRL and QRL, but are confident of getting their support.

    Who will own the game? The 16 clubs will hold an equal share. Currently, all profits from the NRL are divided between the Australian Rugby League and News Ltd. News Ltd spends its share on bank-rolling the Storm - the Australian Rugby League uses its money to run the game and develop it at the grass-roots level. The new independent commission will be set up as a non-profit trust with each of the 16 clubs getting an equal share after grants to the NSWRL, QRL and CRL.

    Who will be on the commission and what role will they play in running the game? Earlier plans to appoint former Prime Minister John Howard as inaugural chairman have been abandoned. Instead, Australian Rugby League supremo Colin Love will get the job for the first two years. Love's appointment does not have overwhelming support from News Ltd or from the clubs. However, significant concessions are being made on both sides to get the deal over the line before the start of next year's premiership. Three of Australia's top business leaders - Katie Page, Gary Pemberton and Geoff Dixon - have agreed to sit on the commission.Others, including the likes of banking heavyweight Mark Bouris, will be approached to form an eight-man board. Senior officials have told Gallop he will remain as chief executive and will be offered a contract for between three and five years. Instead of reporting to two NRL boards, as he does under the current administration, he will report to the commissioners and be responsible for the day-to-day running of the game.

    The new independent body will be called the Australian Rugby League Commission, but the competition will still be called the Telstra NRL premiership. The NSWRL and Queensland Rugby League will come under the umbrella of the commission but will still oversee their state competitions and run the State of Origin series. All revenue will go to the commission, which in turn will provide grants to the respective leagues. The CRL will continue to run bush football, while the independent commission will oversee all international football.

    South Sydney Boss Shane Richardson Endorses Independent Commission For Rugby League

    30th November 2009

    South Sydney chief executive Shane Richardson last night said rugby league's independent commission will be "the biggest step forward in 100 years of the game". The commission is expected to be established early next year after an agreement between rugby league's current stakeholders, News Ltd and the Australian Rugby League, to hand power to the 16 NRL clubs. "Everyone has to put their egos away - this has got to happen," Richardson said. Details of the commission will be discussed at an NRL partnership meeting today. "It will be the biggest step forward in 100 years of rugby league. It's crucial," Richardson said. "The biggest advantage AFL has over us is their commission - they have one voice. "It is vital at this stage that the clubs do everything they can to support this. "It would be a huge backward step [if it failed]. All the stakeholders recognise how important this is."


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