Operation Relocation costing Sydney clubs 20m in revenue

Sydney NRL clubs are bracing for a combined loss of more than $20m as the COVID lockdown forces the remainder of the competition to be completed in Queensland.

The loss of gate takings, corporate hospitality and discounted memberships will bite into the clubs’ bottom lines for a second season in a row, with most losing around $2m. Penrith were anticipating a loss closer to $3.5m or even $4m because of their reliance on their leagues clubs, which have also been shut down.

The run home to the finals had plenty of blockbusters scheduled at Sydney grounds, including the ten-year anniversary of the Battle of Brookvale featuring Manly and Melbourne on Saturday night.

The high-flying Sea Eagles would have also sold out Four Pines Park on Saturday week for what looms as a potential top-four shootout with Parramatta. The northern beaches club stands to lose more than $2.5m in revenue from the relocated games.

Sea Eagles chief executive Stephen Humphreys told the Herald: “We were banking on a strong second half to the year from a game-day revenue point of view - when we first looked at the draw, we knew if we were in the hunt we should do really well.

“To lose those games delivers a huge financial blow. The games against the Dragons and Wests Tigers traditionally draw well. And the two blockbusters against the Storm and Eels definitely would have been our strongest two games of the year - we were pretty much sold out from a hospitality point of view.”

The relocated competition has left Sydney clubs out of pocket a collective $20m.Credit:Getty Images

Humphreys said the clubs had the Federal Government’s JobKeeper program and the NRL helped them financially last year, but the NSW Government’s new initiative JobSaver was unlikely to prop up clubs, while the NRL had since directed their attention to keeping the game afloat in Queensland.

“The NRL knows a dynamic competition needs to be underpinned by healthy and sustainable clubs,” Humphreys said. “They have indicated a strong desire to provide financial support in light of our significant losses caused by the relocation of games to Queensland. I’m confident they will deliver what is needed.”

Panthers CEO Brian Fletcher said: “It’s cost us between $3.5m to $4m. We’re in a big hole. We would have sold out every one of our remaining games.

“Then you have to factor in merchandise, corporate hospitality ... it will cost us a fortune.

Tom Trbjoevic would have helped pack Four Pines Park for the Storm and Eels clashes the next two Saturday nights.Credit:Getty

“Normally you can wear it in the club industry, but the big clubs have shut down as well.

“The thing at the moment is we’re hopeful the NRL comes up with a good profit because all clubs will lose. We’ll need them to try and replenish our losses because they’re running the game and control the income.”

Parramatta are tipped to lose close to $3m from the four home games they have lost, including Friday night’s clash against South Sydney and the final-round derby against Penrith, which would have both been sellouts.

The Dragons lost five home games once the June 26 lockdown came into effect, with club chief executive Ryan Webb admitting, “It’s important we’re a lot closer to normal in 2022 than we are now”.

The NRL gave each club $14m at the start of the year, while a one-off $150,000 discretionary COVID payment was brought forward from the end of the season to this month.

They have picked up the relocation costs for players and families, but are now unable to generate revenue while Queensland remains in their own lockdown. This will become a huge concern should the finals be played with no crowds.

The NRL increased their funding to clubs when the AFL decreased their own spending - the rival code even suggested the cashed-up clubs help prop up their struggling counterparts.

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Christian Nicolussi covers rugby league for The Sydney Morning Herald.

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