Clubs will have to contribute up to $100,000 extra per annum to pay for career-ending injuries after rugby league followed the AFL's lead in shifting to a self-insurance scheme.
Rugby League Central is beginning the process of amassing a multimillion-dollar pool to assist players forced into premature retirement due to injury. The NRL will contribute $600,000 and the clubs will chip in $150,000 each to cover the remainder of the costs.
Under the terms of the deal, it will be compulsory for all clubs to fork out for the players' private health insurance. Previously, clubs that didn't do so could contribute as little as $50,000 to the career-ending insurance scheme when the bill was split with the NRL and the players. Their costs will now triple as the funds go towards a self-insurance scheme that will likely be administered by the union. The NRL and the Rugby League Players' Association are working through the criteria players must meet to be eligible for a payout as part of collective bargaining agreement negotiations.
An NRL spokesperson said the AFL had recently moved towards the self-insurance model and the governing body and the clubs would share the costs of running it. The spokesperson said the clubs agreed to the new system several months ago. The result is $3 million being allocated to the health and wellbeing of the players each year. The NRL will deduct the funding from club grants, which have increased by 130 per cent under the new funding arrangement. Some club bosses said the latest expense would make it harder to get into the black.
"It's going to be another $100,000 that we have to pay, which is another cost for us to swallow," said one club powerbroker.
"It's not that this is a bad idea, we want to make sure the players are taken care of and it's something that we all need to take responsibility for it. The problem is the communication and timing of it. We've done our budgets, the new financial year starts next week and another $100,000 – when 14 out of the 16 clubs are already in the red – it hurts."
Injuries have cut short the careers of several star players in recent years. Parramatta forward Anthony Watmough and Manly stalwarts Brett Stewart and Steve Matai were still under contract when injuries forced them into retirement. In Watmough's case, the Eels were livid their insurance didn't cover the back-rower's payout, while the NRL has been liaising with the Sea Eagles regarding the salary cap implications of the Matai and Stewart cases.
The new scheme will officially be unveiled when the NRL and RLPA thrash out the remaining details of the CBA, with both parties hopeful of a resolution before the game's financial year ticks over on November 1. The biggest obstacle is an agreement on the revenue share model, which has been a sticking point from the outset of negotiations. The other is the governing body's desire for access to players' bank and computer records should they be reasonably suspected of integrity breaches, with the union wanting clarity over when such powers could be invoked. It's believed the parties are close to resolving the latter issue, although any deal could be contingent on an agreement on the financials.
It's understood the CBA negotiations were one of the issues on the agenda for this week's ARLC board meeting. Another pressing topic is the Gold Coast ownership transfer as several parties finalise their pitches for the Titans franchise.
In clubs news, Cronulla CEO Lyall Gorman is expected to be announced as the new Manly boss, potentially as soon as Wednesday.
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