25% of staff to be retrenched after $120m revenue loss
The NRL has announced that it will slash head office jobs after it was revealed that the rugby organization has spent $80m in cash reserves to stay afloat. It could take the organization at least two years to recover from this year’s anticipated $120m revenue hit, according to a report by The Australian.
On Monday, NRL chief executive Andrew Abdo told employees during a Zoom conference that 25% of the workforce would lose their jobs as the organization slashes $50m from its operating costs. Abdo will also have to strike a pay deal with the players for the next couple of seasons; the NRL wants players to take 10% pay cut, while the players’ union is only willing to concede 5%, The Australian reported.
The financial toll of the COVID-19 pandemic has hit the game hard. In addition to the $120m revenue loss this year, the NRL has forecast total losses across the clubs and head office to hit $400m over the next two seasons.
“Our business, like so many others, has been hit by a hurricane called COVID which caused substantial damage,” Abdo said. “Our strategy moving forward is to stabilize, renovate and grow. In order to stabilize, we must secure revenues and reduce our expenses to ensure a strong foundation.”
Abdo said that the economic impacts of the pandemic have forced the NRL to make some tough choices, The Australian reported.
“We will lose some very good people during this process,” he said. “Talented people with a genuine love and passion for our game, who have all contributed in some way. This is a painful but necessary process to ensure we survive.”
“It is obviously a very difficult day for everybody in the building,” said Graham Annesley, the NRL’s head of football. “We are not the only business going through this; other major sports in this country have been through a similar process. We are devastated for many of our colleagues that will no longer have jobs.”
