Dave Smith and John Grant facing a rebellion over the direction of the NRL
Phil Rothfield
The Daily Telegraph
November 24, 2014 12:00AM
MANY of the most powerful figures in rugby league are losing faith in NRL chief executive Dave Smith, commission chairman John Grant and the direction the game is heading.
To such an extent that disgruntled powerbrokers at influential clubs are privately discussing plans to try to force senior management changes at Moore Park headquarters.
The issues that have caused the uproar and potentially the biggest revolt since Super League include:
●SECRET loans to clubs including St George Illawarra and the West Tigers with no transparency or details of the terms;
● LACK of communication with stakeholders;
● THE dearth of rugby league experience in senior management roles and consultancy firms employed in increasing numbers;
● NEW corporate governance pressure on already successful clubs, telling long-time officials how to run their business;
● THE embarrassingly slow process to produce a 2015 premiership draw and address other significant issues, including the recent domestic violence case;
● PLAYER burnout and lack of compensation to clubs for rep footy injuries;
● THE integrity unit’s inconsistency; and
● SPENDING $750,000 on a feasibility study to rebuild Allianz Stadium, which is home to only one club while others are left with poor facilities.
The Daily Telegraph can reveal powerful figures at Sydney and out-of-town clubs have been conspiring in recent months to challenge the NRL leadership.
Even Panthers general manager Phil Gould, a man with more sway and clout than any other official in the game, has become disenchanted with the game’s direction.
No one will go on the record at this stage and they lack the numbers to challenge the constitution and make-up of the independent commission.
Yet there have been serious discussions with lawyers about the dissatisfied clubs refusing to sign the next NRL participation agreements in 2016 as a tactic to force change in what has been described as a full-on rebellion.
These people involved are political dynamite who can make Canberra and Macquarie St lobbyists look like second graders.
Smith is believed to be on a $1.5 million two-year contract, while Grant is manoeuvring to extend his two-year contract by another 12 months.
Only a handful of clubs are still supporting the embattled NRL hierarchy. They are the ones Smith has propped up financially in recent times — St George Illawarra, the Wests Tigers, the Knights and possibly the Gold Coast Titans.
They have no choice because their survival is dependent on NRL funding and assistance.
The unrest has been brewing for several months and gaining momentum since the grand final in October.
Key stakeholders are furious over a number of issues, including last week’s appointment of mother-of-six Suzanne Young despite no consultation with stakeholders or even some of his senior staff.
Young has a wealth of corporate experience with the Commonwealth Bank, Qantas and Unisys and a variety of university degrees, but admits to having no experience in rugby league administration.
“It’s like putting a motor mechanic into a job in David Jones men’s wear,” one official said. “Rugby league is different to running a bank. You need to understand the culture, the passion and the people at the clubs.”
Like Smith, who famously didn’t know Cameron Smith captained the Kangaroos when he first started, Young had to be told on her first day at Moore Park that the NSW Cup was the second-tier competition to the NRL.
Offers of private multi-million-dollar loans to some clubs but knockbacks for others is another contentious point.
There is talk St George Illawarra got as much as $5 million from headquarters.
“You won’t get that figure from me,” Dragons CEO Peter Doust said when I phoned him on Saturday for confirmation. “Dave’s position on arrangements at any club is that it’s done commercially in confidence.”
At this stage few clubs and officials are prepared to speak publicly about their disenchantment with the code’s administration. Your columnist has met with four influential club figures in the last 10 days about their concerns over Smith and Grant and their refusal to be more transparent in relationships.
The clubs want more detail on NRL salaries and the costs of employing executive consultants on a staff that has almost doubled in recent years.
“We are the key shareholders and are entitled to know,” one official said.
There are also question marks over Smith’s self-appointed discretionary powers earlier this year aimed at keeping the biggest names in rugby league.
Since then we have lost Sonny Bill Williams, Sam Burgess and Jarryd Hayne, arguably the three biggest drawcards in the game.
At Parramatta, CEO Scott Seward spoke of the growing frustration over delays to produce next year’s schedule while the AFL and rugby union finalised and approved their fixtures weeks ago.
“We need to be planning now for our big games like the heritage round and other important weekends,” Seward said. “Our members and fans are entitled to know dates for next year.”
As it stands, the draw will not be released until the middle of next month when clubs and their marketing departments are preparing to close down for the Christmas break.
Since Smith started at the NRL the only key performance indicator that has gone upwards is club memberships. The CEO talks up the increases at every opportunity.
The trouble is more members haven’t transformed into bigger crowds or television ratings.
They are already rusted on fans going to the games anyway who are simply taking up the cheaper and heavily discounted ticket deals. Stable crowd figures is the proof there are few new customers since Smith started.
Actual gate takings at most clubs decreased considerably this year.
The integrity unit’s handling of the Paul Gallen and Kirisome Auva’a cases has also caused ructions, in particular the summonsing of highly respected NSWRL chairman Dr George Peponis for standing by his Origin captain.
And there is a theory Smith’s long delay in acting on the Auva’a domestic violence case and the public storm it created damaged the NRL’s brand far more than Gallen swearing on social media.
Dave Smith has rejected several interview offers from your columnist to discuss the issues raised in this column.
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