The huge financial cost of the coronavirus outbreak is being felt in the major football codes as Australian sport braces itself to feel the full impact of the pandemic.
With the cancellation of the A-League on Tuesday, all professional sport in Australia is now on hold, with all top-level competitions either suspended or cancelled.
The AFL on Sunday called a halt to its men’s competition while the AFLW was cancelled outright. The NRL followed suit on Monday before Football Federation Australia made its own call on Tuesday.
The cancellations have raised doubts over the financial security of the organisations, with ARLC chief Peter V’landys labelling the NRL’s situation “catastrophic” and AFL CEO Gillon McLaclan calling it the game’s “biggest financial crisis in our history”.
AFL players have offered to take a 50% pay cut while clubs are out of action, with the competition on hold until at least 31 May. However, it is believed the AFL is not satisfied with that figure, with News Corp reporting the league will push for a 75% cut in the coming months.
The AFL and its 18 clubs have had to slash staff numbers by roughly 80% in a brutal phase of job cuts while the NRL closed its offices from Tuesday until at least 1 May, forcing hundreds of staff across all departments to take annual leave.
AFL executives, including chief executive Gillon McLachlan, are taking a minimum 20% pay cut. All remaining staff at the AFL will have reduced hours during the season’s suspension, while casual workers have been let go.
Almost half of the A-League’s contracted players are facing life without a job from June. More than 120 players come off contract on 31 May with little or no fallback option due to the impact on football competitions in Australia and across the globe.
The A-League is postponed until at least 22 April, though chances of a resumption before the contracts expire is unlikely given the estimations it could take months before the pandemic is under control.
Collingwood president Eddie McGuire urged AFL decision makers not to “screw the players” amid ongoing pay negotiations.
“This is not a union dispute,” McGuire said on Triple M on Tuesday. “This is not people trying to get into it and claim a scalp ... the situation is that the players have received money for this half of the year, because that was fair enough, everyone’s getting paid.
“It’s the next part of the journey that we have to get through until we actually start playing games again and we can get some money coming in. The Channel 7 money, the Foxtel money stopped this week. It’s finished, it’s all over.
“There’s no gate receipts, the AFL is cutting through its costs, all the clubs are cutting through their costs, and we have to come to an elegant situation here ... if there’s no money, there’s no money.
“We need to not screw the players at the same time. They are the centrepiece of our game, they’re wonderful people, they’re great young men, and we have to do the right thing.”
Players would likely have to take even bigger wage cuts if the remainder of the 2020 season was abandoned altogether, which remains a distinct possibility in uncertain times.
NRL clubs have been informed they would receive their scheduled $1.2m monthly payment from league HQ next week. The payments are also expected to be made in May and June, however it is unclear whether the league can continue cashflow from July onwards.
It is understood the game has around $150m in reserves. Just last week, it was revealed the game could lose roughly $500m should the entire season be cancelled. That includes $13m in lost broadcast revenue for every round missed, meaning a total loss of $104m should the game be postponed until June.
League officials will next meet with Rugby League Players Association to discuss the shutdown’s impact on player salaries.
