The National Rugby League has "taken its most aggressive step ever towards ensuring the viability of its clubs" by asking them to fund a A$10M ($7.4M) sinking fund, to "provide solvency statements at the end of each year and to open their books for spot audits as part of new licence agreements with the game’s governing body," according to Brent Read of THE AUSTRALIAN. As part of the license agreements, which are due to be returned to the NRL, "the clubs have been offered two alternatives." The first, and more likely, proposal would involve each of the 16 clubs setting aside A$150,000 ($111,600) a year A$2.4M ($1.8M) (in total from the 16 clubs) "to safeguard against any of their rivals going belly up." The clubs "would continue to tip money into the fund each year" until it reached A$10M. The other alternative "would result in the NRL taking money from the clubs in the times of a financial crisis in clubland." The NRL "hopes the clubs will agree to the fund but it is understood some are reluctant to agree if they are required to reach into their own pocket to ensure the viability of a 16-team competition." In its most recent presentation to the clubs the NRL "indicated a worst-case scenario" could result in it running at a A$54M ($40M) loss by the end of the next broadcasting agreement. Further protection measures "have also been proposed." The NRL wants club officials "to sign a statement at the end of each year declaring that their clubs are solvent." They "also want the clubs to agree to spot checks in situations where the NRL has concerns over their financial position" (THE AUSTRALIAN, 6/10).
