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National Rugby League Clubs Face $735,000 Broadcast Cash 'Black Hole'

Cash-strapped National Rugby League clubs are facing a A$1M ($735,000) "black hole in their budgets as the NRL holds off on sharing an advance from the new broadcasting deal until an accord is reached over perpetual licence agreements," according to Brent Read of THE AUSTRALIAN. The NRL has been "at loggerheads with its clubs over the agreements, which govern all the game’s major issues." So "disillusioned" are the clubs by the documents, they have "engaged global law firm Baker & McKenzie to provide independent legal advice on the agreements." That advice is "set to be central to the clubs’ response to the NRL, which is due to be delivered to Rugby League Central by Friday." The delay is "set to come at a cost -- a hefty one to some of the clubs on the NRL's breadline." The NRL is due to receive the first installment on a A$50M ($37M) advance agreed to "under the game’s new broadcasting agreement on Friday, which in turn was expected to trigger an instant million-dollar payment to each of the clubs." The new agreements "would call on the clubs to provide monthly statements on their finances and allow the game to take control of assets and infrastructure should it decide to terminate the licences of any clubs" (THE AUSTRALIAN, 6/28).

LICENSING DISPUTE: In Sydney, Chris Barrett reported an NRL spokesperson said on Monday that the money "would not be delivered until the perpetual licences to play in the premiership were agreed upon." The spokesperson said, "The additional funding to the clubs will occur once the license agreement is signed." The impasse "threatens to cause cash-flow headaches for a number of clubs that had budgeted for the arrival of the first payment on or about July 8." However, stronger clubs are "urging the more financially vulnerable that are hanging out for the payment to hold firm because of the need to get the licences right" (SYDNEY MORNING HERALD, 6/27).

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