Despite COVID-19 impact NRL reports $43 million surplus for 2021 season

The National Rugby League has reported a $43.1 million surplus for its 2021 season, with revenues of $575.1 million last year - a $155.4 million (37%) increase on 2020.

With Australian Rugby League Commission Chairman Peter V'landys declaring the competition's finances as being healthier than they were before the COVID-19 pandemic, the sport has begun to reimburse players, as agreed, for taking pay cuts during the height of the Coronavirus crisis.

The Rugby League Players' Association said the players were contractually entitled to a percentage of the profit for their sacrifice under collective bargaining agreement revisions.

An NRL statement said $5.5 million will be paid to players, "ensuring the majority of their 2021 pay reductions are returned ... even though no payment is required until after the 2022 season".

With a further provision of $5.5 million for the players in 2022, V'landys noted “these amounts were not guaranteed and linked to an out performance bonus calculated at the end of 2022, but the players sacrificed a great deal financially and personally to ensure we completed the season and we wanted to reward their efforts”.

The NRL finished last season with $171 million in cash reserves, up from $126 million at the end of the 2020 financial year.

V'landys said that despite almost $30 million in COVID-19 costs, including relocating teams to Queensland hubs to finish last season, the game was in a great position thanks to "significant revenue increases and ongoing efficiencies at NRL head office".

He added "most importantly, the Commission has made it a priority to ensure club members and players received increased distributions.

"Many clubs were facing significant financial challenges due to the pandemic."

V'landys said the NRL will now look to "make long term investments over the next year", going on to state “in 2019 our costs as a percentage of revenue were 37.5%," he said.

"In 2021 after making the NRL more efficient the costs as a percentage of revenue dropped to 27.6%."

NRL CEO Andrew Abdo thanked media partners, sponsors and fans for their support and described 2021 as "an incredibly strong year for the growth of our game", noting “revenues returned to over $550 million and we have secured long term broadcast agreements which will see broadcast investment increase to over $400 million a year from 2023.”

Cash grants of $9 million to the 16 NRL clubs increased by 5% to $239.6 million.

Prior to COVID-19, the clubs received $203.2 million in the 2019 financial year.

Image: The 2021 NRL Grand Final was played at Brisbane's Suncorp Stadium. Credit: Suncorp Stadium.