Financially troubled NRL clubs who continue to ask for money from the governing body will be forced to relocate under the game’s new licensing agreement.
If the NRL wants to implement an expansion strategy, they risk opening themselves up to financial hardship, as only one of the 16 clubs in 2017 returned a profit without the help of leagues club funding – the Brisbane Broncos.
In an effort to help the NRL become more financially stable, the new agreement proposes that clubs that do not meet certain financial commitments risk being relocated or dissolved.
“Under the new agreement the NRL will have the ability to move clubs that are under financial stress to other markets,” Paul Kent told NRL 360.
“The NRL is back in talks with the clubs about the licensing agreement.
“What is going to be put into this agreement is a clause and if any of the clubs come under financial stress, the NRL has the ability to relocate them without the clubs say so.
“Essentially it gives the NRL power to say that we will help you financially, but you are going to Perth or Brisbane or New Zealand or wherever.
“Otherwise, it is move or die.”
It is believed that clubs who do take up the offer and relocate, will be offered financially rewarded.