The NRL will use a potential $20 million annual windfall from point-of-consumption gambling taxes to address its lack of assets and lessen the reliance on the State of Origin and grand final cash cows.
A day after Fairfax Media revealed the code had made representations to the state government for a slice of the new tax formalised in this week's state budget, the NRL is tipped to plough the money into its embryonic investment portfolio.
Financial footing: Peter Beattie.
Photo: AAP
Despite the possibility of the money being used for minor upgrades to Sydney's old suburban grounds, it's understood League Central wants to use the increased revenue stream to add assets to its cash-rich state.
Independent commissioner Dr Gary Weiss has been charged with crafting an investment plan for the NRL, which trumpeted strong half-yearly results when it presented to club chairpersons and chief executives last week.
Australian Rugby League Commission chairman Peter Beattie hasn't hidden his concern that the game owns little despite being on track to post a $45m surplus for its financial year, while the AFL basks in the purchase of Etihad Stadium less than two years ago.
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Some of the potential $10m bounty per year from the NSW government could be invested back in grassroots, but so determined is the NRL to protect its future it wants to build a catalogue of assets to create further wealth independent of game-related fortunes.
And the plan has support from some powerbrokers among its clubs, who are cognisant of the evolving sports broadcast rights landscape and the game's financial health being heavily influenced by marquee events such as Origin and finals matches.
"If I was in charge of spending the money I would be allocating it into grassroots or into the longer term investment of the game by trying to create wealth with other investments through cash capital now," Wests Tigers chief executive Justin Pascoe said. "The game needs it."
The NRL's projected point of consumption income follows racing's lead after the industry was guaranteed $40m from digital betting taxes, which is set to become uniform across all states within 12 months.
The NRL could turn its attention to brokering deals with the Queensland and Victorian governments, who have varying levels of the tax set to be introduced.
Queensland (15 per cent) is at the higher end of the scale while Victoria (8 per cent) has a rate marginally lower than NSW (10 per cent) as they try to claw back money from online bookmakers primarily licensed in the Northern Territory.
Both Queensland and Victoria have made no guarantees any sporting code will benefit from PoC taxes each state government is paid.
The NRL is hoping up to six of its clubs are in the black at the end of the financial year on the back of record club grants, a positive result given most have traditionally been loss-making businesses.
But some are still leaning on wealthy leagues clubs to prop them up and there could be an argument made for NSW-based clubs to benefit most from any PoC tax returns in the state.
"Maybe it would be a smart idea if the money was divided up between the clubs to lessen the extra investment they have to make in the game each year," Penrith Panthers chief executive Brian Fletcher said.
The betting industry has been a source of increased income for the NRL, who waged a months-long protracted dispute with Australia's biggest bookmakers over the product fees they should pay to offer markets on the sport.
A new deal was struck less than a week before the Origin series opener – and after almost three months of temporary agreements being rolled over.
Adam Pengilly is a Sports reporter for The Sydney Morning Herald.
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