The Rugby Football League (RFL) is exploring radically different terms to the funding deal initially offered by Australia’s NRL with talks under way over seeking a £50m loan package to replace the guaranteed investment of £35m that was rejected last week.
The Guardian has seen details of an alternative vision produced by Rugby League Commercial in a document entitled Project Magic, which the 14 Super League clubs owners will discuss at a meeting on Tuesday.
The RFL chief executive, Nigel Wood, is understood to have circulated the document to the Super League owners last Wednesday, the day before they voted to reject the NRL’s offer.
Discussions between the two competitions over investment from Australia have been ongoing since meetings in Las Vegas in January, with NRL chief executive Peter V’Landys due to visit the UK next week in the hope of finalising the deal.
The NRL offer would have seen it invest £7m-a-year for five years in return for a 10% stake in Super League, with the money to be distributed to the clubs.
Instead of selling a stake in Super League, the Project Magic document details the RFL’s desire to seek a £50m payment-in-kind loan from the NRL, which it would use “to fund central growth initiatives and accelerate global expansion.”
In another significant departure, the £50m would be retained centrally by the RFL rather than distributed to the clubs, which may prove a sticking point for many.
The Project Magic document details what the RFL describes as a 10-year plan to grow the sport, and includes ambitious targets such as expanding Super League to 18 or 20 clubs, launching a joint direct-to-consumer streaming platform with the NRL for non-domestic markets and creating a fully professional women’s competition.
The RFL’s plans for investing the £50m are also outlined in detail, with £13.5m to be spent on improving the clubs’ commercial capabilities, £10m on the player pathway and £5m on broadcasting services.
An RFL source said that the loan proposal is no longer its preferred option, but it is being considered significant enough for the clubs to discuss on Tuesday.
While the Super League clubs were broadly united in rejecting the NRL’s initial offer, agreeing on a way forward may prove more difficult.
Many of the competition’s bigger clubs such as Wigan, Warrington and the champions Hull KR are strongly in favour of partnering with the NRL, whereas smaller clubs like Wakefield are more sceptical amid concerns they could be left behind.
Although the RFL appears to be advocating demanding an increase of almost 50% in funding from the NRL, it is unclear whether the Super League clubs will support the proposal, with many preferring a smaller cash injection to a centrally managed loan.
One source with knowledge of the discussions described Project Magic as an attempt by Wood to retain control and influence at the RFL if the NRL deal closes.
NRL sources have described its position as a “take it or leave it” however, and it is far from certain it would be willing to offer a £50m loan.
Moreover, there are further significant obstacles to the deal being completed, as the NRL is demanding significant governance reforms, including the creation of an independent commission to run the sport in the UK, which would further reduce the influence of the RFL.
