‘All our incomes have run dry’

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BY ROSS HEPPENSTALL

WHEN Leeds Rhinos supremo Gary Hetherington speaks, it usually makes sense to listen.

For he has presided over the most successful outfit in Super League history, rebuilding a club who faced financial ruin in 1996 to one that would go on to win a record eight Grand Finals.

A quarter of a century since that first season of Super League, when Leeds narrowly avoided relegation after finishing two places above Workington Town, and the entire sport has been left facing an uncertain future.

The coronavirus crisis has seen to that, with most, if not all, clubs now placing their players and staff on the Government’s furlough scheme which will see the state pay 80% of their wages.

It remains to be seen which clubs survive the pandemic and which ones might go to the wall, with the season currently suspended indefinitely and no sign of it resuming any time soon.

Hetherington likened the situation to war time as society battens down its hatches and scraps for survival.

Leeds have closed down their operations at Emerald Headingley and at their Kirkstall training ground, and Hetherington estimates they stand to lose £1.5million during the next three months.

The Rhinos do not rely solely on matchday income but, with their ground closed indefinitely, regular revenue streams such as their on-site hotel, lottery, club shop and cafes and bars will now be lost.

Hetherington spoke to journalists about the eve-evolving situation via a video link on Wednesday morning and explained: “Normally in sport, the club with the best facilities and most staff has an advantage, but at Leeds we find ourselves as the club with the biggest challenge. 

“All our incomes have run dry and we anticipate a £1.5million loss over the next three months from budgeted income that now won’t arrive. 

“But we still have significant commitments, not least our 150 players and staff. 

“We’ve made a commitment to them to maintain their employment for the next three months. 

“All the financial reserves we’ve built up as a profitable organisation have been invested in our facilities, so we’re living off the cash that has been generated so far this season. But we need more. 

“We will know the extent of the cuts we will have to make in the next two weeks, and there’s no doubting that the next four weeks are absolutely crucial. 

“This is our biggest challenge but it’s one we’re determined to overcome.”

Rugby Football League officials are pleading with the Department for Digital, Culture, Media and Sport for financial assistance.

Many clubs, throughout the three professional leagues – Super League, Championship and League One – have stated they face financial ruin if the Government do not provide monetary support.

Hetherington, a shrewd operator who with wife Kath took the plunge in setting up Sheffield Eagles in the early 1980s, has a proven track record as a player, coach and administrator in the game.

Along with Paul Caddick, he has made Leeds a success story on and off the pitch during the past 25 years.

But even Hetherington admits he has known nothing like the current crisis.

The 66-year-old from Castleford said: “It’s unprecedented times. 

“The nearest comparison we’ve got is the war 75 years ago, that’s when society was completely disrupted and the enemy brought mayhem to the country. 

“Today we’ve got a similar challenge. We don’t have air raid shelters but our freedoms have been curtailed, players have stopped playing and businesses have been shut down.

“The income has dried up but our responsibilities to players and staff are still there. That’s the challenge, and I believe it’s rugby league’s biggest challenge.”

During a near 40-minute address, Hetherington addressed a number of key issues facing Leeds and the sport itself.

Securing a hand-out from the Government is perhaps the most pressing concern but there are endless other issues to be dealt with, not least when and how the season will resume.

If sport cannot be played again until September, Hetherington admitted the season could run as late as December and possibly even into 2021.

He said of the new-found unity within the game: “It’s good to see that the RFL and Super League executives are working together. 

“They’re engaged with our key partners and the Super League clubs are working really well together, communicating daily. 

“Super League clubs are determined to deliver all 29 rounds – including Magic – plus the Challenge Cup, play-offs and Grand Final. Ideally the Test series too.

“We’re prepared to play midweek, extend the season… whatever it takes to fulfil our obligations. 

“Every club has taken advantage of the furlough scheme, and of course, all the Super League clubs are individual businesses. 

“The aim is the survival of all those clubs and by working closely together with the GMB players union, we believe we can deliver an effective outcome. 

“Amidst the gloom, there will be opportunities just like in the war. We need to show the traits that has defined the character of rugby league over the last 125 years. 

“We’re fortunate that rugby league, more than any other sport, has a committed group of stakeholders.”

That said, the challenge of ensuring the season is completed will be a logistical nightmare.

Midweek fixtures are inevitable, a significant problem for the part-time teams outside of Super League, and there is also the issue of whether Sky will continue to pay for a contract when they are getting nothing in return, as is the current situation.

Playing behind closed doors when the Government directives on social distancing are eased is another option.

“We’ve got to be prepared to do whatever it takes,” added Hetherington. 

“We’ve got to be mindful of our partners and people who watch the games on television, so we have to be receptive to that if that’s a possible outcome. 

“But clearly rugby league clubs need income, and you’re not going to generate income playing in front of an empty stadium. 

“We need to get a view from our broadcast partners and if needs be, we need to deliver it. But it’s not something we would wish to do.

“How does not playing games affect the Sky contract? We don’t know, is the answer. 

“Sky have been a terrific partner for over 25 years and they are a partner in every sense. 

“Their indications are that they’re going to be very supportive. 

“We simply don’t know but we do believe that we’re at an advantage because we’ve got strong relationships with our leading partners.”

Next month’s Magic Weekend in Newcastle seems certain to be cancelled but the bigger issue is whether the Challenge Cup final – arguably the most prestigious date in the calendar – will go ahead as scheduled at Wembley on July 18.

If the sport cannot get crowds back into stadiums in the next few months, Hetherington believes fan-free Challenge Cup ties could be an option.

This year’s sixth-round ties – scheduled for this weekend – have already been postponed and the backlog in the competition will add to the problems of playing catch-up.

Yet Hetherington said of the Challenge Cup: “It doesn’t affect season ticket holders or corporate membership typically and it’s less problematic.

“We are talking hypothetically, because there is so much uncertainty out there. 

“But we’ve got eight sixth-round ties to be played and those all could be played behind closed doors and, if needs be, at one venue.

“It could deliver a match on a Thursday night, a match on a Friday, three matches on a Saturday and three matches on a Sunday. They could all be made available for television.

“It could provide an opportunity for the game. We need to be mindful to search for opportunities. 

“If we were to be a sport that provided live sport when no-one else is, well that’s an opportunity to showcase our game at its best.”

Hetherington admits that playing the Challenge Cup final on the planned date of 18 July is highly unlikely to happen, but he still hopes that Wembley can be the venue for the game later in the year.

He continued: “It’s inevitable we are going to extend the season and we’ve got to do whatever we have to do. 

“It might go to November, it might go to December. Who knows – it could even go beyond December.

“Back in 1995-96, the season finished in the middle of January and the 1996 season [the first Super League season] began in the middle of March.

“The date for the Challenge Cup final may not be appropriate, therefore we’d have to find a new date for the final. Who knows, possibly a new venue, but I’d like to think Wembley remains as the venue for the final.

“It is such a major event for the sport, so we are going to do everything we can to preserve it and maybe even enhance it as well.”

Toronto Wolfpack chairman Bob Hunter suggested earlier this week that relegation from Super League should be scrapped this season due to the ongoing uncertainty within the sport.

Hetherington begged to diffe,r although he did not completely rule it out.

He reasoned: “I see promotion and relegation as a vital component of our competition for both Super League and the Championship. 

“It creates interest and drama, not only for fans, but for our TV partners too and that does need to continue. 

“However, if the season is disrupted, it does become an issue and we need to be mindful of that. 

“This does rest with the RFL; it is the Super League clubs who can determine how many teams they want in the competition but it’s an RFL issue. 

“It’s one to be put on the backburner and be discussed when we’ve more certainty about the competition.

“The starting point of everyone in Super League is that we’ve got to consider everything. 

“Nothing is off the table and it’s about what is in the best interests of the game. 

It’s not a sitting on the fence answer, it’s just to say that once we’ve got more information – because at present we’ve got very little about when we’re restarting – we’ve got to start thinking about the outcome. 

“I think we saw last year how much interest promotion and relegation can add to a competition. 

“Our competitions need to have as much drama as possible and we don’t want to be doing anything that will take away the level of interest.”

Hetherington believes NRL clubs are even worse placed to survive than Super League given their reliance on television revenue.

He said: “Their exposure is certainly much greater than ours and they’re entirely dependent on television and they’ve an enormous wage bill to come to terms with. 

“It’s interesting to take note of what is going on over there as well.”

Thankfully, no Leeds players have yet contracted the coronavirus and Hetherington added: “We’ve no positive cases at all. All our players are all fit and healthy and are isolating at home as we all are. 

“They will be doing some exercise like we all will be, but effectively all our players and staff have been laid off. 

“Emerald Headingley has been closed down and locked up, as has our training ground. 

“Our business is effectively running on a shoestring with a few dedicated staff.”

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