The Sydney league clubs that have long relied on poker machine money from linked clubs face a dwindling return from that source, a change that promises to alter the game.
St George, one of the biggest, has just returned a loss in excess of A$1.75 million ($2 million)after absorbing the impact of new gaming taxes imposed by the NSW government. In 2006-07 it made a A$1.9 million profit.
Like some other NRL clubs, the Dragons will not field a second-string team in 2008, instead sending players who are not chosen for first-grade back to the Illawarra competition.
Of the other seven Sydney clubs, five face similar issues and all must start looking elsewhere for income, especially those competing in the west - the Bulldogs, Tigers, Eels and Panthers. The Sharks, too, have had financial woes. Souths with Russell Crowe and Peter Holmes a Court as owners and Manly, now enjoying the backing of real estate magnate Max Delmege, stand apart.
It is likely some clubs will not be able to continue to spend to salary-cap level. That would increase the drain to Super League in England.
Of the out-of-Sydney clubs, Melbourne, wholly owned by the NRL's 50 per cent owner News Ltd, are bleeding money despite on-field success. Canberra struggle and News sold the Cowboys to a consortium of Queensland businessmen last season. The Gold Coast is also expected to be an expanding market for its private owners. The Broncos make money for their private owners thanks to full houses at Suncorp.
The Warriors will budget for a profit after doubling their crowd average last season.
