Sydney rugby league clubs are in deep financial trouble following changes to the taxation on poker machines and anti-smoking legislation invoked by the New South Wales state government.
In the first three months of the 2007/08 tax year, the turnover from licensed clubs linked to NRL teams has
dropped by a total of A$127 million ($144 million).
Already two teams, the Entrance Tigers and the Asquith Magpies, have withdrawn from the second-tier competition the Jim Beam Cup.
The NRL has formed a committee to address the issue and to lobby the government, with representatives of the Bulldogs, Eels, Panthers, Knights and Dragons joining NRL representatives.
The Queensland-based Cowboys, Broncos and Titans, as well as Melbourne and the Warriors rely on sponsorship and marketing deals plus gate takings for income and are the more financially healthy of the 16 NRL clubs.
"We don't want a competition where Melbourne are playing Brisbane every week because New South Wales clubs can't afford to compete," said Dragons chief executive Peter Doust.
Meanwhile, the annual conference of NRL chief executives was evenly split on the suggestion of a return to a daytime grand final.
* The chief executives supported a reduction in interchanges from 12 to 10 and also a rule change to allow stripping of the ball from a player who is in the act of grounding for a try. This will be sent to the Rugby League International Federation for ratification.
* The clubs were told that players in the new Toyota Cup under-20s competition will be subjected to 70 random drug tests per club, the same number as the NRL squads.
* The draw for the first five rounds of next year's NRL was completed, with the Warriors to start away to champions Melbourne Storm on Monday, March 17. They host the Eels the following Sunday before playing away to beaten grand finalists Manly.
* Andrew Johns has signed on as a skills coach for both the Bulldogs and the Eels but that news was over-shadowed by bad behaviour of Parramatta's Tim Smith and Brisbane's Reni Maitua.
