The entire due diligence process for the Super League’s expansion has been called into question, with a rebellion by clubs creating a full-blown debacle for the Rugby Football League (RFL). Critics are attacking the process from all angles, citing a lack of financial rigour, an impossible timeline, and a failure of basic governance.
The first failure of due diligence occurred before the expansion was even approved. Clubs argue that the RFL did not do its own due diligence by failing to produce a robust financial model to prove the concept was viable. They were then asked to vote on the plan without the information they needed to do their own due diligence, a fundamental flaw in the decision-making process.
The second failure relates to the process of selecting new clubs. The timeline has been slammed as being far too short for the independent panel to conduct proper due diligence on the applicants. Vetting the financial health, governance structures, and long-term sustainability of a professional sports club is a complex task that takes months, not weeks. There are serious fears that this stage of the process will be a superficial, box-ticking exercise.
This due diligence debacle is the core reason for the call to “press the pause button.” The dissenting clubs are not necessarily against a 14-team league in principle, but they are vehemently opposed to an expansion that is not underpinned by a rigorous and credible process of scrutiny.
The RFL is now facing a crisis of its own making. By attempting to cut corners on due diligence, it has created a situation where the entire expansion is seen as illegitimate and risky. It must now find a way to restore faith in its process, or the debacle will likely lead to the complete collapse of its plans.