Why NRL's ban threat on R360 defectors may not be legal

The NRL could face significant legal issues after announcing a 10-year ban for any players or agents who negotiate with, or join, the rebel R360 competition.

The NRL today outlined the ban for players or player agents who sign a letter of intent, contract, or any other form of agreement with a competition not recognised as a national sporting federation by the Australian Rugby League Commission.

As many as 12 NRL stars have been linked to the rebel rugby competition that has substantial financial backing from England, American and Saudi Arabian consortiums.

According to Brydens Lawyers’ Lee Hagipantelis, Andrew Abdo and Peter V’landys may not have the legal standing to suspend players from returning to the NRL.

“It’s an interesting one,” Hagipantelis told SEN 1170 Breakfast.

“The NRL can attempt to impose some sanctions to preclude a player from returning.

“However, I have no doubt that the NRL would face some significant legal hurdles under Australian employment and contract law.

“It would likely be subject to a challenge. Any restriction on a person’s ability to work or trade is void unless it can be established that it’s in the reasonable commercial interest to the party and public interest.

“The NRL is not the player’s employer. The player is employed by the club.

“If the NRL were to veto a player’s contract for playing in a rebel league, on balance, the interest of judgement would serve the player more than the NRL.

“The NRL would have a lot of difficulty establishing that it was a reasonable restraint of trade.

“The courts take a very liberal view over people’s entitlement to work for an employer of their choice.

“The courts do not look favourably on any unfair restraints.”

Peter V’Landys called the ban an act serving “the best interest of the league”.

“The Commission has a clear duty to act in the best interests of Rugby League and its fans—and we will take all necessary steps to protect the future of the game,” V’Landys said in a statement.

“Unfortunately, there will always be organisations that seek to pirate our game for potential financial gain.

“They don’t invest in pathways or the development of players —they simply exploit the hard work of others, putting players at risk of financial loss while profiting themselves. They are, in reality, counterfeiting a code.

“Accordingly, if it all goes wrong it’s the players who suffer most. Every stakeholder must be accountable to the standards our fans expect. We’ve listened to our Clubs, and we’ve acted decisively.”

Hagipantelis confirmed to SEN that he had met with R360 representatives and warned the NRL and Rugby Australia to take the rebel league far more seriously.

“Justin Pascoe and I receive a lot of invitations to meet up with people,” Hagipantelis added.

“I had a coffee with the CEO of R360 and they should not be dismissed so readily as an organisation.

“There seems to be a lot of money behind the scenes to put together, what they believe, to be an exciting and new league.

“I don’t think it serves any interest to be so dismissive of who they are. There are a lot of substantial business people and money behind it.

“They are trying to resuscitate rugby union on a global stage (and) it should be taken seriously.”

Ryan Papenhuyzen, Payne Haas and Zac Lomax are some of the most high profile NRL players to have been linked to R360.