KEY POINTS:
Graham Lowe is in dispute with the NZRL after his role as director of football was "disestablished" and he served the national body last week with a letter of intent that appears to make mediation inevitable.
It comes on top of news NZRL vice-chairman Phil Campbell has resigned from the board out of frustration, driving the national body into further disarray after a tumultuous last three months.
Lowe was eight months into a three-year contract with the NZRL but the former Kiwi coach's position was cut last month.
Whatever the reasons behind Lowe's loss of job, there is no doubt his recouped salary will help the NZRL trim their burgeoning debt. The full extent of losses in 2007 will be known before the AGM scheduled for March 30 but it's expected to be healthier than the $1.25 million deficit forecast in December.
A dispute with Lowe and a settlement with former Kiwis coach Gary Kemble will not help their bottom line, however.
Kemble was also forced out last month, to be replaced by Stephen Kearney and Wayne Bennett, even though he had been reconfirmed in his position only four weeks previously through to the end of November's World Cup.
It's understood Lowe was earning roughly $80,000 a year while Kemble's package was closer to $100,000.
Neither the NZRL nor Lowe were commenting yesterday.
In last month's NZRL media release, they talked about Lowe being involved in the organisation in some capacity but this now seems unlikely given the ill-feeling.
There was growing dissatisfaction within the NZRL about what Lowe was saying publicly about Kemble and the players' revolt but Lowe was also upset that he was essentially hung out to dry by the national body.
The dispute also calls into question the Kiwi Roots game, of which Lowe was the chief architect.
He had used his influence to receive guarantees from all NRL clubs that they would release players for New Zealand's equivalent of State of Origin, which was scheduled to be played on October 4. Lowe was also on the verge of lining up a major sponsor for the match.
The NZRL's finances are seemingly in a perilous state and they received a $350,000 loan from the Australian Rugby League last month as an advance from the May 9 centenary test against the Kangaroos in Sydney.
Campbell resigned last Monday out of frustration at the direction of the board and leaves the national body without a quorum.
Although he was up for re-election at the AGM on March 30, the board is unable to make any decisions, including signing off accounts they are required to present at the AGM.
There is a provision to invite another member onto the board after someone resigns but even this requires a quorum.
The original board of nine implemented last year was already down to five before Campbell's resignation after former chairman Andrew Chalmers and the three independent members stepped down in December.
Campbell said he was forbidden to talk because of a media ban but it's understood he had lost trust and confidence in the board.
He was concerned they were trying to manipulate members ahead of the AGM to ensure certain candidates were elected onto the board and others missed out. He was also upset at the level of secrecy and the lack of information his fellow board members were giving him.
Campbell and fellow board member Neville Kesha were on the outer after they had supported Chalmers' continuing as chairman in the face of moves from other members to oust him. He was the only member of the current board up for re-election with NZRL chairman Ray Haffenden, Kesha, Vinnie Weir and Peter Kerridge safe in their positions. Haffenden wasn't returning calls yesterday.