NRL set for massive payday in historic Foxtel, Nine broadcast deal

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greeneyed
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NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by greeneyed »

NRL set for massive payday in historic Foxtel, Nine broadcast deal

The cash-strapped NRL is just days away from securing a stunning new TV broadcast deal worth up to $2.3 billion, the richest in Australia’s sporting history. Channel 9 and Fox Sports are on the verge of agreeing to a lucrative seven-year contract, with Peter V’landys hoping to reach an agreement in principal by Friday for the remaining three years of the current contract plus a four-season extension until 2027.

It would be the most lucrative broadcast deal in the history of Australian sport, averaging out at almost $330 million a season.

Read more: https://www.dailytelegraph.com.au/sport ... 3b485a298d

https://7news.com.au/sport/rugby-league ... -c-1028103
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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by greeneyed »

Can't quite see how $330 million a year is consistent with a four or seven year deal worth $2.3 billion...

Digital arm and NRL.com still to be sorted, and capacity to return to size of deal if content expands with new teams.
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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by gangrenous »

greeneyed wrote:Can't quite see how $330 million a year is consistent with a four or seven year deal worth $2.3 billion...

Digital arm and NRL.com still to be sorted, and capacity to return to size of deal if content expands with new teams.
7 x 330M = 2.31B?

This is not good news. Channel nine for another 7 years? Image

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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by greeneyed »

gangrenous wrote:
May 10, 2020, 11:51 am
greeneyed wrote:Can't quite see how $330 million a year is consistent with a four or seven year deal worth $2.3 billion...

Digital arm and NRL.com still to be sorted, and capacity to return to size of deal if content expands with new teams.
7 x 330M = 2.31B?

This is not good news. Channel nine for another 7 years? Image
Sorry, you’re quite right!
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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by edwahu »

Seems like a good deal on paper. I think the last deal was effectively 1.9 over 7?

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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by -TW- »

1.8 over 5, 2018-22

So effectively taking 30 mil a year less for 5 more years

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NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by gangrenous »

I don’t understand jumping into a lengthy deal with a partner who has been underperforming for years and recently publicly attacked you. Bizarre.
Last edited by gangrenous on May 10, 2020, 12:32 pm, edited 1 time in total.

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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by -TW- »

Security of $$

The NRL isn't really in a position to sneeze at offers, especially if Ten and Seven aren't interested

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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by edwahu »

If it doesn't include digital and streaming I'd say it's a very good deal. If it does then it's terrible but maybe still necessary.

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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by gangrenous »

-TW- wrote:Security of $$

The NRL isn't really in a position to sneeze at offers, especially if Ten and Seven aren't interested

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Yep that’s got to be it.

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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by Northern Raider »

gangrenous wrote:
May 10, 2020, 12:56 pm
-TW- wrote:Security of $$

The NRL isn't really in a position to sneeze at offers, especially if Ten and Seven aren't interested

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Yep that’s got to be it.
Have to think they sounded out 7 and 10 before coming to any agreement with 9. Shame really as they are an horrendous partner for growth of the game.
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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by Dr Zaius »

Huh? Aren't Nein crying poor and trying to renege on the current deal?

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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by Fuifui Bradbrad »

-TW- wrote:Security of $$

The NRL isn't really in a position to sneeze at offers, especially if Ten and Seven aren't interested

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Yeah this. In these times if you can secure a deal like that for that long, you pounce.

How do we make sure we lock down V’Landys for life?
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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by gangrenous »

Really!? You don’t expect a couple of things might change in the world from now over the next 7 years?

Even chance this looks completely daft in 24 months time.

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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by Fuifui Bradbrad »

Every chance the NRL might get Pippen’d out of this deal, but it’s guaranteed money now. If things change later in the deal, hopefully V’Landys has rigged it up so he can re-negotiate at that point
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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by afgtnk »

Looks like V'Landys may have **** this up bad. We've done a deal at the worst possible time - why was it necessary to do this now with years still left to run on it?

This is the problem with a News Ltd darling like him. Imagine if this was John Grant or Beattie? Christ. Haven't even heard a peep out of them about V'Landys 'wanting to run the game like a dictator' either, something they constantly accused Grant of.

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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by BJ »

afgtnk wrote:Looks like V'Landys may have **** this up bad. We've done a deal at the worst possible time - why was it necessary to do this now with years still left to run on it?

This is the problem with a News Ltd darling like him. Imagine if this was John Grant or Beattie? Christ. Haven't even heard a peep out of them about V'Landys 'wanting to run the game like a dictator' either, something they constantly accused Grant of.
I don’t know. The deal sounds OK moneywise. I thought it may have been even worse.

But I am also concerned around the timing, noting it’s a high risk period for any business deals at the moment.

I’m pretty sure no one knows the future of live sports and TV sports post Covid. Maybe it’s not the worst time to lock in a deal and plan a Salary Cap and funding plan around it for the next 7 years.

Hopefully the NRL can get it right this time and manage funds, the game and its fans a hell of a lot better than the last two decades. Goes for Channel 9 too who’ve left a lot to be desired since the 90s.

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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by edwahu »

Yeah, it could definitely be worse, Union looks like it won't get an offer from Fox at all and A-League is likely going to have its deal halved. The game will still be doing very well financially for a long time.

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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by afgtnk »

BJ wrote:
May 10, 2020, 7:00 pm
afgtnk wrote:Looks like V'Landys may have **** this up bad. We've done a deal at the worst possible time - why was it necessary to do this now with years still left to run on it?

This is the problem with a News Ltd darling like him. Imagine if this was John Grant or Beattie? Christ. Haven't even heard a peep out of them about V'Landys 'wanting to run the game like a dictator' either, something they constantly accused Grant of.
I don’t know. The deal sounds OK moneywise. I thought it may have been even worse.

But I am also concerned around the timing, noting it’s a high risk period for any business deals at the moment.

I’m pretty sure no one knows the future of live sports and TV sports post Covid. Maybe it’s not the worst time to lock in a deal and plan a Salary Cap and funding plan around it for the next 7 years.

Hopefully the NRL can get it right this time and manage funds, the game and its fans a hell of a lot better than the last two decades. Goes for Channel 9 too who’ve left a lot to be desired since the 90s.
If the reports about the current deal are accurate then this is something like 30 million less a season, which includes the three remaining years of the current deal which was already set years ago. Granted a concession is made for this year, but how's that good otherwise? I find it incredibly ironic to have incessant whinging about how finances have supposedly been mismanaged, then go cut a deal like this.

Now, last time the game negotiated around a 70 percent increase in the value of the right from the previous deal (which itself was 100+% higher than the one previous to it). We would have been expecting an increase once the current deal winds up - whether or not it would be sizeable as the two previous ones I'm not sure, but definitely an increase at the very, very least.

Yes, economic conditions are once in a generation/lifetime, but it will not last forever. It chosing to do a deal at this time and for that price, the commission must be thinking these conditions will last for 7 years, something which I think almost anyone would be extremely doubtful of. If we're that worried, why not only for an extra 1-2 years instead of 4? At least gives us the chance for the market to pick up further, instead of being locked into this poverty deal which serves as the main source of the game's revenue.

If the conditions do pick up as we hope, do we then have the ability to re-negotiate this? Betcha no is the answer to that. I'm starting to smell a new News Ltd rat tbh - the litmus test will be how the AFL fare in comparison once their next deal is being done.

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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by Botman »

I dont think you ever want to be negotiating from a position of weakness. And certainly that is the position of the NRL right now.
I dont know enough about the specifics of this deal yet to say one way or the other, but i share asksjasja's concerns about this deal.
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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by BJ »

Botman wrote:I dont think you ever want to be negotiating from a position of weakness. And certainly that is the position of the NRL right now.
I dont know enough about the specifics of this deal yet to say one way or the other, but i share asksjasja's concerns about this deal.
Yes my previous post was also trying to highlight these concerns, but the deal still wasn’t as bad as I expected considering the timing.

I was primarily trying to highlight that it’s time for the NRL to get their house in order within a known timeframe.

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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by edwahu »

Reading between the lines of the article below it looks like Fox is going to pay close to the same with nearly all the reduction being for 9. Also it looks like only Fox may extend and 9 will just take the last two years of the current deal.

Nine willing to extend NRL broadcast deal but with cap on rights value

The NRL is considering a proposal from Nine Entertainment Co for a long-term extension to its television deal with the free-to-air network, which wants to cap its annual rights fee for the sport at about $90 million to $100m.

Nine, the owners of this masthead, wants to cap its annual rights fees for the sport at $90m to $100m. Nine is this year paying $115m for NRL rights, a figure that will rise to $120m next year and $125m in 2022.

Read more: https://www.smh.com.au/sport/nrl/nine-w ... 54rl6.html

No mention of digital rights included.

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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by greeneyed »

Nine continues to behave outrageously. Hopefully Fox Sports find a different FTA partner.
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NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by gangrenous »

I don’t think it’s in Fox’s interest to find a new partner. They have one with a **** broadcast product who let them simulcast all games, driving viewers into their arms.

It’s on the NRL to fix this.

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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by edwahu »

Looks like the old guard are pissed with Marks as well.
Following a roller coaster four years in the job, some members of Nine Entertainment’s board are now pushing openly for the removal of company CEO Hugh Marks.

In a week in which “Hollywood Hugh” Marks addressed Nine investors and indicated the media company is ready to cut ties with embattled long-time sports partner the NRL, Nine insiders spoke about rising panic within the company.

Executives and board directors alike have become increasingly concerned about Nine’s revised business strategy under Marks which sees it move away from the free-to-air broadcaster’s grassroots television audience and the CEO’s lack of attention to longstanding business alliances.
https://www.dailytelegraph.com.au/news/ ... 2b77c0273a

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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

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Hugh Marks sounds like a flog.

No wonder the station is haemorrhaging quality content.

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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

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NRL agree to final figure on broadcast deal

The NRL has reportedly settled on a broadcast deal with Fox Sports and Nine worth close to $2 billion, ending almost two months of high-powered negotiations. The ARL Commission on Tuesday approved a deal to be sent to both broadcasters for finalisation.

As part of the deal, Fox will stay on as Pay TV broadcasters until at least 2026 while Nine has not extended their current deal that runs through to 2022.

Read more: https://7news.com.au/sport/rugby-league ... -c-1046944

The difference from the previously reported $2.3 billion is, I guess, $100m less per annum from Nine for 2023-26.

I'm happy Nine has not extended, hopefully the game can find a better free to air broadcast partner.
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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by afgtnk »

greeneyed wrote:
May 19, 2020, 8:38 pm
NRL agree to final figure on broadcast deal

The NRL has reportedly settled on a broadcast deal with Fox Sports and Nine worth close to $2 billion, ending almost two months of high-powered negotiations. The ARL Commission on Tuesday approved a deal to be sent to both broadcasters for finalisation.

As part of the deal, Fox will stay on as Pay TV broadcasters until at least 2026 while Nine has not extended their current deal that runs through to 2022.

Read more: https://7news.com.au/sport/rugby-league ... -c-1046944

The difference from the previously reported $2.3 billion is, I guess, $100m less per annum from Nine for 2023-26.

I'm happy Nine has not extended, hopefully the game can find a better free to air broadcast partner.
Chances are we can't, given there's only the three.... with one already tied to AFL and the other not having enough financial clout.

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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

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afgtnk wrote:
May 19, 2020, 11:23 pm
greeneyed wrote:
May 19, 2020, 8:38 pm
NRL agree to final figure on broadcast deal

The NRL has reportedly settled on a broadcast deal with Fox Sports and Nine worth close to $2 billion, ending almost two months of high-powered negotiations. The ARL Commission on Tuesday approved a deal to be sent to both broadcasters for finalisation.

As part of the deal, Fox will stay on as Pay TV broadcasters until at least 2026 while Nine has not extended their current deal that runs through to 2022.

Read more: https://7news.com.au/sport/rugby-league ... -c-1046944

The difference from the previously reported $2.3 billion is, I guess, $100m less per annum from Nine for 2023-26.

I'm happy Nine has not extended, hopefully the game can find a better free to air broadcast partner.
Chances are we can't, given there's only the three.... with one already tied to AFL and the other not having enough financial clout.
Seven expressed interest in the midst of the current negotiations/renegotiations.
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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

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Probably only so they make sure Nine doesn't have an opportunity to get it on the cheap, by providing competition.

It's a push for one FTA network to give the kind of money being asked of them by either the NRL or AFL, let alone both. And that's not to mention the question around the finite amount of exposure and focus afforded to us when going up alongside the AFL who are 7 mainstays.

Personally I don't see the future of the game on FTA like what happened in the UK with the EPL, pending changes to our legislation. FTA is dying a slow and drawn out death, being kept alive by junk, anti-siphoning laws, and the restrictions on the amount of FTA broadcasting licenses.

Streamingg platforms are becoming ubiquitous and cheap, and come with deepish pockets. People won't mind paying a little for a superior product, and in turn they could give the game money that FTA no longer can.

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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by edwahu »

Sounds like Nine will get a pretty big discount while News pays about the same apart from this year. Overall it's looking about 10% reduction for broadcast revenue and about 6% of total revenue, so really it's not a disaster considering where the game was a couple of months ago.

Hopefully Nine is gone at the end of the next deal and digital has grown enough to take a cut price deal with a better broadcaster. It wouldn't surprise me if Stan falls over by that point though and Nine is back to throwing money at the game.

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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by Northern Raider »

Get ready for the next 24 months of Ch9 sh**canning the sport to drive down it's commercial value prior to the next deal being signed.
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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by Northern Raider »

afgtnk wrote:
May 20, 2020, 1:34 am
Probably only so they make sure Nine doesn't have an opportunity to get it on the cheap, by providing competition.

It's a push for one FTA network to give the kind of money being asked of them by either the NRL or AFL, let alone both. And that's not to mention the question around the finite amount of exposure and focus afforded to us when going up alongside the AFL who are 7 mainstays.

Personally I don't see the future of the game on FTA like what happened in the UK with the EPL, pending changes to our legislation. FTA is dying a slow and drawn out death, being kept alive by junk, anti-siphoning laws, and the restrictions on the amount of FTA broadcasting licenses.

Streamingg platforms are becoming ubiquitous and cheap, and come with deepish pockets. People won't mind paying a little for a superior product, and in turn they could give the game money that FTA no longer can.
Totally agree. Current regulations around FTA TV are incredibly archaic. They even precede the internet, let alone digital media streaming. The intention was to stop Pay TV from stockpiling major sporting events and ransoming them to the public in return for subscriptions. All it achieves now it keep obselete business attitudes like Ch9 afloat. Something that was intended to benefit the general population is now restricting it.
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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by Seiffert82 »

Northern Raider wrote:
May 20, 2020, 2:31 pm
Get ready for the next 24 months of Ch9 sh**canning the sport to drive down it's commercial value prior to the next deal being signed.
It's beyond comprehension, but yes, that definitely appears to be a common tactic of theirs. Much like overpaying select breakfast TV personalities then dragging them through the mud to get rid of them or renegotiate the bloated contract.

The management of that station has sucked ass since Packer died. Almost everything they touch turns to ****.

Fortunately this COVID thing has pushed a lot of people to upgrade their internet bandwidth and look into on-demand streaming services, which is the way almost all sport will eventually end.

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Re: NRL set for massive payday in historic Foxtel, Nine broadcast deal

Post by yeh raiders »

Fox have axed Andy Raymond. He was a genuine entertainer and for some bizarre reason they moved him to the sidelines and now he’s gone!

With Rabs about to finish up, I hope Raymond ends up at channel 9.

I only really like about 3 or 4 of the lead commentators for the NRL and he is one of them.

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