Project Apollo Splutters as Chanel Nine gets out the whacking stick
Tonight’s SMH Article by Andrew Webster
Minutes after news broke on Wednesday night about the NRL's incredible bid to restart its competition on May 21, I received a call from someone on the Project Apollo team.
“Did you know about this?” he asked.
“Did you? You’re on the committee!”
Raelene Castle was close to announcing a rich new broadcast deal with Optus before coronavirus changed everything. Getty
No. He didn’t know. Turns out most of the innovation committee, which was formed less than two weeks ago to carefully and thoroughly explore when the premiership can recommence, didn’t know anything about it, either.
Yet here ARL Commission chairman Peter V’landys was about an hour later, talking exclusively to Nine News, confirming that a May 21 or May 28 restart was imminent.
The fact barely anyone on the very committee formed to investigate strategies to restart the competition knew about its own recommendations suggests they are merely puppets. It also suggests they were appointed with a return date and an outcome already determined.
Problem was, nobody got around to telling long-time broadcast partner Channel Nine, which pays the NRL $125 million a year to show its matches, about any of this.
Nine already had its nose firmly out of joint, angered that it hadn't been given a seat at the Project Apollo table.
Sources at Nine — publisher of the Herald — say the media company has become increasingly angered about the way negotiations have played out since the NRL decided to suspend the competition on March 23 because of the coronavirus pandemic.
Nine chief executive Hugh Marks has become increasingly hands-on with those discussions — and he hasn’t liked what he’s seen in the past two weeks.
When confidential details from one meeting with NRL chief executive Todd Greenberg and chief commercial officer Andrew Abdo were leaked to the press, it only added to the animosity.
When the Herald broke the story on Wednesday night about the planned May 21 kick-off, it blindsided Nine. It was the final straw. So, at 11am on Thursday, Nine got out the whacking stick — and it whacked hard.
A statement released to Nine News and the Herald said the coronavirus pandemic “has highlighted the mismanagement of the code over many years” and revealed it had “bailed” out the game with a $50m loan in the past, but that “much of that has been squandered by a bloated head office completely ignoring the needs of the clubs, players and supporters”.
Around the same time, the innovation committee was meeting at League Central, discussing the game’s fabulous early return to the field …
Then everyone’s phones start lighting up with messages and phone calls.
Nine’s stunning broadside can be interpreted several ways. The immediate thought was that the company wants out of its broadcast deal, a line that’s been pushed by News Corp for weeks and, in some respects, understandably so after Nine announced to the Australian Stock Exchange it would save $130m if the NRL didn’t play another match this year.
Indeed, News Corp has done a solid job pushing a particular narrative throughout this crisis, highlighting that Nine didn’t make its quarterly broadcast payment on April 1 … while often neglecting to mention that Fox Sports also didn’t make its payment.
The play is understandable: Fox Sports and Kayo rely on subscriptions — and therefore content in the form of matches — to survive. Nine considers the game a “loss leader” — something that is great for its brand and news division despite the heavy costs involved with broadcasting matches.
Many inside Nine’s Willoughby bunker are adamant the long-time broadcaster of rugby league doesn’t want to walk away from the game.
Relax, they say, we haven’t heard commentator Ray Warren screaming “Papenhuyzen!” or “Sivo!” or any other player's name for the last time. Sunday matches leading into the 6pm news bulletin, the State of Origin monolith and the finals series mean too much to Nine.
Rather, the attack on the NRL was seen as purely strategic as Marks plays hardball in renegotiating the broadcast deal. He argues the game is an inferior product if it isn't played before crowds and the season extends into October, November and December.
In doing so, though, the statement is an extraordinary smackdown of the NRL’s culture, and in particular Greenberg, who was claiming only days ago talks with Nine had been quite “positive” and “productive”.
Meanwhile, V’landys has been rather effusive in his praise of Marks in recent days, telling the Herald earlier this week: “Hugh is a good man. He’s a very good CEO. He’s looking after Channel Nine’s interests …”
Marks was approached for comment for this piece but declined.
Playing hardball is one thing, but some have seen the play as opportunistic. Nine might broadcast the game, it might pay the NRL handsomely, but it doesn’t own the game.
And who is Nine to tell the NRL how to waste its money anyway?
Houston, we have a problem
Is Project Apollo going to look more like Apollo 11 (which reached the Moon) or Apollo 13 (which didn’t and became a Tom Hanks movie)?
After a meeting-a-thon on Thursday, club bosses were left feeling that June 4 was a more realistic start date than May 28, which the NRL announced it is now aiming for.
“It was a waste of time,” huffed one chief executive. “We’d read it all in the paper already.”
What’s clear is that the idea of players locking down in a “bubble” has been burst. The only thing that really matters now is working out how the NRL can get around border issues with Queensland and New Zealand.
You can bet a whole lot of Kiwis on either side of the Tasman will be watching with interest to see if the Warriors get preferential treatment in coming into the country.