@cochise said in [Corona impact on NRL\.\.\.?](/post/1146845) said:@JoshColeman99 said in [Corona impact on NRL\.\.\.?](/post/1146843) said:@cochise said in [Corona impact on NRL\.\.\.?](/post/1146834) said:I hate ch9
https://www.brisbanetimes.com.au/sport/nrl/nine-targets-nrl-s-digital-arm-as-part-of-revised-broadcast-deal-20200501-p54p5f.html
NRL 2020: Nine targets NRL digital arm as part of revised broadcast deal
Michael Chammas
Nine Entertainment Co has expressed interest in taking over the NRL’s digital arm as part of cost-cutting measures in a revised broadcast deal.
Sources close to the negotiations say Nine’s proposal for an extended deal until the end of 2025 includes the code’s digital arm, led by NRL.com, which the free-to-air network believes currently runs in direct competition with its two broadcast partners.
Coronavirus: NRL takes step towards return
Play video 3:07 Coronavirus: NRL takes step towards return
The NRL has taken a step closer to a return on May 28, securing travel assurances for its Queensland players.
Nine, which is the publisher of this masthead, has proposed it takes over the NRL’s profitable digital network, which was recently valued at $50m and costs about $15m a year to run, including $10m to provide clubs with digital services.
Nine and Foxtel have been at loggerheads with the NRL for three years, arguing that their rights investments have been used to prop up a digital division that would in the future be pitted against them in a battle over broadcast deals.
Advertisement
The proposal nullifies the potential competition, but also gives Nine access to the NRL’s 1.6 million account holders and the largest social media footprint (5 million people) of any sport in the country.
The proposal also fits in with Nine chief executive Hugh Marks’s aim of redirecting funds away from head office back to the clubs.
Nine chief executive Hugh Marks and ARLC chairman Peter V'landys.
Nine chief executive Hugh Marks and ARLC chairman Peter V'landys. CREDIT: AAP, LOUISE KENNERLEY
In a statement earlier this month, Nine criticised the NRL for its "bloated head office" and "years of mismanagement" and now the company has asked ARLC chairman Peter V’landys to provide a breakdown of how he intends to significantly reduce costs at Rugby League Central. That breakdown has not yet been outlined.
The NRL’s 70-person strong digital department is one area Nine has targeted. It believes it can operate the websites and apps of the 16 clubs, the two states and the governing body under a more cost-efficient model, while also providing content through its Wide World of Sports production empire.
Advertisement
Nine, through rights and production costs, invests about $140m a year in rugby league, which is the equivalent of what it spends on all its news, current affair and breakfast shows across five major cities. It is now wondering if that money could be better spent elsewhere to ensure its own long-term viability.
Marks has put the argument to V’landys that if the broadcast deal is not significantly reduced, the network will not be in a position to bid for future rugby league rights.
As it stands, the NRL is facing losing at least $80m of the $330m in anticipated broadcast revenue from Foxtel and Nine in 2020.
Both broadcasters, using the current state of affairs around the coronavirus pandemic as leverage, want to renegotiate the deal.
Disgusting behaviour from ch9, what right do they have to question where the NRL are going to cost cut and how it spends its money. It's even worse when they are going broke themselves. They are doing this to try and save money by cost cutting in an organisation that they don't own.
So channel 9 complained about the NRL and their financial situation saying that they weren’t doing anything good with their money, but are now saying they like the NRL digital so much they want to take it over and make money off it.
Giving channel 9 or Foxtel access to the NRL digital would be a massive mistake in my opinion. It would get run into the ground being run by nine, other sports how showed how effective it can be running your own digital streaming services etc so the NRL need to hang onto it
They would just do away with the digital arm as it is now and NRL.com and the club websites and apps would just carry the stories from ch9. Their opinion would be the opinion of rugby league, this needs to be prevented.
Completely agree. They’re scared of how popular it could become and that it could affect their crappy product so they’re trying to take it over themselves as well.
Seems to me like the major reason they started having a go at the NRL financial situation was ultimately for this. They want this NRL digital to be dead. V’landys needs to tell them no chance in hell