$1bn NRL broadcast deal kicks off

A new $1bn-plus NRL broadcast rights deal has been finalised that sees Fox Sports commit to the code for another eight years but has undercut Nine’s planned cost savings from this year’s shor­tened season.

The announcement of a new broadcast deal came on Thursday night, just an hour from the kick-off of the resumed 2020 season in a clash between Parramatta and the Broncos.

Under a discounted deal with the code following the disastrous impact of COVID-19, Fox Sports have extended their deal to secure NRL for another eight years for an undisclosed amount, believed to be around $200m a year, after 2022.

Nine opted not to extend its current rights beyond 2022 at this stage.

Fox Sports was due to pay about $190m this year while Nine was due to pay about $90m-$100m.

But Fox and Nine are understood to have been given a 30 per cent discount on their deal until the end of 2022.

With the discount the two networks could save almost $200m between them over the next three years. This would see Fox Sports pay around $133m a season and Nine pay $60m-$70m.

According to an ASX statement on Thursday evening Nine Entertainment would save about $27.5m a year on their original deal, but with the season going ahead this reduces originally forecast cost savings for this year by $64m.

“As a result of the recommencement of the NRL season, Nine has revised previous cost commentary. On March 30, 2020, Nine highlighted a series of cost initiatives in CY20 that ­totalled cash savings of $266m, a number that was subsequently increased to $289m on May 5.

“These estimates included a $130m saving as a result of the cancellation of NRL Season 2020.

“With this newly committed season 2020 cost, the prevailing cash cost out guidance of $289m is reduced to $225m,” the statement said.

In a statement on Thursday evening, ARLC chairman Peter V’landys thanked both broadcast partners for their co-operation in helping the sport meet its ambitious May 28 kick off date.

“I am delighted to have worked with our longstanding partners Foxtel and Nine to reshape and resume the 2020 NRL Telstra Premiership. It is significant that on one of the most important days in our game’s history, we have finalised the deals to ensure its future,” Mr V’landys said.

Nine chief executive Hugh Marks had previously warned the NRL of a willingness to walk away from the code if a deal could not be struck, and was highly critical of former NRL CEO Todd Greenberg.

Mr Marks initially claimed the network would save $130m a year if the 2020 season did not go ahead, earlier claiming a preference for a cancelled season, saying it would be a “net negative” for the network if the season went ahead.

Since Mr Greenberg’s resignation Mr Marks has been negotiating with NRL chair Peter V’landys as well as broadcast partner Fox Sports, led by Foxtel CEO Patrick Delany, to finalise a deal.

In a statement Mr Delany paid tribute to the “leadership” of Mr V’landys.

“Foxtel is incredibly pleased to support the NRL through this difficult period and to have footy back on Foxtel this weekend, every round, every game, live and ad free during play. This is a great outcome for footy, for fans and for players. It’s also a hugely important signal to everyone in Australia, and around the world, that we will get through these times, and we can keep players and coaching staff safe while we all enjoy the game.”

Mr Marks said on Thursday evening: “As we approach the kick off for the resumption of NRL season 2020, I want to congratulate Peter on his leadership, and also Andrew for stepping into his role.”

Under the resumed 2020 season deal Foxtel will continue to show all eight games every round, including five exclusive telecasts each weekend. Nine will continue to televise three weekly NRL matches: Thursday and Friday nights, plus Sunday afternoon. Nine will provide exclusive coverage of the October 25 Grand Final. Nine will continue its exclusive coverage of the three State of Origin matches.

https://www.theaustralian.com.au/business/1bn-nrl-broadcast-deal-kicks-off/news-story/eb3d80e0daf0a0e7ca53eb67acd65e20

So Ten still missed out on getting a start on the revised deal? I’m not well across this.

@Cultured_Bogan said in $1bn NRL broadcast deal kicks off:

So Ten still missed out on getting a start on the revised deal? I’m not well across this.

Only until 2022…Nine have not committed past the current deal…Foxtel have extended until 2027…FTA Rights will be up for grabs in 2023 and beyond…

Good result for the NRL moving forward to secure such a deal in the current climate…

@Geo said in $1bn NRL broadcast deal kicks off:

@Cultured_Bogan said in $1bn NRL broadcast deal kicks off:

So Ten still missed out on getting a start on the revised deal? I’m not well across this.

Only until 2022…Nine have not committed past the current deal…Foxtel have extended until 2027…FTA Rights will be up for grabs in 2023 and beyond…

Good result for the NRL moving forward to secure such a deal in the current climate…

It is a lot of money they are losing over the next 3 years, but it does give some long term certainty especially in such a transitional time for the broadcast media.

@Geo said in $1bn NRL broadcast deal kicks off:

@Cultured_Bogan said in $1bn NRL broadcast deal kicks off:

So Ten still missed out on getting a start on the revised deal? I’m not well across this.

Only until 2022…Nine have not committed past the current deal…Foxtel have extended until 2027…FTA Rights will be up for grabs in 2023 and beyond…

Good result for the NRL moving forward to secure such a deal in the current climate…

So how much is the Fox deal worth in the 5 years after this deal lapses?

@Cultured_Bogan said in $1bn NRL broadcast deal kicks off:

@Geo said in $1bn NRL broadcast deal kicks off:

@Cultured_Bogan said in $1bn NRL broadcast deal kicks off:

So Ten still missed out on getting a start on the revised deal? I’m not well across this.

Only until 2022…Nine have not committed past the current deal…Foxtel have extended until 2027…FTA Rights will be up for grabs in 2023 and beyond…

Good result for the NRL moving forward to secure such a deal in the current climate…

So how much is the Fox deal worth in the 5 years after this deal lapses?

The article states the actual figures are undisclosed but believed to be 200 million a year for the extended 5 year period…

The ASX states the revised deal saves the network 30% on the remaining contract till 2022…this is enough to ensure the NRL to have the Salary Cap and Club Grants to remain as they are in 2021…Good outcome I would say on V’Landy’s part…

@Geo said in $1bn NRL broadcast deal kicks off:

@Cultured_Bogan said in $1bn NRL broadcast deal kicks off:

@Geo said in $1bn NRL broadcast deal kicks off:

@Cultured_Bogan said in $1bn NRL broadcast deal kicks off:

So Ten still missed out on getting a start on the revised deal? I’m not well across this.

Only until 2022…Nine have not committed past the current deal…Foxtel have extended until 2027…FTA Rights will be up for grabs in 2023 and beyond…

Good result for the NRL moving forward to secure such a deal in the current climate…

So how much is the Fox deal worth in the 5 years after this deal lapses?

The article states the actual figures are undisclosed but believed to be 200 million a year for the extended 5 year period…

The ASX states the revised deal saves the network 30% on the remaining contract till 2022…this is enough to ensure the NRL to have the Salary Cap and Club Grants to remain as they are in 2021…Good outcome I would say on V’Landy’s part…

A billion purely for the Pay TV rights is a very good outcome. Hopefully they can squeeze the lemon dry with the FTA rights. Nine complain about the ROI but you can bet your bottom dollar they will still go hard. I really hope Ten comes in with a decent offer and take the rights on, Nine has been stale for at least ten years and someone else really should get a go if the price is right.

PVL appears to have done more in his short tenure than Toddy and Grant did their whole tenures. Obviously the product on field has to routinely improve as well, but they are making the right noises at the moment which is promising.

@Cultured_Bogan said in $1bn NRL broadcast deal kicks off:

@Geo said in $1bn NRL broadcast deal kicks off:

@Cultured_Bogan said in $1bn NRL broadcast deal kicks off:

So Ten still missed out on getting a start on the revised deal? I’m not well across this.

Only until 2022…Nine have not committed past the current deal…Foxtel have extended until 2027…FTA Rights will be up for grabs in 2023 and beyond…

Good result for the NRL moving forward to secure such a deal in the current climate…

So how much is the Fox deal worth in the 5 years after this deal lapses?

The article says around 200 mil a year. Seems a bit low. Considering the NRL funds all clubs the full amount of the cap plus a further 30 % on top. That works out at around 208mil a year. They will need to get a good deal fro FTA and digital rights to get some money in to the coffers.

Our game is going through a major change , making it faster and a more attacking game with more excitement. I feel Ch9 are a bit foolish as I see the future of our game will be in huge demand in a few years . Ch9 are playing the short game and I think they will pay the price as there certainly will be more takers in a few yrs …

@Snake said in $1bn NRL broadcast deal kicks off:

Our game is going through a major change , making it faster and a more attacking game with more excitement. I feel Ch9 are a bit foolish as I see the future of our game will be in huge demand in a few years . Ch9 are playing the short game and I think they will pay the price as there certainly will be more takers in a few yrs …

I thought the same thing but then i wonder with faster internet and 5g etc will people be watching FTA sport as much or moving more in to streaming. I’m 67 and I watched all my sport on Kayo before Covid and have just signed back up. I don’t watch any sport on FTA. I’m guessing the younger generations would be more in to digital platforms than FTA tv.

I’m not convinced that this was a good deal, but I guess we will see down the track.
I’ve been burnt too often in this game, trusting they have been doing the right thing only to be broken (Taylor, Cleary, Greenburg) - they don’t get the benefit of the doubt anymore, they need to earn it and show that it’s good for the game. This tv deal hasn’t shown itself to be good yet, we can only see that in hindsight.

@JD-Tiger said in $1bn NRL broadcast deal kicks off:

I’m not convinced that this was a good deal, but I guess we will see down the track.
I’ve been burnt too often in this game, trusting they have been doing the right thing only to be broken (Taylor, Cleary, Greenburg) - they don’t get the benefit of the doubt anymore, they need to earn it and show that it’s good for the game. This tv deal hasn’t shown itself to be good yet, we can only see that in hindsight.

Well it’s good in the sense that they have guaranteed a certain amount of income in the next 8 years. I would hope they expand on that using streaming platforms that the NRL control, not just selling the rights to, in a couple of years.

last edited by mike

@diedpretty said in $1bn NRL broadcast deal kicks off:

@Cultured_Bogan said in $1bn NRL broadcast deal kicks off:

@Geo said in $1bn NRL broadcast deal kicks off:

@Cultured_Bogan said in $1bn NRL broadcast deal kicks off:

So Ten still missed out on getting a start on the revised deal? I’m not well across this.

Only until 2022…Nine have not committed past the current deal…Foxtel have extended until 2027…FTA Rights will be up for grabs in 2023 and beyond…

Good result for the NRL moving forward to secure such a deal in the current climate…

So how much is the Fox deal worth in the 5 years after this deal lapses?

The article says around 200 mil a year. Seems a bit low. Considering the NRL funds all clubs the full amount of the cap plus a further 30 % on top. That works out at around 208mil a year. They will need to get a good deal fro FTA and digital rights to get some money in to the coffers.

Origin rights and the a Grand Final remain unsold beyond 2022 which is really Chanel 9 care about… the cap and Club grants have only been secured until the end of the current deal which is a great outcome for Clubs and players… that could have easily changed…

@Geo said in $1bn NRL broadcast deal kicks off:

@diedpretty said in $1bn NRL broadcast deal kicks off:

@Cultured_Bogan said in $1bn NRL broadcast deal kicks off:

@Geo said in $1bn NRL broadcast deal kicks off:

@Cultured_Bogan said in $1bn NRL broadcast deal kicks off:

So Ten still missed out on getting a start on the revised deal? I’m not well across this.

Only until 2022…Nine have not committed past the current deal…Foxtel have extended until 2027…FTA Rights will be up for grabs in 2023 and beyond…

Good result for the NRL moving forward to secure such a deal in the current climate…

So how much is the Fox deal worth in the 5 years after this deal lapses?

The article says around 200 mil a year. Seems a bit low. Considering the NRL funds all clubs the full amount of the cap plus a further 30 % on top. That works out at around 208mil a year. They will need to get a good deal fro FTA and digital rights to get some money in to the coffers.

Origin rights and the a Grand Final remain unsold beyond 2022 which is really Chanel 9 care about… the cap and Club grants have only been secured until the end of the current deal which is a great outcome for Clubs and players… that could have easily changed…

There is going to be a reduction somewhere else though, I would like to know where that reduction is going to be, I’d probably prefer that reduction to go to the players and the clubs.

@cochise said in $1bn NRL broadcast deal kicks off:

@Geo said in $1bn NRL broadcast deal kicks off:

@diedpretty said in $1bn NRL broadcast deal kicks off:

@Cultured_Bogan said in $1bn NRL broadcast deal kicks off:

@Geo said in $1bn NRL broadcast deal kicks off:

@Cultured_Bogan said in $1bn NRL broadcast deal kicks off:

So Ten still missed out on getting a start on the revised deal? I’m not well across this.

Only until 2022…Nine have not committed past the current deal…Foxtel have extended until 2027…FTA Rights will be up for grabs in 2023 and beyond…

Good result for the NRL moving forward to secure such a deal in the current climate…

So how much is the Fox deal worth in the 5 years after this deal lapses?

The article says around 200 mil a year. Seems a bit low. Considering the NRL funds all clubs the full amount of the cap plus a further 30 % on top. That works out at around 208mil a year. They will need to get a good deal fro FTA and digital rights to get some money in to the coffers.

Origin rights and the a Grand Final remain unsold beyond 2022 which is really Chanel 9 care about… the cap and Club grants have only been secured until the end of the current deal which is a great outcome for Clubs and players… that could have easily changed…

There is going to be a reduction somewhere else though, I would like to know where that reduction is going to be, I’d probably prefer that reduction to go to the players and the clubs.

No more 7000 committee’s will be the start…no more 500 NRL staff that 1 person can do…No more diamond rings for Mrs Cammy…basically no more Todd and his overseas junkets for mates…

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