Financial fragility of the game

[big hit!]

He wasnt saying FTA doesn't add important value to NRL, but exclusive FTA with CH9 does not have to be our future. If we can get a better FTA outcome, either financially or for the good of the game by approaching FTA in a different way then now is the time.

Ch 9 doesn't have to be the future. The NRL doesn't have to be beholden to them the way it seems to be. Why are they though? Because the League has put the majority of the rugby league's revenue source into broadcast rights and gambling, and also, constantly relies on Nine for advances on payment.

The NRL have compromised the ability for clubs to generate revenue with scheduling decisions to appease the broadcasters. I've said it for years - they should've given them an exclusive FNF, SatNF and a Sunday news lead-in, and made the other 5 matches crowd-friendly day games on saturday and sunday.

Instead, they've flogged every game to a stand-alone time-slot and some brain-f**k shit times like 8pm thursday (school night and winter) and 6pm friday (peak travel time) just to eck out a bit more value and reliance on broadcasters. where to now? wednesday footy? tuesday night footy? Apart from these nights and an extra game a week from expansion, the NRL has exhausted much of its broadcasting rights generating ability.

Australian financial backers wouldn't go anywhere near the NRL. They had to go OS where there was more appetite for risk, and came back with $250m. In contrast, Oz banks were happy to give the AFL $500m.

Until they get their shit together and show it can financially run the organisation and the game, and also, enable clubs to generate some of their own revenue, then Marks will continue to play hard publicly.

The NRL allowed this dynamic to eventuate.

 

[Vee]

"There's a contract in place": V'landys hoses down Nine speculation

ARL Commission chair Peter V’landys has allayed concerns about the Nine Network walking away from the game in the near future, saying the broadcaster has a contract to fulfil.

V’landys’ response comes after Nine chief executive Hugh Marks on Tuesday claimed it wasn’t a “given” the NRL was a part of the network’s future.

Marks promised to continue to be “hard” in delicate talks with the league over how much it will pay to broadcast this year’s re-jigged season.


He said the NRL re-starting this season would prove to be a net negative, but V’landys insisted he wasn’t concerned by the comments.

“Hugh’s been totally transparent but I’m still very confident that we will come to an arrangement with Channel Nine,” V’landys told AAP.

“Hugh’s a very good negotiator and uses strategy exceptionally well.

“But I’m not concerned about it.”

What might cause apprehension for the league was Marks’ thoughts on the free-to-air broadcaster’s long-term partnership with the game.

Marks said the network was less reliant on the NRL as a revenue source and the coronavirus had prompted a re-think of sports rights.

“If we don’t take that change now like we are in all other aspects of our business and we wait until the contract expires in two years, everyone’s in for a rude shock,” Marks said at a Macquarie Conference call on Tuesday.

“Now’s the time when we need to make the changes necessary to make these sports rights more sustainable.”

V’landys shrugged off any suggestion that Nine would walk away from the game before its current broadcast deal expires at the end of the 2022 season.

Nine is understood to be tipping in about $120 million into the NRL a year, but that number could reduce if a renegotiated deal is extended.

“There’s a contract in place, a legally binding contract. And even Hugh himself would understand that,” V’landys said.

“So basically, he would have to get out of the contract. There’s a long way to play yet. He’s playing a strategic game and it’s working well for him.

“So I’m not going to criticise it. We’ll keep moving forward with them. I’m still confident we’ll come to a resolution.

“But never-the-less, as a good partner, we’re looking to assist them in these harsh economic times. We don’t want our partner to suffer significant losses.

“Naturally, we’re at the table talking about it.”

AAP

https://www.theroar.com.au/2020/05/...in-place-vlandys-hoses-down-nine-speculation/

That's all I've been waiting for PVL to say. There's a contract in place for the next two years.

I'm liking him more and more atm.

 

[Perth Red]

That's all I've been waiting for PVL to say. There's a contract in place for the next two years.

I'm liking him more and more atm.

Yep at last! Now if he can just remind them that the NRL is the most watched and therefore valuable sport in Australia that would be good as well

 

[big hit!]

That's all I've been waiting for PVL to say. There's a contract in place for the next two years.

I'm liking him more and more atm.

Actually, this quote below is the best part of it:

“But never-the-less, as a good partner, we’re looking to assist them in these harsh economic times. We don’t want our partner to suffer significant losses.

BOOM!

 

[Perth Red]

Ch 9 doesn't have to be the future. The NRL doesn't have to be beholden to them the way it seems to be. Why are they though? Because the League has put the majority of the rugby league's revenue source into broadcast rights and gambling, and also, constantly relies on Nine for advances on payment.

The NRL have compromised the ability for clubs to generate revenue with scheduling decisions to appease the broadcasters. I've said it for years - they should've given them an exclusive FNF, SatNF and a Sunday news lead-in, and made the other 5 matches crowd-friendly day games on saturday and sunday.

Instead, they've flogged every game to a stand-alone time-slot and some brain-f**k shit times like 8pm thursday (school night and winter) and 6pm friday (peak travel time) just to eck out a bit more value and reliance on broadcasters. where to now? wednesday footy? tuesday night footy? Apart from these nights and an extra game a week from expansion, the NRL has exhausted much of its broadcasting rights generating ability.

Australian financial backers wouldn't go anywhere near the NRL. They had to go OS where there was more appetite for risk, and came back with $250m. In contrast, Oz banks were happy to give the AFL $500m.

Until they get their shit together and show it can financially run the organisation and the game, and also, enable clubs to generate some of their own revenue, then Marks will continue to play hard publicly.

The NRL allowed this dynamic to eventuate.

Dont disagree at all, sadly our media partners have been happy to f**k us over with those things whilst AFL hasnt had to concede fan friendly slots, and still got more money from its media deals. Cant blame the CEO though, we all measure the success of a tv deal by the amount of revenue it brings in, we've compromised a great deal in growing our game for this increased revenue. Some will argue that money is everything and without it you cant do the things you want to do or invest in clubs etc.
Having said that clubs are notoriously bad at growing their customer base so to rely them to do so to be viable without as much tv money is a risky gamble for the future of the game.

 

[Generalzod]

Geez it’s incredible to think that these clowns at nine where’s Rugby league greater supporter, how things change lol

 

[Heisenberg]

Really, tell that to A-League or Rugby, sports without a real footprint on FTA who get weaker with the years they don't get proper FTA coverage to the point now that they are worthless to FTA. They hedged their bets on Fox Sports and it's f**ked all of them because a majority of folks won't pay for it. Meanwhile, the two major codes with FTA coverage continue to leap ahead. Basketball got back onto FTA and it has been great for them.

I'd say the $3b per season the NFL receives from the three FTA networks is something the NFL relies on. I doubt they'll chuck in that money when they re-neg the next deal from 2023, and risk going bigger on US subscription expecting folks to pay for it. The NFL have used the strategy of FTA in OS markets as well, eg Australia. How do you think that sport has grown here?

And the NRL doesn't rely on FTA? Let's see if Vlandys has the balls to chuck in FTA coverage. The League will die. They need this cash right now. They needed it on April 1. That's why Marks is playing hard ball.

Rugby League absolutely must have free to air exposure, but that’s not the story. As PR says, now is the time to approach it differently.
I’m sure the anti-siphoning laws regarding SOO and the Finals Series impact this as well.

 

[seanoff]

That's all I've been waiting for PVL to say. There's a contract in place for the next two years.

I'm liking him more and more atm.

But is there?

that could be wide open to. Interpretation and will depend on the wording of the contract.

if 9 and fox are trying to renegotiate they may think the contract has been voided.

as for this season the contract might define specific dates for the performance of the contract. Any other dates etc would be open to negotiation.

whole bunch of stuff we don’t know. Not sure the great saviour would be totally sure either.

 

[Storm80]

But is there?

that could be wide open to. Interpretation and will depend on the wording of the contract.

if 9 and fox are trying to renegotiate they may think the contract has been voided.

as for this season the contract might define specific dates for the performance of the contract. Any other dates etc would be open to negotiation.

whole bunch of stuff we don’t know. Not sure the great saviour would be totally sure either.

Agree 100%. Just cause a person says there’s a legally binding contract doesn’t mean it’s true. As if he’s gonna come out in public and say there’s no contract anymore cause COVID means we can’t meet our contractual obligations.

And clearly the fact they negotiating at all would support the position that nine and fox have NRL over a barrel due to NRL inability to meet the terms and conditions of the 2018-2022 media contract.

Hugh Marks was Channel 9’s legal counsel for 2 years for christ sake. Anyone who seriously thinks he doesn’t know Nine’s legal obligations and rights are in this situation is clearly mistaken.

Just watching V’Landys starting to spin this situation around that NRL have all the power and are willing to do Nine a favour and rework the deal is absolutely hilarious.

It’s even funnier after listening to Phil Gould’s podcast where he said the NRL are still in debt to Nine and Fox for a multimillion dollar loan they gave to prop the game up a few years ago.

If I were the NRL I’d just be grateful Nine are offering any money at let alone $90m for the rest of the year

 

[Perth Red]

Agree 100%. Just cause a person says there’s a legally binding contract doesn’t mean it’s true. As if he’s gonna come out in public and say there’s no contract anymore cause COVID means we can’t meet our contractual obligations.

And clearly the fact they negotiating at all would support the position that nine and fox have NRL over a barrel due to NRL inability to meet the terms and conditions of the 2018-2022 media contract.

Hugh Marks was Channel 9’s legal counsel for 2 years for christ sake. Anyone who seriously thinks he doesn’t know Nine’s legal obligations and rights are in this situation is clearly mistaken.

Just watching V’Landys starting to spin this situation around that NRL have all the power and are willing to do Nine a favour and rework the deal is absolutely hilarious.

It’s even funnier after listening to Phil Gould’s podcast where he said the NRL are still in debt to Nine and Fox for a multimillion dollar loan they gave to prop the game up a few years ago.

If I were the NRL I’d just be grateful Nine are offering any money at let alone $90m for the rest of the year

nine didnt want to pay anything this year, it’s been quoted there’s a force majeure in the contracts for exactly this type of scenario. Force majeures are in place for the period of the event that stops normal business being delivered and when over the contract resumes as before. If nine could have weasled out of this year they would have done.

As for Gould, it wasnt a loan, it was an advance on the new contract that has come off the total contract amount over the 5 years. Why did they need the advance? Because they were having to pay out millions a year keeping two clubs alive that had screwed up and the other 14 clubs were screaming for cash to bail them out.

 

[seanoff]

nine didnt want to pay anything this year, it’s been quoted there’s a force majeure in the contracts for exactly this type of scenario. Force majeures are in place for the period of the event that stops normal business being delivered and when over the contract resumes as before. If nine could have weasled out of this year they would have done.

As for Gould, it wasnt a loan, it was an advance on the new contract that has come off the total contract amount over the 5 years. Why did they need the advance? Because they were having to pay out millions a year keeping two clubs alive that had screwed up and the other 14 clubs were screaming for cash to bail them out.

Are you sure?

https://www.holdingredlich.com/force-majeure-and-covid-19-what-you-need-to-know-now

without access to the contract we won’t know. Maybe there was a 30 day clause. In which case the contract is void. Etc etc

 

[Chief_Chujo]

You are f**king stupid if you think Nine are going to spend years and many, many millions in court fighting the force majeure.

 

[Cactus]

And clearly the fact they negotiating at all would support the position that nine and fox have NRL over a barrel due to NRL inability to meet the terms and conditions of the 2018-2022 media contract.

Its a real shame that if you had any idea whatsoever it gets completely lost when you write utter trash such as that above. A ridiculous supposition.

 

[Cactus]

if 9 and fox are trying to renegotiate they may think the contract has been voided.

Are you sure?

https://www.holdingredlich.com/force-majeure-and-covid-19-what-you-need-to-know-now

without access to the contract we won’t know. Maybe there was a 30 day clause. In which case the contract is void. Etc etc

Why do people keep saying the contract would be voided. It wont be.

 

[Cactus]

[ A ] Once you claim “Act of God” it voids the contract as though it never existed in the first place. Therefore, Nine is under no obligation to meet any conditions of the 2018-2022 TV rights deal because it was voided by the NRL when they suspended the season on 24 March 2020.

[ B ] The 2018-2022 contract was voided by the NRL on 24 March 2020. Therefore, there is no TV rights contract at the moment.

[ C ] Nine and Foxtel are literally re-negotiating a new contract.

I think I have found where the "void" issue comes from.

Exhibits A B & C

 

[Perth Red]

Are you sure?

https://www.holdingredlich.com/force-majeure-and-covid-19-what-you-need-to-know-now

without access to the contract we won’t know. Maybe there was a 30 day clause. In which case the contract is void. Etc etc

true but in a $2billion contract it is reasonable to assume they had decent lawyers writing the contract up in a reasonable way. The fact nine are having to back off and pay up would suggest they don’t have a choice. It just comes down to how much is this years affected season worth.

 

[siv]

true but in a $2billion contract it is reasonable to assume they had decent lawyers writing the contract up in a reasonable way. The fact nine are having to back off and pay up would suggest they don’t have a choice. It just comes down to how much is this years affected season worth.

Simple 5 weeks of less content plus Qld and NSW Cup

We will see how much the rep program is really worth after that

 

[Perth Red]

NRL CFO gone.
https://thewest.com.au/sport/rugby-...signation-ng-34e67d3dc163a2218cc02fed6f2a0f06

 

[big hit!]

Simple 5 weeks of less content plus Qld and NSW Cup

We will see how much the rep program is really worth after that

the NRL are probably paying for costs of NSW & QLD Cup coverage. Or it's contra. It'd be worthless to Nine

 

[siv]

the NRL are probably paying for costs of NSW & QLD Cup coverage. Or it's contra. It'd be worthless to Nine

Remember they think RG and Internationals are worthless

Unless they can use it to drive the price down