2018-2022 Media Deal $ Value

[colly]

https://www.smh.com.au/sport/nrl/nr...s-to-tv-rights-expansion-20190321-p516db.html


Netflix and Stan will decide the fate of Sydney’s nine NRL clubs in any move towards expansion.

The streaming services have nothing to do with rugby league but, ultimately, the money secured in the next TV rights deal will guide the game. And with consumer money pouring into streaming, there might not be a big pot left for league.

This situation will influence every decision about the game, including expansion and/or relocation.


TODD GREENBERG
Cash and carry: NRL considers offering money for clubs to relocate
The ARLC is acutely aware of this; acutely aware operating budgets may fall.

In all the expansion and relocation debate, there really is only one certainty: there will be a second Brisbane team. It's a no-brainer and the powers that be know it.

The growing talk about Perth is just that, talk.

The NRL winces at how much money the AFL has pumped into the GWS Giants and Gold Coast Suns: $100 million each. And rising. The prospect of less, or even the same, TV money will end the hopes of any Perth NRL team. Getting excited about a packed house for a one-off Origin match in a new AFL/cricket stadium will get us nowhere.


How will it look when Perth play the Titans on a Saturday afternoon?

The game most likely will not have the luxury of matching the AFL and pump $100 million into a team in a non-heartland state.

Phil Gould this week spoke about 20 teams in two conferences. In a perfect world, this would be the future. But are there enough good players for that? Is there anywhere near enough cash around for that? Sadly, no.

Money will drive all decisions and the uncomfortable truth for fans is the Sharks and Manly are the two clubs most vulnerable to relocation as a possible second Brisbane team. To a lesser extent, Wests Tigers. Financial viability, or the lack thereof, will be the only factor that results in a club being moved.


NRL 2019
Greenberg peers towards Perth on expansion front
There is zero appetite among the ARLC to forcibly move a club. Memories of the South Sydney protest in 2000 burn bright. The last thing the game needs is fans marching down George Street.

The Sharks and Manly have teetered on the edge of financial disaster seemingly forever.

They continually rely on 11th-hour saves from benefactors and, in the case of the Sharks, promises of developer money for apartments and shops on adjacent land. A story/promise that goes around and around …

Manly have the Penn family, but how deep is their commitment? They don’t want to pump big money into the Sea Eagles, but can’t part with the club either.


Wests Tigers looked dreadfully shaky a few years ago when the NRL propped them up. Under former chair Marina Go, the club righted itself. The Balmain side is on life support, but the Wests side is strong. Money from the powerful Wests Ashfield club helps.

Greenberg has put himself under pressure, declaring he has this season to put together a concrete plan.

There won’t be one by the end of the season because uncertainty about TV revenue will remain.

 

[taipan]

Channel 9 owner of the SMH ,talking the future Tv contract price down for the NRL.Who woulda thought?
Rip into it ch10, ,become the home of rugby league, rather than the backyard sh*thouse it is now under Nein.

 

[Starkers]

it reeks of chasing their tail and they must be shitting themselves at kayo pulling 115k subs in 4 or 5 months.

what's the view on streaming and rights value? i don't think we'll see price compression with streaming like he's suggesting above.

 

[Perth Red]

I guess the unit price is a lot lower but they will be hoping subscriptions will eventually be higher. KAYO is only pulling people who would just subscribe to Foxsports package. Most still will have bundles and be keeping as is. Its surprising how big netflix subscription rate is, nearly double Fox. Be nice if Stan decided NRL was a great platform to catch up to Netflix in this country and outbid Fox next deal!

The interesting thing is if the NRL will launch its own exclusive NRL digital subscription with unique content that it produces (ie keeping 2-3 games for its own channel only). You'd want to be confident in revenue generation to deal with the reduction in the Fox deal but it would be interesting to see them take a punt. With expansion you might see
3 games FTA,
4 exclusive, 3 simucast Fox
and all nine games exclusive to NRL digital.

 

[titoelcolombiano]

I guess the unit price is a lot lower but they will be hoping subscriptions will eventually be higher. KAYO is only pulling people who would just subscribe to Foxsports package. Most still will have bundles and be keeping as is. Its surprising how big netflix subscription rate is, nearly double Fox. Be nice if Stan decided NRL was a great platform to catch up to Netflix in this country and outbid Fox next deal!

The interesting thing is if the NRL will launch its own exclusive NRL digital subscription with unique content that it produces (ie keeping 2-3 games for its own channel only). You'd want to be confident in revenue generation to deal with the reduction in the Fox deal but it would be interesting to see them take a punt. With expansion you might see
3 games FTA,
4 exclusive, 3 simucast Fox
and all nine games exclusive to NRL digital.

I'm not sure about Stan simply because they are part owned by 9 but I think you are on the money with the NRL digital exclusive games. If true and it comes off then the NRL need to be applauded for their vision in investing in digital well before it was absolutely necessary.

 

[T-Boon]

I'm not sure about Stan simply because they are part owned by 9 but I think you are on the money with the NRL digital exclusive games.

That would be cool even if it cost the game some money in the short term. They could also provide old games for streaming. Also the NRL would be able to create its own rugby league shows etc.
Q: with NFL game day do they put ads into the streamed coverage?
It would be great if the NRL could sell its own advertisement space.

 

[Stallion]

A FTA game (even simulcast ) on every Saturday should occur. Atm the AFL is enjoying the free kick every Saturday with 3 AFL programmes constantly appearing in the top ten programmes every Saturday evening. No rugby league to be seen on FTA! This in itself must add value to the AFL product for tv. Think it just got channel seven a win in the ratings this week for the first time this ratings period.

 

[Cumberland Throw]

A FTA game (even simulcast ) on every Saturday should occur. Atm the AFL is enjoying the free kick every Saturday with 3 AFL programmes constantly appearing in the top ten programmes every Saturday evening. No rugby league to be seen on FTA! This in itself must add value to the AFL product for tv. Think it just got channel seven a win in the ratings this week for the first time this ratings period.

Been that way for 15 years

 

[titoelcolombiano]

A FTA game (even simulcast ) on every Saturday should occur. Atm the AFL is enjoying the free kick every Saturday with 3 AFL programmes constantly appearing in the top ten programmes every Saturday evening. No rugby league to be seen on FTA! This in itself must add value to the AFL product for tv. Think it just got channel seven a win in the ratings this week for the first time this ratings period.

It hasn't helped their ratings, so the 'free-kick' hasn't done them much good.

 

[Johnny88]

NRL planning to get jump on AFL in TV cash grab

• EXCLUSIVE
  BRENT READ
  SENIOR SPORTS WRITER
  
  
• AN HOUR AGO JUNE 11, 2019
• NO COMMENTS

The ARL Commission is weighing up whether to go early on its next broadcasting deal, a move that would allow rugby league to get the jump on the AFL but which could also have massive ramifications for the game’s existing clubs.

Club chairs and chief executives will meet the ARL Commission and the NRL tomorrow to discuss a range of issues, among them player behaviour, integrity and, significantly, the broadcasting future.

It is understood a discussion paper has been circulated to the clubs raising the prospect of opening talks over the next broadcasting deal as early as next year. The existing arrangement runs until the end of 2022.

The Australian understands that one of the reasons for going early is to strike before the AFL gets its hands on a large chunk of the broadcasting dollar. That game’s deal also runs until the end of 2022 and there is a fear a changing landscape could mean a shrinking market for sports rights.

Those concerns were heightened recently when Foxtel issued a statement to the ASX flagging cuts to non-marquee sporting events.

At the same time, NRL ratings have been strong on pay and commercial television, leaving the league in a powerful position should it decide to head to market early.

The ARL Commission is in the second year of a landmark $1.8 billion deal with Fox Sports and the Nine Network. That deal was the biggest in the code’s history and seemingly allowed the commission to consolidate the future of its clubs by providing them with more money than ever before.

However, despite receiving about $13 million a year from the central administration, most NRL clubs still run at a loss. Hence the need to ensure the next deal at least matches the existing arrangement.

Negotiations with the broadcasters are set to have significant ramifications for the location of clubs. The NRL is reviewing the game’s footprint as it looks to determine how the competition should he shaped.

As part of that process, NRL chief executive Todd Greenberg has no doubt been talking to the game’s broadcast partners to garner their views on the future. Those talks, and the subsequent negotiations over the next broadcasting deal, will largely shape the code’s stand on expansion and relocation.

There seems little doubt the game needs a second team in Brisbane and potentially a side in Perth, but the broadcasting dollar will ultimately determine whether that is done by expansion or relocation.

Both those issues will be central to negotiations with the broadcasters.

In the background, the commission and NRL have also been negotiating with the clubs over their licensing agreements, in an aim to strike a deal over perpetual licences that would provide the existing 16 clubs with lifetime guarantees provided they remained financially secure.

A select group of chairs have been in talks with senior figures over the criteria around financial viability.

While the current licensing agreements revolve around solvency, the game is expected to bring in stricter financial parameters given the clubs will get lifetime guarantees in return.

As part of those talks, the current financial arrangement between head office and the clubs is expected to be removed from licences.

The central grant would then be negotiated in line with the broadcasting agreements, meaning head office would be able to tighten the noose around clubs if HQ felt they were failing to meet their obligations around financial viability. The commission will also seek greater control over who has the power to purchase a licence.

No club is on the market, but there have been ongoing rumours over the ownership at Manly.

Talks with the clubs over the next broadcasting deal are still in their infancy but tomorrow’s meeting could dictate whether they push ahead with plans to go early or wait to see how the broadcasting landscape changes in coming months. The commission is fortunate to count Foxtel chief commercial officer Amanda Laing among its numbers. While Laing would no doubt stand aside from negotiations due to a conflict of interest, her intimate knowledge of the broadcasting environment shapes as one of the real strengths of the commission.

According to her biography on the Foxtel website, Laing is responsible for spearheading Foxtel’s content strategy and negotiations across entertainment and drama programming as well as heading up its major partnerships and commercial relationships.

She was brought on to the commission early last year.

Dragons back in hunt P26

BRENT READ

SENIOR SPORTS WRITER

https://www.theaustralian.com.au/sp...b/news-story/318a3c08d91341494611be9fa366fcc3

 

[titoelcolombiano]

What is the point of Greenburg's expansion report / review that is due at the end of this year if the broadcasters and the value of the broadcast deal will dictate whether we expand or relocate teams?

 

[Perth Red]

What is the point of Greenburg's expansion report / review that is due at the end of this year if the broadcasters and the value of the broadcast deal will dictate whether we expand or relocate teams?

To look like they are doing something. We’ve put a key Foxtel employee on the commission, that should tell you how inept RL administration continues to be.

 

[taipan]

To look like they are doing something. We’ve put a key Foxtel employee on the commission, that should tell you how inept RL administration continues to be.

If she's not involved in the negotiations, which will be the case, can't see a problem.Especially as the NRL are maintaining their Fox ratings, which she would be well aware.As well as being aware of the growing impact of other technologies to show the NRL.
Fair to suggest also there won't be an extra $500m to throw at the AFL like Rupert did last time, either out of spite or because he thought somehow AFL would dominate Fox, which it hasn't .
If Fox loses the NRL they are fooooked.

 

[flippikat]

What is the point of Greenburg's expansion report / review that is due at the end of this year if the broadcasters and the value of the broadcast deal will dictate whether we expand or relocate teams?

I think the plan is to get the report together well before the end of the year, and workshop it with the clubs to get some consensus on what expansion options are favoured DURING the off-season.

Then, the NRL Commission takes the options into the TV rights negotiations, and hopefully what the broadcasters want is similar to what the clubs are happy with.

I think all the talk that "Perth & Brisbane 2 are the likely expansion" from fans & media helps both sides (NRL and Broadcasters), because there is a general consensus growing that those two expansion markets will bring biggest value. Very few disagree with that.

The devil is in the detail.. if it's Perth & Brisbane 2, how does that happen?

Is it as simple as just adding 2 teams? Will TV stump the cost for that?

Does it have to be done while keeping the competition at 16 clubs? If so, who gets relegated, relocated or merged?

Who gets to be the 2nd Brisbane Club? Is it a relocation? Existing Brisbane club/joint venture of existing clubs? Or some new entity?

Likewise for Perth, is it going to be the Pirates.. or a relocated team?

Ok, I said at the top, the report is going to canvas expansion options.. but honestly I think it'll consist of 2 sections.

Part 1 - "We need Perth & Brisbane 2" - Cost/Benefit, pro/con analysis on the options on how to get those 2 specific locations in place. (As above)

Part 2 - "Beyond the next phase" - Identifying what the next few expansion locations will be AFTER Perth & Brisbane 2 (we're looking at mid-late 2020s, unless clubs go broke). And recommending the steps needed to move towards that next phase.. such as regular games in Adelaide, junior programs, etc etc..

Any kind of club consensus just needs to cover off part 1 (how to get Perth & Brisbane 2) for now.. as part 2 (the following expansion) can be workshopped into shape throughout 2020 - it will be the guts of the FOLLOWING TV deal that's negotiated in the mid 2020s.

 

[Last Week]

They tried this before. Worked to a degree.

f**k off Thursdays and I'm happy.

 

[Perth Red]

If she's not involved in the negotiations, which will be the case, can't see a problem.Especially as the NRL are maintaining their Fox ratings, which she would be well aware.As well as being aware of the growing impact of other technologies to show the NRL.
Fair to suggest also there won't be an extra $500m to throw at the AFL like Rupert did last time, either out of spite or because he thought somehow AFL would dominate Fox, which it hasn't .
If Fox loses the NRL they are fooooked.

It’s a massive conflict of interest. She will know exactly the state of the nrl come negotiations time and could use that information to tip Off for the benefit of news Ltd. in the negotiations. We spent two decades getting news Ltd out of the RL ownership, then invited them back in, sheesh only in RL.

 

[Perth Red]

I think the plan is to get the report together well before the end of the year, and workshop it with the clubs to get some consensus on what expansion options are favoured DURING the off-season.

Then, the NRL Commission takes the options into the TV rights negotiations, and hopefully what the broadcasters want is similar to what the clubs are happy with.

I think all the talk that "Perth & Brisbane 2 are the likely expansion" from fans & media helps both sides (NRL and Broadcasters), because there is a general consensus growing that those two expansion markets will bring biggest value. Very few disagree with that.

The devil is in the detail.. if it's Perth & Brisbane 2, how does that happen?

Is it as simple as just adding 2 teams? Will TV stump the cost for that?

Does it have to be done while keeping the competition at 16 clubs? If so, who gets relegated, relocated or merged?

Who gets to be the 2nd Brisbane Club? Is it a relocation? Existing Brisbane club/joint venture of existing clubs? Or some new entity?

Likewise for Perth, is it going to be the Pirates.. or a relocated team?

Ok, I said at the top, the report is going to canvas expansion options.. but honestly I think it'll consist of 2 sections.

Part 1 - "We need Perth & Brisbane 2" - Cost/Benefit, pro/con analysis on the options on how to get those 2 specific locations in place. (As above)

Part 2 - "Beyond the next phase" - Identifying what the next few expansion locations will be AFTER Perth & Brisbane 2 (we're looking at mid-late 2020s, unless clubs go broke). And recommending the steps needed to move towards that next phase.. such as regular games in Adelaide, junior programs, etc etc..

Any kind of club consensus just needs to cover off part 1 (how to get Perth & Brisbane 2) for now.. as part 2 (the following expansion) can be workshopped into shape throughout 2020 - it will be the guts of the FOLLOWING TV deal that's negotiated in the mid 2020s.

The nrl is very clear there would only be relocation or relegation IF a current club goes belly up. There is no way with $13mill grants anyone’s going belly up. They are using this very thin relocation threat to convince clubs to sign perpetual licenses to take away the clubs negotiating power of a threat of a breakaway or strike come grant negotiations time.

It will be either be two new teams or no expansion, and you can bet the clubs won’t want a smaller slice or that the nrl,hq will won’t a shallower trough to stick its snout in, ergo tv pays or we will once again see no expansion. It’s been the same pattern since 2012.

 

[taipan]

It’s a massive conflict of interest. She will know exactly the state of the nrl come negotiations time and could use that information to tip Off for the benefit of news Ltd. in the negotiations. We spent two decades getting news Ltd out of the RL ownership, then invited them back in, sheesh only in RL.

So you know her approach? In typical PR fashion ,you are casting aspersions on someone who is apparently well respected within and without the broadcasting community.And I don't know her.

Her business reputation would be in tatters if she did do as you hypothetically suggested, never to recover.Conversely have you ever thought she could pass on News's secret info to the NRL, such is the absurdity ot your argument. A double agent Cold War style.Sheesh.

The Commission is not just Beattie ,but other people of I suggest ,high business expertise and integrity ,who would have been involved in securing her for the board.The Commission is not made up of News people.And Gallop is not there to fold like a piece of paper at negotiation time.

Also Telstra the code's major sponsor has a 35% financial interest in Fox Sports.Remember Telstra was/is deeply involved in the code's digital dept.
Do you also understand a Commissioner who was involved with AFL negotiations, then came onto the ARL Commission,then his term expired.It can be argued he could spill the beans to AFL on what goes on in the NRL.
You see reds under the bed.And I don't mean Perth Reds,the commo variety.

Of course in life business people can do crap things ,but adopting your approach.then no one would get onto a company board.Board members of companies can be involved in a number of companies, not just one.

 

[Perth Red]

So you know her approach? In typical PR fashion ,you are casting aspersions on someone who is apparently well respected within and without the broadcasting community.And I don't know her.

Her business reputation would be in tatters if she did do as you hypothetically suggested, never to recover.Conversely have you ever thought she could pass on News's secret info to the NRL, such is the absurdity ot your argument. A double agent Cold War style.Sheesh.

The Commission is not just Beattie ,but other people of I suggest ,high business expertise and integrity ,who would have been involved in securing her for the board.The Commission is not made up of News people.And Gallop is not there to fold like a piece of paper at negotiation time.

Also Telstra the code's major sponsor has a 35% financial interest in Fox Sports.Remember Telstra was/is deeply involved in the code's digital dept.
Do you also understand a Commissioner who was involved with AFL negotiations, then came onto the ARL Commission,then his term expired.It can be argued he could spill the beans to AFL on what goes on in the NRL.
You see reds under the bed.And I don't mean Perth Reds,the commo variety.

Of course in life business people can do crap things ,but adopting your approach.then no one would get onto a company board.Board members of companies can be involved in a number of companies, not just one.

Generally companies don’t appoint board members from other companies that they do major business with, that’s why it’s called conflict of interest. News Ltd has been doing its best to screw the game for over two decades, no reason to believe it is any different now, and what better way than to get back a seat at the head table. Did you miss the Murdoch diatribe where he said, and I quote, “
"We've always believed this (AFL) is the premium code in Australia - it's the national game,"
"We believe in the strength of the game and we will do everything we can to make it stronger."

But yeh I’m sure she will do the right thing by the nrl and I’m just being paranoid lol.

 

[taipan]

Generally companies don’t appoint board members from other companies that they do major business with, that’s why it’s called conflict of interest. News Ltd has been doing its best to screw the game for over two decades, no reason to believe it is any different now, and what better way than to get back a seat at the head table. Did you miss the Murdoch diatribe where he said, and I quote, “
"We've always believed this (AFL) is the premium code in Australia - it's the national game,"
"We believe in the strength of the game and we will do everything we can to make it stronger."

But yeh I’m sure she will do the right thing by the nrl and I’m just being paranoid lol.

Board members of companies can be involved with companies who have indirectly conflicting issues.
And this appointment is not conflict of interest, unless of course you8 can prove or provide evidence by not being involved in nay TV negotiations ,she will provide info "for the enemy."
You are paranoid.