2018-2022 Media Deal $ Value

Discussion in 'NRL Media Watch' started by Perth Red, Jan 7, 2019.

  1. Perth Red

    Perth Red Immortal

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    How can you say there is no conflict of interest? News wants the rights and for as cheap as possible, nrl wants an open market to create competitor tensions and sell for as much as possible. At the very least she will know if there any realistic competitors for the rights, that in itself puts her in a very compromised position between her employer and her commissioner role
    But yeh I’m probably paranoid,
    an ex ceo once taught me it’s better to be safe than sorry when it comes to company governance.
     
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  2. flippikat

    flippikat Juniors

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    Never say never about clubs not going belly-up.. you underestimate the ability of club officials to stuff-up the running of their organization (either through sheer stupidity or dogged infighting, both of which are sadly quite common in league administration circles)

    My understanding is that when the NRL get sign-off on the perpetual licenses, it comes with a "carrot and a stick".
    The stick being that if any club comes looking for bailouts the NRL hold the right to attach a bailout to relocation.
    The carrot being that the NRL puts a relocation incentive on the table for anyone who wants to take it.

    The clubs may sign thinking that "we'll be safe with this grant", but surely the NRL must believe that there's a fair chance a club or two will squander it and fall right into a relocation scenario.
     
  3. Johnny88

    Johnny88 Juniors

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    Origin, finals may be split for TV cash auction




    The ARL Commission will consider selling the regular season, finals games, the grand final, and the State of Origin series as separate entities as the code looks to squeeze every cent it can from the next broadcasting deal.

    It is understood separation of the game’s major products has been contemplated as part of a discussion paper distributed to club bosses late last week.

    As revealed in The Australian this week, the paper also contemplated an early approach to the game’s current and potential broadcast partners as they look to get a jump on the AFL and provide some clarity to clubs over their future in the competition.

    The commission and NRL have bundled together their major products as part of recent broadcasting deals but are expected to investigate whether separating them would create more tension in the market and allow them to grow their broadcasting revenue as a result.

    The game’s current broadcasting deals with the Nine Network and Foxtel run until the end of 2022 but officials are weighing up whether to begin discussions as early as next year over a new deal. The commission and NRL yesterday outlined their plans to the clubs and while there is no certainty they will kick off talks next year,

    That stance yesterday received the imprimatur of media rights expert Colin Smith, managing director of Global Media and Sports. Smith previously worked with the NRL on broadcasting deals and suggested the game would be wise to have its ducks in a row and at least be prepared to begin talks with key stakeholders.

    “Protecting your revenues is critical so testing the market, they should contemplate,” Smith said.

    “They got a huge number (last time). Ultimately it was a really good deal for the NRL, no question about that. I would think it is really critical that the NRL is right on top of this and ready to move, and also testing the market, and therefore ready to roll over early if it necessary.

    “Because the threat will be that in the next round of rights either there will be a minimal increase or it could reduce. There is no alternative bidder out there in the foreseeable future that would bid what Foxtel pays for the NRL.

    “If you and I were talking about the AFL I would be giving the same answers — and probably even more so because in the AFL case it is nearly $2.6 billion between Channel 7 and Foxtel.

    “Just to highlight what I am saying, in the English Premier League in their domestic rights that were signed late last year, they dropped by 13 per cent.

    “Therefore if I was the NRL, I would be out there testing this and if I could do a deal that could make me whole or give me a slight increase, I would do it sooner rather than later.”

    State of Origin is widely regarded as the jewel in the rugby league crown and its value to broadcasters has been placed at upwards of $100 million a year. However, it has been bundled up in recent deals, leaving the value untested on the open market.

    That could change if the ARL Commission and NRL believe they can get more money from the broadcasters by selling it separately — Origin would be a cash cow for all the commercial networks.

    “That is what the NFL (in America) does and does really well,” Smith said of splitting the broadcasting products.

    “I have always argued State of Origin is something really unique. There is nothing like it. The question is will the sum of the parts be greater than the sum of the whole?

    “What you will find is you will get a huge price for State of Origin, you will get a huge price for the finals, but what does that mean for home-and-away.

    “And what does that mean for other content like internationals, which is still a work in progress. If I was them I would be doing a bucketload of work on another team in Brisbane.”

    The broadcasters are likely to have a massive say in the size and shape of the competition; chief executive Todd Greenberg is currently conducting a review of the game’s footprint. Expansion and relocation are at the heart of that review and Greenberg’s work is expected to ultimately determine whether the game looks to immediately place a team in Brisbane or waits until one of the current clubs fall over.

    https://www.theaustralian.com.au/sp...n/news-story/955b4e4b8de792d8eabb838ed1a8392f
     
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  4. Vee

    Vee Juniors

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    Paper talk. They've always had that option and never gone that way before. Maybe the money's just not there for that option.
     
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  5. Starkers

    Starkers Juniors

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    At least they are looking at options and getting ahead of things. My preference would be to have:
    - a senior FTA broadcaster like Ch9 which does 4 games a week plus Origin, finals/GF and internationals
    - a junior FTA like Ch10 which would cover the other 4 or 5 games a week
    - all 8 or 9 games, Origin, finals/GF and internationals then gets simulcast on Foxtel
    - all live on main FTA channels in all markets
    Should get $2b for that.

    Colin Smith notes above that EPL had a 13% reduction on the last deal they did, which was actually a good result. The EPL put the deal prior to that out to a blind tender and got a gob smacking amount, which is why we ended up with it on Optus here in Australia. It could never have achieved the same result as many were using it as a loss-leader to gain market traction, like Optus is here.
     
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  6. taipan

    taipan Coach

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    She's not involved in the negotiations not involved.Unless she has a secret tape whatever.Of course all TV organisations want the rights as cheap as possible scoop. That's why you get the best negotiators you can involved , remembering not only NRL people were involved on their side last time.You achieve the best possible outcome .There is give and take on both sides in deals.
    It's not a situation where News owns 50% of the company ,it wants to negotiate with.

    Amazing you weren't concerned when former AFL negotiator(no name) came onto the NRL board and since left ,so perhaps he could provide inside info to the AFL.
    Yeah you are paranoid.

    I repeat one more time, the woman has a senior position ,any collusion would render her career in tatters, never to appear on another board, never to achieve a senior position in a private company.
    And I further submit,Foxtel/Foxsports should they be involved in anything involving collusion would leave themselves wide open for damages claim.We've seen what happens with insider trading.

    A current owner of the organisation I worked for, noted this particular year was a good one for the company, but clouds do appear on the horizon and you have to be prepared to change direction or adapt
    whenever the need arises.
    How many predicted the huge drop in interest rates? The trade war between USA and China?The Australian election results?The huge cutbacks in staff at Telstra? The growing drought in the bush?
    Hence my comment about the impact of current and future technologies on TV.

    And if you bother to note the article about going early on the TV deal, it mentions the shrinking value of the sporting market.The very reason union and the A League are a tad nervous.The very reason the NRL wants to get in early against the fumblers.Colin Smith spelt it out ,about the possibility of also a reduction, which you seemed to ho hum.
     
    Last edited: Jun 13, 2019 at 12:18 PM
  7. taipan

    taipan Coach

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    Geez mate don't mention a reduction in TV deals, our mate suggests it doesn't happen.
     
  8. titoelcolombiano

    titoelcolombiano Bench

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    You would think that the home and away portion of the season, if sold separately would be quite valuable. There are few shows other than the NRL and AFL that rate well week-in-week-out throughout the year. Well.... except GWS, the Suns, Swans and Lions....

    It is a solid consistently high rater than networks can bank on.
     
  9. Perth Red

    Perth Red Immortal

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    Yeh I’m sure your right, what with news Ltd and it’s employees being such strong ethical people. Nothing to see hear lol.
     
  10. taipan

    taipan Coach

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    Seriously mate take a chill pill.And wait and see what happens.You're a doomsday proponent.
    You see negatives in everything involved in the game.

    You got it wrong about Tv deals not being reduced, when Colin Smith gave an example this was not the case.The same Colin Smith involved in both AFL and NRL negotiations at various times.

    BTW you don't have to preach to me about News Ltd.They have bad apples but in your typical fashion everyone therefore is a bad apple.
     
  11. Hello, I'm The Doctor

    Hello, I'm The Doctor First Grade

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    Hahaha, when i saw the headline i knew rent-a-quote Col Smith would stick his head up
     
  12. Disinterested third party

    Disinterested third party Bench

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    Yep still talking down the value of RL rights.
     
  13. Perth Red

    Perth Red Immortal

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    Lol I’m the naysayer yet you are the one talking down the next deal hmmmm!
     
  14. taipan

    taipan Coach

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    "Talking down the next deal LO"L.I'm the messenger Einstein ,what the TV stations are pointing out, the realities of the new technologies, the stagnancy of Pay Tv subscriptions despite a growing population.Just to name a few.
    You live in an isolated city bubble.
     
  15. Perth Red

    Perth Red Immortal

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    If the next rights are going to be lower there will be little point in negotiating them before these ones run out.

    Let’s hope we can continue to close this gap

    Nrl 2018 media revenue $318mill
    Afl 2018 media revenue $391.5mill
     
  16. taipan

    taipan Coach

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    They appear to be getting in early before the AFL, as the uncertainty about contract values from 2023 is very real.
    Better to know what your deal will be earlier, so you are in a position to plan ahead earlier.
    Especially when you have SOO as an offering .

    Closing any gap will depend on what extra money is available.
     
  17. LeagueXIII

    LeagueXIII Bench

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    Surely Foxtel dies without rugby league.
     
  18. The_Wookie

    The_Wookie Juniors

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    The gap is actually closer. NRL digital revenue isnt included in the NRLs media figure, while the AFL does include revenue from AFL Media. Digital Revenues add another 23.5 million to the NRL media figure.
     
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  19. Perth Red

    Perth Red Immortal

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    Are you sure? Isn’t that from nrl generated digital revenue rather than the Telstra deal? I thought this was the return from all the money they’ve spent on investing in digital?

    Previous years the Telstra deal has definitely sat in the media revenue line.
     
    Last edited: Jun 17, 2019 at 10:21 PM
  20. taipan

    taipan Coach

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    Thanks The Wookie, didn't realise that fact.
     

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