2023-2028 next tv deal discussion

[Foreign Legion]

The NRL is considering a proposal from Nine Entertainment Co for a long-term extension to its television deal with the the free-to-air network, which wants to cap its annual rights fee for the sport at about $90 million to $100m.

ARL Commission chairman Peter V’landys says he hopes to have reached agreement with the game’s two major broadcast partners by Friday and provide more financial certainty for the game ahead of its May 28 restart.
According to sources with knowledge of the negotiations, it is expected that while Foxtel, majority owned by News Corp, may be close to signing a long-term extension, Nine won't commit beyond the three years that remain in its existing deal unless League Central agrees to its offer for a reduced long-term arrangement.

News Corp reported on Sunday the code was on the brink of securing a new $2.3 billion television deal over seven years, which would take in the final three seasons of its current $1.8bn contract with Nine, Foxtel and Telstra that runs from 2018 to 2022.
Sources say Nine, the owners of this masthead, wants to cap its annual rights fees for the sport at $90m to $100m. Nine is this year paying $115m for NRL rights, a figure that will rise to $120m next year and $125m in 2022.

The NRL has offered a five per cent discount to the fees for the next two years, according to sources, as well as a more significant markdown on this season because of the impact of coronavirus.

Nine has put forward its case to the NRL for a long-term extension and the two parties have been back and forth on the issue but they had not reached a resolution by Sunday night.

The result is both could end up resolving to revisit a longer deal down the track rather than immediately. That would leave the door open for Nine to walk away from its long association with the game in the future or reconsider the game's value to the business. That scenario would also allow the NRL to potentially consider an alliance with another free-to-air network beyond 2022.


Nine chief executive Hugh Marks has been at loggerheads with the NRL for weeks over the value of the sport as a result of coronavirus and last week told investors at the Macquarie Australia Conference “it's not a given that NRL has to be part of our future”.

Marks said the sport needed to “pay its way like all of our content does” and confirmed the company’s interest in taking over the NRL’s digital arm.

While News Corp chief executive Robert Thompson said on Friday there needed to be a “fundamental reset” of the price of sports rights, Foxtel CEO Patrick Delany has kept a low profile on the talks with the NRL.

"The one thing I'm pretty consistent with is we just don't comment on live negotiations,” Delany told the Herald last week.



“Some people choose to negotiate through the press, we just like to do things directly with our partners.”

Sources said an extension with Foxtel would not grant the subscription television outlet prized simulcast rights to State of Origin and the NRL grand final.

Nine currently has exclusive coverage of those flagship events as part its five-year deal with the NRL.

“I understand Channel Nine is being prudent but you’ve got to be careful because I still believe a free-to air network without either the NRL or the AFL ,that’s not something I would choose to do,” said Global Media and Sports managing director Colin Smith.

“I’d be surprised if Channel Nine would want to give up on State Origin in particular.”


- with Zoe Samios

https://www.brisbanetimes.com.au/sp...with-cap-on-rights-value-20200510-p54rl6.html

 

[Perth Red]

The numbers aren’t adding up! If Ch9 onLy want to pay that it would leave fox having to pay $48mill a year MORE than they are now to reach the allegedly $2.3billion mentioned.

 

[Cactus]

The numbers aren’t adding up! If Ch9 onLy want to pay that it would leave fox having to pay $48mill a year MORE than they are now to reach the allegedly $2.3billion mentioned.

"According to sources"

"Sources say Nine, the owners of this masthead"

https://www.brisbanetimes.com.au/sp...with-cap-on-rights-value-20200510-p54rl6.html[/QUOTE]

 

[Last Week]

Well, at least the next CEO knows he has a job for about 7 years. Until the next TV rights negotiations when Nine and News feel like they don't want to deal with any opposition in negotiations.

 

[taipan]

As always devil will be in the detail like how much is contra ($24mill last year) etc. last years cash Australian tv revenue was around $314mill.
no way Vlad is finding $50mill in HQ savings unless he is giving up the digital expenditure or massively cutting grassroots/state funding.

The digital is the thing that worries me.Whether 9 takes it over completely, whether the NRL retains 505 control, or it remains untouched.it is still under negotiation.
Although H/O spent $103m on events and game management.

 

[taipan]

The numbers aren’t adding up! If Ch9 onLy want to pay that it would leave fox having to pay $48mill a year MORE than they are now to reach the allegedly $2.3billion mentioned.

If the figures for the last 4 years years ext are 1.22bn to make the total for 7 years 2.3bn, then the 4 years ave $305m pa,a drop of $55m pa.
If 9 wants to drop their figures by $20-30 or $40m pa, that still means Foxtel will also be paying less pa ,based on figures provided.Bearing in mind Foxtel are really not going to pay much for Union if tehy decide to take it.

 

[T-Boon]

Who is in the negotiations assisting the NRL...is it just PV? The last time we did really well in the negotiations was when the NRL got an expert consultant from the outside helping out.
One concern I have is is whether it is just PV and whether he understands TV as it is now, also is he working for the NRL or the broadcasters when you factor in how keen the broadcasters were to give him all the power.

 

[Perth Red]

Who is in the negotiations assisting the NRL...is it just PV? The last time we did really well in the negotiations was when the NRL got an expert consultant from the outside helping out.
One concern I have is is whether it is just PV and whether he understands TV as it is now, also is he working for the NRL or the broadcasters when you factor in how keen the broadcasters were to give him all the power.

nah why waste money on consultants? lol I’m sure Vlandys is doing right by the game, after all he payed it as a kid. What more do you need to know?

 

[Cactus]

Who is in the negotiations assisting the NRL...is it just PV? The last time we did really well in the negotiations was when the NRL got an expert consultant from the outside helping out.
One concern I have is is whether it is just PV and whether he understands TV as it is now, also is he working for the NRL or the broadcasters when you factor in how keen the broadcasters were to give him all the power.

Colin Smith was that consultant. From what I know his advice at the time was sound.

 

[taipan]

nah why waste money on consultants? lol I’m sure Vlandys is doing right by the game, after all he payed it as a kid. What more do you need to know?

Colin Smith the media consultant to both the AFL and NRL in contract deals, has endorsed the figures if they are correct, as being a good result.So whoever is involved in negotiations and it is AFAIK Vlad and Abdo, I wouldn't be going full bore into your usual putdowns here, just for the sake of being continually negative.
I doubt anyone would be thrilled at having to negotiate any deals, in such negative economic and pandemic times.

 

[taipan]

Got to laugh. Nine calls itself Nine Entertainment Co.Looking at most of the stuff they serve up ,including the likes of MAFS ,Current Affair et al, if that resembles real entertainment, then entertainment has to be redefined "to watch very average shyte."

 

[Perth Red]

If the figures for the last 4 years years ext are 1.22bn to make the total for 7 years 2.3bn, then the 4 years ave $305m pa,a drop of $55m pa.
If 9 wants to drop their figures by $20-30 or $40m pa, that still means Foxtel will also be paying less pa ,based on figures provided.Bearing in mind Foxtel are really not going to pay much for Union if tehy decide to take it.

Current Australian TV deal was reported when signed to be worth $360mill a year inc contra ($1.8bill)
Rumoured new deal is worth $328mill a year, presumably inc contra ($2.3billion)
Thats a $32mill a year reduction.

Nine want to pay $90-100mill leaving Fox a tab of around $228-238mill a year

Nine rumoured to have paid $185mill a year of which they got $35mill a year back for giving up Saturday night back to Fox. So effectively were paying $150mill a year. They now want to pay $90-100mill. That's a $50-60mill drop.

I agree if we end up with $328mill a year instead of $360mill it isnt the end of the world, as long as we arent being screwed in the detail as well. This was NRLs chance to get something back for a lower price.

What that amount does do is wipe out any NRL surpluses, so either the NRL has to make significant cuts across its business expenditure in areas not affecting revenue generation, in order to have the future fund (deja vue or what?) of $200mill set aside or significantly increase its non media revenue.

 

[Captain Apollo]

Got to laugh. Nine calls itself Nine Entertainment Co.Looking at most of the stuff they serve up ,including the likes of MAFS ,Current Affair et al, if that resembles real entertainment, then entertainment has to be redefined "to watch very average shyte."

No its Entertainment alright...…. to the brain dead

 

[taipan]

Current Australian TV deal was reported when signed to be worth $360mill a year inc contra ($1.8bill)
Rumoured new deal is worth $328mill a year, presumably inc contra ($2.3billion)
Thats a $32mill a year reduction.

Nine want to pay $90-100mill leaving Fox a tab of around $228-238mill a year

Nine rumoured to have paid $185mill a year of which they got $35mill a year back for giving up Saturday night back to Fox. So effectively were paying $150mill a year. They now want to pay $90-100mill. That's a $50-60mill drop.

I agree if we end up with $328mill a year instead of $360mill it isnt the end of the world, as long as we arent being screwed in the detail as well. This was NRLs chance to get something back for a lower price.

What that amount does do is wipe out any NRL surpluses, so either the NRL has to make significant cuts across its business expenditure in areas not affecting revenue generation, in order to have the future fund (deja vue or what?) of $200mill set aside or significantly increase its non media revenue.

If cuts to head office are made equivalent to the drop in TV revenue, there should be no reason for the NRL not to build up a big Future Fund, year on year ,and not let surpluses disappear into the nether as happened in the recent past.

The uncertainty ATM is the digital component ,and how that will end up.If you can believe the media, the comment about expansion having the effect of bringing in more revenue during the deal, is a further underpinning of future profits.Also growing the non broadcast income is vital.

I certainly would flick the bunker, rather than cut refs back to one to save money.I don't know enough about the H/O salary breakdown, as to how much can been saved there or indeed in how much can be saved with football event costs.The NRL may have to make cuts on a gradual basis over the next three years, rather than a sudden slash and burn.
If horror of horrors ,they have to offload the Digital dept to get the costs down, they have to flog it off at a friggin high price to Nine.It makes a profit now, it must not be negotiated away for a song.It cost $125m to set up,Nine can pay $200m to get it.That gets the code back its cash on hand ATT.And that is a gift.

 

[Perth Red]

Corporate admin at nrl last year was $20.3 mill. Even if you sacked everyone and had no one running the place you’d still be $12mill a year short!

 

[taipan]

Corporate admin at nrl last year was $20.3 mill. Even if you sacked everyone and had no one running the place you’d still be $12mill a year short!

It's the funding that H/O controls that is the issue, not just the salaries there.
H/O admin would only be a small portion of planned cuts.It's obvious it has to come from admin, event costs, travel, refs. development numbers and possibly some community efforts.And bunkers cost if retained can apparently be spread between more than one football code.IOW sharing the usage.
Clubs will also have to pull their financial heads in ,and reduce football management numbers.

 

[TheRam]

The one of the first things they mentioned for cutting costs was Development. WOW!!!

That would literally be one of the last things you would ever want to cut, right? The future of the game depends on it. I would rather cut the football grants by whatever is needed, then development. I guarantee that the AFL won't be cutting its development, especially in NSW & QLD, which is in the tens of millions in both States last time I heard.

The clubs are getting way to much. They should never have gotten more then 10m. If they can't survive on that, then, relocate to an area that can sustain and support you or die. Sorry, but why are we mollycoddling these wastrel and weak clubs when we can expand and grow the game in new frontiers that with the right support and development become power houses?

The job of the ARLC is to make sure the game is strong and grows at all levels, especially at junior level. Propping up losers that never change their business models because they don't have to is just plain wrong and ultimately crippling our sport. When will we ever learn. I noticed the TV pundits had very little to say about this and its wider and long term ramifications. We have already seen the decline of quality halves and other playmakers in the last year or two. Wait until the cuts kick in and what will eventuate eight to ten years from today.

Look at what has happened to Yawnion since its Australian money has dried up and their development has diminished.

 

[Perth Red]

You won’t get sacked as a commissioner for cutting grass roots or ref funding, you will for even daring to mention clubs getting less!

 

[taipan]

The clubs are getting more ,over and above the salary cap.That should be designated for development ,local and some regional.
There is talk of a reduced salary cap and reductions in club football dept mgt costs.As they get $13m now ,surely $1-$2m pa is not asking too much to set aside for grassroots.Times that by 16 plus development monies outlaid by the NRL /NSWRL/QRL would do the job?

 

[Perth Tiger]

The clubs are getting more ,over and above the salary cap.That should be designated for development ,local and some regional.
There is talk of a reduced salary cap and reductions in club football dept mgt costs.As they get $13m now ,surely $1-$2m pa is not asking too much to set aside for grassroots.Times that by 16 plus development monies outlaid by the NRL /NSWRL/QRL would do the job?

so who will do the development in the areas outside of the immediate catchment areas of clubs