The NRL is budgeting for a profit next year and has told clubs it is expecting the Seven, Nine and Ten networks to all be involved in the battle for league’s free-to-air rights in the next broadcast cycle.
ARLC chairman Peter V’landys and NRL chief executive Andrew Abdo addressed all 16 clubs on Friday morning to go through the figures. As part of the briefing, the franchises were given an insight into last year’s broadcast rights renegotiations between Nine and Fox due to the impact of the coronavirus outbreak.
The clubs were told Ten were not in a position to make a bid, while Seven’s offer was only half that of Nine. Further, Seven was seeking a revenue-share model rather than a guaranteed sum, making it a less enticing proposal than the bid from the incumbent free-to-air provider.
Talks had also been held with ‘disruptors’ such as Netflix and Google, but they too were pursuing revenue-share arrangements. Those options were ultimately dismissed because the NRL would have also been required to wear the $50 million production costs that Nine and Fox currently absorb.
The clubs were told that free-to-air negotiations would commence this year and that there was a chance of three bidders providing competitive tension. However, Seven’s involvement could be contingent on whether it could extricate itself from its current agreement to broadcast the cricket.
The NRL’s deal with Fox, which provides 66 per cent of broadcast revenue, doesn’t lapse until 2027. The agreement with Nine, publishers of this masthead, ends in 2022.
The clubs were told the NRL would balance the potential extra revenue it could generate through subscription services with the need to reach as many viewers as possible on free-to-air channels in concluding the next deal.
www.smh.com.au/sport/nrl/nrl-preparing-to-get-back-in-the-black-as-tv-talks-ramp-up-20210226-p5768c.html