https://www.smh.com.au/sport/nrl/ne...2023-redcliffe-expansion-20211004-p58x16.html
News Corp strikes $75m deal with NRL to prop up 2023 Redcliffe expansion
The NRL is expected to propose the Redcliffe Dolphins as the expansion team for 2023 after striking a deal with News Corp to inject an extra $75m into the sport over five years.
Sources with knowledge of discussions told the
Herald that as part of the deal, the NRL has pledged to reduce the number of free-to-air games involving the News Corp-owned Brisbane Broncos by up to 25 per cent.
The deal with News Corp, which is worth $13m-$15m a season, came as a shock to Nine Entertainment Co, publisher of this masthead, when it was recently told of the arrangement.
The deal has caused some angst among Nine powerbrokers as they head to the negotiation table in the coming weeks to resume what are already proving to be delicate discussions for the free-to-air rights beyond 2022.
ARL Commission chairman Peter V’landys, through his role as Racing NSW chief executive, already has close ties and relationships with News Corp.
This latest deal, which V’landys negotiated alongside NRL chief executive Andrew Abdo, is another sign of his influence at News Corp and comes on top of the $1 billion deal already agreed with the media company for the 2023-2027 broadcast rights.
Both Abdo and V’landys flew to Los Angeles at the start of 2020 to meet with News Corp co-chairman Lachlan Murdoch to secure his blessing for a 17th team in the competition.
The NRL will announce the deal to clubs in a video conference with all 16 teams on Thursday. The code’s expansion assessment committee will then meet the following day to put forward a final recommendation for the prospective franchise, which is expected to be the Redcliffe Dolphins.
NRL clubs currently receive an annual grant of $13m from head office. The clubs have been concerned about the impact a 17th team will have on their bottom lines.
However, News Corp’s injection of $15m a year for the duration of the next broadcast cycle will not only cover the annual grant of the new team, it will provide head office with up to an extra $2m a season.
That is before considering any uplift in rights revenue from Nine, or a rival free-to-air network, for an expanded competition in 2023.
The NRL was able to convince News Corp that a new team in Brisbane, as well as a reduction in Broncos free-to-air games, would drive extra subscriptions to Kayo and Fox Sports in a state where the network has traditionally had a far lower penetration level than NSW because the Broncos are so regularly on free-to-air TV.
The Broncos have more free-to-air games than any other team in the competition, with a maximum of 16 allocated to Channel Nine in a 25-round competition each year.
The Broncos have proven a ratings bonanza over the past decade, with News Corp now set to benefit from the popularity of the game’s most powerful club with an influx of games on Saturdays and Sundays.
The expected addition of the Dolphins will also provide Queensland viewers with another 24 games worth of content including a team from their state.
On the flip side, a reduction in Broncos games for Channel Nine will provide the opportunity for the new expansion team to dominate the airwaves.
It's expected Wayne Bennett will be the coach of the new team, which will have no trouble attracting talent given the reputation of the seven-time premiership-winning coach.
