News Coronavirus and NRL

[Johnny88]

Channel Nine outlines vision for preferred NRL future

Channel Nine has outlined a vision of its preferred future NRL television deal at a crisis meeting with ARLC chairman Peter V'landys, with the free-to-air broadcaster favouring two exclusive games per round as part of an extended rights contract.

After Nine boss Hugh Marks met with V'landys at Racing NSW headquarters on Tuesday, sources close to the negotiations told the Herald Channel Nine, publisher of this masthead, wanted to give up the Thursday night game and concentrate on its traditional Friday night and Sunday afternoon time slots.



It also hopes pay-TV broadcaster Foxtel, who will join Nine and the NRL in negotiations later this week, can be convinced to relinquish its Friday 6pm game as part of a new rights deal that would do away with the current simulcast arrangement.

"Today, Nine CEO Hugh Marks and I had a constructive and co-operative meeting about rugby league in 2020 and beyond," V'landys said in a statement after the meeting.

"I am buoyed by Mr Marks’ support of rugby league and his commitment to the game. The meeting provided us with the opportunity to outline our positions and discuss next steps to navigate this crisis.

"We are both focused on the long-term success of the game and, while there is more work to do, I am optimistic we will find a way through this together. Our next meeting, where we will endeavour to construct a road map for the game this year, must include Foxtel CEO Patrick Delany."

Nine CEO Hugh Marks after leaving Racing NSW following a meeting with ARLC chairman Peter V'landys.Louie Douvis - Sydney Morning Herald

The Herald has been told by sources with knowledge of the meeting that Nine also expressed its preference to wipe the 2020 season, in stark contrast to V'landys' push for a May 28 restart. The end result could fall somewhere in the middle.

Nine doesn't want to walk away from the game. It wants a two-year extension, but under different terms and for less than the $110 million it currently pays the governing body each year.

Due to the coronavirus pandemic, the NRL has been unable to deliver on the product its broadcasters had expected as part of a $1.8 billion rights deal over five years. The NRL has enacted the force majeure clause after being left with no choice but to breach its contract with its broadcast partners.

Foxtel chief executive Patrick Delany.James Brickwood

None of the parties involved wants to see the matter head to court, hence the renegotiation that's about to take place between V'landys, Marks and Delany.

V'landys is a realist. It's unlikely the NRL will deliver all of its promised content this year, and the world in which $1.8 billion rugby league broadcast deals are done may no longer exist.

Foxtel has recently made moves to lower its cost base. Only last week it made 200 staff redundant and stood down another 140 employees until the end of June.

Right now Fox Sports broadcasts all eight games, three of which are simulcast with Nine and five exclusive matches.

Changing the structure to suit Nine would also benefit Fox. The fact it has only six exclusive games is unlikely to impact on the number of subscribers - which underpins its business - but will mean it can reduce the $190 million it currently pays for the rights to all eight games.

ARLC chairman Peter V'landys and NRL chief executive Todd Greenberg.AAP

Under that scenario, both both Fox and Nine win. They want to pay less. The NRL might not be quite as happy with the result but it gets the security of a deal for at least another two years in a climate that is providing very little certainty.

The NRL had been holding out hope of extracting more than $1.8bn in the 2023-2027 rights deal. It could call Nine's bluff, but it runs the risk of attracting even less, if any, revenue from Channel Seven or Channel 10.
Rugby league icon Phil Gould has discussed plans to relaunch the NRL in late May, plus criticism from an old foe.

Then there's the problem of starting a competition that is also meeting some resistance from government.

Prime Minister Scott Morrison, a rugby league tragic, applauded the NRL's determination to return to normality but reiterated a need to adhere to the nation's health advice.

"I like the ambition," Morrison said. "I like they are trying to get the show back on the road in some way. It will be subject to health advice and there will be no special arrangements."

NSW Deputy Premier John Barilaro seems to be the most vocal in his support of a May 28 NRL restart, volunteering to act as a “conduit” between the government and the league

"It’s an ambitious date but you have to set a target,” Barilaro told Fox Sports.

https://www.smh.com.au/sport/nrl/ch...rred-nrl-future-20200414-p54jsv.html#comments

 

[azza29]

Fox would be mad to give up the simulcast rights. I'd much rather watch the game in HD via Kayo than Gem's muddy standard def feed here in Melbourne.

 

[Timbo]

So, after years of having every game ad free, the NRL is entertaining making us watch two matches with commercials again? And dropping some of it’s FTA coverage?

When every other sport in the country has a 100% ad free coverage option available, and we know the more FTA coverage the better it is for the sport? Who remembers the good old days of Canberra and GC getting two FTA games per year and Brisbane still getting 18?

I would say ‘there’s no way they’ll do this’ but this is the NRL we’re talking about. I’d only be half shocked if they let Nine show their matches on delay to ram them full of ads like they used to ten years ago.

If V’landys doesn’t take the existing deal straight to 10 and say ‘yours if you want it’ he’s an even bigger f**kwit than I first thought.

 

[JokerEel]

So Foxtel would be ok to lose live content on their NRL channel...

Smart business plan right there.. doubt it is true.

Play ball with 9 go to market and if need get some one who will support the product 100%

 

[Johnny88]

NRL kicks $250m goal with British banks deal

The NRL has struck a deal for a $250m lifeline from a group of London banks and financial institutions, giving rugby league both financial breathing space and leverage in its negotiations with broadcaster the Nine Network.

A huge line of credit, which could also come with support from the federal government, will be drawn down by the sport’s governing body and dispersed to needy NRL clubs within weeks, staving off the need for funds from Nine before the competition resumes.

The money will be secured against future income the sport receives, including broadcast and sponsorship revenue under contract until at least 2022, rather than a particular asset.


The NRL had to go offshore to secure its life-saving funding package — unlike the AFL, which last month used its ownership of Marvel Stadium in Melbourne as security on a $600m loan facility from NAB and ANZ.

The $250m line of credit for rugby league, brokered by London firm Oakwell Sports Advisory, will mean the code is less reliant on funding from its broadcasters in the short term as it battles to keep the sport afloat financially during the coronavirus pandemic.

Australian Rugby League Commission chairman Peter V’landys emerged from a key meeting with Nine chief executive Hugh Marks on Tuesday in Sydney, saying he was “buoyed by Mr Marks’s support for rugby league and his commitment to the game”.


ARLC Chairman Peter V'landys. Picture: AAP
Nine last week took the unusual step of publicly criticising NRL management for what a network spokesman said was a mishandling of the game and the wasting of the millions the TV network had invested in the sport.

Mr V’Landys has set a target of May 28 for the NRL to return to action on the field, although the games will be played without crowds for the foreseeable future.

Nine and Fox Sports are contracted to pay the NRL about $300m a year, combined, through to the end of the 2022 season, although there has been speculation that Nine would be happy if rugby league did not return in 2020.

Oakwell and the NRL are set to sign off on the deal within days, and there is an expectation within rugby league circles that the sport will receive $100m to start with and then have a further $150m to draw down if needed.

An interest rate at general market rates for relatively short-term lending will be struck, but that rate will be halved, in effect, if the NRL is able to secure support from the federal government for the loan.

The NRL will disperse the money to clubs on a case-by-case basis, opening the way for some of the poorer clubs to potentially receive more funds than their richer counterparts under strict conditions set by the code’s head office.

It could be a similar move as that undertaken by the AFL, which is imposing strict conditions on most of the clubs in its league, including having each of them report to head office regularly about their balance sheets and their overall financial situation.

Some AFL clubs have said they would not need additional funding from the AFL, including the likes of Hawthorn and Collingwood, while the Adelaide Crows have expressed a preference for sourcing their own financing.

NRL clubs have different funding sources, with half the competition owned by private individuals or groups — or, in the case of the Brisbane Broncos, being listed on the Australian Stock Exchange.

Other clubs are reliant on funding from their licensed clubs, which have all been shut down during the pandemic.

Oakwell has previously brokered deals for investments in sport, such as private equity firm CVC Capital Partners buying 27 per cent of top-flight rugby union in England in a £200m deal in 2018. CVC has reportedly been linked to other rugby union deals around the world, including a potential play for a stake in southern hemisphere rugby.

A source told The Australian CVC was not among the financial institutions that agreed to lend money to the NRL.
https://www.theaustralian.com.au/sp...l/news-story/ecbf5760aa2dd8bc0b4a20faf3ff5378

 

[Perth Red]

If Vlandys accepts a two year extension for less money, less fta coverage and no simucast on Fox then he will go down as the worse nrl administrator since Gallop!

 

[Perth Red]

Why does the nrl need $250mill if it is planning to restart end of May?

 

[Cumberland Throw]

Why does the nrl need $250mill if it is planning to restart end of May?

It's an overdraft.. you don't need to use it all

 

[Cumberland Throw]

How amazing is it that ch9 comes out and says they prefer the comp sits out 2020..

Is there any other broadcaster in world that is hoping their biggest sport doesn't return.. ??

Are ESPN hoping NFL doesn't start ? Or CBS etc ?

Are sky sports uk hoping premier league doesn't start again ?

 

[Johnny88]

ARL Commission chairman Peter V’landys walked out of a meeting with Nine Network boss Hugh Marks on Tuesday convinced that the game’s long-term partner wants to see rugby league back on the field this year.

After days of tension between the NRL and Nine, peace appears to have broken out. Goodwill was so thick in the air, there was talk on Tuesday Nine Network wanted a four-year extension to the current arrangement with the code.

That would make the existing deal nine years in total and bond the NRL and Nine until the end of 2026. If V’landys and the NRL wanted a show of commitment, it appears they got it.

Next stop is Foxtel as NRL chief commercial officer Andrew Abdo prepares for talks with the game’s major broadcasting partner on Wednesday.

NRL chief executive Todd Greenberg, who spoke to Foxtel chief executive Patrick Delany on Tuesday, has been focusing on other matters, his relationship with Nine beyond repair and his place at the apex of the game becoming increasingly tenuous as he edges towards the end of his contract.

There had been talk that Nine would be happy to see the 2020 season cancelled, that view amplified by a series of recent events that suggested the network harboured grave concerns over their relationship with the code.

First, they told the Australian Stock Exchange they could save $130m if rugby league was canned in 2020. Then, they launched a blistering attack on rugby league’s administration, in particular its handling of the game’s finances.

hat missive further eroded Greenberg’s authority. He was notably absent at the meeting between Marks and V’landys on Tuesday, although he and Abdo will speak to Foxsports chief Peter Campbell and head of television Steve Crawley on Wednesday.

Against that backdrop, V’landys and Marks met for 90 minutes at the Racing NSW chief executive’s office in Sydney.

Having watched the code be eviscerated by their commercial partner only days prior, V’landys is understood to have walked away with a clearer idea of the motivation behind Nine’s attack on rugby league.

It seems they wanted some certainty over not just the future of the game, but the clubs. It is also believed Nine is positioning itself to negotiate a long-term extension, which would ward off the prospect of the Ten or Seven networks launching a bid to steal the rights.

Ten has been watching recent events with great interest, the sense that it is biding its time to make a play for the sport.

The Nine Network, meanwhile, have used their media outlets to test the waters on revisions to the current agreement.

There had been talk that Nine wanted more exclusive content — Foxtel currently telecasts every game, including the three shown by Nine. Foxtel is understood to be against giving up content, secure in the knowledge that showing every game drives subscriptions.

Further discussions are likely to take place later in the week when Marks and V’landys share a conversation with Delany.

Any attempt to dilute Foxtel’s ability to show all games is likely to get short shrift. Time is of the essence. The game needs some certainty around its finances and the schedule, given it has set itself the lofty goal of being back on the field by May 28.

Chances are those issues will be determined by the end of the week, enabling the NRL to better inform the players and their clubs of the lay of the land.

The Warriors, in particular, are waiting for further information from the NRL as they prepare to fly to Australia and embed themselves in Sydney to help the game return to the field.

“Today Nine CEO Hugh Marks and I had a constructive … meeting about rugby league in 2020 and beyond,” V’landys said. “I am buoyed by Mr Marks’s support of rugby league and his commitment to the game … Our next meeting, where we will endeavour to construct a road map for the game this year, must include Foxtel CEO Patrick Delany.”

Origin will be part of that road map, although Queensland Premier Annastacia Palaszczuk threw a spanner in works when she suggested the series could be scrapped this year. That is news to Queensland Rugby League chair Bruce Hatcher, who would like to see it played as soon as possible.

“I would like to see it played as early as possible,” Hatcher said.

“It is enormous for the goodwill of the community it serves.”

BRENT READ

SENIOR SPORTS WRITER
https://www.theaustralian.com.au/sp...b2b14f2c3a472b334de09287d835f0c6?from=htc_rss

 

[JokerEel]

I like how V'Landys was able to make the CEO of nine come to him....

 

[Hello, I'm The Doctor]

Channel Nine outlines vision for preferred NRL future

Channel Nine has outlined a vision of its preferred future NRL television deal at a crisis meeting with ARLC chairman Peter V'landys, with the free-to-air broadcaster favouring two exclusive games per round as part of an extended rights contract.


https://www.smh.com.au/sport/nrl/ch...rred-nrl-future-20200414-p54jsv.html#comments

So let me get this right....

9 want 2 exclusive games, to offer less FTA exposure for RL AND to pay less for the effort.

FOX want ANOTHER exclusive game, will probably demand the return of Monday football AND want to pay less.

NRL gets f*cked from all possible directions (less money, less exposure, less control) in exchange for “security”. One of the 2 most valuable and sort after sports products on tv and these f*ckers are offering security?

Well get f*cked.

Seriously, if the only option is less money, give it all to 10 or f*ckin sbs if they have to. Maybe not much money, but we’ll get decent exposure and finally some good treatment.

 

[JokerEel]

I think 9 have tried all the tricks they have..

They are desperate so shown.by them trying to negotiate a new 4 year deal.

V'landys should just string them along while talking to other networks about the next 2 years (if 9 wants out) as well as the 5 preceding this deal.

 

[no name]

Some interesting angles in those articles.

SMH - 9 getting 2 exclusive games and Foxtel getting 6 exclusive games is win/win.

The Australian - Foxtel is against giving up content.

 

[Perth Red]

I like how V'Landys was able to make the CEO of nine come to him....

It was at nsw Racing offices not nrl hq, maybe he slipped him some tips?

 

[Perth Red]

So nine want: less fta games, pay less money (already paying tens of millions of $’s less than 7 pays for afl a year) , an extension so the game can’t test the market and to reduce the value for Fox.
And the game gets what exactly in return?

 

[JokerEel]

So nine want: less fta games, pay less money (already paying tens of millions of $’s less than 7 pays for afl a year) , an extension so the game can’t test the market and to reduce the value for Fox.
And the game gets what exactly in return?

Hopefully those questions are being asked at the NRL as well.

 

[JokerEel]

It was at nsw Racing offices not nrl hq, maybe he slipped him some tips?

Possibly but when you have to make the trip doesn't look like he is in charge.

 

[The Great Dane]

So let me get this right....

9 want 2 exclusive games, to offer less FTA exposure for RL AND to pay less for the effort.

FOX want ANOTHER exclusive game, will probably demand the return of Monday football AND want to pay less.

NRL gets f*cked from all possible directions (less money, less exposure, less control) in exchange for “security”. One of the 2 most valuable and sort after sports products on tv and these f*ckers are offering security?

Well get f*cked.

Seriously, if the only option is less money, give it all to 10 or f*ckin sbs if they have to. Maybe not much money, but we’ll get decent exposure and finally some good treatment.

If the NRL just drop Nine cold and jump to Ten, then when this current broadcast deal is over Nine won't be inclined to offer as much as they might for the next contract, and that will hurt the contracts' value even if the NRL doesn't intend to sign with Nine next time around. So for the NRL to get the best outcome in the future, they have to get a good outcome for themselves for the next few years without totally compromising their relationship with Nine.

If V'Landys is the smooth operator that everybody makes him out to be, he'll use the threat of Ten to force Nine to more or less uphold their end of the current contract, without any really major changes or it being extended, and line up Ten to make a big offer for the rights once the current contract is over without pissing Nine off to much.

It'll be interesting to see if V'Landys can pull that off, if he can't though, then yeah, forcing Nine to break the contract and going to Ten on similar but less money with better exposure would be better than allowing Nine to bully the NRL into giving them whatever they want, but could he pull that off without compromising the NRL's deal with Fox?

Whatever happens it'll be interesting to see how V'Landys handles it, and if the ARLC, NRL, and clubs, will stand united behind him or if they'll cave to pressure from the broadcasters, and sacrifice him like they did David Smith.

 

[siv]

Ch9 trying to go back to bare bones FTA anti-siphoning laws to reduce their

No suggestion on when ThuNF or Fri 6pm games get

And no mention of the payment Fox do to Ch9 for SatNF