http://www.smh.com.au/news/league/with-nine-to-kick-in-40m-league-has-rights-stuff-to-catch-afl/2005/06/30/1119724758687.html?oneclick=true
With Nine to kick in $40m, league has rights stuff to catch AFL
By Roy Masters
July 1, 2005
Rugby league is set to challenge AFL as the highest-valued sports broadcasting property, with announcements expected today that Channel Nine and Fox Sports have renewed their rights agreements.
Nine's deal with the ARL and NRL for internationals, State of Origin, club matches and finals is expected to be $40 million a year - double the current deal which expires at the end of the 2007 season.
Fox Sports - a partnership between the Kerry Packer-owned Nine network and News Ltd, part-owners of the NRL - is believed to have significantly upgraded the $35m a year it is committed to spend until the end of next season, when pay-TV rights expire.
Based on the NRL producing an extra game per week due to the inclusion of Gold Coast in the competition in 2007, together with burgeoning advertising revenue to Fox Sports for its NRL programming, rugby league's total broadcasting income threatens to rival the AFL's $90m a year. However, Nine has not surrendered hope that it will retain AFL rights, with new boss Sam Chisholm drawn into negotiations.
Nine's determination to thwart a Channel Seven-Ten partnership, thought to be favoured to pick up the AFL rights when they expire at the end of next season, involves a partnership with Foxtel.
NRL chief executive David Gallop would not be drawn on the looming Nine-Fox Sports announcement but it is understood only a couple of minor issues are left to be resolved, including scheduling of matches, before the code enters its third and most lucrative deal with Packer.
"We are in discussions on a daily basis," Gallop said of his talks with Nine's Lynton Taylor. "There are still some issues to be discussed."
Club chief executives have lobbied for the NRL to gain control over which matches are shown on free-to-air TV, rather than Nine selecting its Friday match of the round and Sunday game five weeks ahead.
"Scheduling has been an issue but it's one bit of the negotiations," Gallop said. "Things are moving along."
Asked about the status of pay-TV negotiations, Gallop said: "The negotiations with Fox Sports have provided for their being 16 teams and eight games per week."
Rugby league has proved to be the premium programming on Fox Sports, attracting the highest advertising spend and drawing far more viewers than the AFL channel.
The involvement of Chisholm and Foxtel in AFL negotiations has thrown open myriad possibilities. It was believed Nine would not have programming hours to match coverage by the Seven-Ten combination but Foxtel, half-owned by Telstra with Nine and News Ltd each holding 25 per cent, has been looking at new broadcasting opportunities.
Fox Sports, which uses channels on the Foxtel network, has been drawing major advertising revenue and earnings via subscriptions. Telstra, denied any Fox Sports revenue, may complement Nine's search to find a broadcasting partner to deliver AFL matches now that Ten has deserted it to join Seven.
Meanwhile, Ten has revealed itself to be seeking sports programming other than AFL. It has tabled the biggest bid for rights to broadcast the Rugby World Cup in France in 2007.
All three of the commercial networks have submitted bids, however Seven was told that its offer was so low it should retire from the process.
While Trans World International - a division of IMG, which is the IRB's international agent for the sale of RWC rights - was disappointed with the size of the bids, Ten's was higher than Nine's.
Seven sought to destabilise the process by pointing out that Taylor, formerly an employee of TWI and now with Nine, was gamekeeper turned poacher.
It was assumed Nine had the RWC rights and was seeking to put distance between the deal and the announcement. However, Ten is the favourite, although the deal has not yet been finalised.
Ten may have lost interest in AFL, given the turmoil in Melbourne yesterday following the announcement it would be screening the Adelaide-Port Adelaide match in round 20, rather than the traditional blockbuster between Carlton and Collingwood.
No mention there of an extra FTA game per weekend. Let's hope we see some FTA NRL on Saturdays in the future. Good to see little old rugby league rivalling the chest-beating, self-proclaimed national football code from down south.
With Nine to kick in $40m, league has rights stuff to catch AFL
By Roy Masters
July 1, 2005
Rugby league is set to challenge AFL as the highest-valued sports broadcasting property, with announcements expected today that Channel Nine and Fox Sports have renewed their rights agreements.
Nine's deal with the ARL and NRL for internationals, State of Origin, club matches and finals is expected to be $40 million a year - double the current deal which expires at the end of the 2007 season.
Fox Sports - a partnership between the Kerry Packer-owned Nine network and News Ltd, part-owners of the NRL - is believed to have significantly upgraded the $35m a year it is committed to spend until the end of next season, when pay-TV rights expire.
Based on the NRL producing an extra game per week due to the inclusion of Gold Coast in the competition in 2007, together with burgeoning advertising revenue to Fox Sports for its NRL programming, rugby league's total broadcasting income threatens to rival the AFL's $90m a year. However, Nine has not surrendered hope that it will retain AFL rights, with new boss Sam Chisholm drawn into negotiations.
Nine's determination to thwart a Channel Seven-Ten partnership, thought to be favoured to pick up the AFL rights when they expire at the end of next season, involves a partnership with Foxtel.
NRL chief executive David Gallop would not be drawn on the looming Nine-Fox Sports announcement but it is understood only a couple of minor issues are left to be resolved, including scheduling of matches, before the code enters its third and most lucrative deal with Packer.
"We are in discussions on a daily basis," Gallop said of his talks with Nine's Lynton Taylor. "There are still some issues to be discussed."
Club chief executives have lobbied for the NRL to gain control over which matches are shown on free-to-air TV, rather than Nine selecting its Friday match of the round and Sunday game five weeks ahead.
"Scheduling has been an issue but it's one bit of the negotiations," Gallop said. "Things are moving along."
Asked about the status of pay-TV negotiations, Gallop said: "The negotiations with Fox Sports have provided for their being 16 teams and eight games per week."
Rugby league has proved to be the premium programming on Fox Sports, attracting the highest advertising spend and drawing far more viewers than the AFL channel.
The involvement of Chisholm and Foxtel in AFL negotiations has thrown open myriad possibilities. It was believed Nine would not have programming hours to match coverage by the Seven-Ten combination but Foxtel, half-owned by Telstra with Nine and News Ltd each holding 25 per cent, has been looking at new broadcasting opportunities.
Fox Sports, which uses channels on the Foxtel network, has been drawing major advertising revenue and earnings via subscriptions. Telstra, denied any Fox Sports revenue, may complement Nine's search to find a broadcasting partner to deliver AFL matches now that Ten has deserted it to join Seven.
Meanwhile, Ten has revealed itself to be seeking sports programming other than AFL. It has tabled the biggest bid for rights to broadcast the Rugby World Cup in France in 2007.
All three of the commercial networks have submitted bids, however Seven was told that its offer was so low it should retire from the process.
While Trans World International - a division of IMG, which is the IRB's international agent for the sale of RWC rights - was disappointed with the size of the bids, Ten's was higher than Nine's.
Seven sought to destabilise the process by pointing out that Taylor, formerly an employee of TWI and now with Nine, was gamekeeper turned poacher.
It was assumed Nine had the RWC rights and was seeking to put distance between the deal and the announcement. However, Ten is the favourite, although the deal has not yet been finalised.
Ten may have lost interest in AFL, given the turmoil in Melbourne yesterday following the announcement it would be screening the Adelaide-Port Adelaide match in round 20, rather than the traditional blockbuster between Carlton and Collingwood.
No mention there of an extra FTA game per weekend. Let's hope we see some FTA NRL on Saturdays in the future. Good to see little old rugby league rivalling the chest-beating, self-proclaimed national football code from down south.
