Next TV rights deal part 2

[Stormwarrior82]

For me, any amount from fox wouldnt be good enough. if fox want to low ball the nrl thats fine but know that the nrl broadcast they would get wont be exclusive. Let optus in on the action and netflix and everyone else. more the merrier!!

 

[Stormwarrior82]

because Murdoch wants only one code

he started with RL and SL but has moved on to AFL

Lets hope he does the same to the afl. Super Football League. :lol:

 

[HHH]

interesting thats theres no mention of this news in the tele
wonder why

 

[LESStar58]

interesting thats theres no mention of this news in the tele
wonder why

It doesn't suit their agenda....?

 

[Sea_Eagles_Rock]

Will Murdoch and Fox try and lauch SL Mark II if Optus wins the NRL TV rights ?

It is completely different now. Firstly players are not under paid, and this is a hit at their bread and butter viewers. They are not establishing a new viewing base here. It is likely 50-60% loss in revenue overnight once the contract comes into effect. Remember too, most viewers are not locked in now.

Additionally they are also heavily over committed to AFL. They also can't afford to have 2-3 years of a damaged product to rebuild again. If Optus trump them, imagine the mess it would leave watching sport in this country. People who sit on the fence between the two codes would be forced to pick a side. The AFL have played their cards and have no flexibility, while the NRL still does.

Look at the value of that last rights removal now. It cost the game at the last negotiation, but it is the huge winner for the game this time around. Fox are screwed if Optus manage to get the funds together. That clause was a noose around the sports neck. Murdoch got all smug and smart about the AFL deal. Those comments should ensure the game will explore ALL options.

 

[RL The greatest game]

It doesn't suit their agenda....?

Because the Telegraph is known for its yellow journalism.

 

[Captain Apollo]

I just don't get how overpaying for AFL teaches anyone a lesson.

I think the point in the article is it will teach News Ltd a lesson in not going off in a fit of pique when things don't go their way. They won't get the NRL rights for chicken feed, and if they lose them Foxtel take a big hit in losing subscribers, which effects the bottom line. If they had not over-reacted and paid the AFL more than market rate, the cost of that plus the NRL rights wold not cost them the proverbial arm and a leg it will. Had they paid market rate for the AFL, the money saved could have been used towards the NRL rights.

 

[RL The greatest game]

I think the point in the article is it will teach News Ltd a lesson in not going off in a fit of pique when things don't go their way. They won't get the NRL rights for chicken feed, and if they lose them Foxtel take a big hit in losing subscribers, which effects the bottom line. If they had not over-reacted and paid the AFL more than market rate, the cost of that plus the NRL rights wold not cost them the proverbial arm and a leg it will. Had they paid market rate for the AFL, the money saved could have been used towards the NRL rights.

News have huge problem now. I don't think they have the money to pay us our worth which means Fox subscribers will fall like 9 pins when they have no NRL, which in turn means News will have a financial black hole.
Happy days ahead for Rugby League \\\\/

 

[Last Week]

News have huge problem now. I don't think they have the money to pay us our worth which means Fox subscribers will fall like 9 pins when they have no NRL, which in turn means News will have a financial black hole.
Happy days ahead for Rugby League \\\\/

Yes they do. They are our richest possible provider. News Corp will fund what ever cash Fox need. Within reason of course.

 

[Perth Red]

and all this glee is based on the premise there is another provider out there willing to pay $750-1bill for the remaining rights. I really hope there is but have my doubts. I'd be amazed if Fox don't pay through the nose to ensure they don't lose the NRL, despite the old man Murdoch's bluster.

 

[DiegoNT]

and all this glee is based on the premise there is another provider out there willing to pay $750-1bill for the remaining rights. I really hope there is but have my doubts. I'd be amazed if Fox don't pay through the nose to ensure they don't lose the NRL, despite the old man Murdoch's bluster.

The opposing bidder doesn't have to pay 750m-1b
The nrl can say to fox, since you won't pay the full value of what the nrl is worth, especially since you've underpaid for so long and also continue to negatively report on the game, then we are prepared to go with another provider for a cheaper price and develop a more co-operative partnership into the future.

 

[herbert henry1908]

News have huge problem now. I don't think they have the money to pay us our worth which means Fox subscribers will fall like 9 pins when they have no NRL, which in turn means News will have a financial black hole.
Happy days ahead for Rugby League \\\\/

They absolutely have the money.

Foxtel is one of the most profitable pay tv operations in the world. Despite a stagnant user base.

 

[herbert henry1908]

and all this glee is based on the premise there is another provider out there willing to pay $750-1bill for the remaining rights. I really hope there is but have my doubts. I'd be amazed if Fox don't pay through the nose to ensure they don't lose the NRL, despite the old man Murdoch's bluster.

Been a while since I've been on the boards , but your statements are just as odd as ever.

Your first sentence: don't get too excited , no evidence anyone else willing to pay huge money

Second sentence: fox will pay through the nose


Whaaaaaaaat?

Couldn't be more contradictory.

 

[Perth Red]

I think fox will pay through the nose (relatively) because of the potential risk to their business. the amount they will pay will be very much based on how significant a risk they feel there is off someone else being able to challenge them for the rights. I could see someone like Optus being able to stump up $100mill a year but probably not much more, Fox probably know this and rather than take a risk the NRL would take less money to find new opportunities in the future they will likely stump up a bit more to avoid this. Best case scenario we get $1bill. worse case $700mill imo from Fox.

welcome back lol

 

[Last Week]

and all this glee is based on the premise there is another provider out there willing to pay $750-1bill for the remaining rights. I really hope there is but have my doubts. I'd be amazed if Fox don't pay through the nose to ensure they don't lose the NRL, despite the old man Murdoch's bluster.

We do love to run down our successes in RL!

And talk down our chances of success aswell it seems.

With all your supposed experiences with business and CEO's, I would imagine the below from docbrown would be obvious..

Remember - the NRL doesn't actually need Optus to be physically capable of doing this. They may or may not be able to. But it is the mere perception that they can and the risk aversion Foxtel takes to avoid it that generates the premium.

 

[Perth Red]

which is what I just explained above lol.

 

[Pig Champion]

They absolutely have the money.

Foxtel is one of the most profitable pay tv operations in the world. Despite a stagnant user base.

Is that because we, as subscribers in Australia, pay too much compared to other markets?

 

[herbert henry1908]

I think fox will pay through the nose (relatively) because of the potential risk to their business. the amount they will pay will be very much based on how significant a risk they feel there is off someone else being able to challenge them for the rights. I could see someone like Optus being able to stump up $100mill a year but probably not much more, Fox probably know this and rather than take a risk the NRL would take less money to find new opportunities in the future they will likely stump up a bit more to avoid this. Best case scenario we get $1bill. worse case $700mill imo from Fox.

welcome back lol

The amount they pay won't just be relative to the risk of another bidder. It will also be relative to the risk of what losing the NRL would do to them. Not just in this deal , but in the medium term.

If fox burnt the NRL with a low bid now , NRL won't forget that in 5 yrs time. At which point other players will be making serious bids. (Everyone will have the NBN for example)

They were pissed , they'll calm down. But now they lost the EPL they'll be nervous.

I suspect on a per game basis they'll pay the NRL more than what the AFL are getting.

 

[herbert henry1908]

Is that because we, as subscribers in Australia, pay too much compared to other markets?

Essentially.

Lack of competition now for 13 yrs since Optus went out of TV.

Plus we've never had the flexibility in channel packages they do in bigger markets.

 

[BlueandGold]

I think fox will pay through the nose (relatively) because of the potential risk to their business. the amount they will pay will be very much based on how significant a risk they feel there is off someone else being able to challenge them for the rights. I could see someone like Optus being able to stump up $100mill a year but probably not much more, Fox probably know this and rather than take a risk the NRL would take less money to find new opportunities in the future they will likely stump up a bit more to avoid this. Best case scenario we get $1bill. worse case $700mill imo from Fox.

welcome back lol

If Fox want to hold onto subs in NSW and QLD then they will have to simulcast all 8 games and the finals series.

If they want to give themselves the edge over FTA then they will fund Expansion.

If the game expands to 18 teams with simulcasting of all 9 games 5 exclusive + finals series then i think the NRL will get about 1.2billion over 5y from Pay tv.

If Fox only go for all 8 games 4 exclusive with simulcasting and final series then i think it will be around the 1billion mark.

I dont think Fox buying 4 games is even a possibility but you never know some people just want to watch the world burn.

Either way i think Fox Pays up big to keep its sports leader on Foxtel.