Next TV rights deal

[El Diablo]

http://www.theaustralian.com.au/new...-for-tv-sell-off/story-e6frg6n6-1227323807620

NRL’s analysts prepare to split up the game for TV sell-off

The Australian
April 28, 2015 12:00AM

The NRL has employed a team of analysts for the past 12 months to work out the dollar value of the game’s separate assets, including the Telstra Premiership and State of Origin, in order to drive a better bargain for the next broadcast rights deal.

NRL chief executive Dave Smith yesterday confirmed last Friday’s reports in The Australian that he had phoned executives at rights holders the Nine Network, Fox Sports and Telstra to give formal notification he wanted to start talks in the next few weeks. The current deal netted the code a *record $1.025 billion and doesn’t expire until the end of 2017.

“TV rights are such a big part of any professional sports finances so it’s only right that we are talking and it’s not that far towards the end of this rights deal,’’ Smith said.

“My obligation is to make sure the fans have got a game like ours to watch for the next 10, 20, 30 years so it’s not surprising really that I would be thinking about the future and it’s a very, very big part of that future. I’ll continue to talk and see where we get to.’’

Smith is in a strong position to net the code an even better deal this time around thanks to record ratings last season. The first two State of Origin games and South Sydney’s grand final win over Canterbury were the three most watched programs on TV all year.

The Australian has been told that the NRL has its own team of analysts who have been determining the value of the game’s assets over the past year.

It is understood that Smith will be armed with their information when he meets TV executives in the coming weeks to ensure the game is not short-changed.

The NRL boss confirmed the game could sell off its assets to the highest bidder. He is prepared to separate regular season and finals games, the State of Origin series, Test matches and the World Cup and the Auckland Nines as pack*ages to different networks.

Commercial broadcast partner Nine has enjoyed first and last rights but that clause has been removed for the next deal.

“I think the most important thing is to understand the value of the asset that you’ve got and we do,’’ Smith said. “We’ve done a lot of work over the last 12 months to really understand what the value of our rights are. My obligation is to the fans and make sure that we do the best deal we can.

“I think there’s lots of ways to skin the cat and many other professional sports segment their properties, they build franchises. The game’s got so much potential, so much upside.

“I do feel that I’ve not got both arms tied behind my back, there’s no first and last rights. We’re in a position whereby we can really pitch what we’ve got and recognise that it’s of some value.’’

Smith wants to free the league from having to support clubs fin*ancially. The NRL props up Wests Tigers, Gold Coast, Newcastle and St George Illawarra. Only two clubs — South Sydney and Brisbane — recorded a profit last year once league clubs grants are removed from the equation.

“I would expect that the next deal will continue to close that gap and the clubs will be stronger and healthier and it will be great if they were in a position where they were profitable and they were able to reinvest into their core markets as well,’’ Smith said. “That’s an overall ambition whereby we get to that point. We’ll go through this deal, we’ll see where it lands us and hopefully it puts it in an even stronger place.”

Smith said the existing broadcast rights deal would not prevent the game from trying to replicate another Anzac Day extravaganza next year. The NRL commemorated the 100th year anniversary of the Gallipoli landings by staging five games across three states as well as in New Zealand.

The NRL’s task was made easier by the fact Anzac Day fell on a Saturday this year. Next year it will be on a Monday.

“The sort of feeling that goes towards Anzac is strong and deep across Australia and I don’t think that’s any different from broadcasters or sponsors or any of the other big stakeholders involved in commemorating it,’’ Smith said.

 

[LeagueXIII]

Great to hear smith say his obligation is to the game and it's fans unlike gallop who looked after news ltd first.

Also that smith is not hog tied with first and last rights.

This is the first time in over 20 years that the game has negotiated for rights independently.

 

[mongoose]

Great to hear smith say his obligation is to the game and it's fans unlike gallop who looked after news ltd first.

Also that smith is not hog tied with first and last rights.

This is the first time in over 20 years that the game has negotiated for rights independently.

but but smith is a welsh banker, overpaid, gets chauferred to work. Gallop was for the fans, and News Ltd and rupert murdoch is the true voice of the people...:sarcasm:

 

[chigurh]

Typical bloody banker. Clearly doesn't understand the game at all :sarcasm:

 

[taipan]

D.Smith once ran a billion dollar banking businessro active thinking outside the square,surrounding himself with experts who will extract maximum value.Striking early to ensure all FTA stations are bidding.Looking at securing longevity of the game.

Gallop (once a News lawyer)surrounded himself with the very people he was offering the code to.Namely News Ltd honchos at Foxtel,and agreeing to a F& L deal.The code marked time under his leadership with little money in the bank.


You want money :Go to a bank.You want to spend money: Go to a lawyer.


But but ,he never played rugby league according to Bourbon Bec,Rothbrew.:roll:

Yep get a journo to advise someone how to run a billion dollar business,you know it makes business sense.

 

[BuffaloRules]

Shouldn't Smith be more worried about Country Rugby league and referee f**k ups instead of negotiating multi billion dollar deals for the game?

 

[Chicken_Hunter]

Shouldn't Smith be more worried about Country Rugby league and referee f**k ups instead of negotiating multi billion dollar deals for the game?

Without emoticons it makes this post not look like a pisstake.

 

[Perth Red]

I dont think many think business exec Smith can't bring in money. Can he spend it wisely to grow the game at all levels, achieve the strategic plan goals and take RL to the next level in this region? The jury is still out on that one.

 

[LeagueXIII]

Why is it out? Because the daily telegraph has run a campaign to destabilise his leadership.

As far as I am concerned he's already a mile in front of the last two pathetic leaders of the nrl.

 

[j5o6hn]

Always amazes me that people believe anything printed or said about Rugby League in the NEWS LTD papers,the Telegraph really are a bunch of 1st class liars,along with a number of their Columnists and reporters.
Comparing Smith to Gallop is like chalk and cheese, Gallop was OWNED lock stock and barrel by NEWS LTD he did what he was told which included selling RL short and selling it cheaply to 9 and Foxtel,why they even get mentioned in this place is beyond me

 

[Von Neumann]

Always amazes me that people believe anything printed or said about Rugby League in the NEWS LTD papers,the Telegraph really are a bunch of 1st class liars,along with a number of their Columnists and reporters.
Comparing Smith to Gallop is like chalk and cheese, Gallop was OWNED lock stock and barrel by NEWS LTD he did what he was told which included selling RL short and selling it cheaply to 9 and Foxtel,why they even get mentioned in this place is beyond me

Smith has been great for the game, agreed, and the papers ring the bell tolls day in, day out at times.

The significance of all this for me is, I spent some time thinking about it, and wrote my last post above -- and literally a short while after someone posts an article about "spreading the game" which coincided with my "work out ways to generate the moneys for all parties".

IF I can spend a few minutes here n there thinking about it and coming up with a solution (or next step at least); imagine MY delight when I discover Smith had this all done (and the ARLC as well) ONE FULL YEAR ahead of me. The difference is, when myself, or many others out in the great land we live in, made such assumptions under the Old Admin - it was like beating your head up against the wall.

I dont mind if I dont get credit for this deliberate act, its not a coincidence - and neither is the quality of Smith and the management at the NRL/ARLC - I would like NRL to get proper credit when its due. Sure, if we ALL thought about it, you'd do that. What matters is the NRL is doing it right.

For examples of doing it wrong, I typically see images of Gallop and Co. in my head. Scary stuff.

And spare a thought for the passionate Mario Fenech, whom is a clever guy, dont see much of him anymore on the tele, but his passion, and people like him were wasted at the NRL during those years. Not sure how he operated, but the game underdone itself a whole lot over the years.

As to News, its difficult for them, but there has been a sharp direction change (if however slight) with their reporting. They are not as harsh - if anything they are just being 'average-aggravated-fan's' mouthpiece. So most of their whinges now are related to game-specific things, which makes a nice change from the rhetoric. A lot of the time you can (thankfully, but not always) put down their nonsense to being overly passionate, however irrational, but you can no longer claim they are bitter poisoners who skulk in broad day light....they are more discreet as if to be unnoticed largely.

Im sure the Agenda is there, and no mention of the tv rights on their page. I dont think 1.8 is beyond them. And I am also tipping the deal to surpass the AFL's; if not in total, then in the increase - even if the margins between the two will be ever more thin.(the figures I am using could be a little off, so in fact the NRL may well be out in front come next deal, I know the sport has the greater market cap and potential) Its hard to complain about the NRL overly much now - they seem to be catching up to the long list of "to-do's" in their desk-trays. Its taken a few years but they are catching up, head above water kind of thing. It seems to have been an absolute mountain of work, organisation, effort, and perseverance

 

[Nerd]

D.Smith once ran a billion dollar banking businessro active thinking outside the square,surrounding himself with experts who will extract maximum value.Striking early to ensure all FTA stations are bidding.Looking at securing longevity of the game.

Gallop (once a News lawyer)surrounded himself with the very people he was offering the code to.Namely News Ltd honchos at Foxtel,and agreeing to a F& L deal.The code marked time under his leadership with little money in the bank.


You want money :Go to a bank.You want to spend money: Go to a lawyer.


But but ,he never played rugby league according to Bourbon Bec,Rothbrew.:roll:

Yep get a journo to advise someone how to run a billion dollar business,you know it makes business sense.

 

[Perth Red]

You can't compare smith and gallop, to do so is folly. As you will know I am far from being a gallop fan but he was just a puppet at the whim of his news ltd master and an ineffective arl. Smith has independence, funds and free reign to develop the game to its next level. So far, in many areas, he and the arlc are short on expectation. It is only three years and I'm sure they had plenty internally to sort out. On key kpi's they still have a long way to go IMO.

Is the nrl comp better now than 2 years ago?
Are refs better?
Is Jnr RL better?
Is grass roots stronger?
Are more people watching on TV and going to games?
Does RL have a broader national appeal?
Are NRL clubs strong on and off the field?
Is the international game stronger?
Are corporates falling over themselves to sponsor clubs and the code?

These are the key areas for me and there is still a long way to go in most of them. $'s for me are not the measurement, they are just the resource we need to achieve the above. We can have all the money in the bank we want but if we still arent meeting the above then it is a fail.

 

[Perth Red]

Re next TV deal if there is a substantial increase the. I would like to see a large % of it go to nrl clubs to get them sustainable and able to invest in their infrastructures, marketing etc themselves. Compared to afl the clubs get less of the TV revenue. The NRL should have enough money with what it's got to sort out the above issues, clubs should get around $3million extra a year with no substantial rise in salary cap in order to see every club financially ok. At the moment the loss of a main sponsor or bad year at the pokies is seeing some clubs at significant risk.

 

[LeagueXIII]

I think that is what Smith has been saying, he wants clubs to be sustainable has implemented plans and funds will come with the new TV deal. Business plans take a few years to bare fruit.

Also as was previously mentioned he came in and has alot of rubbish to clear up from the previous bunch of clowns.

First thing the commission did was get rid of first and last rights which gives the game huge leverage to grow which will be evidenced with the deal they are about to negotiate.

Tell me why did Gallop never try to do this......................

 

[TheRam]

I dont think many think business exec Smith can't bring in money. Can he spend it wisely to grow the game at all levels, achieve the strategic plan goals and take RL to the next level in this region? The jury is still out on that one.

Precisely.

You can't compare smith and gallop, to do so is folly. As you will know I am far from being a gallop fan but he was just a puppet at the whim of his news ltd master and an ineffective arl. Smith has independence, funds and free reign to develop the game to its next level. So far, in many areas, he and the arlc are short on expectation. It is only three years and I'm sure they had plenty internally to sort out. On key kpi's they still have a long way to go IMO.

Is the nrl comp better now than 2 years ago?
Are refs better?
Is Jnr RL better?
Is grass roots stronger?
Are more people watching on TV and going to games?
Does RL have a broader national appeal?
Are NRL clubs strong on and off the field?
Is the international game stronger?
Are corporates falling over themselves to sponsor clubs and the code?

These are the key areas for me and there is still a long way to go in most of them. $'s for me are not the measurement, they are just the resource we need to achieve the above. We can have all the money in the bank we want but if we still arent meeting the above then it is a fail.

Great post PR. All those issues are a long way from being sorted out and improved upon. Look at Phil Gould's article today on, "Where Have All The Halfbacks Gone?". Just another indicator that there is something very wrong in the junior development programs when we can't produce high quality, in any real numbers, the most important positional player on the field.

We have a very long way to go on many fronts and personally I am so far very disappointed in the progress of many of them, because if we had the right people under Smith I don't think it would take that long at all to address most of them and see positive progress within just 1 or two years.

It seems as though very little is actually being done other then from the financial stuff, which of cause is paramount but as you said PR it should only be a means to an end not the crowning glory.

 

[BuffaloRules]

Gould is proposing a "play maker academy" to address the halfback issue...

This is going to cost money...

You cant really change anything without more money coming into the game...

I also believe that the players who play at the top level deserve more money... They are literally putting their bodies and long term health on the line each week for our entertainment...

 

[Hello, I'm The Doctor]

Re next TV deal if there is a substantial increase the. I would like to see a large % of it go to nrl clubs to get them sustainable and able to invest in their infrastructures, marketing etc themselves. Compared to afl the clubs get less of the TV revenue. The NRL should have enough money with what it's got to sort out the above issues, clubs should get around $3million extra a year with no substantial rise in salary cap in order to see every club financially ok. At the moment the loss of a main sponsor or bad year at the pokies is seeing some clubs at significant risk.

I dont like the idea of just giving the clubs more money as we all know it will just get pissed away and theyll come back asking for more.....

Id rather the ARLC spent the money on taking over Junior RL and the development pathways to take it out of the hands of the clubs. This would massively reduce costs for each club, so they would experience a similar Net gain to just handing over money, the difference being we can be far more confident in the impartiality and efficiency of a centralised system.

 

[insert.pause]

I dont like the idea of just giving the clubs more money as we all know it will just get pissed away and theyll come back asking for more.....

Id rather the ARLC spent the money on taking over Junior RL and the development pathways to take it out of the hands of the clubs. This would massively reduce costs for each club, so they would experience a similar Net gain to just handing over money, the difference being we can be far more confident in the impartiality and efficiency of a centralised system.

agree, some clubs don't want that unless it is without a draft, they want the money and the kids, which just isn't equitable. The argument about tribalism and local heros does have some merit, and concessions could appease some of those arguing against it, but I doubt many fans now know where some of their players came from, nor care as long as they're winning. But it is ingrained in the identity of some clubs more than others, Broncos need Qlders, Knights need some novocastrians, Warriors need kiwi's, not sure it's as big an issue for many other clubs, doubt it would be enough to get them to pick a kid in the draft over another just because they are a local junior.

 

[CC_Roosters]

agree, some clubs don't want that unless it is without a draft, they want the money and the kids, which just isn't equitable. The argument about tribalism and local heros does have some merit, and concessions could appease some of those arguing against it, but I doubt many fans now know where some of their players came from, nor care as long as they're winning. But it is ingrained in the identity of some clubs more than others, Broncos need Qlders, Knights need some novocastrians, Warriors need kiwi's, not sure it's as big an issue for many other clubs, doubt it would be enough to get them to pick a kid in the draft over another just because they are a local junior.

i have came around to the rookie draft in the past few weeks. Although i do think each club should have right to have the first offer to a certain amount of players in their district or assigned districts outside/before the draft. Thats a good way of maintaining district identity but i would limit it to say 3 per year

Definitely think junior development should go into the hands of ARLC sooner rather than later.