NRL broadcast rights: Fox snub puts cash target in doubt
The media adviser who worked with the NRL on the previous broadcast rights deal has warned that the decision to sign a new agreement with the Nine Network, blindsiding Fox Sports, has put at risk the code?s hopes of an expected $1.7 billion payday.
Colin Smith, said yesterday Fox Sports had been disrespected and left with ?crap content?.
?You can?t say this is entirely respectful of them, being a long-term broadcaster, by the NRL,??
It?s a massive gamble. As I understand it, they hadn?t even got an offer from anybody else so they?ve gone with a deal without ever going to market properly.
Fox Sports chief executive Patrick Delany, who was reportedly left stunned by the speed of the negotiations. The current deal doesn?t expire until the end of 2017.
The Australian was told yesterday that Fox Sports did not know that a deal with Nine had been done until the NRL issued a press release on Monday, and that Delany has subsequently met with NRL chief executive Dave Smith.
The NRL is banking on Fox Sports to take up an offer to simulcast the matches being shown on Nine to help push the deal out to $1.7bn and believes they will have little choice not to as rugby league is crucial to their subscription numbers.
Fox Sports paid $530m for five exclusive matches under the previous broadcast deal but has lost considerable ground in the new one that has been signed off on with Nine.
For starters, the pay-TV network has lost its two highest-rating time slots ? Saturday nights, which will now be shown on free-to-air although Fox has the option to simulcast, and Monday nights, which have been scrapped.
Under the last deal, Fox received five exclusive matches but this has been reduced to four in less than favourable time slots (they are likely to be 3pm and 5.30pm on Saturday and 2pm and 6.30pm on Sunday).
Colin Smith warned that Fox might ask for exclusive streaming rights to compensate for losing games but there was still a danger that they might not pay as much as they did for their rights last time. That would leave the NRL well short of the $1.7bn mark.
?It would be a very difficult position for Fox Sports because they?re damned if they do and they?re damned if they don?t,?? Colin said. ?They have to have rugby league because Sydney is the biggest pay-TV market in Australia by a long way.
?On the other hand, for what they now know they?ve got to buy ? and in essence I?m saying they?re the only buyer ? as the NRL will decide what events are going to be broadcast on pay and when, they?ve got second prize.
?Simulcast hasn?t proven to be a huge driver of subscribers, so for Fox Sports it depends on what content they?re going to get. If they?re going to get the crap content and allocated the bottom four games, they?ll price that accordingly.??
The Australian attempted to contact Delany yesterday but was unsuccessful.
A spokeswoman said he would not comment on the deal while talks were ongoing.
http://www.theaustralian.com.au/spo...-target-in-doubt/story-fnca0von-1227479489625
