NRL tells clubs Fox Sports can be replaced by ‘new players’
THE AUSTRALIANSEPTEMBER 2, 2015 12:00AM
Stuart Honeysett

NRL chief executive Dave Smith. Picture: Britta Campion
The NRL’s battle with Fox Sports over the next broadcast rights deal could intensify after club chief executives were told yesterday the code could go with a non-traditional partner for its digital media rights in a worst-case scenario.
Most of the game’s chief executives were at Rugby League Central in Sydney yesterday for a two-day conference to discuss a range of issues confronting the code, including digital media rights and third-party agreements.
“The gist of it was that if you control the content then you have the product that drives everything,’’ one source told The Australian.
“No one’s saying that they’re going to do it, but the presentation showed that in a few years time there will be these new players coming into the market, and they’re other platforms that you can sell viewing information, interviews, everything.
“They were just saying you’re well placed if they (Fox Sports) don’t come up with the money. There will be other options.’’
The NRL recently signed a $925 million deal with free-to-air broadcaster Channel Nine for the next broadcast rights deal starting in 2018.
But it is still to negotiate with Fox Sports and naming sponsor Telstra over the remaining content and digital rights.
It was later reported that NRL chief executive Dave Smith could have put his $1.7 billion target in jeopardy with Fox Sports and Telstra both reportedly unhappy at being left out of the loop in the negotiations with Nine.
Smith however has remained confident with the way he has handled talks and believes Fox Sports will have little choice but to remain loyal as it needs content — especially with more providers to emerge before the next deal ends in 2017.
The fractured relationship between the NRL and its broadcast partners was highlighted when News Corp executive chairman Rupert Murdoch appeared at the AFL’s $2.5 billion broadcast rights deal to declare it the premium code in the country.
Nine has secured four free-to-air NRL games in the coveted time slots from Thursday to Sunday plus non-exclusive streaming rights while Fox has lost its two best time slots for the week — Saturday night and Monday night.
The NRL is still banking on Fox Sports to pay $750m to $850m for four exclusive games and the right to simulcast Nine’s matches but negotiations have stalled with reports the pay-TV operator believes the games it is expected to bid for have been severely devalued.
The NRL organised yesterday for former officials from the AFL and Cricket Australia to make a presentation which showed that the game had a number of options to sell its digital media rights.
These included selling the whole package or half of it to existing partners, or forming a joint venture with different providers.
The same two officials also addressed the club chairmen on the issue at a meeting that was held in Melbourne after the second State of Origin game in June.
The presentation also included examples from US sports including Major League Baseball, the National Football League and even professional wrestling and how they have handled their digital media rights and where the growth areas have been.
It is believed while the officials told club bosses they were in a strong position to grow the value of their digital media rights, they needed to work hard now if they wanted to achieve maximum value for them with a non-traditional partner.
The value of the broadcast deal is important to all clubs, who are sweating on a sizeable increase in club grants when the new deal kicks in for 2018. It is believed clubs will receive a share in a $50 million advance from Nine next year.
The focus at the conference today will switch to players’ third-party agreements which have become a bone of contention and a source of confusion in the NRL.
