John Grant apologises to News Corp, Telstra over NRL TV deal
DARREN DAVIDSON
NRL chairman John Grant has personally apologised to senior News Corp and Telstra management for the code’s shocking handling of the TV rights deal as he faces growing pressure to *depart.
Sources close to the negotiations said Grant had told high-level figures at both companies the NRL made a mistake by leaving both corporations out in the cold during secret talks with Nine.
It’s understood the extraordinary attempt to repair bridges came before former chief executive Dave Smith resigned last week, giving rise to tension between the two men. Grant is facing deep splits in his administration over the controversial broadcast deal, with one camp pushing for his removal.
Having put News Corp’s and Telstra’s near-billion dollar investment in the game at risk by allowing Smith to sign the Nine deal without any advance warning, several club chairmen are also *privately calling for Grant’s head.
Adding to the disquiet is a growing belief the Queenslander is prepared to let some Sydney clubs wither on the vine from financial difficulties.
One club chairman, who declined to be named, said: “While they say otherwise, clubs are financially worse off before the current TV agreement if you look at the cumulative losses of the clubs. Smith and Grant have alienated two of game’s longstanding supporters in News Corp and Telstra. Grant has to go.”
Another club chairman, who also declined to be named, criticised the NRL’s “Machiavellian negotiation tactics” with Fox Sports, pointing out their threats to sell matches directly were empty.
“People don’t realise the NRL hasn’t got a serious in-house digital capability. All the specialists are based at Telstra. The AFL’s media unit is streets ahead of the NRL in this sense. Do not employ bluffing as a tactic unless you are prepared to have it called. The NRL has nowhere else to go other than Fox Sports,” he said.
By parting company with Smith — who will leave the besieged regime under a cloud, *leaving behind a job only half done — Grant had hoped to head talk of rebellion off at the pass.
But some members of the Australian Rugby League Commission want Grant to go before anyone enters into further talks with a league that has lost the trust of its key stakeholders. There is growing resentment that his considerable power as chairman will only be enhanced in the wake of Smith’s exit as he will assume greater responsibly from November 30.
Nine chief David Gyngell attempted to calm simmering tensions in the weeks leading up to Smith’s resignation, knowing that if News Corp’s sports programming subsidiary Fox Sports does not strike an agreement with the NRL that brings the price close to the $1.7 billion mark, his own contract will start to come under close scrutiny from the clubs.
The NRL has launched a worldwide search for Smith’s successor. Corporate headhunter Allan Marks from Signium International is leading the hunt. NRL head of football Todd Greenberg is believed to be a leading internal candidate.
Elsewhere, former Nine managing director Jeffrey Browne, V8 Supercars chief James Warburton, and former ALP senator Mark Arbib are all being mentioned as possible outside replacements for Smith.
It comes after News Corp reopened talks with the NRL by making a pitch for a package of matches that includes Nine’s newly acquired Saturday game, after Smith’s resignation breaks the bargaining impasse.
The opening salvo is contingent upon the NRL returning to the table and renegotiating its $925 million contract with Nine by reversing its decision to strip the top-rating Super Saturday franchise evening match from Fox Sports.
Nine has sent signals that it is willing to surrender the match, with Mr Gyngell prepared to *listen.
