Telstra denies News Corp reports it is considering exiting NRL sponsorship deal
Date: August 24, 2015 - 9:22PM
by Max Mason and John Stensholt
Telstra has denied it is considering ending a 17-season partnership with the National Rugby League as its naming-rights sponsor.
Rupert Murdoch's News Corp Australia reported the telco was on the verge of giving up its naming-rights sponsorship, which it has held since 2001, and would seek to stay on as only a minor sponsor.
But Telstra, which jointly owns pay TV operator Foxtel with News Corp, told
The Australian Financial Review on Monday the reports were false and that it was in dialogue with the NRL regarding an extension to its current deal.
"Reports that Telstra is looking to not renew our NRL naming rights are untrue," a Telstra spokesperson said. "We are proud of what we have built with the NRL to date and are in negotiations to continue our partnership beyond 2017. We are unable to comment further as negotiations are ongoing."
An NRL spokesperson welcomed the Telstra statement, saying that while the rugby league governing body would not discuss ongoing sponsorship or broadcast rights negotiations, "Telstra is a long-term and valued partner and we naturally look forward to further discussions with them".
The Australian Financial Review reported last week that Telstra was still interested in negotiating NRL broadcast rights, even after signing a big deal with the AFL earlier in the week.
Telstra group managing director of media and marketing Joe Pollard said the telecommunications giant was still keen on the NRL, which it has digital rights for. "We are still talking to the NRL and are still in negotiations," Ms Pollard said. "We are still interested in a range of sports."
It comes as part of a concerted campaign from News Corp to put pressure on the NRL, following the league's apparent snubbing of News Corp when it negotiated the free-to-air and free streaming broadcast rights with Nine Entertainment Co for $925 million and without Foxtel, which is 50 per cent owned by News Corp.
Previously, the pay TV, free-to-air and digital rights have been negotiated at the same time. However, it is understood Nine preferred to come to the table without Foxtel.
Though Nine has streaming right as part of its new deal, which does not begin until the 2018 season, the NRL still has the mobile and tablet rights for all eight games a round on the market, as well as pay TV rights.
Telstra, the incumbent mobile rights holder, is the most likely partner for the NRL, though Optus has also indicated it could be interested in sports rights.
News Corp, Telstra and Seven West Media last week signed a massive $2.5 billion six-year deal for AFL rights. Telstra agreed to pay about $300 million of that for streaming rights extending its agreement to become the AFL's official technology and data partner.
Telstra will also show a version of the AFL app through its upcoming Telstra TV service, including highlights packages and video of full matches on a 12-hour delay.
Meanwhile, Mr Murdoch's media empire has taken another blow with British rival BT Sports securing a deal with Cricket Australia as its overseas broadcast partner.
The five-year deal is believed to be worth £80 million ($172.5 million) and begins in October 2016.
Reports suggested that BT Sport outbid Sky, which is 39 per cent owned by Mr Murdoch's 21st Century Fox, by £20 million.
