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OT: Foxtel FoxSports / Kayo /Ch9 + NRL TV Rights

Gronk

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There’s a bit of Murdoch spin here. Not sure if FoxSports “axing” the rugby is the truth. Plus they didn’t paywall it to ensure that they got their propaganda out there. It looks like Optus will be adding rugby to their EPL stocks.


Fox Sports axes Super Rugby broadcast deal as RA negotiations fail
Jamie Pandaram, The Daily Telegraph
February 5, 2020 9:13pm

Fox Sports is set to walk away from rugby union, ending a 25-year broadcasting partnership that began when the game turned professional.

Months of talks between Fox Sports and Rugby Australia came to a halt on Wednesday, and the struggling code will likely have to make a deal with Optus.

Sources revealed RA chief executive Raelene Castle and Foxtel boss Patrick Delaney have not spoken face to face in weeks, although emails had been traded.

The stunning development puts major pressure on rugby, with the game needing an extraordinary new deal to stay afloat.

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Negotiations broke down between Fox Sports and Rugby Australia. RA CEO Raelene Castle (pictured). Picture: Adam Yip
The existing television deal, signed in 2015 and running through to the end of this year, was worth a total $285 million, giving RA $57 million a year.

However, that deal was bolstered by investment from Britain’s Sky Sport, who added millions to show southern hemisphere rugby. Sky has now pulled back on their level of interest.

Fox Sports and Network Ten are the domestic broadcasters, with Fox showing all Super Rugby games and both screening Wallabies Test matches.

With Fox out of the equation, the most likely outcome is for RA to sign a deal with Ten and Optus, who would show Super Rugby on subscription as they do the English Premier League football.

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Foxtel boss Patrick Delaney. Picture: Britta Campion
RA will present its package to the open market within a fortnight.

“Rugby Australia’s preparations for the next five year rights period have led to a key focus on creating alignment across the rugby competitions in Australia,” a spokesman said.

“Our strategy is to provide an integrated whole of rugby presentation to our fans and, importantly, we are confident that there is real interest from the market in this content.

“We are preparing to take the package to market early this month.”

Fox Sports is owned by News Corp, publishers of The Daily Telegraph.

With News Corp’s backing in 1996, rugby went professional and Fox Sports broadcast the first season of Super Rugby, and the partnership with the game has continued unabated until now.

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The Israel Folau saga has taken a huge toll on the game. Picture: AP/Rick Rycroft
Signs of unrest emerged last year when RA failed to finalise their television deal for 2021-25, despite partner nations New Zealand and South Africa signing theirs.

In attempting to gain more money for rugby, Castle refused Fox’s initial offer, which is when Optus emerged as a rival candidate.

Problems were clear when just before the Super Rugby season kicked off last week, Fox released highly respected rugby commentator Nick McArdle and former Wallaby Drew Mitchell from their roster, and cut their weekly rugby show.

The first round matches averaged just 33,000 viewers last weekend, down 19 per cent on round one last year and more worryingly, games with Australian teams were down 35 per cent.

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Australia had a poor start to the Super season. Picture: AAP/Mick Tsikas
In their attempt to pitch a multi-layered package, RA has blocked Fox Sports’ offer to broadcast the Shute Shield and Queensland Premier Rugby this year.

The Sydney club competition, owned by Club Rugby TV, is broadcast by Channel Seven, who are paid by Sydney Rugby Union to show the match of the round each Saturday.

Fox Sports offered to pick up the $300,000 annual fee to show Shute Shield matches and Queensland club rugby games, with Seven — who have the rights until the end of 2024 — agreeing to the proposal.

But RA want club rugby as part of their entire package and blocked the move, presumably so if they could not make a deal with Fox Sports, they could sell it to Ten and Optus.

Club Rugby TV can either sell to Fox Sports or RA, at which point Castle can take RA’s broadcast package to the open market.

https://www.dailytelegraph.com.au/s...l/news-story/abb71da86fa6e9f062f676b41570d258
 

hineyrulz

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Whatever it is it can’t be good news for Yawnion. Viewer’s are down 35% on round 1 last year. The test pattern has got rugby covered, I’m sure Optus are going to throw plenty at them.


Secret agent Rayyyyyyyyy-lene doing a bang up job.
 

Gronk

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Whatever it is it can’t be good news for Yawnion. Viewer’s are down 35% on round 1 last year. The test pattern has got rugby covered, I’m sure Optus are going to throw plenty at them.


Secret agent Rayyyyyyyyy-lene doing a bang up job.
Ok mate, you don’t like RU.

This thread is more about sport broadcasting and what it will look like in the future.
 

hineyrulz

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Ok mate, you don’t like RU.

This thread is more about sport broadcasting and what it will look like in the future.
So we can’t discuss how RU is struggling??? Failed to take Foxtels first offer and know has to get scraps from Optus??? Interesting thanks for keeping us all on topic Sheriff Gronk.........
 

Gronk

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It looks like we’ll be seeing less rugby union Broadcasted in the future
Yes but if Optus Sport outbid Fox for the NRL rights (secondary to the FTA rights) then we all might have Optus apps instead of Kayo. I wonder what Optus thinks the end game is ?
 

Twizzle

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Fox really are struggling, they were relying on Sky from England for the RU and thats seems to have broke the camels back. They are axing a few shows atm, hell even Bill and Boz got the axe.

They still have their monopoly but they cant keep getting away with their ridiculous pricing schedule imo.
 

Bazal

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Fox really are struggling, they were relying on Sky from England for the RU and thats seems to have broke the camels back. They are axing a few shows atm, hell even Bill and Boz got the axe.

They still have their monopoly but they cant keep getting away with their ridiculous pricing schedule imo.

Not sure how they're struggling... All NRL games live, all AFL games live, all games of the summer cricket live.

That's the three biggest local sports covered. Then you have most of the popular foreign soccer leagues on Fox IIRC, plus the NFL and MLB from the US.

Sports wise I'd say they're doing just fine without the out of touch mess that is Aussie rugby
 

Noise

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Not sure how they're struggling... All NRL games live, all AFL games live, all games of the summer cricket live.

That's the three biggest local sports covered. Then you have most of the popular foreign soccer leagues on Fox IIRC, plus the NFL and MLB from the US.

Sports wise I'd say they're doing just fine without the out of touch mess that is Aussie rugby
The NBA is massive for them too.
 

Twizzle

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Not sure how they're struggling

I maybe should have qualified that by saying they are struggling financially, sure they have a monopoly on those sports you mentioned by they are shedding programs as customers opt of both sports and regular programming .

I read this recently on few occasions but hard to find a source on this right now as news corp control the media and those articles seem to have disappeared off the face of the earth.
 

Twizzle

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Independent media to the rescue

Foxtel can’t catch a break as debts mount
News Corp is shelling out hundreds of millions of dollars in loan repayments for Foxtel. If the banks don't start helping out, News Corp shareholders will keep footing the bill.

GLENN DYER

One of the great unanswered stories of Australian media this year is why banks and other financial groups won’t refinance Foxtel’s $1.5 billion debt.

The question of why financial groups are unwilling to lend a hand has resurfaced, with a a US$75 million (A$110 million) debt repayment due today, Wednesday September 25. Barring a last-minute refinancing deal (after nine months of fruitless negotiations) that repayment will be made via a shareholder loan from News Corp alone. Telstra, which owns the 35% of Foxtel not in News Corp’s control, has not contributed to the hundreds of millions of dollars in loans made to Foxtel this year.

There is a further US$150 million (around A$220 million) due on December 28, and if that is dealt with via a shareholder loan it will mean that by the end of 2019 News Corp will have lent Foxtel the best part of A$1.05 billion. News already lent A$500 million by June 30 to allow it to repay loans which fell due in the first half of 2019. There was another A$220 million due on July 25.

News Corp’s 2018-19 annual report said:

During the fiscal year ended June 30, 2019, the Foxtel Debt Group had repayments of $1.03 billion, including the repayment of its A$300 million (approximately $216 million) facility maturing in April 2019 and the repayment of its A$200 million (approximately $139 million) facility maturing in May 2019, and borrowings of $681 million. The repayments of the A$300 million facility maturing in April 2019 and the A$200 million facility maturing in May 2019 were repaid using A$500 million of shareholder loans provided by the Company.

There is a further US$56 million (around A$82 million) due January 31 next year, and a massive US$281 million (around A$414 million) due July 31, for a total of US$337 million (around A$496 million) next year. That means that by the end of July 2020, News could have lent Foxtel over A$1.5 billion, which begs the question why the banks won’t help out.

Telstra has been unwilling to join News in extending shareholder loans to Foxtel (though it was a different story when Telstra owned 50% of the company). Its lack of interest in investing any more money into Foxtel remains a tantalising judgement on the future of the performance and profitability of the pay TV group. There’s a view Telstra doesn’t want to throw good money after bad while having to finance its 5G expansion and meet the challenges from the NBN.

News Corp is not expecting the banks to lend any time soon — its shareholder loans expire in eight years, falling due in 2027. That’s a hint the Murdoch-controlled company expects to be financing Foxtel for most of the next decade.

https://www.crikey.com.au/2019/09/25/news-corp-foxtel-debt-repayment/
 

Gronk

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Sounds like News Ltd will keep it afloat, but wow what a dog of a business. Clearly the terrestrial cable TV business model has been buried by the Netflix model. Hence why they created Kayo.

Should they collapse, Ch9 have GEM HD which is ready made to show every NRL game if needed.
 

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