What you say there all depends upon the actual clause in the contract. If it mentions anything about pandemic then the NRL has not breached the contract at all. The fact that 9 has come out publicly stating it doesn’t want the 2020 season to go ahead is most likely a breach in itself.
So its all a bit of an unknown unless we know what the contract stipulates.
Not if it can be shown 9 is in breach.
Again, that depends upon what is in the contract. Any clause about act of god etc will be fairly easy for both parties to understand and seek legal confirmation about. 9 cant just say “no broadcast = seek damages”
I guarantee the contract says nothing specifically about pandemics in the ”Act of God” clause. If it did, the NRL would be saying Nine is in breach of the contract if they refused to broadcast games when the season restarts. The NRL would also make the “Act of God” clause public just like they did with the letter from the Police Commissioner which they claimed gave permission to restart on 28 May 2020. The fact they don’t publish or at least clarify what’s in the “Act of God” clause suggests to me they are in a weak position and would need to rely on case law and litigation to prove the breach of contract was due to an “Act of God”.
The reason the NRL called this pandemic an “Act of God” was because they decided not to fulfil their contractual obligations to provide games every weekend for 25 weeks plus finals etc.
Claiming “Act of God” allows the NRL to void any contracts they may have. This potentially includes:
- stadium and concession deals
- media rights
- property and rent
- players wages
- and any other random contracts with service providers and contractors they may have
Once you claim “Act of God” it voids the contract as though it never existed in the first place. Therefore, Nine is under no obligation to meet any conditions of the 2018-2022 TV rights deal because it was voided by the NRL when they suspended the season on 24 March 2020.
The NRL can’t have it both ways and they know it. You can’t claim that you cant fulfil your contractual obligations because of an “Act of God” and then try to hold the other party to the original contract.
The 2018-2022 contract was voided by the NRL on 24 March 2020. Therefore, there is no TV rights contract at the moment.
Nine and Foxtel are literally re-negotiating a new contract. And like any sane company - Nine are are now reevaluating the worth of NRL in the post corona world. Nine are beholden to share holders and are looking to cut costs just like the NRL did and just like every company is doing.
For anyone to suggest Nine should honour the financial terms of the 2018-2022 media contract is ludicrous - when that contract was voided by the NRL on 24 March 2020.
All this postering and finger pointing in the media at the moment is purely designed to sell papers and get NRL fans wound up and blaming the government and media companies for NRL not coming back on 28 May 2020.
The fact of the matter is there is no TV rights deal in place with Nine or any free to air broadcasters at the moment if the NRL’s claim the pandemic is an “Act of God” is correct.
If the “Act of God” claim is incorrect (which only a court can decide) then Nine holds all the cards and power in negotiations. If there is no “Act of God” then its a simple breach of contract by the NRL and Nine will be able to seek legal remedies:
- damages for loss of advertising revenue because NRL can’t deliver its product; and
- injunctions against NRL and rival TV companies to stop rival free to air networks broadcasting the game under a new deal until the end of the the original 2018-2022 contract.
So Nine are in an extremely strong position. I would say they actually have the NRL over a barrel. Which is why they blasted the league publicly last week. They are setting up to put themselves in the most powerful legal position if negotiations with NRL go poorly, they don’t get what they want and this ends up in the Courts.
Which is why V’Landys strategically apologised to Nine and is bending over backwards to give them what they want, or at the very least better value for money.
Basically, the NRL can’t even entertain negotiations with any other free to air networks without Nines blessing And approval, because Nine could challenge the “Act of God” claim in court. This could all get very messy for the NRL if they go rogue and try to undermine Nine and negotiate a new deal with a rival free to air network.