Seven set to tackle Nine for TV rights
The Seven network is tipped to mount a serious challenge to Nine for the television rights to rugby league when Nine's contract runs out, pushing the dollar figures involved to record heights.
But Nine's current deal doesn't finish until the end of the 2007 season, which means National Rugby League clubs anxious for more money to help pay the bills will have to wait four more years to feel the benefits.
The only way a deal would be done earlier than that is if Nine and the NRL renegotiate - with an extension of the deal for Nine and an upgrading of the financial terms for the league - ahead of 2007.
There has been talk in league circles that NRL chief executive David Gallop was considering approaching Nine executives about a renegotiation soon, but he said yesterday that speculation was wrong.
TV industry sources have told The Sun-Herald that Seven was keen on making a real run for the rights when Nine's deal ran out and that the Ten network might get involved as well.
Asked if he could confirm that, Gallop said: "The only thing I'm prepared to say on that issue is that I fully expect them [Seven and Ten] to be very interested in it."
Ten's general manager of sport, David White, gave little away when asked if the network was planning to go for the rights.
"We would have a look at anything that was sensibly priced and fitted into our schedule," White said yesterday. "But apart from that I wouldn't like to make any comment."
Nine's current 10-year deal was signed at the end of the Super League war, in 1997. The Australian Rugby League and the breakaway Super League both ran competitions that year, before there was a peace agreement and the NRL was formed.
At the time, Nine already held deals with the ARL and Super League and under those circumstances was in the box seat for negotiations.
The result was that Nine acquired the NRL rights for a bargain-basement figure, believed to be about $16 million annually.
Gallop has been under pressure from the clubs to get more money from the rights for both free-to-air and pay-TV, but because of current contracts his hands are tied.
Asked about speculation he would go to Nine to try to renegotiate a new deal now, Gallop replied: "That isn't in our immediate plans. It's always possible we could go to Nine and talk about it closer to 2007, but that is a long way off at this stage.
"I think the main thing we have to do now is make sure we continue to produce a compelling product for TV so that when the contract does come up for negotiation we are in the strongest position possible . . .
"The game is on a high at the moment and the indications are it will only get better. I believe that when we sign a new TV deal it will be a great one for the game.
"The game had its problems when the last deal was done, but by the time the next deal is signed I reckon it will be absolutely flying. I believe the next deal will be very healthy."
Gallop said the league was working with clubs to try to help them increase their revenues outside of the annual $2.5 million grant extended to each of them by the NRL.
"The clubs are always battling the problem of trying to fill the gap between the grant and the salary cap. The gap is bigger than most people realise, too.
"The $170,000 that goes out of the grant to each club for development means the actual figure they receive is $2.33 million. And while the salary cap is commonly referred to as being $3.25 million, it's more like $3.6 million in real terms after concessions.
"Ideally, we would like to reach the stage where the grant was the same as the salary cap, which is the system the NFL has in the US, and I'm optimistic we will be able to get very close to that on the strength of our next TV deal."
