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http://www.smh.com.au/rugby-league/...ted-to-new-tv-rights-deal-20120418-1x7q4.html
Expansion connected to new TV rights deal
April 19, 2012
Strong interest by broadcasters in a second Brisbane team may prompt the ARL Commission to ask TV networks to lodge a separate rights bid for an 18-team competition.
Both Fox Sports and Channel Nine are keen to televise a second Brisbane team and capitalise on the parochial ratings of Queenslanders.
With only three Queensland NRL teams in its 16-team competition - Brisbane, North Queensland and Gold Coast - Nine is frequently frustrated finding enough Queensland teams to schedule for its Friday night double header and its Sunday afternoon coverage.
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Ratings are traditionally down in Queensland when Nine shows an all-Sydney game on Sundays, such as the recent Penrith-Wests Tigers match.
Fox Sports also suffers because the free-to-air coverage of the three Queensland teams means there is less incentive for northerners to take up Foxtel subscriptions.
While Sydney subscriptions are approximately 40 per cent of households, Brisbane is in the 33 to 35 per cent range.
Nine boss David Gyngell has intimated he would pay an additional $100 million over five years in broadcast fees should a second Brisbane team be accepted, even as a 17th team, meaning a bye and the existing eight matches each week.
Broadcasters bidding for TV rights have been told to tender on the basis of a 16-team competition but ARLC chief executive David Gallop has said expansion could be factored into negotiations.
''We obviously would be interested to know what value broadcasters place on a ninth match,'' Gallop said.
A ninth match, meaning an 18th team, would draw even more broadcasting revenue, with the AFL acknowledging it drew an additional $150 million from the introduction of the low rating Gold Coast Suns and Greater Western Sydney Giants.
Perth is widely regarded as the best option as an 18th team, given the opportunity it presents with an additional time zone. However, both Nine and Fox Sports have expressed lukewarm interest in a Perth team.
This may change if Channel Seven becomes an active bidder for the rights. Seven, unlike Nine, owns the Perth channel.
Gallop has told the Perth and Queensland bids that the commission would be unlikely to address the question of expansion until August and even then may announce there will be no new teams during the life of the next broadcast contract.
This has not deterred the Western Australia Reds spending significant sums rebranding the team.
The Brisbane Bombers, who are investing in financial modelling, are well advanced with their case to enter the competition in 2015. They point out there are only 12 games, barring finals, in Brisbane each year - compared with Sydney's 108 - and a second Brisbane team would mean the 52,000-seat Suncorp Stadium, one of Australia's best arenas, would be used for rugby league each week during the winter. A second Brisbane team offers the opportunity to break the seven-day cycle the Broncos enjoy, a privilege that antagonises other clubs.
Channel Nine's regular Friday night choice of the Broncos means the Brisbane club has a regular preparation routine, with players enjoying the weekend off, unlike teams that play on Monday nights and back up five days later on Saturdays.
If a second Brisbane team was introduced, along with fixed scheduling, the Broncos could play alternate Fridays and Sundays.
The Broncos also have cash reserves of $13.8 million, greater than the turnover of some of the NRL's poorest clubs, such as Cronulla.
Many sponsorship opportunities are lost to rugby league in Brisbane because of the exclusive deals businesses make with the Broncos, shutting out rivals.
Ipswich has also mounted a bid but the provincial city, given it provided the Walters brothers and Allan Langer, is perceived as a cheer squad for the Broncos.
A central Queensland bid is also well advanced and is led by one of the state's richest men, Geoff Murphy. A beef baron, Murphy says a Rockhampton-based team would be owned by the community, although he would maintain a significant shareholding.
''We want to capitalise on the huge playing numbers in the region,'' he said. ''The new Queensland government have promised us a 20,000-seat stadium if we win a licence.''
Murphy said a report he commissioned with LEK's Colin Smith demonstrated that an additional Queensland team would add significant extra value to a broadcasting contract. The ARLC will obviously monitor the financial health of the Titans before making any decision on a fourth Queensland team.
Expansion connected to new TV rights deal
April 19, 2012
Strong interest by broadcasters in a second Brisbane team may prompt the ARL Commission to ask TV networks to lodge a separate rights bid for an 18-team competition.
Both Fox Sports and Channel Nine are keen to televise a second Brisbane team and capitalise on the parochial ratings of Queenslanders.
With only three Queensland NRL teams in its 16-team competition - Brisbane, North Queensland and Gold Coast - Nine is frequently frustrated finding enough Queensland teams to schedule for its Friday night double header and its Sunday afternoon coverage.
Advertisement: Story continues below
Ratings are traditionally down in Queensland when Nine shows an all-Sydney game on Sundays, such as the recent Penrith-Wests Tigers match.
Fox Sports also suffers because the free-to-air coverage of the three Queensland teams means there is less incentive for northerners to take up Foxtel subscriptions.
While Sydney subscriptions are approximately 40 per cent of households, Brisbane is in the 33 to 35 per cent range.
Nine boss David Gyngell has intimated he would pay an additional $100 million over five years in broadcast fees should a second Brisbane team be accepted, even as a 17th team, meaning a bye and the existing eight matches each week.
Broadcasters bidding for TV rights have been told to tender on the basis of a 16-team competition but ARLC chief executive David Gallop has said expansion could be factored into negotiations.
''We obviously would be interested to know what value broadcasters place on a ninth match,'' Gallop said.
A ninth match, meaning an 18th team, would draw even more broadcasting revenue, with the AFL acknowledging it drew an additional $150 million from the introduction of the low rating Gold Coast Suns and Greater Western Sydney Giants.
Perth is widely regarded as the best option as an 18th team, given the opportunity it presents with an additional time zone. However, both Nine and Fox Sports have expressed lukewarm interest in a Perth team.
This may change if Channel Seven becomes an active bidder for the rights. Seven, unlike Nine, owns the Perth channel.
Gallop has told the Perth and Queensland bids that the commission would be unlikely to address the question of expansion until August and even then may announce there will be no new teams during the life of the next broadcast contract.
This has not deterred the Western Australia Reds spending significant sums rebranding the team.
The Brisbane Bombers, who are investing in financial modelling, are well advanced with their case to enter the competition in 2015. They point out there are only 12 games, barring finals, in Brisbane each year - compared with Sydney's 108 - and a second Brisbane team would mean the 52,000-seat Suncorp Stadium, one of Australia's best arenas, would be used for rugby league each week during the winter. A second Brisbane team offers the opportunity to break the seven-day cycle the Broncos enjoy, a privilege that antagonises other clubs.
Channel Nine's regular Friday night choice of the Broncos means the Brisbane club has a regular preparation routine, with players enjoying the weekend off, unlike teams that play on Monday nights and back up five days later on Saturdays.
If a second Brisbane team was introduced, along with fixed scheduling, the Broncos could play alternate Fridays and Sundays.
The Broncos also have cash reserves of $13.8 million, greater than the turnover of some of the NRL's poorest clubs, such as Cronulla.
Many sponsorship opportunities are lost to rugby league in Brisbane because of the exclusive deals businesses make with the Broncos, shutting out rivals.
Ipswich has also mounted a bid but the provincial city, given it provided the Walters brothers and Allan Langer, is perceived as a cheer squad for the Broncos.
A central Queensland bid is also well advanced and is led by one of the state's richest men, Geoff Murphy. A beef baron, Murphy says a Rockhampton-based team would be owned by the community, although he would maintain a significant shareholding.
''We want to capitalise on the huge playing numbers in the region,'' he said. ''The new Queensland government have promised us a 20,000-seat stadium if we win a licence.''
Murphy said a report he commissioned with LEK's Colin Smith demonstrated that an additional Queensland team would add significant extra value to a broadcasting contract. The ARLC will obviously monitor the financial health of the Titans before making any decision on a fourth Queensland team.
