TV riches could eclipse AFL with broadcasting rights deal worth up to $1.4 billion
STUNNED NRL chairmen and chief executives yesterday heard rugby league could obliterate the AFL television deal by securing broadcasting rights worth as much as $1.4 billion.
That would surpass the existing NRL deal by a whopping $900 million.
Colin Smith, of Melbourne-based electronic strategic consultants LEK, addressed yesterday's NRL CEOs and chairmen's meeting at Coogee in Sydney where three scenarios were presented for a deal, to run over five years from 2013.
Club officials reacted with shock and delight when Smith, employed by the NRL, said rugby league should obtain more cash than AFL, which got a $1.25 billion deal two months ago, as it had more TV viewers.
At present, 37 per cent of revenue is directed through grants to clubs (equal to the AFL) but, with a whopping TV deal, clubs want the independent commission to determine whether that percentage should increase.
"We worked through some scenarios. Obviously we have looked at the media landscape and what our expectations are and given the game is going so well on television," Gallop said.
"We modelled a number of assumptions. We modelled a scenario where everyone will be happy.
"The television negotiations haven't commenced but there was a lot of background information and a lot of preparation has been put in.
"The clubs went away comfortable that, when the negotiations can start, we are in good shape." Asked if the deal would beat the AFL contract, Gallop said: "We are certainly conscious of the result the AFL got and conscious of how well our game is going. You can draw your own inferences from that."
The NRL provided 77 of the top 100 shows on pay-TV last year while more than three million people nationally watched the State of Origin decider this month.
Asked if the NRL was now ahead of AFL, Smith said: "In television audience, it is. Foxtel's pay television for NRL is up 20 per cent. And then you look at State of Origin, just under 11 million viewers (for the series).
"This is a fantastic television sport. It is the leader."
Clubs learnt all Origin games would be moved to Monday nights for 2013, with one played as a stand-alone match.
Also for 2013, NSW's annual City-Country match will be scrapped. The mid-season Test between Australia and New Zealand will also disappear for that year.
The salary cap will be increased next season by $100,000 to $4 million. The club grant will rise $200,000 to $3.85 million.
NRL chief operating officer Nathan McGuirk said retiring Maroons' skipper Darren Lockyer and St George Illawarra coach Wayne Bennett were consulted in designing the new season structure.
The 2012 All Stars game will be on February 4 and the premiership from March 8.