David Gallop declares war over TV rights
* Brent Read
* From: The Australian
* June 04, 2010 12:00AM
THE NRL is ready to begin a billion-dollar bidding war with the AFL for television rights.
With the game still under fire over the loss of Israel Folau, NRL chief executive David Gallop yesterday confirmed he was preparing to open formal negotiations with the broadcasting networks as soon as the federal government completes its review of the anti-siphoning list, expected within weeks.
It means the NRL will start talks with the networks nearly 12 months ahead of schedule, and will be pitched into a head-to-head battle with the AFL, which has already said it hopes to have a new five-year deal in place by the end of September.
The only hurdle confronting the NRL is a clause in its existing contract with Nine, which gives the network first and last rights. However, the Nine Network is expected to give the green light for negotiations to start before schedule - they were due to begin next year.
"The football codes and the broadcasters are waiting for the anti-siphoning rights changes," Gallop said. "Once the government makes that announcement we would certainly be open to commencing formal discussions. We have been preparing for the negotiations for some time. Our club committee and consultants have been working with the various scenarios and we are ready to maximise the opportunities."
Gallop has had informal discussions with the commercial broadcasters and it is understood all three have shown an interest in bidding for rugby league.
"All the broadcasters, like us, are champing at the bit to get cracking on the process," he said. "We want to see a full-blown auction for our rights which will be backed by our stakeholders, including clubs and players."
The NRL is well prepared for negotiations, having hired consultancy firm LEK to advise it on the negotiation process. As part of that investigation, the NRL has considered whether to separate representative football from the NRL, or maintain the current structure which bundles the game.
"I am a proponent of the idea. I can't see why we shouldn't bring it forward and if we're comfortable with the result, I am sure that could be structured in a way that could bring some money into the game earlier than 2013," Wests Tigers chief executive Steve Humphreys said. "Time will tell but it's definitely worth a shot."
The outcome of television negotiations has significant ramifications for the game. Plans to expand the NRL into areas such as the NSW central coast and Perth are contingent on talks with broadcasters. Furthermore, clubs and players are relying on a significant lift from the existing deal - believed to be worth $100 million a year - to improve pay and conditions.
For the NRL, a financial windfall from television negotiations could be the difference between keeping the elite players, or losing them to other sports such as AFL and rugby union.
"It's a big-ticket item," Humphreys said. "If we can get some clarity around (the television deal), we can answer all those questions that hang on it."
As for the prospect of going into battle with the AFL, whose existing deal dwarfs the NRL, Humphreys was ambivalent.
"I don't see that as a major concern," he said. "The good thing I guess for us is we can start talks. If we're comfortable or happy with what is offered, we can agree to the deal."
