TV deal will vault NRL to big league
* by Robert Craddock
* From: The Courier-Mail
* September 20, 2010 12:01AM
RUGBY league is about to be saved by Santa Claus in a suit and tie.
League boss David Gallop normally cringes when he hears speculation about off-field brawls in his game. Not this time.
Gallop's heart is bursting with pride and anticipation of the massive showdown brewing between all major television networks over rights for the code's next long-term television deal likely to be clinched within eight months.
That the AFL rights are also up for grabs thickens the plot because it puts Australia's two biggest codes and all major networks into one giant melting pot. Rugby league's television deal is worth about $500 million over six years.
It was hailed as a major breakthrough for the code when it was clinched in July, 2005. But when the AFL landed a $780 million deal over five years a few months later, league felt like a man who was thrilled about unveiling his new Commodore – until his neighbour popped in driving the latest Ferrari.
It's remarkable that although a report suggested league's ratings were down 6 per cent and the AFL's 10 per cent this year, both deals are set to skyrocket. The AFL will ask for close to $1 billion with new teams from the Gold Coast and Western Sydney providing an extra game each week.
League's price is likely to vault to more than $850 million, a godsend for a code in which only four of 16 clubs showed a profit last year. "It is going to mean we are going to be able to increase the grants to the clubs, the salary cap will go up, we will increase our investment in junior development and get our clubs in a more robust financial position," Gallop said.
League's problem last time was there was no serious competition for their product. The AFL, by contrast, had Channel 9's Kerry Packer signing off on a huge offer days before his death. There was speculation Packer's declining health made him more cavalier than he would normally have been but, whatever his motive, his actions were a precious parting gift to the AFL.
Channel 7 and Foxtel got the rights after matching Packer's offer but his huge bid meant they paid far more than they originally intended to. The consensus was that league was cheap last time and the AFL overpriced.
But this time league is sitting pretty. Seven and Ten are circling and are desperate for a slice of the action. As far back as February, Gallop was spotted discussing rights over dinner with Seven's boss, David Leckie, at the Centennial Hotel in Sydney's east, while a five-minute drive away AFL chief executive Andrew Demetriou was discussing AFL rights – which also expire next year – with David Gyngell.
Seven, which already shares the major AFL rights with Ten and Fox Sports, is preparing for a major tilt.
"We haven't even flexed our muscles yet," Leckie said recently.
The well-respected Gallop is a man who chooses his words carefully. His inner emotions are also kept on a tight leash. But the prospect of a mega rights deal has him excited.
"We are literally champing at the bit to negotiate our rights," Gallop said. "We are in a great position because we are riding a quality competition and the game has never been better."
League is the most-watched sport on Australian television, with an aggregate audience of 128.5 million viewers last year. Rugby league executives argue that if they draw about the same number of viewers as the AFL annually – both float between 120 million and 130 million – they should get the same-sized rights.
There is a strong chance there will be not so much a winner and loser in the league rights but a major winner and a series of consolation prizes with Seven possibly snatching the State of Origin series or a key timeslot.
"We could split it up," Gallop said. "We are in a position where all of our rights are coming up at the same time. Previously we have sold the garage and the house on different days. Now we can sell the whole property together, we might split it up along competition or timeslot lines.
"It may help us financially and also make sure the game is broadcast as widely as possible."
The pressure is squarely on NRL administrators to land a five-star deal. South Sydney part-owner Russell Crowe feels league sold itself too cheaply last time.
"I just don't think the game is balanced correctly with how the money the game can generate is divided," Crowe said. "The TV deal we have is based on the figures of who watches the game. I don't think it's fair in comparison to what AFL can generate or other sports.
"We've got the greatest TV game but we're in the situation where we're the poor cousin when it comes to money and that's not good."
This time Russell can breathe easily, because within a year league will clinch a deal that will be something to crow about.
