Telstra and ARLC to set up media unit under sponsorship and rights deal
by: Mitchell Bingemann
From: The Australian
December 12, 2012 2:26PM
TELSTRA and the Australian Rugby League Commission will set up their own media unit to report on the NRL after the two entities signed a sponsorship and digital rights partnership worth more than $100 million.
Under the five-year deal Telstra has agreed to double the $90 million it is believed to have paid the ARLC in 2007. In return it gains the exclusive broadcast rights to stream live rugby league matches to mobile phones and tablets regardless of their carrier.
This means that customer on Optus and Vodafone mobile networks will be able to access NRL matches on smartphones and tablets but will likely have to pay a subscription fee to Telstra.
Telstra would not disclose the commercial value of the contract but ARLC chairman John Grant said the deal was worth “double” in cash and contra to their previous deal.
“We have agreed with Telstra not to disclose the full value of that contract however we do acknowledge that it is double what we got in the last contract rights period. So it’s a very significant lift to the bottom line and it’s a very significant opportunity to build for the future through a digital platform,”
The deal will see Telstra also acquire naming rights to the Premiership and Sunday Football, operation of the NRL website and related team sites, the official NRL app and the official NRL fantasy games.
In a move reminiscent of the AFL establishing its own online media division, Telstra and the ARLC today announced they too would set up their own media unit and employ journalists to report on NRL matches and the goings on within the sport. The NRL media unit will also stream exclusive post game access and press conferences to mobile and tablet devices.
“We’re going to push a few boundaries I think and I think it’s very exciting,” said Telstra chief executive David Thodey.
Fox Sports, which has rights for the other five NRL matches every week, gained the internet protocol television (IPTV) and tablet rights for the matches it will broadcast when the ARLC signed its five-year, $1.05 billion agreement with Fox and Nine in August. Telstra plans to stream those matches granted to Fox Sports through the telco’s own IPTV system, the T-Box.
“Over twelve years Telstra has been a key partner at every level of the game and we are delighted they have extended their commitment to rugby league,” interim ARLC chief executive Shane Mattiske said.
“This extended partnership will see a significant investment in innovation that will deeply engage more fans than ever before in the excitement of rugby league.”