Talking Footy

Cut in value of mobile and online rights set to hit NRL hard
Nick Tabakoff
The Daily Telegraph
February 10, 201212:00AM

THE NRL's hopes of attracting $1 billion-plus for the broadcast rights to the game for the next five years have taken a major hit, with Telstra set to slash what it offers for the mobile and online rights.

The indications of a huge cut in the value of mobile and online rights have come from informed sources close to Telstra, the NRL's current rights-holder in the area.

The claim was yesterday backed by top independent media analyst Steve Allen of Fusion Strategy, who valued online and mobile rights now at "no more than $60 million".

Mr Allen's estimate is less than half of the $153 million paid by Telstra for the AFL broadcast rights late last year.

The slashing of estimated worth of the rights follows a Federal Court ruling last week that found Telstra rival Optus was not in violation of copyright by offering near-live sport through their new TV Now product on computers and mobile devices.

While the Federal Government has indicated it will urgently review the decision after lobbying from the NRL, the AFL and other sporting bodies, it may be some time before copyright law can be changed to prevent unauthorised streaming of live sport to mobile phones.

One source close to Telstra said the decision as is could "significantly diminish" the value of the online and mobile rights: "The sports bodies are the biggest losers in this, and the NRL is most imminently at risk given their content rights are up for negotiation."

NRL boss David Gallop yesterday conceded that if the Federal Court decision was not urgently dealt with, the downgrade in payments by rights-holders like Telstra would affect all parts of the game, "not only the NRL clubs" and players: "The impacts would go from players' salaries to ticket prices to junior registration fees," he said. "It will strip back funding to junior leagues, and potentially make the game more expensive for families who want to see their kids play junior rugby league."

Mr Gallop admitted the timing was "pretty bad from our point of view, as we are in our negotiation period (for the NRL rights) now".

Mr Allen went further, saying it was "a shocker for the NRL, which was in negotiations and could have expected a huge increase in the value of the online and mobile rights".

Mr Gallop said the likelihood of a lower offer from Telstra "simply underlines and puts into bold capital letters why this issue is urgent for sports".

Mr Allen said a big part of the $153 million Telstra had paid for the AFL online and mobile rights was for "exclusivity". With the final NRL rights deal for all media due to be completed by mid-year, and other rights deals imminent, there was pressure on the government to make urgent legislative changes to allow the sporting codes to maximise contracts.

http://www.dailytelegraph.com.au/sport/ ... 6267200700

Asked if Telstra would walk away from the contract, signed last year, Mr Thodey said: "There is a lot of water still to go under the bridge".

"But the bottom line is that we have a long relationship with the AFL and I know that we will continue to drive value from that contract.

"We are pleased with the contract we have with the AFL."

Xman wrote:

Ohhhh, isn't that a shame. Meanwhile:

Telstra sticks with AFL contract

Asked if Telstra would walk away from the contract, signed last year, Mr Thodey said: "There is a lot of water still to go under the bridge".

"But the bottom line is that we have a long relationship with the AFL and I know that we will continue to drive value from that contract.

"We are pleased with the contract we have with the AFL."

http://www.heraldsun.com.au/news/breaki ... 6266795305

=D> =D>

Oh no. $1 Billioin you say?

Raiderdave wrote:

Oh no. $1 Billioin you say?

well no

we say 1 Billion

& yes ... it will still happen ....just more tanty chucking from News Ltd
they will go looking for anyone who'll talk the NRL down & publish what they have to say

but that won't mean a thing when TV execs & Telstra sit down with the ARLC & Gallop

watch the grin on that four eyed nerds face when he still delivers it :D
it'll be like the cat that got the cream


whoo hoo

NRL boss David Gallop yesterday conceded that if the Federal Court decision was not urgently dealt with, the downgrade in payments by rights-holders like Telstra would affect all parts of the game, "not only the NRL clubs" and players: "The impacts would go from players' salaries to ticket prices to junior registration fees," he said. "It will strip back funding to junior leagues, and potentially make the game more expensive for families who want to see their kids play junior rugby league."

Mr Gallop admitted the timing was "pretty bad from our point of view, as we are in our negotiation period (for the NRL rights) now".

Raiderdave wrote:

Xman wrote:

Ohhhh, isn't that a shame. Meanwhile:

Telstra sticks with AFL contract

Asked if Telstra would walk away from the contract, signed last year, Mr Thodey said: "There is a lot of water still to go under the bridge".

"But the bottom line is that we have a long relationship with the AFL and I know that we will continue to drive value from that contract.

"We are pleased with the contract we have with the AFL."

http://www.heraldsun.com.au/news/breaki ... 6266795305

=D> =D>

reading between the lines
so .... they're walking away then

Xman wrote:

Raiderdave wrote:

Xman wrote:

Ohhhh, isn't that a shame. Meanwhile:

Telstra sticks with AFL contract
http://www.heraldsun.com.au/news/breaki ... 6266795305

=D> =D>

reading between the lines
so .... they're walking away then

What part of "But the bottom line is that we have a long relationship with the AFL and I know that we will continue to drive value from that contract."We are pleased with the contract we have with the AFL." dont you understand??

Why would they walk away from a contract they have stated they will continue to drive the value of??

ParraEelsNRL wrote:

you think if Optus wins that Telstra will still pay 150 million just to let optus show every game for free?

cos789 wrote:

ParraEelsNRL wrote:

you think if Optus wins that Telstra will still pay 150 million just to let optus show every game for free?

FITH doesn't undestand the concept of a contract.
FITH doesn't understand telstra will be supplying a live feed.
FITH doesn't that Optus will be showing delayed CH7.