New NRL TV rights deal about to kick off!
Posted: Sat Apr 25, 2015 11:13 am
NRL chief Dave Smith ignites billion-dollar TV battle for NRL media rights
John Lehmann Editor at Large
The Daily Telegraph
April 25, 2015 12:00AM
Dave Smith, CEO of the NRL, has moved early to secure the game’s media rights. Picture: M
Dave Smith, CEO of the NRL, has moved early to secure the game’s media rights. Picture: Mark Evans
NRL chief Dave Smith is set to ignite a billion-dollar battle for the game’s media rights, moving early in a bid to catch out his AFL rivals.
Mr Smith has started informing TV bosses that he wants to kick off immediate negotiations, which are expected to reap well over the $1.125 billion for the five-year deal for the 2013-2017 seasons.
Sources told The Saturday Telegraph the NRL will consider splitting the free-to-air broadcast rights, meaning the Nine Network could lose its exclusive deal.
Rights for NRL premiership games could be sold separately from the State of Origin series, Test matches and the Auckland Nines to drive up the price.
It is possible NRL games could also be split between different free-to-air channels, although pay-TV channel Fox Sports, owned by The Telegraph’s publisher News Corp, is expected to be a strong bidder to at least retain its share of NRL matches.
“All possibilities will be on the table,’’ one source said.
Australian Rugby League Commission member Graeme Samuel, a key player in the last NRL rights negotiations in 2012, has been weighing up since late last year whether the game should kick off talks early. The negotiations do not need to be completed until 2017.
The AFL, which is hoping to get more than $1.5 billion for its rights, started negotiations last year but put them on hold over summer, partly to see if new owners would buy Network Ten.
Sports rights are becoming increasingly important for media companies as viewers watch sport live, creating greater value for advertisers.
More viewers are beginning to watch drama and movies on demand, lessening the opportunity to sell advertisements.
The NRL’s digital rights, bought by Telstra in 2012 for around $100 million over the five years, are also expected to fetch a higher price due to the strong growth in website, mobile phone and tablet users.
The rights deal is critical to the future of rugby league because they generate about two-thirds of the NRL’s overall revenues.
That money is used to grow the game from the grassroots to the elite level.
The move comes as a new record is expected to be set today for the highest number of spectators to watch rugby league games in one day since the game started in Australia in 1908.
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BUSINESS
The Australian
The Australian
April 25, 2015 12:00AM
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Rugby league has blown the siren on a new record billion-dollar TV rights deal, bringing forward negotiations by one year in a surprise move to blindside the AFL.
It is understood Australian Rugby League Commission CEO David Smith phoned the bosses of rights holders the Nine Network and Fox Sports yesterday morning to give formal notification he will kick off the process next week.
Mr Smith also contacted the Seven and Ten networks in a clear sign that the code will aggressively exploit competitive tension to beat the $1 billion contract signed in 2012.
Mr Smith has conjured up an audacious move to get one over AFL chief executive Gillon McLachlan, deftly exploiting the rival code’s delayed talks. A spokesman for the NRL declined to comment.
Broadcasters are paying more than ever for exclusive rights because the immediacy of fixtures and fan loyalty ensure big live audiences, which will push up the value of the NRL’s rights.
Bidding for rights as they come up for renewal has become an even fiercer game, which makes for an intriguing spectacle in coming months.
But the NRL is unlikely to match the extraordinary sports rights inflation recently seen in the US and British markets, which do not have an anti-siphoning list.
The regulation ringfences a long list of top-tier sports events and fixtures for free-to-air networks, effectively locking subscription-TV provider Foxtel out of the bidding process. The range of the controversial regulation is unique to Australia.
In February, European satellite broadcaster Sky and telco BT paid a record £5.1bn ($10bn) for television rights to broadcast English Premier League games from 2016 to 2019.
The stunning 70 per cent price rise came amid a massive bidding war that also included reported bids from America’s Discovery Network and Qatar’s beIN Sports.
For free-to-air network CEOs, it is also getting tougher to deliver earnings growth because of flat conditions in the advertising market and cost inflation.
While the media bosses will do what it takes to win the NRL rights, they will not have open chequebooks, opening the possibility of two free-to-air networks sharing matches to keep a lid on costs. Presently, Nine owns all the free-to-air rights, with Fox Sports and Foxtel the pay-TV rights.
One intriguing twist could see new competitive tensions by virtue of technological developments. The online rights will fetch a higher price as the National Broadband Network rolls out around the country, improving internet speeds.
Telstra has already made significant inroads into digital sports rights as part of a concerted push to secure exclusive content to attract new customers.
In 2013, the telco signed a sponsorship and digital rights agreement with the NRL worth more than $100 million, extending the six-year, $90m deal it signed in 2007. The exclusive online and mobile rights are seen as undervalued by many analysts.
Mr Smith has swooped in after The Australian revealed Mr McLachlan postponed his own talks due to ongoing uncertainty surrounding the sale of potential bidder the Ten Network.
The AFL Commission decided to wait for the free-to-air network’s future to be clarified to maximise competition tension and get the best possible deal.
The NRL’s five-year deal with Nine and Fox Sports is worth $1.025bn.
John Lehmann Editor at Large
The Daily Telegraph
April 25, 2015 12:00AM
Dave Smith, CEO of the NRL, has moved early to secure the game’s media rights. Picture: M
Dave Smith, CEO of the NRL, has moved early to secure the game’s media rights. Picture: Mark Evans
NRL chief Dave Smith is set to ignite a billion-dollar battle for the game’s media rights, moving early in a bid to catch out his AFL rivals.
Mr Smith has started informing TV bosses that he wants to kick off immediate negotiations, which are expected to reap well over the $1.125 billion for the five-year deal for the 2013-2017 seasons.
Sources told The Saturday Telegraph the NRL will consider splitting the free-to-air broadcast rights, meaning the Nine Network could lose its exclusive deal.
Rights for NRL premiership games could be sold separately from the State of Origin series, Test matches and the Auckland Nines to drive up the price.
It is possible NRL games could also be split between different free-to-air channels, although pay-TV channel Fox Sports, owned by The Telegraph’s publisher News Corp, is expected to be a strong bidder to at least retain its share of NRL matches.
“All possibilities will be on the table,’’ one source said.
Australian Rugby League Commission member Graeme Samuel, a key player in the last NRL rights negotiations in 2012, has been weighing up since late last year whether the game should kick off talks early. The negotiations do not need to be completed until 2017.
The AFL, which is hoping to get more than $1.5 billion for its rights, started negotiations last year but put them on hold over summer, partly to see if new owners would buy Network Ten.
Sports rights are becoming increasingly important for media companies as viewers watch sport live, creating greater value for advertisers.
More viewers are beginning to watch drama and movies on demand, lessening the opportunity to sell advertisements.
The NRL’s digital rights, bought by Telstra in 2012 for around $100 million over the five years, are also expected to fetch a higher price due to the strong growth in website, mobile phone and tablet users.
The rights deal is critical to the future of rugby league because they generate about two-thirds of the NRL’s overall revenues.
That money is used to grow the game from the grassroots to the elite level.
The move comes as a new record is expected to be set today for the highest number of spectators to watch rugby league games in one day since the game started in Australia in 1908.
--------------------------------------------------------------------------------------------
BUSINESS
The Australian
The Australian
April 25, 2015 12:00AM
< Prev
Next >
Rugby league has blown the siren on a new record billion-dollar TV rights deal, bringing forward negotiations by one year in a surprise move to blindside the AFL.
It is understood Australian Rugby League Commission CEO David Smith phoned the bosses of rights holders the Nine Network and Fox Sports yesterday morning to give formal notification he will kick off the process next week.
Mr Smith also contacted the Seven and Ten networks in a clear sign that the code will aggressively exploit competitive tension to beat the $1 billion contract signed in 2012.
Mr Smith has conjured up an audacious move to get one over AFL chief executive Gillon McLachlan, deftly exploiting the rival code’s delayed talks. A spokesman for the NRL declined to comment.
Broadcasters are paying more than ever for exclusive rights because the immediacy of fixtures and fan loyalty ensure big live audiences, which will push up the value of the NRL’s rights.
Bidding for rights as they come up for renewal has become an even fiercer game, which makes for an intriguing spectacle in coming months.
But the NRL is unlikely to match the extraordinary sports rights inflation recently seen in the US and British markets, which do not have an anti-siphoning list.
The regulation ringfences a long list of top-tier sports events and fixtures for free-to-air networks, effectively locking subscription-TV provider Foxtel out of the bidding process. The range of the controversial regulation is unique to Australia.
In February, European satellite broadcaster Sky and telco BT paid a record £5.1bn ($10bn) for television rights to broadcast English Premier League games from 2016 to 2019.
The stunning 70 per cent price rise came amid a massive bidding war that also included reported bids from America’s Discovery Network and Qatar’s beIN Sports.
For free-to-air network CEOs, it is also getting tougher to deliver earnings growth because of flat conditions in the advertising market and cost inflation.
While the media bosses will do what it takes to win the NRL rights, they will not have open chequebooks, opening the possibility of two free-to-air networks sharing matches to keep a lid on costs. Presently, Nine owns all the free-to-air rights, with Fox Sports and Foxtel the pay-TV rights.
One intriguing twist could see new competitive tensions by virtue of technological developments. The online rights will fetch a higher price as the National Broadband Network rolls out around the country, improving internet speeds.
Telstra has already made significant inroads into digital sports rights as part of a concerted push to secure exclusive content to attract new customers.
In 2013, the telco signed a sponsorship and digital rights agreement with the NRL worth more than $100 million, extending the six-year, $90m deal it signed in 2007. The exclusive online and mobile rights are seen as undervalued by many analysts.
Mr Smith has swooped in after The Australian revealed Mr McLachlan postponed his own talks due to ongoing uncertainty surrounding the sale of potential bidder the Ten Network.
The AFL Commission decided to wait for the free-to-air network’s future to be clarified to maximise competition tension and get the best possible deal.
The NRL’s five-year deal with Nine and Fox Sports is worth $1.025bn.
