The bright side of the TV deal
Roar Guru By mushi, 25 Aug 2012 mushi is a Roar Guru
Adam Blair in action during the NRL round 24, Canterbury-Bankstown Bulldogs v Wests Tigers (AAP Image/Action Photographics, Robb Cox)
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A lot has been written about the fans being forgotten in the new deal but I thought hey, it’s the weekend, let’s go all Bobby McFerrin and be happy!
From the new deal, here’s what we should be thankful for.
The guys at the ARLC finally shot dead those first and last rights. That was the puppy which got AFL a huge deal years ago but it is a kind of boom or bust clause that I don’t think we need to gamble on. Good management with freedom is better than one big money roll of the dice on the felt for me.
Then you’ve got the schedule, the bone for the fans is that they get to be able to tell when their team is playing 20 weeks in advance. I’m not sure, given the TV networks will probably have some input into this, that it’s a terribly different outcome but it seems like something the majority wanted and they seem to have got it for little trade off.
Then the big part. The cash.
A one billion dollar price tag means we can legitimately measure our metaphorical members with the masters of the AFL. Yes they got more, but their game goes for longer and have more breaks suitable for advertising.
It also excludes the digital rights, which is going to become a larger part of the sports value proposition in the future. A shrewd move
The clubs, after feeling slighted on the last deal, are going to be the best looked after. I think the NRL giving the clubs a grant that covers the cap is a fair and equitable manner to run the game. At that point, a 50% outcome gives the players a AU$6.25m cap. This means if we want to keep players, we should be able to unless stupid amounts come from another code.
It also leaves the game with 100 million a year to improve the administration, expand and look after the ‘grass roots’, which is actually what delivers the billion dollar audience they just sold to Nine and Fox.
If original reports are wrong on the division of the cash then the ARLC has the capacity to look after all aspects of the game. Personally, I’d like to see a well-structured grants programme down to the local club level. Playing rugby league makes you a fan of rugby league, let’s make it as easy as possible for people to get their kids into the game.
Imagine local clubs that didn’t have to fret every June about the finances and could keep memberships affordable.
I can hear the ‘user pay’ guys already warming up their typing fingers but remember, fans are the product that the NRL sells to sponsors and TV networks. Coal doesn’t pay to be dug out of the ground, veggies don’t pay to be harvested and kids shouldn’t have to pay to become NRL fans.
Even if, and please don’t pile on to me for this brief sojourn into the negative, the Commission does ignore the game outside of the NRL for this round of the contract, the size of it and the exclusion from the first and last rights means that next deal they can focus on delivering more to other stakeholders in the game.
- Explore:
- Australian Rugby League Commission, John Grant, NRL, Rugby League
August 25th 2012 @ 3:28am
Von Neumann said | August 25th 2012 @ 3:28am | Report comment
I wrote this in relation to something else….but its relevant here.
Imagine this scenario – I think its a bright side.
Lets use our imagination and also borrow from the innovation from overseas. Maybe we will be reaching into the mind of acting CEO Shane Mattiske, and explore for a moment.
Given that we may be limited by offering value to broadcasters just now, and for a moment consider that live streaming of all matches is off the cards. Lets look at what we can do with Friday Night Live and a high quality NRL app, in the not too distant future.
We will let viewers use 2 devices. Their tv and their tablet.
You pay for a service that lets you use your tablet as a companion viewing device. With the app, you can also watch the match live, but you will have access to an unprecedented level of stats, alternate angles, replays at your whim, alternate and extra commentary on key decisions, the ability to rewind to key moments like a try or a big tackle….it would serve as a companion device. Its aim would be to offer additional value to the viewer above and beyond the normal viewing on the TV. It could also serve as a portal to a far deeper service that took you around the grounds, ect. It could also allow you to view player interviews during the match that are not available on tv.
In time what may happen is that people will watch the main tv broadcast, and given the digital nature tv is heading, people will be able to choose a standard ‘vanila’ broadcast with nothing but the image and commentary, or a ‘full-limited ‘ broadcast that contains some extras like replays and a few stats….but nothing much else.
Instead, for the extra’s people will use their “companion devices”. So you can watch the main display and every once in a while you can check your “companion” device and do as you please.
It would be like driving a car while making a phone call; or sending a text message while you spoke to an acquaintance.
I get that not everyone is happy with the [what seems like] minimalistic coverage, but the mere fact the ARLC withheld the right to stream its own live broadcast *along-side* the FTA and foxtel broadcast is telling.
You wait, and see. The above is only a limited-case scenario for Friday Night live (and foxtel live). I am sure it has further uses in a more comprehensive version of viewing.
This is just one of the things that is possible under the new agreement. Of course people would like all matches live-streamed, and that is not being disregarded by the ARLC.
Just remember, they got more than double the money for what they already had….and fixed schedule, removal or first and last rights, retained the right to stream live broadcasts, 1billion dollars, which is more than enough for this country at the moment, and ch9 have agreed to improve their coverage, and incorporate new technology and imagery into their broadcasts, and new features.
There has been a stark change in the past 6 months with how they portray the game and talk about it in general. Its clear no one is taking the game for granted anymore. Minimal FTA is a small price to pay, for such a bloody good deal.
August 25th 2012 @ 3:36am
Von Neumann said | August 25th 2012 @ 3:36am | Report comment
hope this is allowed through the filter….having trouble putting things in one place. a lot to say
Other than that, its certain that every aspect of the game, from every department within HQ, to every level of involvement with the community and clubs, the players, the staff, the refs – all will get a boost to what they are capable of doing, and their efficiency = our enjoyment of this great game. Not to mention facilities and any functions they hold, the corporates, all will be better off.
And it will trickle through the clubs and the game day experience.
I imagine fans will be better off at the games in the forms of packages clubs will be able to offer, and memberships….
the list goes, on and on. Every aspect will get a major boost.
Thats whats its all about. This deal has changed everything.
August 25th 2012 @ 4:14am
Morotti said | August 25th 2012 @ 4:14am | Report comment
I would be interested to see if the ARLC would ever consider simply selling their rights as a pay as you watch sort of thing. Similar to a boxing match. If you want to watch that game then you pay a small fee for it. Or you can pay an annual subscription for the season. And this is the only way that you can watch the game. Not sure whether that will be something that people want to do in the future but I could see it being discussed as an option. Especially considering the advancements in technology that are taking place already and they will only continue exponentially.
August 25th 2012 @ 8:10pm
Sam said | August 25th 2012 @ 8:10pm | Report comment
They can’t do that as their only way of broadcasting due to anti-siphoning laws, and the fact that it wouldn’t make sense to have no games on FTA. I imagine that is how they will do the pay TV part of the deal next time, produce all live games themselves (as a pay per view or subscribe for the season) which will be similcast with the FTA coverage, and cut out Fox altogether.
August 25th 2012 @ 7:12am
Mav63 said | August 25th 2012 @ 7:12am | Report comment
I subscribe to Major League Baseball TV for $75/ year. I can watch every game live. View the standings. Game recaps. Highlights etc etc etc. I’d pay that to get NRL.TV
Can someone make that happen? Oh and I can watch it on my tv, laptop, tablet or phone.
August 25th 2012 @ 8:17am
oikee said | August 25th 2012 @ 8:17am | Report comment
You pay to watch baseball? mate are you ok, how is your head, did you get a headknock. ?
Next you will be paying to watch golf, the little white ball flying through the air, compelling tv.
August 25th 2012 @ 7:14am
Mav63 said | August 25th 2012 @ 7:14am | Report comment
PS. Forgot to mention I can choose alternative commentaries for each game. Imagine not having to listen to Ray Hadley, OMG!
August 25th 2012 @ 7:25am
steve b said | August 25th 2012 @ 7:25am | Report comment
Your right about the jnrs Mushi i hope they have their wits about them when it comes down to dividing the money up for all the community and rural clubs who do it hard every year just to survive ..It will be interesting to see how it works out in the next five years to see who gets what ..
August 25th 2012 @ 7:56am
oikee said | August 25th 2012 @ 7:56am | Report comment
Well written Mushi, and to add my two cnets worth to improve the game even more, allow the Broncos to buy some decent players.
You wont grow the game with park footballers. Their is not one superstar in the Broncos team, yet every other club has 2 or 3.
Just saying The game needs a healthy strong Broncos, they should have 2 Brisbane clubs, the Broncos are now just a park team, feeder club to Sydney.
August 25th 2012 @ 8:45pm
Sam said | August 25th 2012 @ 8:45pm | Report comment
THAT IS THE BIGGEST LOAD OF CRAP I HAVE EVER HEARD! You Broncos fans think you are the be all and end all of rugby league, god’s gift to the NRL. While I understand the commercial importance of having a team in Brisbane, it doesn’t mean that they should be given a blatant unfair advantage over the other teams.
They already get a huge commercial advantage in being the only team in one of Australia’s largest cities, which has the largest economy of any city between Sydney and Singapore, plus essentially having a mortgage on Friday night games (a trend set to continue for the next 5 years). They have by far the best stadium in the league, and the biggest crowds (due to being Brisbane’s only team). Unless they are run by monkeys, this makes it far easier for them to become the richest team in the league, which means they can invest in better training facilities etc. If they can’t make the finals, then it is completely their own fault.
As for them having no superstars, I don’t know what team you are looking at. They have more rep players than any other team. Looking at they’re squad, they have Civoniceva, Alex Glenn, Hannant, Hodges, Parker, Reed, Thaiday and T’eo, as well as up-and-comers like Gillett, Hoffman and Josh McGuire.
The Broncos can only blame themselves if they miss the finals.
The only thing I will agree with you on is there should be two Brisbane clubs. There should have been two from the start.
August 27th 2012 @ 7:38am
oikee said | August 27th 2012 @ 7:38am | Report comment
The Broncos are a rudderless ship.
I will say it again, the Broncos should be winning a premiership every 5 years. If we keep going down this track, we wont win for another 10 years.
Yes, Yes it is Brisbanes destiny to do good. tHey have the largest supporters group in Australia, you neglect that and you throw out the baby in the bathwater. They pay big money to see results, pay for the big stadium, pay for the expensive memberships, pay for very large juniors and feeder teams. You just want something for nothing.
It is like going to Uni , doing all the studies, getting all the degrees and then working on the checkout for Macdonalds. Enough, you know i am right.
Stop trying to bust the Broncos balls, stop trying to drag them down to a pathetic low level, stop trying to kill the tall poppies. It is harming this country, killing it i tell ya.
August 27th 2012 @ 9:42am
planko said | August 27th 2012 @ 9:42am | Report comment
Oikee look at the bronco’s they are full of the same kind of player. They have enough second rower types to fill 4 teams …. Corey Norman I think is worth the risk keep playing him but Wallace probably needs either a new club or retirement. I dont pay a great deal of attention to the Broncos losses for next season but I think you loosing T’eo and Petro to retirement. You should go after a half/five eight type with the monoey from these 2. Also how long has Hodges got he still ok but must be getting close ? Good luck this week Oikee
August 27th 2012 @ 10:34am
oikee said | August 27th 2012 @ 10:34am | Report comment
Thanks Planko, yes Petro gone, Teo and Bearle gone, Hodges is on his last legs. Corey Norman and Wallace are never going to take the Broncos to a grand Final, Hunt is the halfback, i am happy with him, so we need a five-eight to replace Locky and a fullback. Hoffman is not up to scratch.
Their are a stack of fullbacks we could buy, The young Fish dude at the warriors, We should have bought Maloney when we had the chance.
Griffin stuffed up by not replacing Lockyer. It really is that simple. The team is ok, we need playmakers.
August 25th 2012 @ 7:59am
Mals said | August 25th 2012 @ 7:59am | Report comment
RE: the Fixed schedule
At least the non glamour clubs like the Sharks and Penrith will be able to see before the start of the season how many FTA games they will be given in the 1st 20 games of the season and lobby the NRL.
August 25th 2012 @ 8:43am
oikee said | August 25th 2012 @ 8:43am | Report comment
Good story in the Australian today is what i have been saying for years.
The Australian
IN hindsight, it is hard not to note the symmetry. On rugby league’s version of Big Tuesday, one of the men most responsible for the billion-dollar deal that secured the game’s future was overseas on a surfing holiday, enjoying the swell off the coast of Indonesia.
Former NRL chief executive David Gallop — soon to become the chief executive of Football Federation Australia — was the forgotten man as his interim successor, Shane Mattiske, and ARL Commission chairman John Grant announced a $1.025bn partnership with the Nine Network and Fox Sports that consolidated rugby league’s standing as king of the east coast.
That the sport was even in a position to break the $1bn barrier was in no small part down to Gallop. During his 10-year tenure as the game’s pre-eminent figure, Gallop kept rugby league alive, often in spite of itself.
He dealt with a litany of atrocities. He juggled the self-interest of clubs and the political minefield created by having two masters — the game was formerly owned by the Australian Rugby League and News Limited, publisher of The Weekend Australian.
…The code flourished in the face of its own fatalism. Rugby league types often speak about the code’s capacity for cannibalism, but it didn’t just survive during the Gallop era, it thrived. It saw off the threat of rugby union and, thanks to the broadcasting billions, is well placed to do the same with the AFL.
Ratings maintained record pace — this year’s State of Origin series was the biggest in the code’s history. Crowds continued to grow. Now it has a broadcasting deal that reflects its popularity.
“This is a great working-class game,” South Sydney chief executive Shane Richardson says.
“That’s why it’s strong in western Sydney, that’s why it’s strong in the country, that’s why it’s strong in north Queensland.
“People play it, they grow up with the toughness of the game. It has lived though Super League because every week there are these people out there who sell raffle tickets and do barbecues to keep it alive. It will never change. It’s in our DNA.”
Rugby league’s rebirth from the wreckage of the Super League war is a story in itself. The mid-to-late 1990s almost destroyed the code, as the ARL and News Limited fought a bitter battle to gain control. Peace eventually arrived as the warring parties formed a joint venture, but the game remained fragmented.
Old wounds were intermittently reopened but, slowly, the sport regained the traction it lost. In 2005, rugby league took a giant step forward when Wests Tigers’ exhilarating brand of rugby league captured the imagination. Superstars such as Benji Marshall, Greg Inglis, Billy Slater and the soon-to-return Sonny Bill Williams emerged.
In 2008, the league made a conscious decision to work on its public image during a two-day strategy session at the SCG. That meeting, which focused on the next broadcasting deal, was also the forerunner to the formation of the independent commission.
“There was a clear focus on getting the game the value it deserved in the next media rights deal,” Mattiske says.
“We have always had a belief in the game’s value and its strength. What we needed to do was put in place some strategies at that point in time with regard to the media rights which would ensure we maximised the outcome.
“One of the things we needed to focus on there was our positive player image.”
The success of those measures were exemplified when the ARLC was named Governing Body of the Year at the international Beyond Sport Federation Awards in London last month for its effect on social change, particularly in the indigenous community.
All the while, people kept watching. For all the bitterness over the past 20 years, rugby league never lost its allure as a television sport. Ratings this year have been bigger than ever. Origin is a phenomenon. This year’s three games — it was won by Queensland for a seventh consecutive year — dominated the broadcasting landscape.
The final piece of the puzzle was the ARL and News Limited handing over ownership of the game to an independent body. After years of negotiations, the NRL finally made way for the ARL Commission.
The commission, formalised in February and led by Grant, has attracted its share of criticism, but it had a major victory this week. As Grant said, they answered the billion-dollar question with a billion-dollar answer. The critics were silenced by a wad of cash.
“It’s always been a hugely popular sport,” says NSW Sports Minister Graham Annesley, who was Gallop’s right-hand man until entering politics last year.
“It obviously went through its well-documented dramas in the 1990s. What Gallop did through the first decade of this millennium was to put stability back in the game. He brought the game back together after its split . . . and set it up to the point where the game has done the richest television deal ever. That hasn’t happened without David Gallop’s contribution — it’s as simple as that.
“You only have to look at the TV ratings. They have always been unbelievable. I think its true value has been recognised.”
Richardson says: “The reality is it is a great game — you start from there. The players are great, it is a great game to watch, it’s great for TV — that’s the first thing.
“The second thing is, I think we have all underestimated how great the game is. If you look at a scale from one to 10, we have probably been at a two for a long time. Now everyone can see the opportunity to be a 10. That has been shown up by the TV deal.
“We obviously undervalued ourselves for a long time on TV. We spent three or four years analysing what it was worth — we never did any of that stuff before.”
Again, Gallop can take some credit for the game finally realising its potential. Three years ago he appointed consultancy firm LEK to help prepare for the broadcasting negotiations.
One of the first things media expert Colin Smith discovered was the game’s capacity for underselling itself. Despite rampant ratings on television, rugby league was content to live in the shadow of the AFL. Not any more.
“When I first started, rugby league didn’t know how big and strong it was,” says Smith. “It was very self-effacing.
“It just didn’t realise it is very significant in its own right. It didn’t realise it had the mojo. It believed a whole lot of hype that came from down south. It had been the poor cousin of the (AFL).
“People were surprised when I showed them the numbers.
“I think one of the things that has come out of this process has been that at club level, at the NRL level and the ARL Commission level, it has discovered how big and strong it is.
“I think the work that David did in getting people like me and others on board . . . culminating in breaking away from the old model to a new commission, that was the final catalyst for what happened.”
The challenge is to keep building. Rugby league now has the finances to confront its many challenges head-on. It has the muscle to protect its heartland in western Sydney and the Gold Coast, which is under siege from the AFL.
Clubs can expect greater financial support. Players can start earning as much as their counterparts in the AFL and rugby union. Thanks to the commission, decisions will be made for the greater good. Money will be distributed where it is needed most.
Some should trickle back to grass roots. Good times lie ahead.
“We have been restricted in whatever we have done,” Richardson says. “People want to bag the NRL, but the bottom line is they were restricted by finances. I wouldn’t be overly critical of the NRL in what they have done, because they have done it in difficult circumstances.
“We had to put this game back together again. It was Humpty Dumpty, mate. It had fallen off the wall. There wasn’t enough soldiers to put it together again. But we now have the soldiers. So beware . . . I am telling you, Humpty is not only back together again, he is looking to get a girlfriend.”
August 25th 2012 @ 8:47am
oikee said | August 25th 2012 @ 8:47am | Report comment
On a negative note, this weekend the Broncos will probably fall out of the top 8.
Griffin has proven he is not a NRL coach, like Bluey Mclennen at the Warriors. The Broncos have got to make so many changes, the team is second rate, no game or line breakers, he is tunred a professional team into nothing more than a pub team.
The AXE has to be sharpened now, not in 2 years time. this team will be wooden spooners for 2 years, or until they can replace all these overpaid juniors with some real players, a-grade players.
August 25th 2012 @ 1:08pm
Curious said | August 25th 2012 @ 1:08pm | Report comment
Here here Oikee; and not just overpaid juniors; there are a couple of older blokes posturing as NRL players.
They look, act and would almost be incapable of breaking through a wet paper bag. Historically, it seems that when a supposed coach is give a long term or extension to his contract, the wheels fall off. The joint leaks like a sieve in relation to quality players. I would only have two of their existing player group in an NRL side, so it seems they lack bonefide purposeful defensive and importantly attaching playing staff. It;s time for Hook to be hooked.
August 25th 2012 @ 11:15am
Macbeth said | August 25th 2012 @ 11:15am | Report comment
Well there is still not NRL on FTA on Saturday and 1 live game all up – admittedly only AFL of the other codes is on live TV (apart from the Rugby championship) – apart from the money how is that a good result….
August 25th 2012 @ 6:31pm
Coully said | August 25th 2012 @ 6:31pm | Report comment
Unfortunately this tv deal was never going to be a silver bullet that solved all the problems of the game. Overall coverage is the same, not worse. The money has been delivered so if used wisely clubs will no battle and players will not swap codes. League will no longer deal with these issues. Long story short is the deal solves money worries, delivers some extra daily league content, improves coverage in non traditional states.
Coverage issues such as HD and commentators will be solved by 9 with sufficient consumer input. They paid top dollar for the rights and so will not damage the possible audience by providing sub quality production(for the entire deal). Eventually 9 will bow to the consumer or lose the advertising value. Why would the commission take a pay cut by demanding presentation features which are are in 9a best interests to deliver.
As for the delayed telecasts and night time grand finals, these were the concessions made in “negotiations” for finally gaining financial security. Fans put up with it for 5 more years. If after that the commission does not try and make gains for the fans then you may complain.
Bottom line: the game was lurching from one financial crisis to another and now with proper management that will be over. FTA coverage was the only aspect of the game that did not benefit. Maybe the fans should get out to the games anyway.
August 25th 2012 @ 12:04pm
von Neumann said | August 25th 2012 @ 12:04pm | Report comment
Macbeth, its not that bad. Could have been better, sure, but its not that bad
Can’t have it all…after all afl has a lopsided competition, blow outs all the time, and a skewered comp.
I am so happy with the nrl, and happy enough with the fta coverage….after all there is fox…and a tablet app coming, and hopefully separate live streaming…and a tbox/smart tv service via Foxtel app…all cheap enough