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The NRL is poised to earn a $1.2 billion TV rights deal with Channel Nine and Fox Sports, but some fundamental changes to the game will be implemented to ensure that all stakeholders are happy with the agreement.
While some might see the proposed changes as radical, they shouldn’t come as a large surprise. In August last year, I wrote an article that outlined how the NRL could earn a similar deal, in terms of money, to the AFL.
Essentially, I stated that the NRL would need to explore the potential of allowing more ad breaks within a live broadcast if the game wanted to dramatically increase the revenue its TV deal generated.
When it comes to free-to-air broadcast of rugby league games, it’s important to understand that there are three scenarios.
1. Games are shown on a delayed telecast, allowing the broadcaster to insert ad breaks.
2. Games are show live with minimal ad breaks, but the broadcaster pays a much lower amount for the broadcast rights.
3. Games are shown live, but with stoppages in-game, allowing the broadcaster to insert ad breaks.
The NRL is acutely aware of these facts, and that’s why option three is looking likely, which will see the new broadcast deal include the following changes.
These proposed stoppages will allow Channel Nine to broadcast more ads, and generate an estimated extra $35 million in annual revenue. Meanwhile, fans will be able to watch Channel Nine’s Sunday match live, at a 4pm start.
I can already hear the chorus of fans in uproar, claiming that adding stoppages in play to accommodate a TV network is crazy, and that the new breaks will interrupt the flow of the game.
However, a committee that included New South Wales Blues coach Ricky Stuart, former coaches Daniel Anderson and John Lang, and legends Wayne Pearce and Trent Barrett, all agreed on areas that the game could include breaks. The stoppages are targeted at times when play is held up anyway, allaying fears that the breaks would interrupt the free flowing nature of the game.
Analysis was done on NRL games and it indicated that currently, on average, sideline restarts take 35 seconds, line drop-outs take 25 seconds, and restarts after a try take 23 seconds.
So the game will not be dramatically slowed down with the proposed changes. By adding a few seconds to the existing breaks, the game can formally include scheduled ad breaks which benefit the broadcaster, while also ensuring the NRL gets the TV deal it deserves.
Meanwhile, Fox Sports will be pitching to show every NRL game live, up from the five matches per round it currently broadcasts.
All stakeholders in the game should be happier with the new deal. Channel 9 will be able to generate more revenue, fans receive more live coverage on free-to-air, Foxtel receives additional games, and the NRL gets its payday.
Last week, I argued that the quality and quantity involved in the broadcast of the NRL was more important than the actual amount that the deal would generate. However, the majority of AFL and NRL fans were still hung up on the actual financial figure that the NRL would receive.
Well, it seems like that figure will be $1.2 billion.
Judging by the comments on last week’s article, some AFL fans will need to eat humble pie.
And some NRL fans can turn their attention to something more important than a measuring contest.