Rugby league TV deal heading to market

By Steve Jancetic / Wire

ARL Commission officials will meet rival networks Seven and Ten later this week for talks which the game’s administrators hope will drive the new broadcast deal past the $1 billion mark.

The Commission this week received initial offers from current rights holders Network Nine and Fox Sports, and will head to the open market seeking the best offer.

While reluctant to disclose figures involved with the initial offer – which one report claimed fell well below $1 billion – ARLC chief executive David Gallop dismissed claims the Commission’s financial target had been lowered.

“All I can say is we remain really confident in getting a very good result and nothing that has happened so far changes that,” Gallop said.

“We’ll be having meetings with Channel Seven and Channel Ten later this week. We have done a lot of work to get a clear picture of the game’s value given the results that it produces.

“We go into the next phase really confident about that and, having been through the exclusive stage, we’re keen to move to the next stage.”

Nine and Fox retain first and last bidding rights as part of their current deal with the league, but they would forfeit the right for last shot should either Seven or Ten beat their initial offer by 20 per cent.

Having put in separate bids, Nine and Fox will also put forward a joint bid for the three Commissioners on the broadcast deal sub-committee – chairman John Grant, Jeremy Sutcliffe and Ian Elliot – to consider.

Gallop said there had been no firm decision made on how the broadcast rights would be sold, with suggestions games could be broken up including the possibility of a lucrative State of Origin package.

“We’ve got a number of options and we’re keen to explore the options that maximise the opportunity,” Gallop said.

Gallop also dismissed any concerns over claims sluggish ratings and Pay-TV take-up rates following the AFL’s new broadcast deal could hurt rugby league’s final reward.

The Crowd Says:

2012-05-13T23:12:09+00:00

micka

Guest


Bugger Pay TV, why should I want to pay to see something on TV when it is on FTA with LESS Ads? I remember when pay had little to no ads but now it seems like there are even more than on free to air! Why do the idiot public buy into that? As an AFL fan, I will only be watching the VFL on the ABC if the AFL went exclusively to pay (no ad breaks on Auntie either - win win win). I love the game, not the big name players. If it all went to pay, it would be down to Leongatha Oval with me to watch the Parrots do their thing...

2012-05-13T23:01:57+00:00

Crosscoder

Roar Guru


More fans ,more gate money,stronger financially a club is.Tv introduces new fans to a code. Your last para,and I do likewise,keeps me working overtime.

2012-05-13T11:46:02+00:00

Frank Lee Kennedy

Guest


Very true MFB, it is a POKER game until all cards are on the table. I still believe that the Murdochs will not let it slip, SPORT is why 80% of the men in the West (survey result) turn their TV on in the first place. Ch10 and CH7 will give a fright to Ch9 before we get over the 1 Bill, but we will get there for sure, perhaps 1.1Bill as my best guess. Still more than 100% rise with lot less players, no drama.

2012-05-13T10:44:18+00:00

Crosscoder

Roar Guru


Every man and his dog knows ch9 is in debt to their eyeballs.they will be in bigger debt if they lose the rugby league.that story 9th Novemeber didn't fly under the bridge. All the more reason, the only way they woulds secure rugby league is via a joint bid with Foxsports,enabling the latter to have all games live. The fact that Gallop has spoken to execs of both 7 and 10,and they have intimated they are interested 10 in particular,means the cash strapped 9 will have to pull a rabbit out of the hat.Gyngell is admant they won't be losing the rights .If that is the case they and a joint partner will have to cough up the money. 9 has a debt to be serviced,rugby league provides the cash flow via advertising to assit in that regard.Lose that and CVC Asia Pacific. NB ch9 would not be putting in a first bid without the consent of their financiers. If in fact the total initial bids come to $790m as suggested or assumed,they will I suggest be beaten by 20% or mor, .and it will be a real open aution.

2012-05-13T10:33:24+00:00

Crosscoder

Roar Guru


Same ghost writer.

2012-05-13T05:30:01+00:00

Australian Rules

Guest


I don't pretend to always know what Oikee is saying, but in respect to Friday nights, he said: "It pays to be a league fan, more betting, more action, more money from gates, (having 2 games) more sponsers." If you're watching on tv, then NRL fans get the benefit of 2 games. But I don't know what benefit the fans get from "more gates", let alone sponsors (which certainly don't provide the NRL with similar revenue as the AFL). Ultimately, if I see something on this site that is patently incorrect, I think it should be corrected so the facts/figures can speak for themselves.

2012-05-12T21:46:34+00:00

Ian Whitchurch

Guest


Channel 9 is throwing off some nice cash. Channel 9's owners are cash strapped. http://news.smh.com.au/breaking-news-business/gyngell--nines-debt-matter-for-owners-20111109-1n6nf.html

2012-05-12T21:32:20+00:00

Crosscoder

Roar Guru


Correct QGIRL.Gyngell stated having a 2nd brisbane side would be worth an extra $20m to the code pa via Tv deal..

2012-05-12T21:29:09+00:00

Crosscoder

Roar Guru


They don't have to sell it to Foxsports.There are two other FTA stations one(9),who needs it like a baby needs a mum. Channel 9 is supposedly cash strapped, yet their first bid appears to be more than a pittance,if various sections of the media are to be believed Sometimes it takes money to make money. And apparently there will be a combined bid from 9/Fox down the line.

2012-05-12T12:55:55+00:00

The Cattery

Roar Guru


I'm a loner - you won't ever see me in the same room with anyone.

2012-05-12T12:19:09+00:00

Queensland's Game is Rugby League

Guest


The AFLdeal was rumoured to be well under $1 billion during the early stages of its negotiation. Nine and Ten drove the price up, didn't they? I doubt Seven wouldn't be looking to do the same to Nine. I think Foxtel increased the amount they were willing to pay at the last minute.

2012-05-12T08:22:37+00:00

William

Guest


Channel 10 should Saturday Night Footy through to Monday Night Footy where is Channel 7 should do Friday Night Footy through to Saturday Afternoon Footy and Channel 9 should do the other stuff with Fox Sports have nothing that way there will be serious contenders for the Ratings between the Commercial FTA Channels and while Channel 10 are at it can get V8 Supercars or maybe a joint bid with Channel 9 where one network does half and the other network does the other half

2012-05-12T06:21:56+00:00

Emric

Guest


just to add my 2 cents didn't the AFL only make the 1 billion mark because FOX raised their bid at the last second from 300 million to 600 million? or something like that

2012-05-12T03:10:46+00:00

Crosscoder

Roar Guru


What has that to do with the NRLsecuring more gate money or friday nights.I may be wrong but I understood Oikee was suggesting the code would secure more gate money,not more gate money than the AFL. In fact the Dogs who played their home game at Suncorp last night ,secured more gate money than they would at ANZ.

2012-05-12T03:04:04+00:00

Crosscoder

Roar Guru


Yet it was Gyngell(9) at a meeting with Gallop last year that brought up the additonal ads and what it would be worth to the code.I beleive the figure was around $20m pa. To the extent that the NRL had a senior man cant' spell it(Morrifais ??) who was working on ways and means to increase ad revenue for the station The Back Page and Kent ,say no more..

2012-05-11T11:27:00+00:00

Laoski

Guest


Agree wholeheartedly with JC & Boom. The FTA protection I presume was there to stop pay tv controlled coverage from being available only to a privileged minority, but when I hear that “FTA” cry now I can't help but picture fat cats laughing to themselves about how they are supposedly bringing quality programming to the common man aka stuffing them with lowest common denominator shows instead of respecting the sports that they pretend to love and uphold. I know this isn’t meant to be a Ch 9 bashing thread, but their ability to delay or even completely ignore league games equally drives me insane each week/month/year, as well as being impressed at the strength and bargaining skills a tv channel has over a sport and it’s governing body – NRL should be thoroughly and repeatedly embarrassed by the prehistoric coverage they have allowed to be portrayed as an FTA’s supposed love of a particular sport … at the very least, have the balls to make them remove the word “live” from their pathetically delayed / ad-filled coverage, please!

2012-05-11T06:57:47+00:00

Australian Rules

Guest


Despite the obvious NRL bias of the writer, this is probably the most comprehensive analysis of the NRL Broadcasting negotiations I've seen. I don't agree with all of it, but it's a good summary.

2012-05-11T03:16:20+00:00

Boomshanka

Guest


Clipper The FTA networks, under the current arrangement, not only bid for the rights but also hold the subscription TV rights as well. They not only dictate what gets shown on their networks, but what is onsold to Foxtel and under what terms. Sadly, Channel Nine treat our game with contempt and there is nothing we can do about it other than encourage those that make the decisions to "screw them" or "leave them out in the cold". They deserve nothing better.

2012-05-11T02:58:33+00:00

Boomshanka

Guest


Another nail in Nine's coffin should be tonight's delayed matches. Kick off is 7.00 yet Nine are happy to continue to advertise as "Live". Great article on what should happen: http://www.backpagelead.com.au/league/6421-all-you-need-to-know-about-the-nrl-tv-deal

2012-05-11T02:45:57+00:00

clipper

Guest


JC - the FTA channels have paid for the rights to be able to broadcast, which is slightly different. It would be like making another mind numbing TV series, and if it had disastrous ratings, shunting it off to a graveyard shift or even not showing it - what is the difference - they don't want to show programs that don't rate well enough. The only way around it is to do a deal so they have to show it - do you think ch7 would show the AFL in Sydney live if they didn't have to?

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