Did league reject more money from Channel Ten?

By Gareth / Roar Pro

The Sydney Morning Herald is reporting that Channel 10 tendered an offer to the ARLC of $800m for four live games a week. At first glance, it’s easy to think that’s $200M short of the Channel 9 deal, until you consider that Channel 10 offered $800m just for the free-to-air portion of the rights.

Does that strike anyone else as being absolutely insane? The Fox Sports portion of the “billion dollar” deal is $500M for five games a week.

The Channel 9 portion is $425m, and both parties have thrown in $50m worth of advertising.

There is clearly something happening here that is beyond my comprehension. By all reports, Channel 10 have nearly doubled the offering from Channel 9 at the cost of a single extra game.

That obviously reduces the value of the pay TV portion, but I can’t help but think that $225M+ would be an absolute steal for Foxtel to keep a handhold on the sport that keeps their subscriptions afloat.

And let’s think big here for a second – is there any reason why a deal couldn’t be struck to sell the rights to four games to Channel 10, and let Foxtel have the remaining four with a commitment to giving them a fifth game as of 2014?

You’d have to think that’s a deal worth upwards of $1.2 billion – at least a $200m gain on the accepted deal.

Surely a $200m war chest would go a long way toward establishing two new teams and ensuring that they’re able to recruit enough genuine talent from outside the game to ensure the standard of play remains just as high.

So what am I missing? Doesn’t that sound like it’s too good be true? Four games on free-to-air, a desperate pay TV provider that needs to pay the asking price or risk losing a significant portion of its subscription base?

Obviously we don’t know the finer details, but on the surface it seems like the ARLC have gone completely stark raving mad.

Is this just another example of rugby league and Channel Nine staying in bed together?

The Crowd Says:

2012-08-31T10:03:23+00:00

Crosscoder

Roar Guru


Please! It's a debate,the kitchen too hot? There are rugby league fans who are not excited with it.But there also many fans who are excited by the deal.With due respect there would be lucky to be 100 rl fans posting here.I understand where the naysayers are coming from.I have a little contact within the game,give me some idea. I responded to you because you as an AFL fan(with the in your face Australian Rules moniker) called it a dud deal.I gave you reasons.I have given my $5 worth on many boards here ,in response to rl fans ,who are against it,just as others in favour have.I have expressed my anti ch9 views.But I look at the overall good of the game,and not for us fans who want to watch at our convenience. You generalised.Anyone can generalise.I have stated there are good and bad points. Last time the code had no fixed schedule ,they have one now for 20 rds.That is a plus,yet you can't se it. If you cannot see benefits for fans,and remember the tv deal is no worse than before ,if that were the case I would agree. The code needs money ,substantial amounts. I respond to AFL fans who come on board,because sometimes their motives are not what they seem and history has proven that right.GOGWS and the Cattery are classice examples. Particularly as they were quite vigorous on how little the code would achieve,now that has hit them between the eyes,they join the chorus of rl fans who call it a dud deal to cover their rear ends.The number of posts predicting the amount by them was astronomical. The fact I spend so little time on AFL threads,means my agendas reveolve arounf rl threads. If you cannot see plusses for the fans in the deal,you have not read ther details.

2012-08-31T05:41:32+00:00

NF

Guest


'Seems strange that you would “hate with a passion” a game invented by Australians for Australians. Each to their own I suppose. AR please don't give us this Australia's game nonsense seriously just because it's 'Australian' doesn't mean everyone in Australia has to fall head over heels for it. Different strokes for different folks.

2012-08-31T05:29:50+00:00

Australian Rules

Guest


Seems strange that you would "hate with a passion" a game invented by Australians for Australians. Each to their own I suppose.

2012-08-31T04:56:05+00:00

Queensland's Game Is Rugby League

Guest


"I’m starting to get a sneaking suspicion that you don’t like Australian Footy Qgirl…" It took you this long to figure that out? :) I hate Aussie rules with a passion.If the game died then I would be over the moon.

2012-08-30T23:07:13+00:00

Australian Rules

Guest


Oh please You haven't responded like this to the hundreds of league fans that have criticised the deal. You ignore them and target me...wonder why...? Anyway, 1) I acknowledged the deal exceeded what I thought they would get. 2) The reason for that was because I thought they'd go for more live games and more FTA - they didn't, they went for cash...fair enough. 3) No, they didn't get as much cash as the AFL did but it's still an incredible result for the NRL. 4) Yes, it sets them up for the future, but fans have been angry that the tv product remains unchanged from the last 5 years...and most league fans have been complaining about the Ch9 product for a long time now. I am genuinely happy that the NRL got such a cash boost, it was sorely needed. But at the same time, I feel for the fans because the tv product maintains the status quo, when many were calling for improvement, or at least change.

2012-08-30T22:55:39+00:00

Australian Rules

Guest


I'm starting to get a sneaking suspicion that you don't like Australian Footy Qgirl...

2012-08-30T21:37:07+00:00

Crosscoder

Roar Guru


You were quite happy to call it a dud deal,but apparently like in any decision of this magnitude lacked insufficient knowledge, to come up with one positive.Just the usual generalisation. I supplied up with at least half a dozen. Know your subject well my teacher use to say. .I suggest if the deal had been less than $1bn ,the whingers would be complaining there is not a lot of money available to use on grassroots etc. At the same time AR,your mob of flag wavers,would be jumping up and down,see rugby league is not worth as much as the AFL,because of the game going longer,and the tV stations think so. That argument was kicked up the Kyber Pass by the deal and the pending ones yet to come. The fact the game secured the funding (it has)has put a few noises out of joint and left eggs on a few faces.You only have to read some of the posts from the usual mob Not all fans on this site BTW. Anycase I have spelt out the ones who will benefit the most,and numberwise they leave the posters on this site in their wake. Samuel,McLachlan,the media journos,the clubs,the players,grassroots,the bush have asserted it was an excellent deal.you say its a dud.I just wonder where I will take my authoritative assessment from ,as being reliable................................... The code had SFA cash,and you call it a dud deal.Dud because it had the audacity to go close to matching the AFL's one,more like it..

2012-08-30T13:17:49+00:00

Queensland's Game Is Rugby League

Guest


No Aussie Rules, YOU don't get it. I posted these statistics in responding to Hamish's comment about regionals: "Regionals are worth something but discretionary spending in these areas lower…." Why would companies fork out more money on advertising their products in regional Qld/regional NSW if they would get a better return in Adelaide and Perth? The only reason I can think of is that the companies are convinced that people from the bush are going to buy the products. But let's get back to your fantasy. Revenue from 7Mate's coverage of the AFL in Brisbane and Sydney isn't going to be very much because most television viewers will be watching the programming on Ten, Nine, Seven, One, Eleven, Go!, GEM, 7TWO, ABC, ABC2 and SBS. A rugby league match is going to rate very well in regional QLD/regional NSW. Hardly anyone from these areas would bother to tune into an Aussie rules game. You're mad if you think that a broadcast of an AFL match into regional QLD/regional NSW is going to command the same sort of revenue that an NRL match would get. The Sydney, Brisbane, Regional NSW and Regional QLD markets are larger than the southern markets. The statistics I posted prove it. The ad revenue that the NRL draws from Brisbane, Sydney, Regional QLD and Regional NSW would dwarf the amount the AFL gets from Melbourne, Adelaide, Perth, Regional Vic, Regional, WA, Regional SA, Tasmania/NT. The tiny amount that the AFL gets from Brisbane, Sydney, Regional QLD and Regional NSW wouldn't close the gap.

2012-08-30T09:00:18+00:00

Australian Rules

Guest


I don't pretend to "speak for all fans of rugby league". The fans have spoken loudly enough themselves...on this site especially. And to clarify, when I refer to "fans", I mean those that watch the game on TV.

2012-08-30T08:41:35+00:00

Matt_S

Roar Pro


Ah, watching over the internet os is not what I am talking about. But nice try ;)

2012-08-30T08:19:10+00:00

Crosscoder

Roar Guru


One word Ian.Money .The very thing the code has secured.It is a lot easier to do so,with a larger number of D/Os. It may well have dropped the ball,but still has its highest participation Auswide on record.Imagibe what they wil be able to do with more of the filthy lucre.

2012-08-30T08:12:55+00:00

Crosscoder

Roar Guru


For what fans AR?.Not everyone is claiming it is a dud.Those near the coal face,those who want a schedule fixed at the start of the year,for those fans who want their club to survive,for those fans who don't want to see their players going to other codes,those in the bush who have been struggling,juniors who pay high insce . The code had little money,the ch10 offer for 4 FTA was according to Mattiske a lot less than the $800m caimed. The code had litlle money to throw around,if they had a "warchest"then one could argue about more FTA coverage.The next deal,the code can be a lot more flexible. Sorry ,you dont 'speak for all fans of rugby league.. In any deal there has to be give and take,Samuel's comments hold a fair amount of legitimacy. The code hasn't even scratched the surface of mobile and Sky NZ. One minute AFL fans proudly boasted the NRL wouldn't achieve $1bn,it was plastered all over some of these threads.Now they have they have joined the chorus of rl fans who wanted more FTA,to justify or deflect from their previous predictions.A tad ironic. Gil has stated the deal gives the code many opportunities,I suggest $800m would not have done so.

2012-08-30T05:30:13+00:00

oikee

Guest


I think what he is trying to get across is what i think. It is the best deal for the game, fans and the games self esteem. Mate, it has made a huge difference at grassroots, fans feel more confident knowing they are kicking the life outta the AFL deal, the crowds are increasing, people are starting to look, ask questions, how on earth did they get the same amount as AFL, 1 billion plus, and its that magic Billion mark that made it possible, now the sky is our oyster. We have scraped clawed and dig, now we can be driven with confidence,. That is the can of whoopass now opened, we no longer have to think we are second best. Trying to buy Gillion is no more than a shot across the bow, another one. The game can afoard not to get him, if we get him, imagine what that alone will do for growth. All these little pieces are part of Grants puzzle, this man is borderline genius. He wants Gillion because he can start with a clean slate, if he gets a league man it will just take a little longer, he wants to fast-track league. Anyhow, watch this space, i am interested to know if Gillion takes the job, i hope he does.

2012-08-30T05:28:04+00:00

Ian Whitchurch

Guest


Regrettably for rugby league, it then massively dropped the ball. Yes, league should be putting as much time and effort into mini league as the AFL puts into Auskick.

2012-08-30T04:45:44+00:00

Australian Rules

Guest


CC No-one disarees with that... For the cash, it's a great deal. For the fans, it's a dud.

2012-08-30T02:42:48+00:00

Crosscoder

Roar Guru


dear oh dear.There is indeed more money to flow into the code's coffers. http://www.smh.com.au/rugby-league/league-news/addons-set-to-take-nrl-rights-price-up-to-125b-20120828-24yv.html Some people should perhaps take a little notice of Graeme Samuel(rformer AFL commissioner) who was deeply involved in the negotiiations.The very same gent who had input in the last AFL deal. I will quote his viëws on the NRL deaÏ: - "I think the outcome that they got was the VERY BEST deal the league could have done.I think it is fair to say that the league has done a very good deal and they should have been delighted". Now before anyone predictably suggests he would say that,consider the fact that media pundits were downplaying the code getting $1bn due to the tough economic environment and ad revenues. This deal is not even concluded to the point where all avenues are taken into account. Wait til the final washout ,and then we can work ouselves into the usual lather.

2012-08-29T23:34:21+00:00

Australian Rules

Guest


Oh dear, you've used these figures before...it seems you don't undertsand their relevance. I'll explain again... You're citing ADVERTISING REVENUE across all markets. The AFL's ad revenue comes from QLD, NSW, VIC, SA, WA (Tas & NT). This happens because of the number of AFL teams all around the country and the sheer volume of FTA and Pay AFL content nationwide. By contrast, the NRL ad revenue is largely limited to 2 states (although Vic has recently been tapped into via Storm games on Gem). Try to understand, this is NOT about which sport is "better" or more popular in regional Queensland, it is about which code receives more nationwide advertising revenue across FTA and Pay TV networks. THAT's the conclusion that is drawn by the figures you provide in reference to the current broadcast deals of the 2 codes.

2012-08-29T13:17:24+00:00

Queensland's Game Is Rugby League

Guest


Revenue for QLD Regionals, Brisbane, NSW Regionals and Sydney is far higher than the revenue from Melbourne, Adelaide and Perth. Regional NSW is bigger than Perth. Regional QLD is almost as big as Adelaide. Advertising revenue for commercial television networks July to December 2011 Metro Service Sydney $577,597,088 Melbourne $434,129,053 Brisbane $283,258,091 Perth $174,983,262 Adelaide $117,750,735 Regional Service NSW $207,315,118 QLD $115,558,314 Victoria $69,500,589 NT/Tas $37,523,430 WA $24,343,211 SA $18,272,479 RL Heartland Areas $1,183,728,611 AFL Heartland Areas $876,502,759 "When Qgirl says the the “AFL doesn’t pull ratings consistently”, he’s probably talking about his little pocket of Queensland." I'm talking about the most watched programs. There are far more rugby league games inside the 100 most watched programs on pay TV.

2012-08-29T13:11:01+00:00

Queensland's Game Is Rugby League

Guest


Go look at the ratings. Rugby league draws far higher ratings. Even the National Youth Competition draws higher ratings than the Super 15. Face it, rugby union is nothing but a niche sport in QLD and NSW.

2012-08-29T08:45:19+00:00

Matt_S

Roar Pro


Actually Kicky Vicky is based on mini/mod league introduced in the 70's. Rugby League was the first sport to introduce modified version of the senior game for kids. Just like Rugby league was the 1st footy code in Australia to introduce a level 3 in coaching for its code.

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