Reports have surfaced today that Foxtel have turned their NRL fortunes around by negotiating to acquire the Saturday night NRL fixture from Channel Nine, and that a new dedicated NRL channel will debut in 2017.
It marks a stunning turnaround for the code, which only a matter of a months ago was thought to be struggling in negotiations with Foxtel and News Corp.
Words from News chairman Rupert Murdoch only fuelled the fire, as he sought to pump up the National Rugby League’s main competitor, Australian Rules, after the announcement of a $2.5 billion broadcast rights deal.
“We’ve always believed this (AFL) is the premium code in Australia – it’s the national game,” Murdoch told reporters at the time.
“We believe in the strength of the game and we will do everything we can to make it stronger.”
After the NRL announced their $925 million deal with Channel Nine, many believed the move had ostracised News and Murdoch, and were dubious as to whether a deal could be salvaged, with talk of beIN Sport and Optus also circling the sports broadcast rights market.
It was touted as one of the key reasons CEO David Smith left his post a month ago.
But the latest from Max Mason at Fairfax is that the NRL board are currently meeting to sign off on transferring the Saturday game back to exclusive broadcast on Foxtel.
Under the deal, streaming partners Nine and Telstra, as well as Foxtel, will share simulcasting rights for all matches on their various platforms, and Foxtel will start a new NRL channel for the 2017/18 seasons.
Overall, the TV deal for the NRL is shaping to be valued at $1.8 billion, including digital and pay TV rights, which is a jump of $100 million from earlier estimates this year.
With as much as $200,000 to be gained in sponsorship, it could push the overall value of the deal to more than $2 billion over five years.
Both Fairfax and The Australian are reporting that the deal could be signed off and announced as soon as today.
BeastieBoy
Guest
Can someone tell us exactly what the NRL will receive? That is the amount you should divide by 5 and multiply by 6 so you can compare to the AFL deal. Then add a extra match if another 2 teams are added. There is also a difference due to the AFL matches being longer and hence more advertising revenue.
Crosscoder
Roar Guru
Where did I say the NRL wouldn't be on Fox Mamma?.Putting words into my posts once again? I mentioned scenarios if they lost the NRL,.and in fact Fox stated they had competition from Optus. Brisbane 2 could be in the pipeline down the line.Who knows? Ch 9 is keen.All parties from Foxsports,Telstra,ch9 and the NRL are more than happy.No one is out to lose money. I'm sure the world will come to an end with my misspelling my friend ,of Canuks.If you going to be pedantic ,try these:- Your word its, should be" it's" and wouldnt should be " wouldn't".All in the cause of the English language.
Crosscoder
Roar Guru
According to Fox 500,000 of their subscribers are NRL fans.Don 't underestimate the effect of losing the NRL would have on their revenue TWAS
Mister Football
Roar Guru
For those who are distrustful of the traditional news service, here is the NRL perspective from their website: http://www.nrl.com/nrl-broadcast-rights-deal-announced/tabid/10874/newsid/91023/default.aspx
Mister Football
Roar Guru
WDD had heard it from a number of different sources, but I too am starting to wonder whether it truly exists. It looks like all parties have confirmed a $1.8B deal for 5 years (2018-2022), with the NZ and radio rights to come, which will push it over $1.9B you'd have to think. It looks like some changes will be introduced over the next couple of years - but it's unclear whether any additional money is forthcoming, although there might be an advance out of the $1.8B. It looks like all parties have agreed that a 2nd Brisbane team will be introduced from 2019.
Ginger Meggs
Guest
Dave Smith's daring deal with channel nine has turned into rivers of gold for the NRL. Not only do they score the big money deal but also get to see Rupert, or at least his minions, grovelling to get the leftovers to save their Foxtel business from going down the tubes. After all Rupert's tough talk. This is why the NRL needs smart business men to run the commercial side of the game rather than the League Gronkies who have been getting done over by News Ltd for years. To each his own. There has been a smell of ammonia wafting around Holt Street with the Daily Telegraph League scribblers wetting themselves panicking about News Ltd losing contact with their meal ticket, but it looks like we are stuck with their rubbish now.
Mamma
Guest
Graeme Samuel - singular otherwise you have to pay him twice x $5m
Mamma
Guest
I thought you said NRL wouldnt be on Fox...Nine seems to have made money out of the deal and is part of the agreement no second Brisbane team??BTW its Canuks not Kanuks from the Canadian RL story
Kirk
Guest
it does seem strange especially for the AFL who didn't really threaten to take their product to another bidder. How is it worth double what it was 3 years ago or whenever the last deal was made? NRL deal is just as bizarre, Fox must be mad to pay that much for no Origin, no finals, no thursday, friday or monday night games.
At work
Roar Rookie
Fox showing all games live is the best part. Although does that mean for the Ch.9 simulcast games, we still have to listen to Ch.9 commentators and see Ch.9 ads?
Train Without A Station
Roar Guru
Same deal as AFL. Foxtel subscribers would be very happy. Anybody who has it much prefers their broadcast over FTA.
Train Without A Station
Roar Guru
A rational one.
Train Without A Station
Roar Guru
Why would Origin be worth $100M per year on it's own. That's $33M per game. 2.21M watched the decided. That's $15 per viewer. I guess it's worth that when you don't consider how you will make money off that. My research has found that a 30 second spot in State of Origin can go for $35,000 to $55,000 nationally (Bris + Syd + Mel) So if we say that each advertising break has 6 paid advertisements (then CH9 Promos) that's $330,000 per break. If we say that there is one break every 5 minutes on average to allow for tries and more at half time that would be 16 breaks. Let's allow for 20 breaks because we know broadcasters will do whatever they can to cram an ad break in. That's $6.6M per game from the game itself. Even if we doubled that for pre and post game, that's still only $13.2M. Even if there were 8 advertisements per break, at $100,000 per spot, with there being 40 total breaks, which amounts to 320 advertising slots, that's still only $32M against $33M for the rights. Before you even consider CH9's broadcasting costs.
Kingcowboy
Guest
add in Q Cup and school boys comp as well!
dromlan
Guest
its worse than hearing from the journos, all you are hearing is from News.
dromlan
Guest
What would a dedicated NRL channel show ? Potentially Every NRL game Origin Finals Series Superleague NSW cup Internationals Talk shows With re-runs and highlights programs, that would keep you going for quite some time.
dromlan
Guest
Yeah but after the assassination job News pulled on Smith, can you imagine what would happen if they lost the rights ?
dromlan
Guest
I agree with Don. I was surprised that the NRL sold Origin so cheaply. That is the big one and would be worth 0.5bn on its own surely ? I think that 9 is coming out best here. The premium games and hardly paying for them.
Kingcowboy
Guest
ha ha, Bruce that is a good one, actually made me laugh!!!
Mister Football
Roar Guru
Business section of the SMH this morning: http://www.smh.com.au/business/media-and-marketing/nine-plays-impressive-game-to-trim-nrl-bill-20151126-gl8yig.html#ixzz3sdeIQd2j Confirming that what Nine is paying has dropped from $925 million in the original agreement to $625 million.