ARU set to announce $275 million TV deal

By News / Wire

The Australian Rugby Union is poised to cap a big two months by announcing a television deal reportedly worth over $250 million.

A press conference will be held in Sydney on Thursday morning when it’s expected ARU chief executive Bill Pulver will reveal the details of the five-year deal starting from 2016.

It will be a timely boost for the code in Australia given the financial struggles in recent years and will be unveiled just seven weeks after the Wallabies enjoyed a surprise run all the way to the Rugby World Cup final in London.

News reports on Wednesday stated the new contract will mark a 100 per cent increase for the ARU from the current TV deal, with all Super Rugby matches in an expanded 18-team competition to be shown live on Fox Sports, as will all Wallabies Tests.

It’s believed Channel Ten, who currently broadcasts domestic Wallabies Test matches, will also have replay rights for one Super Rugby match on Sunday morning each week in a minor free-to-air presence.

The Crowd Says:

2015-12-17T06:37:07+00:00

Sam

Guest


Taranaki applied for the licence that went to the Rebels. Would be good to see them try again.

2015-12-17T04:47:06+00:00

The real SC

Roar Rookie


Hopefully Adelaide will join in the Super Rugby as well as Napier.

2015-12-17T00:57:28+00:00

Rodney Olsen

Guest


No, soccer and rugby league aren't played over there at all. I think you'll find the NRL is shown on Bein sports and Premiersports plus the ESL on Sky TV let alone what soccer gets just from their own comp. Naaa, no other sport gets a look in over in Europe, it's all Union. Btw, even afl has a deal where games are shown overseas, what a silly comment. HA

2015-12-17T00:29:51+00:00

Owen

Guest


I would like to see just one more Super Rugby team in Australia and New Zealand to make 6 each in the core SANZAR nations and any growth of teams in the new regions of Asia, South America and other African states. A New Zealand team could also be a joint Pacific Islands team. Growing rugby locally should focus on second tier competitions NRC and Currie Cup/ITM Cup which can include more cities and engage more fans. Super Rugby players and Wallabies should be getting million dollar salaries in future if the competition is successful. Private investors in Asia and South America and throughout Australalasia will be interested in successful Super Franchises.

2015-12-17T00:19:22+00:00

Horace

Guest


Before comparing to other codes, what is the total dough - 10 other broadcasting deals. This is the important metric even if Oz only contributes 30%

2015-12-16T23:56:25+00:00

Waz

Guest


A League gets: $33m/year from Fox $7m/year from SBS $2m/year from Overseas rights Interestingly the FFA are hoping to turn that $2m from overseas rights into $20m/year which suggests Australian sport has growth off shore for content looking at the increase here with SuperRugby

2015-12-16T23:36:44+00:00

Dogs Of War

Roar Guru


Newcastle? Why? If the Knights struggle with corporate support and the jets on and off the field wouldn't a super 15 franchise just become a money pit.

2015-12-16T22:15:08+00:00

Steve

Guest


Yep, seems like local broadcasters didn't pay much more, most if not all the increase is from foreign markets.

2015-12-16T22:14:32+00:00

Bakkies

Guest


Europe is pie in the Sky. As for the other markets Sanzar have to address Japan and the Kings.

2015-12-16T22:13:41+00:00

Bakkies

Guest


He has to negotiate local coverage particularly with Ten.

2015-12-16T22:13:01+00:00

Bakkies

Guest


The Sanzar games fit around the Not the Heineken Cup Sponsored by Heineken, Top 14 and Pro 12 coverage which guarantees wall to wall Rugby. The games from Argentina will now take the Rugby coverage from 8am to well past 10pm.

2015-12-16T22:08:13+00:00

Will Sinclair

Roar Guru


This seems like a great result. It will be interesting to see what each province can do in terms of sponsorship too, considering there will now be exposure into Japan and Singapore. I have no doubt HSBC will be delighted, to identify just one.

2015-12-16T21:53:04+00:00

Sam

Guest


A brilliant first step.... A good income stream and a free to air foothold. I just hope Ten put it on at a decent hour, instead of burying it at 6am. Channel 7 had a habit of running the Wallabies games on delay after the late movie around Midnight here in Melbourne.

2015-12-16T21:43:59+00:00

Train Without A Station

Roar Guru


I think under current conditions the ARU are outlaying $40M to Super Franchises. That was previously based on a $25M TV Deal. So essentially the money made from the Wallabies revenue streams was paying for Super Rugby. Now if they were to increase that to $50M ($10M per team) that would still leave $5M+ per year left over. The Wallabies revenue stream appears to sustain the Wallabies so hopefully for the immediate future this goes in the bank. Even under the current state of affairs the ARU has been losing around $2.5M per year. The increase of TV Revenue by $30M should change that to a $27.5M surplus. Let's hope it's used wisely.

2015-12-16T21:32:27+00:00

Mister Football

Roar Guru


This is a fantastic deal for the ARU and the five Australian super clubs - it's worth over double the current deal. I was hearing only this morning that the brumbies are budgeting on a profit next year after five years of consecutive losses, including $1.6 million this year. Also exposure on FTA. So all round, pretty hard to fault it.

2015-12-16T21:26:26+00:00

tc

Guest


Add NRC teams to Adelaide and New Castle, just my two cents worth. Well done to the ARU and SANZAR. Already there is talk of expanding Super Rugby in 2021, with more teams in places like South America, Asia, North America and even Europe imagine what the next TV deal will be worth.

2015-12-16T21:08:04+00:00

Chamilla

Guest


The players out of this are the real winners, 16 matches plus maybe a final for a super rugby player earning a very nice wage. -- Comment from The Roar's iPhone app.

2015-12-16T20:59:10+00:00

TV

Guest


Get NRC teams into Adelaide and New Castle, just my two cents worth. Well done to the ARU and SANZAR. Already there's talk of more expansion of Super Rugby in 2021, with more teams from South America, Asia, North America and even Europe, if that happens imagine what the next deal will be worth.

2015-12-16T20:36:30+00:00

Chris

Guest


It's nice that we have a product that people in the NH actually care about. None of the other codes do.

2015-12-16T20:34:55+00:00

Chris

Guest


You have to remember that this deal cant be compared directly with other codes deals based on the Australian component only. This covers wallabies, super rugby and NRC, however, in terms of the super rugby, it is less than one third of the total rights for that component. Apparently the super rugby component is around $45m/year. This leaves $10m attributable to the other matches. If it was a clean 3-way split of the Super rugby money which it is not, the deal would actually work out to $145m/year for around 133 matches or $1m game. IF you look at the Aus team component it works out around a similar figure per match . The NRL get $360m for around 207 matches or $1.7m game, AFL get $416m/year for 206 matches, or $2m game. FFA get $40m for around 150 games or around $260k game, although they are looking to renegotiate. I have ignored all the lower level leagues like NSW cup, NRC, FFA cup, etc in the total games. The rugby deal stacks amazingly well compared to the other codes given it is a niche sport.

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