There was a time, not long ago, when NRL reporting in the Sydney Morning Herald, was balanced, fair and unemotional. This was in stark contrast to News Corp, whose agenda has always seemed more tabloid and self-serving.
Frustratingly these days, articles from long-admired Herald journalists seem to be toeing the company line as Nine, its owner, tries to dismantle the current NRL broadcast deal – albeit with the intent of recommitting long term.
While it will pass, SMH articles carry the rider that ‘Nine is the owner of this masthead’ as if that presumes to offset any bias otherwise present.
Over at News Corp, I’ve lost count of the times journalists have denigrated the NRL’s administration, nit-picked issues in the game or generally pontificated over its activities. I’d conclude that News’ sports editors over a long period, and now Nine’s, feel the NRL can be dictated to because of the symbiotic relationship each broadcaster has with it because of funding.
NRL CEO Todd Greenberg, a whipping-boy of News and more lately the Herald, may deserve some of what is written but he’s overseen the building of a robust digital platform, something chairman Peter V’landys wants to unleash.
The NRL’s digital platform has enormous untapped potential and with that, a gateway to monetisation. ESPN, a potential buyer of content, is said to be desirous of a relationship.
(Matt King/Getty Images)
Thinking about COVID-19’s impact, it is hardly surprising that Nine and Fox Sports (owned by News) seek to reset current broadcast deals and to extend them.
Nine’s CEO Hugh Marks recently announced to shareholders that the organisation would save $130 million because of the NRL shutdown, while Fox is scrambling to maintain its subscriber base without NRL content and faced with new digital competitors like Netflix.
Before moving to the US in 2009, I was irritated by having to purchase a package of channels that held no interest just so I could watch the NRL. This is real frustration the NRL can exploit.
COVID-19’s potential impact on negotiations, whether for relevance or ‘convenience’, is intriguing. If you had to pick a dog in a two-dog fight, V’landys being one and Marks the other, you’d take the streetfighter rather than the boardroom pugilist every time. If Nine or Fox think they hold the aces in any renegotiation, that view might be to their peril.
Given his proven business prowess, what if V’landys has deliberately provoked a fight by running ‘Project Apollo’ without including Nine or Fox after both withheld payments?
Marks screaming like a banshee is being diligently reported by Herald journalists, whether about a bloated head office, squandered past payments or a need to change the game because Nine needs more ad breaks. When V’landys delivers a private blow or two in coming weeks, and he will, it will be mano a mano, with Marks having no advance notice of what has been discussed behind closed doors.
V’landys, giving all the impression that he is possessed of a Machiavellian mindset, has been publicly contrite and apologetic about Project Apollo after the event, but unless he gets what he wants, there has to be some chance season 2020 may be let go while the NRL goes about building a subscriber base for its own digital platform.
And, whether deliberately delayed or sabotaged by Nine and/or Fox or shut down by health officials, if the NRL does not restart, V’landys has exquisitely lined up scapegoats; Nine (and/or Fox) for trying to squeeze the NRL, or COVID-19 for safety reasons.
Adding starch to the chair’s position, players have already effectively agreed to pay cuts which the NRL can fund through next season, providing a fallback position that neither Nine nor Fox has.
(Cameron Spencer/Getty Images)
If the season is delayed or shut down, the NRL can aggressively pursue a subscriber base for next season, the maths of which is compelling.
Current funding from Nine and Fox is $360 million per year but that could be dwarfed with two million subscribers or exceeded by one million. Being overseas, I have real experience subscribing just for NRL via Watchnrl.com (NRL/Fox). My yearly cost for all games, men and women, and Fox NRL shows (in HD, live or on demand) is $US250 per year ($AU380).
Cast a net into Australia, New Zealand, the United Kingdom, Papua New Guinea, Pacific Islands and the United States and suddenly two million subscribers doesn’t seem so big. And, let’s not forget that neither Nine nor Fox fund the NRL payments from their resources; Nine prepays the NRL with ad revenue it sells at profit and locks in, Fox a combination of that plus a portion of subscription fees.
The NRL could offer the same opportunities to advertisers, adding significantly to its subscription coffers, and in doing so has the potential to damage the annual revenues of both Nine and Fox.
With two million subscribers, the NRL has funds of $760 million per year – enough to fund all current teams, expanded teams and to build and own infrastructure so that each team has its own purpose-built stadium of 20-25,000 capacity.
At no extra cost, the NRL could include membership to a team of the subscriber’s choice and pay extra to teams reflecting their efforts to promote the game and attendant tribalism. Brief research suggests that about 285,000 registered, paid-up members exist across the 16 teams in 2020 (303,000 in 2019). Those people are your first subscriber targets and represent over 14 per cent of the desired market size.
There are many strategic reasons the NRL might want to pursue its own streaming service anyway but the pause button pressed on season 2020 offers a once in a lifetime opportunity. Logistically, there are enough ‘plug and play’ providers able to step in with little notice and make the transition seamless.
For a game that has always survived, and most likely will, the NRL stands abreast an extraordinary opportunity to evolve into a sustainable business by transforming itself into a digital powerhouse.
Its content is coveted by advertisers as evidenced by the fact its games, including State of Origin, rank in the highest-rated programs each year.
With just a single stick of dynamite named V’landys, the game might finally ignite its true potential.
jamesb
Roar Guru
Like I said in another article, the jury is out on V'landys. It's still early days.
jamesb
Roar Guru
Why did the AFL want a $600 million loan? The question I put to you is what are the AFL headquarters administration and operating costs? If it's similar to the NRL's, then that explains the $600 million loan.
Crosscoder
Roar Guru
Mama. And the huge amounts spent have not resulted in any sort of TV ratings increase.Of course it gave the code an extra game, yet other clubs are unhappy about the money expended.Yet some of their clubs are in the financial poo. The higher ended demographic has changed a hell of a lot since the 80s.This is still the usual anti rl BS still thrown around.It's not the 80s. And the NRL spent additional money on junior development, because of their big revenue increase.But with 16 teams.And TV ratings that more than match "The reply will be "when the NRL gets around to sorting itself out post Greenberg, then Brisbane will be next. V'Landys & Abdo visited Murdoch late last year USA requesting his OK to establish a 2nd Brisbane club ,in opposition to the News partly owned Broncos. Perth consortium still want a team, supported by that State's Govt. Just ATM melad, there is a little thing going on called COVID-19,Perth is not exactly a priority . LOL the Governments have been providing the AFL plenty of money over the years via grants $20m over 10 years just to stage a few games each year in the ACT for GWS.Plus throwing in large sums for Adelaide and Perth football grounds.Plus the Showground,and others.The NRL were pathetic on lobbying.They even missed out in Wagga Wagga. This coming from a guy who makes statements about rl overseas which are wrong and clueless, then alleges games are rigged(contrived close finishes).The ALP would welcome you. In fact it was the Qld ALP Govt who helped push for the Townsville Stadium for the Cowboys.Keep up to date mate. NB Why would any Govt worry about regionals, they don't count.The tV ratings mob exclude them,despite the fact the populations of Northern regionals is bigger than some Southern states.
Mama
Guest
Of course you quote huge amounts spent on GWS and Suns without acknowledging it gave the AFL one extra game and coverage of 80% of the higher earning demographic of the country which meant more TV $$ and includes money for junior development and games rather than the AFL teams themselves. Of course the reply will be when the NRL get teams in Perth and Adelaide and 2nd Brisbane team blah blah blah for the last 30 years etc...If the Coalition give money to the NRL to shore up their Qld/NSW regional seats I will join the ALP tomorrow
Crosscoder
Roar Guru
Still at it hey mama. And news outlets run stories Turkish,Norwegian,US,and African development . The overwhelming majority of countries for Rugby are lower division amateur.Who cares .More countries at various levels including the small, are playing rl than before, something which is fact. Every enterprise has had setbacks along the way. Your lats line is your usual expected contrived BS.
mama
Guest
When do you give up CC? Every new development brings such optimism but they have squandered the inheritance and will never expand no matter how many times Fox news runs Serbian RL club in English 3rd division puff pieces. Remember the American All stars , the ludicrous eligibility rules for SOO and international RL etc etc - the game is a farce of contrived close finishes for the folk who miss the Roller game .
Mama
Guest
I may have missed it but any article on TV sports rights that doesnt mention the anti-siphoning rule meaning 2/3 games must be on FTA loses any credibility.
Nick
Roar Guru
Dunno, they just did.
Adam Bagnall
Roar Guru
Why? It's a great service and I'm currently working my way through the retro footy games on there now. Kayo is the service I've been waiting years for, and I can cast it to my tv with a Chromecast. For $25 a month you can't ask for much more.
Adam Bagnall
Roar Guru
Two things; firstly Netflix is not a competitor to Fox. One is a sports broadcaster the other isn't. Not sure how you came to your conclusion. Secondly $400 to watch NRL for six months? Ouch.
Ben Thomas
Guest
Good article mate.. The numbers are the tough part in a small country though.. I don't think the nrl could get any where near 1 million individual subscribers to pay the subscription fee .. remember with 3-4 people in every house there's a huge sharing issue going to happen.. fox with 100 channels only has 25% of houses in Au after 25 years.. NRL should dip the toe in the ocean with some exclusive content on the nrl app.. and maybe even an app only game at some stage .. start with trials.. then maybe those club insights shows, is tigers tv .. etc you need to get people used to using the app to view nrl its a 10 year play Id say .. but 1 exclusive app only game in 2022 or something would be a start..
Wayne Stevenson
Guest
No need to build a 2-25,000 seat stadium for every club - they struggle to get 10,00 to any game - their crowds are woeful - and only 2 states in Australia are interested in it
Crosscoder
Roar Guru
Placepunter.Pretty hard to compare them, Gil has been there much longer than V'Landys.And V'landys did get racing out of the quagmire many years ago, lobbying Government.V'Landys has been there by comparison 5 minutes. We got a $250m Loan ,of which may need only $100m of it. I will say this V'Landis doesn't hold back, he is prepared to nominate dates, hates waste and cost cutting will be next on his agenda .And despite what the media would have you believe would not play on May 28th if the Govt medicos said no way. V'Landys is the chairman of his code,Gil is the CEO another difference. The NRL in the past with Gallop, and Greenberg ,were too soft on TV negotiations and Gallop was not the best Govt lobbyer around. V'landys stands up for his code, some of his predecessors were limp in that regard. Well Gil was slow in his racism issues within the AFL eg Goodes,whereas the NRL stamps on that straight away.Gil has taken his time in providing a tentative date for his season restart.He doesn't seem concerned about the continual poor TV ratings in the Northern States.Nor spending large amounts on GWS and the Suns. I'll see after a couple of years, to draw real comparisons.And that's being as honest as possible.
Crosscoder
Roar Guru
Placepunter .Why did the AFL need $600m ,if they were so cashed up? Seeing the part owner of the Storm(Campbell) a successful businessman in his own right ,introduced the NRL honchos to the Pommy brokers .The very same brokers involved with RU financing overseas. The same brokers who would have studied the NRL accounts and revenue streams ,and based their loan facility on historical and future income(allowing for the current virus situation).The NRL does rate on FTA and Pay TV in two of the 3 most populous states in this country.And they used commercial rates, not overblown ones as you proposed.And they "slunk" away did they LOL. ATM the NRL would be more than happy, without the need to roll around the floor.
Rod
Guest
I think some of the numbers are fanciful. We have been able to subscribe to Kayo for $25 a month for seven months to see every game. But that had just 400,000 subscribers even though it had all the other sports in addition to league, plus the league programs and not just the games. Of course, there are others watching Foxtel too, but I think to get mass subscriptions, the price would need to be under $150 a season. I think that if you target club members, you would need a $50 option to see all of that club's games. You would also likely be able to watch on a game-by-game basis for $2.50. And the other issue is the anti-siphoning rules that require a certain amount of NRL games, including Origin and the grand final, be shown on free-to-air TV.
Placepunter
Roar Rookie
Two very simple question for everyone. If you're a fan of the AFL, would you prefer to have Peter Vlandys running your game or Gillon McLachlan? If you're a fan of the NRL would you prefer to have Gillon McLachlan running your game or Peter Vlandys? Please try and be honest as possible.
Placepunter
Roar Rookie
Crosscoder, the AFL were able to go to banks to secure $600m whereas i'd imagine after going to banks and seeing the bank manager rolling on the floor in fits of laughter the NRL slunk away and have had to seek funds at a higher rate.
Crosscoder
Roar Guru
Placepunter.Not so. According to the Australian the NRL are likely to sign off on the deal within days.Noting an interest rate at general market rates for relatively short term lending will be struck, but that rate will be halved ,in effect ,if the NRL is able to secure support from the Federal Govt for the loan.No wounded bull, not even a limp calf. The NRL's annual results are on their website and have been for ages.They had close to $80m in surplus on hand before the current drama. It can be argued their H/O is top heavy,but "negligent" used by Ch9, who themselves have had past financial issues is a bit rich. And their silly comment the money for the Tv deal was to assist the code.It's nothing more than any commercial deal,for both partie's benefits. One can also argue the money expended on GWS and the Suns( huge amounts) is hardly wisely spent.And heaven help the waste at the ARU.
Placepunter
Roar Rookie
Who in their right mind at this economic time is extending an extremely low rate as a loan/line of credit to anyone but most certainly not to an organisation who have shown to be as negligent as the NRL have been with money. It's close to certain that whomever they get money from will be charging them like the proverbial wounded bull.
William W
Roar Rookie
I really doubt that mate. The loan or line of credit if you will is understood to be at an extremely low rate, what that rate is I imagine will be known later. It was reported that the paperwork has not been signed off by the ARL Commission as yet that is because the game has other potential financial backers who have emerged. Not sure who they are? In the media today it was written that The NRL’s new $250 million lines of credit won’t be open slather for struggling clubs. That is a plus for the game!