It’s not a given that the NRL is part of Channel Nine’s future, according to the network’s chief executive, Hugh Marks.
Nine Entertainment chief executive Hugh Marks has fired another salvo at the NRL, saying it’s not a given the league is a part of the network’s future.
Marks’ comments come as delicate discussions continue with the NRL over how much it will pay to broadcast this year’s re-jigged competition.
While stakeholders continue to press ahead with a May 28 restart date, it remains unclear how much the game will receive from Nine and Foxtel.
“We have to be hard … we have agreed to nothing this year,” Marks said during a conference hosted by investment bank Macquarie on Tuesday.
“There is no agreement on value or for how long.”
However, of most concern to NRL officials will be Marks’ thoughts on the free-to-air broadcaster’s long-term partnership with the code.
“It’s not a given that NRL has to be part of our future,” Marks said.
“It has to just pay its way like all of our content does, and if it doesn’t, well … again, we are less reliant on that as a revenue source.”
It was only last week that Nine and Foxtel signed off on the NRL recommencing its restructured season later this month, but new financials were not clear.
Nine newspapers went on to report that its network is looking to deduct $28 million from the $118 million it agreed to pay the league for this season.
Marks predicted that broadcasting the game this year would run at a loss.
“It’s a sad statement that if the NRL proceeds that it will be a net negative to our results,” he said.
Marks went on to claim that the COVID-19 pandemic has prompted a re-evaluation of owning sports rights across the broadcasting industry.
Nine and Foxtel are in the third year of a five-year deal with the NRL, thought to be worth about $1.8 billion.
With the league in a perilous financial state, some have suggested Nine are looking to take advantage by extending its contract at a reduced rate.
“COVID has changed how you need to consider sports rights and evaluation of sports rights for the future,” Marks said.
“If we don’t take that change now like we are in all other aspects of our business and we wait until the contract expires in two years, everyone’s in for a rude shock.
“Now’s the time when we need to make the changes necessary to make these sports rights more sustainable.
“The future of our businesses is in aggregated video consumption.
“We’re a business that actually is now less reliant on live sport and the reason for a lot of sport and it’s being was its volume contribution to free-to-air advertising.”
Marks also confirmed Nine’s interest in acquiring the NRL’s digital arm.
Justin Kearney
Roar Rookie
Whatever you reckon. And what you reckon is becoming very predictable.
Placepunter
Roar Rookie
Whether Channel 9 have treated the game with utter contempt or not is debatable but what is not debatable is that as far as FTA channels are concerned, they are the only possible station who will/can broadcast the NRL. Everyone else has a few reasons but mostly they are all penniless. So whether you/we like it or not Channel 9 are in charge of negotiations because no one else is in a position to offer more money than them. Don't forget that the anti siphoning laws say that there must be FTA broadcasts.
Nat
Roar Guru
I'm not sure about the Ch7 - AFL scenario. It would be dependant on the ratings & revenue. Right now Ch7 are paying $150m p/a for AFL while Ch9 are (approx) $100m and I believe Ch7 are only getting one more live game a week for that and a national broadcast. Revenue means more than tradition and how good would it be to have as much league on FTA (sans Gould) as there is AFL on Ch7. However, I think V'landys will just want some solid ground at the moment and leveraging the next deal to secure something decent for this year.
Justin Kearney
Roar Rookie
The impasse reflects on a network that has treated the game with utter contempt and deserves to lose it.
jamesb
Roar Guru
V’landys should make that point to Marks. What happens if Fox goes bust? They are under the pump from Netflix and other on demand services. That’s why it’s important for the NRL to produce it’s own content so that it could onsell to either Fox (Kayo), Google (youtube), a telco etc.
Big Daddy
Guest
JamesB, if that happens they may be in deep s++t. For so long these TV rights have been a pretty closed shop with only Foxtel and 9 . I don't know wether the other channels have ever tendered . This impasse between the contracted parties reflects badly on the current relationship .
Justin Kearney
Roar Rookie
Exactly. And there is no reason the nrl cannot take total control of its product including broadcasting the game.
jamesb
Roar Guru
"One thing that stands out to me is the NRL are not a broadcaster and should concentrate on running the game" And what happens if Foxtel goes broke?
Big Daddy
Guest
That's fair enough. I really can't see 7 taking it on as it would compete against the AFL but that leaves 10 and the ABC. Aren't 10 owned by CNN or some other U.S broadcaster so maybe that's the alternative. It's a mess whatever it is.
Placepunter
Roar Rookie
Big Daddy, with the anti siphoning laws in place, there has to be a FTA broadcast of games.
Hard Yards
Roar Rookie
Saturday afternoon 3pm, match of the round on ABC. Really good.
Big Daddy
Guest
One of the things to come out of this both Fox and CH 9 that is very obvious is the 2 broadcasters paid overs for the TV rights. This unfortunately has put both parties on an awkward financial situation. I would like to see 9 see out the current agreement but I cannot see either 10 or 7 stepping up or any of the 3 offering the same sort of deal for the future which leaves the NRL looking at overseas broadcasters which could mean no free to air. Both the NRL and the broadcasters know they have to make cuts and are both playing hardball over this. Let the best man win. One thing that stands out to me is the NRL are not a broadcaster and should concentrate on running the game . It could be we go back to the ABC,. who knows.
Monorchid
Roar Rookie
jamesb, I read the article that Crispy provided too. The report is consistent with what I've read in financial pages for some years. And didn't Fox need a bail out last year of a bit more than $400 million? Channel 9's position is interesting. Just about the only thing it's got rating well is RL, and 9's finances aren't in great shape either. So 9 might need RL more than the other way round. It would be interesting to know how Channel 10's boardroom sees all this. It could be a good time to pick up the whole kaboodle very cheaply.
Crosscoder
Roar Guru
If Nine lose the NRL, based on their poor promotion of the code, by comparison with how ch7 promotes,I will be found amidst the head of the cheer squad. The digital arm is profitable ,Vlad should use the middle finger salute, to rebuff selling that department. I'd be more than happy should 7 and or 10 get a slice of the FTA action. The aggressive approach and threats by 9, is going over like a lead balloon with the rugby league public, from my reading of the matter. Then again nothing surprises me, as that organisation( a so called business partner of the NR)L, played auditor by publicly bagging the cost structure of the code's Head Office, and stating it is "investing" in the code. It was a business deal nothing more ,to secure ad revenue and lead in to their other shows and news, and of course ratings which assist both.If they could have secured the contract for far less, they would have jumped at it.
Dogs Boddy
Roar Rookie
It's quite possible James, anything is possible and I have no access to the inner workings of either Nine or the NRL so everything is speculation. Right now the digital arm is the NRL's ace and it is up to them how and when they decide to play it. How they fill in the gaps between the season would also be interesting to witness if they tried to stand alone. Like I said I am getting out the popcorn. This is going to be fun to watch because both sides are now willing to take shots publicly which rarely happens.
no one in particular
Roar Guru
And a couple of weeks ago News were reporting that Seven and Fox were in talks to extend the current deal For a company on the fast track to extinction, Fox Sports sure are looking to spend a lot of money
Fix the scrums
Guest
Roy Masters is claiming in today's press that channel 9 is looking seriously at bidding for the AFL and ditching the NRL. Don't know what to believe these days, but the it's not just the ratings for the games that networks are chasing, it's the whole industry that's associated with the codes. Anything that is printed in the press such as The Telegraph or Sydney Morning Herald has a spin element to it. The journalists are obviously pushing an agenda of sorts.
Nat
Roar Guru
Apparently it rates ok though for the timeslot it has. It would be a terrible shame though.
Walter Black
Guest
I am sure you are right Rellum however it does show us Nine's real attitude towards the NRL. Far from being the partners they have always claimed they are now showing themselves as the real "stab in the back" merchants we fans have always known them to be. If Ch9 walked away tomorrow, I for one would cheer from the rooftops and I would live with whatever that means for our game.
JOHN ALLAN
Guest
When did Channel 9 commence televising Rugby League? I can recall ABC with I think John O' Reilly doing it in the 60's & the second half of a Sunday game live. Younger people with their various devices will not be disadvantaged if Tv coverage is reduced however many will revert to radio for their NRL fix & in that regard we are fortunate to have David Morrow & Andrew Moore who "paint the perfect picture" the listeners feel they are actually watching the game.