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Why News Corp and Foxtel are set to go after rugby broadcast rights despite Wallabies' World Cup flop

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Editor
30th September, 2023
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As the Wallabies prepare to bow out of the World Cup at the pool stage for the first time, the big end of town in Australia is preparing to pack their bags and head to France for the knockout stages.

And it’s not just Nine Entertainment and Stan Sport officials heading to Paris, but News Corporation ones too.

It will see network executives like Nine Network’s Mike Sneesby, who as Stan CEO helped secure the current broadcast deal with Rugby Australia in 2020, as well as News Corp executive chairman Michael Miller – a former NSW Waratahs board member – descend on France.

Not even the Wallabies’ flop at the World Cup, where their stay of execution in France could be extended another week should they put away Portugal with ease, has turned rugby’s sometimes detractors away.  

Although both major networks have twisted the knife into the Wallabies over the past fortnight particularly, with head coach Eddie Jones and Rugby Australia chairman Hamish McLennan especially coming under fire, the rival broadcasters have their eyes on the game not just in the short-term but the long.

Jordan Petaia, Mark Nawaqanitawase and Andrew Kellaway of Australia looks dejected as the players of Australia form a huddle at full-time following the Rugby World Cup France 2023 match between Wales and Australia at Parc Olympique on September 24, 2023 in Lyon, France. (Photo by Chris Hyde/Getty Images)

Jordan Petaia, Mark Nawaqanitawase and Andrew Kellaway. (Photo by Chris Hyde/Getty Images)

Rugby Australia’s decision to walk away from Fox Sports as their broadcasters of 25 years might have infuriated News Corp and Foxtel executives no end, but the only thing that riles News Corp – part owners of Foxtel – up more is looking at a competitor thrive – or threaten to, at least.

Rupert Murdoch might have stepped down as chairman of Fox Corp and News Corp last week, but the media giant’s understanding of competition runs deep.

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It’s, in part, why industry insiders believe News Corp and Foxtel will come back to the party in 12 months’ time because with Stan Sport wrestling to win the rights of other sports, losing their key product, rugby, would be a blow.

While Nine Entertainment and Stan Sport won the broadcast rights in 2020, it’s understood RA is not wedded to the network despite having another two years on the deal.

Given RA agreed on a significantly reduced broadcast deal worth just $29 million per year, down from $US45m under the previous cycle signed by former CEO Bill Pulver, the governing body will want a significant uplift on their next deal, particularly off the back of the Lions series in 2025 and with home men’s (2027) and women’s (2029) World Cups on the horizon.

The current deal came after then-CEO Raelene Castle chose to take the broadcast package to market. But her plans somewhat backfired when Covid-19 brought the game to a halt.

Without a deal in place, and Australia’s sides flagging, RA was boxed into a corner and accepted a deal heavily in favour of Nine/Stan to keep the game afloat.

Rugby Australia chairman Hamish McLennan with Wallabies coach Eddie Jones. (Photo by Matt King/Getty Images)

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McLennan’s relationships with the rival networks are something that could prove crucial over the next six to 18 months as the governing body works towards their next deal. It could well be one of the reasons the states, who have an axe to grind are being led to the point of financial collapse, fall into line behind McLennan’s leadership.

With the Super Rugby unions desperately in need of a financial uplift, RA won’t be sentimental about their next deal.

As the incumbent broadcast rights holders, Nine/Stan has exclusive rights to deal with RA first.

But should they attempt to low-ball RA, it’s understood the governing body won’t hesitate to take the broadcast rights to market to get a minimum of $50 million per year for their next deal.

While Stan Sport and Foxtel are the two major broadcast players, Paramount Plus and Amazon Prime loom as options.

The arrival of suits in France comes amid a wave of backlash towards Jones and the administration that fired Dave Rennie to parachute Eddie Jones into the role.

The Wallabies will take to the field at the Stade Geoffroy-Guichard knowing they need to beat Portugal with a bonus point to keep their faint quarter-final hopes alive.

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Even if they smash the world No.16 Portuguese, Fiji, who beat the Wallabies and Georgia on Saturday, would need just a losing bonus against Portugal in a week’s time to ensure their place in the final eight.

Naturally, the heat has turned on Jones and McLennan for their part in the Wallabies’ disastrous 2023 campaign, which has netted just one win from eight Tests.

The struggles on the field come as McLennan attempts to usher through structural reform, with RA intent on moving towards a centralised system.

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