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Does anyone consider that the sports section of the SKY organisation will be under pressure in the future to recoup some of it's losses, will that have an affect on all the sports they have an agreement with in future contracts, especially those approaching the termination of their present contracts and therefore will be entering a new negotiation phase.

The monthly loss for Sky Sports due to them allowing their subscribers to pause their subscriptions will be enormous, I read sometime ago that there were approx 5M Sky Sports subscribers if that is still the case then at £28 (listed cost) that is £148M per month, and that is not even taking into consideration all the pubs and clubs who pay extremely much, much more in subscription fees, obviously Sky will have a lot of cost reductions to subtract, but it will still amount to a tidy sum.

And, because the sports Sky pay for the privilege are not providing them with the product to broadcast, are SKY willingly going to stand the loss alone or will they be looking for reducing payments? One could say that the individual sports have a "contract" to be honoured, but these are extraordinary times, we as subscribers are under contract to SKY but they have sought fit to wave our subscriptions.

 

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I'm not dismissing your post, because it's all sensible and rational. 

But until we know what and when the end of this is, I don't think there's a lot to be gained from second guessing the lay of the land. 

People called Romans they go the house

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10 minutes ago, DoubleD said:

Have sky waived our subscriptions? I haven’t seen anything from them

Yes, you can pause your Sports package subscriptions, whilst keeping access to the channels (even in the absence of live sport)

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17 minutes ago, MrPosh said:

I'm not dismissing your post, because it's all sensible and rational. 

But until we know what and when the end of this is, I don't think there's a lot to be gained from second guessing the lay of the land. 

Not really second guessing anything Mr Posh, I was in conversation with another poster on another thread re how the next Sky contract should be approached, what I have posted here is my thoughts of what could happen should this situation we find ourselves in drag on.

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3 minutes ago, hunsletgreenandgold said:

No, but they have given subscribers the option to 'pause' the sports element of the package. 

If Sky do keep paying SL during this period we'll be even more in their back pocket when the new deal comes round. 

Exactly my thoughts HGG. 

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Don't forget BT and other subscribers.  On terrestrial and freeserve we still have advertising... how long is that going to go on? What will people be spending things on for the next few months. 

In my own view I think the BBC are full of absolute rubbish, but they are the only secure revenue stream any tv Company has. Liniker etc are still getting their millions for doing nothing.

I do not see anything happening for 3 months at least. It's hard not to expect large numbers of deaths(!) hitting us imminently, like in Italy, and Paris is going to be hit soon!

These are in unprecedented times. It's impossible to guess what the future game will look like.  The best we will get is a truncated season.

 

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Just now, scotchy1 said:

Sky get what they pay for. 

Its why ive never subscribed to the idea that we would see a massive drop in the next contract. Sky dont want a ###### super league, they can't sell a ###### super league. They want a good one. The better we make it the more they will pay us. 

But they don't want a comp going bust and unable to be fully-pro. They wont pay anything for that. 

Neither can Sky stand a prolonged period of loss, nor should I imagine they will do so,  it may come to it that the RL may fall into the category of "beggars can't be choosers".

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I still genuinely believe that we have the odd point in our favour that the amount we get paid is modest, and that we still have a lot more to offer (more live games, more content, and a higher level of flexibility than most sports).

Sky are a brilliant partner for our game, I hope we extend the deal for more money and more content. 

But get rid of Terry and Baz!!!!! ?

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21 minutes ago, DoubleD said:

Ok thanks........do you know if that also applies to virgin? 

I dont know for sure as I dont use them, but had heard that it didn't. Go on the website or get in comms with them and see what they say....

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50 minutes ago, Damien said:

Its not in Sky's interest to destroy the sports whose content they are dependent on. Its as much in Sky's interest for Rugby League to remain in a strong position after this all passes over as it is Rugby League's.

I'm not sure the relationship is quite that balanced, but I agree it's not in Sky's interest to not help RL where it can. 

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The worry is that at the end of this many subscribers will be feeling the pinch economically and understandably will cancel their subscription.  If Sky loses serious revenue it will divert whatever it takes to keep football, without it Sky can't exist IMO, not in its current form. It will burn everything else if need be,  second in importance is cricket,  then possibly F1 and golf, then maybe RL. However next contract is not yet awhile so fingers crossed. 

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21 hours ago, scotchy1 said:

Comcast are a massive massive company. They could easily withstand the entire revenue of sky just stopping.

This issue will barely make a dint in its balance sheet. The £40m a year they pay SL isnt really making any waves there.

It's not a case of beggars cant be choosers, sky dont want an SL.of the quality a day 10m a year contract pays for. They just wouldn't pay anything and wouldnt take it at all.

 

The clearest evidence of this is the fact that despite seemingly nobody being interested, Sky have paid more each time. They pay enough for us to deliver an attractive proposition, and enough to keep others away I would suggest.

If they  decide to massively reduce the offer next time, that maybe brings other competitors into the mix.

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35 minutes ago, scotchy1 said:

Sky will pay us as much as they need to to provide a decent product and as little as is needed to do so.

If we want more, we offer more. 

And that links in nicely with one of my earlier posts on this thread, that we are in a decent position to be able to offer more, and I suspect we are more willing to do so than some other sports. 

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On 25/03/2020 at 10:55, scotchy1 said:

Comcast are a massive massive company. They could easily withstand the entire revenue of sky just stopping.

This issue will barely make a dint in its balance sheet. The £40m a year they pay SL isnt really making any waves there.

It's not a case of beggars cant be choosers, sky dont want an SL.of the quality a day 10m a year contract pays for. They just wouldn't pay anything and wouldnt take it at all.

 

That's not quite true Scotchy. The forecasts are for Sky Sports alone to lose getting on for nearly a billion if the shutdown lasts three months.  Comcast have just announced they are selling $4 billion worth of bonds (i.e issuing debt) to cover the immediate shortfalls in their businesses. Of course, as they  are a  Wall Street company,  everything is geared towards maintaining or increasing the share price , which in line with many others has dipped dramatically in recent times (down 20% since end January). They are ruthless and RL accounts for an absolute minuscule, almost negligible, amount of their revenue. If they stay in the UK they will favour the recovery of football over everything else  but i doubt they will pay massively over the odds for anything again.

There are many, many, unintended consequences going to come out of this situation. RL, and even other bigger sports, may need to adapt somewhat.

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