NRL poised to seal 7 year $2.3 Billion broadcasting deal

[DoubleD]

https://www.foxsports.com.au/nrl/nrl-premiership/live-walker-calls-for-freedom-of-choice-in-backing-nrls-antivax-stars/news-story/7bae6ff7205c512f3d9caeebeff2e677

Can someone closer to the situation help me understand if this is an annual increase or decrease?

It appeared the previous deal was $1.8 billion for 4 years so is this a drop then?

[philipw]

The previous deal was $1.8bn for 5 years (2018, 2019, 2020, 2021, 2022). That works out at $360m per year. The new deal at $2.3bn for seven years works out at $328m.

Whilst it's a drop, I think its probably a good deal given the current economic climate. 

Edit: in fact, on re-reading the article, its only actually for 6.5 years (as it covers the remainder of this season, where I believe the NRL have had a chuck of the broadcast money). 

Funny that Ch9 are willing to splash so much cash given the way they have been talking the sport down over the last few months - couldn't be that they were trying to drive the price down with negative press could it?  

[Scubby]

24 minutes ago, DoubleD said:

https://www.foxsports.com.au/nrl/nrl-premiership/live-walker-calls-for-freedom-of-choice-in-backing-nrls-antivax-stars/news-story/7bae6ff7205c512f3d9caeebeff2e677

Can someone closer to the situation help me understand if this is an annual increase or decrease?

It appeared the previous deal was $1.8 billion for 4 years so is this a drop then?

The NRL currently have no product to sell atm, hoping that changes in the next couple of weeks of course. The game also faces financial ruin in the current situation. Basically it suits both parties (tv companies are also facing financial ruin remember). What would the UK game give for A$300m+ per year for the next 7 years?

[Copa]

It’s a decrease but considering the current situation it’s long term steady income. 

I expect V’landys will be brutal in cutting costs and building assets and income going forward. He’s an alpha shark in his trade.

[Dunbar]

The article is not particularly clear as this $2.3B deal includes the remaining years on the current deal which lasts to 2022 with a 4 year extension.

The current deal is $1.8B over 5 years to 2022 which (as philipw says) is $360M a year.

The referenced deal is 7 years but in reality it is the current deal plus a 4 year extension. If the remaining years are paid at the current rate then this is $1.08B leaving $1.22B for the 4 years so this is $305M a year.

As others have said.  In the current climate, a deal well worth taking I think.

[M j M]

It's effectively a flat deal to what they currently have (ignoring inflation) and a discount for this year although that may not be represented in when the tv companies pay for it.

Hard to tell if it's a good deal or not - the AFL are also renegotiating their deal which was worth $2.5m for six years so will be interesting to see where they end up although supposedly Channel 7 are in a much worse position than Channel 9 to offer the huge amounts they did when that was signed up to.

[Sir Kevin Sinfield]

Does this deal include any of the international game (Australia fixtures)? We need to be selling all international fixtures separately to the NRL and Super League deals. 

[DoubleD]

19 minutes ago, Sir Kevin Sinfield said:

Does this deal include any of the international game (Australia fixtures)? We need to be selling all international fixtures separately to the NRL and Super League deals. 

Yes this is a key aspect, the previous deal included rep games and the expectation was that this was to be split out in future but it’s not clear here whether that is the case 

[Copa]

V’landys wants to also cut operating costs by $50 million per annum.

https://www.espn.com/nrl/story/_/id/29155625/nrl-looks-cut-operating-costs-50m

 

 

[Pulga]

It is a slight decrease.

What isn't know is whether Nine got their grubby mitts on the digital arm.

If so, V'landys needs to go.

[Allora]

It is a good deal considering the current situation.

[Oxford]

Two things to say well done NRL & who wants expansion anyway!

[Hela Wigmen]

10 minutes ago, Pulga said:

It is a slight decrease.

What isn't know is whether Nine got their grubby mitts on the digital arm.

If so, V'landys needs to go.

This. 

[Damien]

I hope this deal doesn't mean no expansion for 7 years because I cant see a premium in it for another club.

[Allora]

42 minutes ago, Pulga said:

It is a slight decrease.

What isn't know is whether Nine got their grubby mitts on the digital arm.

If so, V'landys needs to go.

Why do we see the major sponsors and bankrollers of our game as grubby?

TV company’s are not lining up to throw money at our sport as far I know.

Take it as a partnership and work with each other are my thoughts.

[Allora]

23 minutes ago, Damien said:

I hope this deal doesn't mean no expansion for 7 years because I cant see a premium in it for another club.

The way things are at the moment consolidation and survival are more important than expansion IMO.

[Damien]

1 minute ago, Allora said:

The way things are at the moment consolidation and survival are more important than expansion IMO.

I understand that but 7 years is a long time to be doing that. The constant obsession with consolidation is part of the reason that Rugby League has barely expanded in the last two decades. Its also frequently used as an excuse by the status quo looking to protect their own interests.

[Allora]

17 minutes ago, Damien said:

I understand that but 7 years is a long time to be doing that. The constant obsession with consolidation is part of the reason that Rugby League has barely expanded in the last two decades. Its also frequently used as an excuse by the status quo looking to protect their own interests.

Maybe expansion is still on the table within the TV deal.

 

[Pulga]

12 minutes ago, Allora said:

Why do we see the major sponsors and bankrollers of our game as grubby?

TV company’s are not lining up to throw money at our sport as far I know.

Take it as a partnership and work with each other are my thoughts.

You obviously haven't been paying attention.

Fairfax media puts out hit-piece after hit-piece. They're a cancer on the game.

It is supposed to be a partnership but it really isn't.

[Davo5]

40 minutes ago, Pulga said:

You obviously haven't been paying attention.

Fairfax media puts out hit-piece after hit-piece. They're a cancer on the game.

It is supposed to be a partnership but it really isn't.

$2.3 billion seems a large sum of money to throw at something you hate and want to discredit.

Without this broadcast deal where do see the game going ?

[Chronicler of Chiswick]

Being old enough to remember when Channel 10 effectively bankrupted themselves in outbidding Nine for RL I'd be somewhat careful about celebrating this, particularly given that Fox are currently loosing money at the moment.

[Damien]

1 hour ago, Allora said:

Maybe expansion is still on the table within the TV deal.

 

Hopefully.

[rlno1]

4 hours ago, Copa said:

It’s a decrease but considering the current situation it’s long term steady income. 

I expect V’landys will be brutal in cutting costs and building assets and income going forward. He’s an alpha shark in his trade.

V'landys will probably cut costs to the digital arm and may even sell it to nine, as they were desperate for it.

If this proves to be the case, dumb move.

This would be ironic, because nine were extremely critical of Greenberg yet they have covet desperately getting hold of the digital arm of the game.

[Damien]

52 minutes ago, rlno1 said:

V'landys will probably cut costs to the digital arm and may even sell it to nine, as they were desperate for it.

If this proves to be the case, dumb move.

This would be ironic, because nine were extremely critical of Greenberg yet they have covet desperately getting hold of the digital arm of the game.

After going to all the effort to set up the digital arm they would be mad to sell it. It should be a major income generator in future years.

[marklaspalmas]

So in real money, about 170 million quid a year (between 16 clubs) for seven years.

Something to compare the SL/SKY contract to.