Sky Sports halves offer for TV rights

[Man of Kent]

League Express reporting Sky has offered £20m a year for Super League, worth half the current deal, meaning SL revenue could drop by a third. 

https://www.totalrl.com/super-league-receives-tv-rights-blow/

Same story reports Novalpina Capital (who is also eyeing up domestic French RU) have made a £60m formal offer for the management rights for the competition and a third of Super League’s broadcast income for as long as it holds its stake in the competition.

Hmmm.

[Cumbrian Fanatic]

2 minutes ago, Man of Kent said:

League Express reporting Sky has offered £20m a year for Super League, worth half the current deal, meaning SL revenue could drop by a third. 

https://www.totalrl.com/super-league-receives-tv-rights-blow/

Same story reports Novalpina Capital (who is also eyeing up domestic French RU) have made a £60m formal offer for the management rights for the competition and a third of Super League’s broadcast income for as long as it holds its stake in the competition.

Hmmm.

If that report is correct on both counts, then Novalpina are looking for a yield of over 11%/year  plus the management rights for their investment. Superleague would be mad to take that deal.

[Rugbyleaguesupporter]

No other way to describe this than disappointing. 

I cant see an alternative than 10 team league if its £20m. 

We have to hope Elstone can show Sky how an extra £10m or so could really enhance the league. 

Two things we need to accept I think though: 

1. TV deal just gone was golden- all the criticism of it was way over the top. Sky paid a large premium which would have been lost if it went to tender 

2. We cannot waste money like last few years. Yes top of championship is much better but ultimately game not much more sustainable. 

[The Future is League]

7 minutes ago, Rugbyleaguesupporter said:

No other way to describe this than disappointing. 

I cant see an alternative than 10 team league if its £20m. 

We have to hope Elstone can show Sky how an extra £10m or so could really enhance the league. 

Two things we need to accept I think though: 

1. TV deal just gone was golden- all the criticism of it was way over the top. Sky paid a large premium which would have been lost if it went to tender 

2. We cannot waste money like last few years. Yes top of championship is much better but ultimately game not much more sustainable. 

I would guess this is the opening offer from Sky and will see what happens from here.

One thing is for sure that is Robert Elstones negotiation skills are certainly going to be tested

[sweaty craiq]

Can we not raise £60m by a share offer at £1000 per share - same deal, great investment.

[Tommygilf]

If it wasn't so damaging to the sport it would be laughable. We get what we deserve

[Rugbyleaguesupporter]

Frankly if we get private equity it will prop clubs up for 5 years but then we would be looking at £10m a season from then on. 

Not all gloom- but super league teams will need significant investment from generous owner 

[Futtocks]

If this is true, it'll make a lot of people very happy. Sadly, a lot of those people characterise themselves as Rugby League fans.

[Rupert Prince]

A short while ago an investment group bought 33% of McLaren Cars and F1.  This is the way sports are going.  But these stories need to be backed up with something more than speculation

However the wind is inevitably blowing in that direction. Several RU competitions have gone that way.  

[Futtocks]

1 minute ago, Rupert Prince said:

A short while ago an investment group bought 33% of McLaren Cars and F1.  This is the way sports are going.  But these stories need to be backed up with something more than speculation

However the wind is inevitably blowing in that direction. Several RU competitions have gone that way.  

We haven't seen what happens when the investors don't get their money back yet, though. That could really get messy with RU, whose clubs where blithely haemorrhaging money hand over fist before the current situation (and the investment).

[Tommygilf]

And so it would seem Elstone wants Private Equity money not for any grand plan but to cover the huge drop in the TV rights

[Tommygilf]

That said, is this really much of a drop? Don't super league currently only take around £20million from the current 40 or so a year?

[Rugbyleaguesupporter]

@Tommygilf

Clubs take £1.8m each so £20.6m 

Central costs of £6m or so I think and decent amount to RFL and clubs via sky try. 

£20m i think is 10 lots of £1.5m and £5m central/ to RFL 

 

 

[M j M]

If private equity requires unanimity from the club owners then it won't happen. Leeds for starters will veto it.

If that's the case Elstone is wasting his time and should focus on the stuff that actually matters.

[Rupert Prince]

55 minutes ago, Man of Kent said:

League Express reporting Sky has offered £20m a year for Super League, worth half the current deal, meaning SL revenue could drop by a third. 

https://www.totalrl.com/super-league-receives-tv-rights-blow/

Same story reports Novalpina Capital (who is also eyeing up domestic French RU) have made a £60m formal offer for the management rights for the competition and a third of Super League’s broadcast income for as long as it holds its stake in the competition.

Hmmm.

And does this story say what the RL would receive other than the capital?  The issue is how does the SL and the game grow. 

If the game does not grow then the investors value falls.   Of course if the diehard miseries are determined to themselves sell the game short it's no wonder sponsors and investors ignore the game.

[Rupert Prince]

8 minutes ago, Futtocks said:

We haven't seen what happens when the investors don't get their money back yet, though. That could really get messy with RU, whose clubs where blithely haemorrhaging money hand over fist before the current situation (and the investment).

Where are they bleeding money?

[The Future is League]

3 minutes ago, Johnoco said:

Rugby League is becoming increasingly marginalised and actively trying to be even more regional.

And it’s a surprise if broadcasters aren’t willing to pay more for it? Why would they?

You reap what you sow and by going back to being a regional sport it has less appeal to Sky  and less appeal to sponsors.

[Rupert Prince]

7 minutes ago, Tommygilf said:

And so it would seem Elstone wants Private Equity money not for any grand plan but to cover the huge drop in the TV rights

Proove that.

[Rupert Prince]

7 minutes ago, Tommygilf said:

That said, is this really much of a drop? Don't super league currently only take around £20million from the current 40 or so a year?

Thought it was a bit more than  more than that. 

[Damien]

8 minutes ago, Tommygilf said:

That said, is this really much of a drop? Don't super league currently only take around £20million from the current 40 or so a year?

Its a massive drop really unless the RFL and lower leagues completely drop the money it currently takes. Yes some savings can be made but the RFL already currently has little income to grow the game.

[GUBRATS]

21 minutes ago, Futtocks said:

If this is true, it'll make a lot of people very happy. Sadly, a lot of those people characterise themselves as Rugby League fans.

Who ?

[Oxford]

So are we offering half the SL elsewhere as the money is halved?

The private equity looks like an abyss I'm afraid.

[Rugbyleaguesupporter]

Back on topic- will sky get exclusive rights for their £20m? 

If they dont then our league an option- but the sky games will surely be exclusive so even if other matches are sold your looking at slim pickings. 

5k buys @£10 is £50k. You lose 40pc of that in VAT and costs. So worth about £1m a season. 

[RobertAM]

well the 400,000 quid a year man really proved to be value for money..heaven help RL

[Futtocks]

Just now, GUBRATS said:

Who ?

Everyone whose favourite pastime is talking the game down, either in comparison to the NRL, to other sports, to an imaginary golden era of the past or just because they love nothing more than wallowing in misery, cultural cringes and playing the victim (usually of the SL/RFL in general).