Channel 9 needs to save $130m to pay for NRL broadcast rights
After telling the ASX that Channel 9 would save $130 million by not broadcasting NRL games this year, CEO Hugh Marks is looking for $130 million in cuts following news that the rugby league season is set to resume later this month, writes Annette Sharp.
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Nine media bosses are poised to drop an axe on the network’s news division, with insiders predicting 60 Minutes will bear the brunt of severe cuts that must now be made to support CEO Hugh Marks’ recent advice to the stock exchange.
Having boldly informed the ASX on March 30 that the network would save $130 million by not paying broadcasting rights for NRL games during the 2020 calendar year, Marks is preparing to make $130 million in cuts across the business following news that the rugby league season is set to resume later this month.
Television insiders expect almost a quarter of the cuts to come from Nine’s costly news division, and believe jobs will go in both the television and publishing ranks as the CEO trims the $180 million news budget by as much as $30 million to $40 million.
At 60 Minutes, where stalwart reporters such as Liz Hayes are on salaries of more than $500,000 a year, there are concerns the show may not survive, or at least not in a format that audiences now recognise.
“60 Minutes’ budget is around $20 million a year. It’s an obvious place to start, with the program slipping in the ratings and failing to hold on to the leads given it by shows like Lego Masters,” the insider said.
Since making the statement on March 30, Nine’s share price — in a COVID-19 suppressed market — has lifted from $1.05 to $1.42 before falling back to $1.37 during a month in which no other announcements were made by Nine.
If Nine can’t find savings in other areas, it must reverse or correct its ASX guidance to the market, which now seems unlikely.