Seven Network sets its sights on State of Origin rights
The Seven Network is eyeing off a serious bid for rugby league with a big focus on State of Origin, as the company considers parting ways with cricket.
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The Seven Network’s stoush with Cricket Australia could have major ramifications for the NRL as the broadcaster prepares to launch a stunning bid to steal State of Origin, and potentially the premiership, from rival the Nine Network.
Seven has threatened to walk away from their deal with CA, having labelled the organisation a “train wreck” and branded its administration as “stumbling, bumbling” and “incompetent”, according to The Australian.
There are bound to be legal hurdles, but if they were able to tear up their contract, it would free up about $100 million a year.
That would leave Seven with the financial artillery to make a charge at rugby league’s commercial broadcasting rights, which are up for grabs from 2023.
While the NRL recently extended their deal with Foxtel until the end of 2027, the Nine Network dug in their heels, leaving the commercial rights vulnerable to a potential bid from the Seven or Ten.
Sources close to Seven confirmed the network was already sizing up an offer for Origin and that could extend to the premiership, depending on their financial situation in the new year.
It is understood Seven powerbrokers have also had informal talks with Foxtel over a sharing arrangement that could result in Origin being simulcast from 2023, when the NRL’s deal with the Nine Network is due to expire.
Seven is already in the process of selling assets to strengthen their bottom line and it is understood they have urged the ARL Commission to wait until the new year to begin talks with commercial broadcasters.
The commission and the NRL are in no rush. They occupy a position of strength thanks to their deal with Foxtel, the five-year extension alone worth around $1 billion. With that contract in their back pocket, they can take their time and pit the commercial broadcasters against each other.
Nine are believed to be keen to retain rugby league, but chief executive Hugh Marks is a shrewd operator and will want to pay as little as possible to keep the code.
Ratings have been sluggish on Nine this year, although that can in part be explained by the form of the Brisbane Broncos.
The game’s flagship club has been a constant on Nine, a decision that was made during the COVID-19 break when the broadcasters were given more say over the scheduling of matches.
At the time, the Broncos were unbeaten through two games. When rugby league returned from the COVID-19 break, Nine’s ratings reached record numbers. Since then, they have stagnated largely because of the form of the Broncos, who have lost 13 out of 14 games and suffered a series of shellackings.
Even so, the NRL is counting on competition between the commercial networks driving up their asking price. Origin’s value is without question and there is genuine hope that this year’s series, which will be played after the grand final, will maintain the historical rage.
Invariably, the three games are among the five most-watched shows on television every year, which helps explain Seven’s interest in acquiring the rights. Origin has never been sold as a separate entity, so it is hard to put an exact figure on what it is worth.
However, it has previously been valued at about $100 million per year. Seven could yet look to reduce the financial burden by allowing Foxtel to simulcast the series. Foxtel could potentially also take charge of production and allow Seven to use their hosts, helping reduce the latter’s costs.
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The NRL was at one point being urged to produce games in-house and sell them via their own subscription network, although it is understood the ARL Commission has crunched the numbers and come to the realisation that would be to their financial detriment.
The game is already in cost-cutting mode, chair Peter V’landys and NRL chief executive Andrew Abdo expected to outline an overhaul of the central body’s costs this week.
Abdo, who is expected to be confirmed as the game’s permanent CEO this week, presented his plan to the commission on Thursday and Queensland Rugby League chair Bruce Hatcher has raised his concerns over a lack on consultation in the process, fearful that the states will suffer again.
“I will tell you what concern I have – I was supposed to have a meeting (last week) because I am on the audit, finance and risk committee and that was cancelled,” Hatcher said.
“I would have thought in the normal course of events that committee would have been presented with the information to go on to the commission.
“I would have thought the people responsible for doing the presentation to the commission would want to put it past the people who would put a bit more scrutiny on it.
“I found that really odd and no real explanation for why it was cancelled.”
Originally published as Seven Network sets its sights on State of Origin rights