Optus, Rugby Australia broadcast deal: revolutionary package reignites interest
Rugby Australia’s uncertain future is set to be resuscitated after the game’s revolutionary broadcast package reignited interest from several heavyweight broadcasters.
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Rugby Australia’s revolutionary broadcast package has reignited interest from Optus, with the telco set to land the rights to the XV-man code in a stunning coup.
Fox Sports is set to bid for club rugby only, after RA announced broadcasters could pick and choose content from their new package for 2021-25.
News Corp Australia understands the new deal will involve Optus and Network Ten screening Wallabies Tests and Super Rugby, although there is some disagreement between them regarding the finer details.
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Should Optus secure the rights, it would add to their football content, having secured rights to the English Premier League and European Champions League, as well as the Japanese and Korean competitions, while they’ve been strongly tipped to take the Australian A-League from Fox Sports after this season.
When asked for comment about their interest in rugby, Optus said: “We don’t comment on rights, either current or future.”
An industry source said all conversations regarding deals of this nature were conducted under strict nondisclosure agreements.
RA’s revelation on Monday that they would consider bids for parts of their 2021-15 package, as opposed to traditional deals where bidders had to take the whole offering, means prospective broadcasters can be creative with their pitch.
Hiving off different tournaments to different outlets may allow RA to maximise the outlay on the 15-man code for the next four years, given all bids are expected to be starkly lower than the $57-million-a-year they earn from rights under the expiring deal.
Sources said a bid from Optus would have to be around the $15 million to $20 million mark.
Fox Sports, having broadcast Super Rugby since its inception 25 years ago, has long held frustration with the diminishing rugby audience, particularly for Super Rugby, however want to retain some content for their pay television and Kayo streaming customers.
With a small but rusted-on supporter base for club rugby in Sydney and Brisbane, Fox Sports – owned by News Corp Australia – can keep a foothold in the game without exhausting millions in production costs for high level matches.
New Zealand Rugby has been given a three-week deadline to commit to a trans-Tasman Super Rugby competition for 2021 that includes all five Australian teams, or else RA will walk away and form their own domestic tournament.
The ultimatum was delivered on Monday by RA interim chief executive Rob Clarke, who also revealed plans for an exciting Champions League-style “Super Eight” competition involving the best teams from Australia, New Zealand, South Africa, Japan and South America.
RA is taking “the largest and most comprehensive collection of rugby rights ever put to the market in Australia”, Clarke said, but most intrigue revolves around the future of Super Rugby and whether the Tasman alliance will be broken not only for next year but the long term.
“We have put a deadline for the broadcast submissions for the 4th of September, so three weeks away, and before we enter into any final negotiations with a broadcast partner this has to be settled,” Clarke said.
“So D-Day is coming.”
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NZR had outlined their own Super Rugby proposal last month that could only accommodate two or three Australian teams.
Asked on Monday if RA would consider cutting any teams as a compromise to make the trans-Tasman model work, Clarke was emphatic.
“No,” Clarke said.
“We’ve been very consistent on that.
“And we’re increasingly buoyed by the quality of games we’re now starting to see in our (Super Rugby AU) competition, the two games on the weekend showed how much rising talent is coming through with our young players, and this competition is really starting to engage fans and showcase the future of Australian rugby.
“And we’ve been saying this to New Zealand, and anyone who is prepared to listen, we’re very confident in the quality of our up and coming talent, and it’s starting to show on the field.
“And we’re very committed to a long-term solution here.”
The basis of a domestic tournament would be the existing five teams: NSW Waratahs, Queensland Reds, Brumbies, Melbourne Rebels and Western Force. RA is also looking at adding one or two Japanese teams, and Fiji’s Drua, though none are guaranteed for 2021.
RA is clearly frustrated by the slow response from the Kiwis, and after weeks of little headway between Clarke and NZR counterpart Mark Robinsons, Australia is taking a my-way-or-the-highway approach to these negotiations.
“That’s been going on for a considerable period of time and I think it’s only fair for the broadcast discussions we’re having with potential partners that we’re able to give them as much clarity about what the future looks like as soon as possible,’ Clarke said.
“So the clock is ticking on the whole Super Rugby competition model for 2021 … and it’s likely to be a decision that goes beyond next year if that’s what our SANZAAR partners decide, so the corner on the road is coming.
“We need to do whatever is in the best interests of Australian rugby, and we’ve been working hard on a variety of competition models not just for Super Rugby but for every level of the game.
“This will be, I think, the largest and most comprehensive collection of rugby rights ever put to the market in Australia.”
The jewel in the crown is the Super Eight proposal that would mirror European football’s Champions League, pitting the best southern hemisphere teams against each other in a five-week tournament.
If a trans-Tasman Super Rugby deal is struck, the Super Eight would start at the finals stage of that tournament.
If Australia and New Zealand play domestic tournaments, the Super Eight would start immediately afterwards.
Clarke also confirmed the 2025 British & Irish Lions series to be hosted in Australia is not part of the rugby rights package on offer, because they do not have an agreement with the Lions on the tour structure and will wait to see the results of the 2021 Lions tour of South Africa.
The regular southern Test series will remain.
“From the international level, maintaining the tried and true Rugby Championship and Bledisloe Cup Test program, those competitions are proven and remain very popular today as they have been in the past,” Clarke said.
“But then we have a whole range of new rights we’re looking at including into this package.
“At Super Rugby level we have two models we’ve put forward; one is a domestic only model and the other is a trans-Tasman model, so we have two options for 2021 and we’ll ask for feedback on both of those.
“Then we have some new initiatives we’re incorporating, the State of the Union series, which is our State of Origin.
“And a new Super Eight series, which is essentially a crossover competition at the end of the domestic comp, which would run with the top two teams from South Africa, New Zealand, Australia, a team from Japan and a team from South America in a short-form, five-week competition.
“We have a national club rugby championship which we would like to launch, of the best clubs from around the country in a short-form competition at the end of their club rugby seasons.
“And of course we have the rights to the NSW and Queensland Premier club rugby competitions, in addition to showcased series of the best schoolboys rugby.”
Clarke said broadcasters can bid for the whole package, or certain elements, and wants at least one Super Rugby game shown live on free-to-air television from next year.
“We have a range of packages available in the RFP (request for proposal) and broadcast organisations can take it all or they can express interest in the packages as we’ve broken up in the RFP,” he said.
“I think in a way we’re entering the market at not a bad time because many of the broadcasters have gone through pretty fundamental renegotiations with a number of other sports and so a lot of their heavy lifting there has been done.
“I think now that we’re coming to market with what we believe is a wonderful and exciting comprehensive package.
“I think they have an appetite and bandwidth to actually consider it seriously. This isn’t something that hasn’t just come out in the last week, clearly I’ve been working with John Knox who is an independent advisor in this process and our broadcast subcommittee of the RA board for the last three months working carefully with this.
“And having various meetings with a range of interested parties, none of this will come as any surprise to them.
“They have known we have been working towards a formal process around this time and so this afternoon they’ll be receiving those documents.”