TV rights: Optus, Fox Sports switch off interest in rugby, leaving code facing financial collapse
Optus has no intention of becoming a white knight while Fox Sports are refusing to budge despite the departure of Raelene Castle. It seems Rugby Australia is fast running out of broadcast options.
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Rugby faces financial collapse as Optus and Fox Sports turn their back on the struggling code, leaving the game with few if any options for broadcasting beyond 2020.
Fox Sports had indicated earlier this year they would not be bidding for the rugby rights after relations turned sour between their executive team and former Rugby Australia chief executive Raelene Castle and board members.
Optus was touted as a potential saviour for the 15-man code but the company has now revealed they weren’t even close to a deal for rugby prior to the COVID-19 crisis.
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Castle resigned three weeks ago after losing the confidence of the board. It is hoped the naming of interim chief executive Rob Clarke, who took over on Thursday, could reignite interest from Fox Sports and Optus in the broadcast rights for 2021-25.
However, Optus director of sport Rich Bayliss said the telco would not be bidding, and quashed suggestions they had been on the verge of securing the rights prior to the coronavirus pandemic that forced RA to halt talks.
“It’s hard to almost look at that now given what’s happened in rugby since, I think the speculation was out there but, to be honest, we weren’t particularly close, nor was it going to happen given COVID,” Bayliss told the Big Sports Breakfast show on Friday.
“Once that popped up, all bets were off. To be honest, we were focusing on football, that’s been our No.1 sport – our only sport – for the last couple of years. And whilst we’d like to go into different sports at some point, I don’t think it was particularly close.
“Once COVID came along as well, it meant we had to bunker down and focus on our subscribers and keeping people employed, for a start.
“And who knows what will happen in the future, but certainly in the short term there’s not much chance of us adding any major Australian rights.”
Meanwhile, Fox Sports, owned by News Corp – publishers of The Daily Telegraph – have not changed their stance and do not intend to bid despite the departure of Castle.
The broadcaster has already undertaken severe cost-cutting measures as the pandemic cripples live sport. It’s understood their primary focus is on securing longer deals with the NRL and AFL.
Rugby Australia officials are still hopeful of resurrecting interest in coming weeks from the two companies and the broader streaming market, including Amazon, with a compelling package that may include a trans-Tasman Super Rugby proposal from next year.
There are also rumours that European private equity firms could pitch millions for part-ownership of Australian rugby, however that would not solve the problem of broadcaster disinterest.
Whatever the outcome, Australian rugby will take an enormous monetary hit on its rights, and many of the players’ contracts will not be able to paid out.
Players are already fielding offers from overseas clubs and some are committed to leaving, despite having two or three years remaining on their deals in Australia.
As the financial drama unfolds, the players will return to training next week with plans to resume a domestic Super Rugby competition started by July 4.
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They will conduct an educational video conference session and then return to team training in groups of 10, first for cardio work, then eventually with pads, and full contact by June if rules allow.
The NRL is facing a problem regarding players who refuse to take the flu vaccination as they prepare to stage games by the end of this month. At this stage, RA will not force players to take the jab.
“Flu vaccinations are strongly encouraged but are not mandated within Rugby Australia’s Return to Play requirements for the 2020 season,” a spokesman said.
“Rugby Australia conducts an annual flu vaccination program for all players and staff, with vaccinations administered across many of the professional rugby programs already this year.”