Rugby Australia news 2024: Shute Shield clubs consider breaking away from Rugby Australia after ‘insulting’ offer for broadcast rights

Rugby Australia’s negotiations about extending their broadcast deal has hit an unexpected hurdle, after Shute Shield clubs rejected their proposal - and they have considered a bigger, more drastic action. JAMIE PANDARAM has the details.

Shute Shield clubs have rejected an offer from Rugby Australia to fold their games into the next broadcast deal, in what could be a major stumbling block.

This masthead can reveal RA offered $40,000 per club to ensure they would remain part of the overall broadcast package that is part of the deal with Nine and Stan Sport.

But club bosses roundly rejected the offer, saying it is not sustainable for their futures, and have left open the prospect of breaking away and finding their own broadcaster.

Speaking under the condition of anonymity, club officials expressed a number of concerns with the offer.

“It’s insulting to be honest, we cannot accept an offer that essentially would not allow us to continue to function,” one club boss said.

Northern Suburbs' Max Burey cuts loose against Randwick in last week's Shute Shield elimination final. Picture: Karen Watson for SRU 30.08.24

“The offer put to us isn’t sustainable, there is not enough to keep our club afloat and the other clubs clearly feel the same.

“The deal we previously signed with Stan means that all Shute Shield games are now broadcast on TV. That has made it even more difficult for us to get supporters to our grounds, which is a big part of our revenue generation.

“Some clubs also have to hire equipment if their grounds are not built to support television cameras, that’s an additional cost they must absorb on game day.

“And now we’ve been offered a sum that would put us in the red at the end of 2026.”

Asked if they’d consider walking away from RA and orchestrate a breakaway TV deal, he said: “All options will be considered for the good of grassroots rugby.”

Josh Bosker is pictured playing for Easts against Manly in the Shute Shield. Picture: SPA Images

It’s understood that the offer is an increase on what the clubs received this year, and RA based the figure on statistics that suggest the average Shute Shield match gets one-sixth of the broadcast audience of a Super Rugby game.

The offer across 12 Shute Shield clubs, for 108 regular season games and six playoff matches, essentially means Nine is offering $4200 per game. There will be additional money given to SRU for operational costs.

RA is engaged in talks with Nine and Stan Sport about extending their deal beyond 2025. They have an exclusive negotiating period until December 31. If a deal cannot be reached, the rugby rights can go to the highest bidder.

However, some within RA are worried that with tough market conditions – and the fact Nine and Stan already have the rights to the 2025 British & Irish Lions series and the 2027 World Cup – there may not be any other bidders willing to meet their price.

Easts claimed the Shute Shield premiership with victory over Norths in the grand final

The clubs met with Sydney Rugby Union chief Peter Watkins, who is negotiating the Shute Shield portion of the deal with RA, and were unimpressed.

Another club boss said: “They’ve given us a number when Stan haven’t given them a final number, so how have they worked this out?

“You could see the reactions around the table, nobody was expecting that, so we’ve told them to go back to the drawing board.”

The Shute Shield has previously broken away from Rugby Australia. Their rights were purchased by businessmen John Murray and Nick Fordham, who on-sold it to the Seven network after it was dropped by the ABC.

But when then-RA chief executive Raelene Castle made the decision to take the broadcast rights from Fox Sports to Nine and Stan, the organisation paid Murray and Fordham $250,000 to secure the Shute Shield rights and fold it all into one package.

RA is keen to maintain that.

The Hunter Wildfires and Randwick battle it out in the 2024 Shute Shield. Photo by Stewart Hazell

“We continue to negotiate with Sydney Rugby Union, and believe the all-of-game approach is the best outcome for the game,” an RA spokesman said.

Watkins is also hopeful that the clubs and RA will come to an agreement so rugby games are not splintered across various broadcasters.

“We continue to have discussions and we’d hope that Shute Shield will remain as part of the overall rugby package,” Watkins said.

Originally published as Rugby Australia news 2024: Shute Shield clubs consider breaking away from Rugby Australia after ‘insulting’ offer for broadcast rights