Telstra pursuing NRL online streaming rights

Telstra is plotting a multi-­million-dollar bid for Nine Network’s National Rugby League online streaming rights.

Telstra is plotting a multi-­million-dollar bid for the Nine Network’s National Rugby League online streaming rights amid continued fears the telecommunications giant will ditch its title sponsorship, ending a 17-year ­association.

Nine, which secured free-to-air streaming rights for the top four picks in each round as part of its $925 million TV rights deal with the NRL, has not ruled out surrendering the online rights as the fallout from the surprise five-year contract continues.

Nine boss David Gyngell is said to be pleased with the terms of the new contract, and in no rush to make a decision as the agreement does not start until 2018.

But the code could be on the verge of losing its main title sponsor because Telstra believes the remaining packages have been sharply devalued unless Mr Gyngell decides to defray his costs, offloading the streaming rights to Telstra.

Leading the strategy, head of media and marketing Joe Pollard is also said to be eyeing the pay-TV streaming rights as part of a concerted effort to grab all the online rights. Ms Pollard has strong ties to Nine, having sat on the media company’s board until late last year.

High-level Telstra executives are furious NRL bosses failed to give them an opportunity to bid for Nine’s new streaming rights, which it holds under the existing agreement as part of a wider $100 million deal including naming rights to the Telstra Premiership.

To add insult to injury, Telstra executives only learnt of the new deal, which followed secret talks, when it was announced in a press release sent by Nine’s corporate communications team.

As reported by The Australian last Friday, the NRL’s failure to give Telstra advance warning has jeopardised the lucrative sponsorship component — worth at least $25m.

A day before publication, Telstra officials declined to comment in response to repeated requests. But late on Monday, they broke their silence, issuing a statement that was carefully worded so as to not rule out the termination of the sponsorship agreement.

“Reports that Telstra is looking to not renew our NRL naming rights are untrue,” the statement said. “We are proud of what we have built with the NRL to date and are in negotiations to continue our partnership beyond 2017. We are unable to comment further as negotiations are ongoing.”

Yesterday, The Australian revealed the NRL has attempted to add urgency to stalled talks with News Corp’s Fox Sports by lining up Qatar-owned beIN Sports as a potential bidder for its pay-TV rights.

While beIN is not considered a serious bidder, sources claimed it is “running the ruler” over the pay-TV packages amid a “stand-off” with incumbent Fox Sports.

Executives in media circles believe under-pressure NRL bosses are touting beIN as an interested party to increase competitive tension after it emerged News Corp executives refused to pay a premium for the pay-TV component, putting Mr Smith’s $1.7 billion TV rights target at considerable risk.