Nine chief backs Foxtel in battle for rugby rights

Nine Entertainment boss Hugh Marks says sport bodies must come to grips about the true value of their broadcast rights.

Nine Entertainment CEO Hugh Marks in his Sydney office. Picture: AAP

Nine Entertainment boss Hugh Marks says sport groups must come to grips about the true value of their broadcast rights, as Rugby Australia looks to strike a new deal while struggling with the code’s popularity.

Mr Marks, who is looking to cut big sporting events and movies from its cost intensive free-to-air television business, said the challenge all of them face is ‘‘understanding how the mix of rights might work for them, and who’s important to what the sport stands for’’. ‘‘I think a move away from Foxtel and rugby is a significant risk because it’s not just the money that you get but it talks to what that sport talks to its consumer base about, and what the consumers become consistently aware of as associated with that sport, Mr Marks said.

‘‘A change in production crew and team mentality is always a risk for a sport, so it’s not that they necessarily need to change their expectations. I think there are good ways to combine rights and mix of rights to continue to grow your sport.”

Rugby Australia is looking for a new broadcast partner after it ­demanded an increase from Fox Sports on the $57m annual deal after the broadcaster offered a renewed contract. Fox Sports has reportedly walked away from the market tender, with Rugby Australia now hoping to strike a new deal with Singtel-controlled telco Optus and a free-to-air TV partner in an open tender process. Mr Marks said ‘‘big change’’ is risky, pointing to cricket moving from Nine and Ten to Foxtel and Seven. ‘‘It was a shock to the audience, and that big change was a significant risk which in that case didn’t pay off,’’ he said.

‘‘A move away from Foxtel, the traditional rugby home, into another environment is a risk but that doesn't necessarily mean they should reset their rights ­expectations. It’s just a question of how they get to the answer and that’s a little more complex than it was in the past,’’ he said.

Nine’s largest sport’s deal is rugby league, and NRL chief executive Todd Greenberg said sports needed to take into ­account a range of factors, including the potential of limiting the reach of their sport under any broadcast deal.

“It’s not only just about the revenues you generated, you want to make sure of your relevance to the sport. And you want to make sure that relevance transfers not just to the revenues but also to participation and growing your fans,” he said.

“So I think the choices you make about whether you put certain products into certain areas whether it’s free-to-air TV, streaming, or pay per view, and subscription TV, all of those things have to be related to the first principle which is relevance and reach for your sport and we never take that for granted.”

Mr Marks said the Ashes was probably an exception, given its importance to Australians, with the last series delivering strong ratings for Nine.