New TV deal with Fox and Nine ensures NRL’s future

The NRL is set to follow their announcement of a billion-dollar broadcasting deal by agreeing a compensation package with their clubs.

Parramatta players warming up at Suncorp Stadium ahead of Thursday night’s game. Picture: Getty Images

The NRL is set to follow its announcement of a billion-dollar broadcasting deal by agreeing a compensation package with clubs worth up to $110m as it looks to ensure all 16 sides emerge from COVID-19 with their business intact.

Only an hour before kick-off at Suncorp Stadium on Thursday night, the NRL finally announced it had brought its protracted negotiations with the Nine Network and Foxtel to a conclusion.

Both were already locked in until the end of 2022, but have had their deals revised for this season and the following two. Nine told the Australian Securities Exchange it expected to save $27.5m in each of the 2021 and 2022 seasons, and even more over what is left of this season.

Foxtel also received a discount for what remains of its existing deal, although it also agreed fresh terms that will mean it continues to show all eight games each week until the end of 2027.

“It is significant that on one of the most important days in our game’s history, we have finalised the deals to ensure its future,” ARL Commission chairman Peter V’landys said.

“Our negotiations were tough but always in a spirit of goodwill and shared ambitions for the betterment of rugby league.

“We could not have reached our May 28 restart ambitions without the teamwork and collaboration of our partners.

“These deals provide certainty to ensure our 16 clubs remain strong and that we can continue to invest in grassroots rugby league across our communities.”

Talks with the broadcasters have been tense at times and there were genuine fears at one point that Nine may walk away.

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As it is, Nine received significant discounts in return for its ongoing commitment and V’landys remains hopeful that it too will agree to an extension of its existing deal.

“We are also delighted to have reached a revised agreement with the NRL for seasons 2021 and 2022, and at a level of rights costs that enables us to sustainably invest in rugby league for the future,” Nine chief executive Hugh Marks said.

Foxtel chief executive Patrick Delany added: “We have re-signed the deal with the NRL. It will go out now to 2027.

“That is an extraordinary eight years from now. What an amazing day it is. It is a great lesson for all of us with what seemed impossible is possible now. Some great leadership from the NRL. We are so proud to be part of it.”

Nine’s failure to extend its deal means the Seven and Ten networks have been given hope that they could steal the commercial rights from 2023 onwards.

In the meantime, the renegotiation of the existing deals and the extension with Foxtel have given the NRL some security at a time when most sporting codes are fighting for survival.

It also helps secure the future of the clubs when many are struggling to make ends meet due to the devastating impact of COVID-19.

The Australian understands a select group of club bosses held talks with NRL chief executive Andrew Abdo at Rugby League Central on Wednesday where they thrashed out a financial agreement designed to compensate the clubs for lost membership, ticketing and corporate sales.

Conservative estimates suggest that could cost clubs more than $60m this year. Their survival is on the line. According to the NRL’s benchmarking, the Brisbane Broncos alone earned $16.5m from membership, ticketing and corporates in 2018. Melbourne Storm brought in more than $8m and South Sydney more than $7m.

The losses will be measured in the millions at all 16 clubs, hence the need for them to get some financial support from Rugby League Central.

The NRL has already reached a deal with players, guaranteeing they will receive at least 80 per cent of their salaries for this season. The clubs were the next item on the NRL’s list and it initially guaranteed them their existing grants for the remaining five months of the rugby league year — the initial offer would have resulted in the clubs receiving $5.4m apiece until the end of October, more than $80m in total.

The clubs agitated for an additional $1m apiece and it appears they have been granted their wish, the compensation package now soaring north of $100m.

The agreement still needs the tick of approval from the ARL Commission.

“I have always had a good relationship with the club (chief executives),” Abdo said. “From time to time everyone is passionate about their views. I feel like there is an opportunity to create a different relationship between the NRL and the clubs.

“That will ultimately be judged on actions, not on promises or words.”