V’landys’ $80m offer sign TV deal is close

ARL Commission chair Peter V’landys has bullishly declared he will have broadcast talks settled by the end of next week.

The NRL is thought to be close to securing a new deal with Foxtel for the remainder of the season Picture: Getty Images

ARL Commission chair Peter V’landys has said he will have broadcast talks settled by the end of next week and has demonstrated his conviction to the clubs with an $80 million-plus rescue package for the rest of this season.

V’landys, who has been locked in talks with the Nine Network and Foxtel for several weeks, tabled an offer to a group of club chief executives via NRL boss Andrew Abdo late on Wednesday.

It is believed the clubs were not entirely convinced by the deal, which included a number of scenarios based on where the broadcasting negotiations could land.

It is understood Abdo also delivered some estimates on the costs to run the game over the second half of the year, including savings that can be made at head office. Chief executive Todd Greenberg and chief financial officer Tony Crawford are already gone and The Australian understands the NRL have targeted costs savings of more than $50 million from now until the end of the season.

A best-case scenario would result in the clubs receiving their grant of $1.1m each month for the remainder of the year, totalling close to $90m across the five months.

At the same time, players will receive over 50 per cent of their pay during that period, meaning the gap between the cap and the grant will offset some of the other costs the clubs will incur through the absence of gate receipts and corporate support.

The Australian understands that some clubs were not enamoured by the offer, in part because they believe further cuts can be made at head office and because the NRL is yet to open their books and give the clubs a clearer picture of where the money is being spent.

At the same time, it is a leap of faith by V’landys and Abdo given they are yet to finalise a deal with the broadcasters for the rest of this season.

Foxtel and the Nine Network have been playing hardball with the NRL over their broadcasting rights, prompting suggestions the game will have to take a significant cut in their rights for the remainder of this season.

Nine Network boss Hugh Marks added to the intrigue this week when he told a Macquarie Australia Conference that the NRL was not necessarily part of the station’s future.

V’landys insisted talks with the broadcasters were edging closer to a resolution and he expected to have something in place before the start of the competition on May 28.

“I am a glass three-quarter full, (person)” V’landys said. “We will get there. It is one of these things that takes time. But we will get there. Don’t worry. It will be right. We know how much we are going to get. We can estimate what the clubs are going to get. There is no problem with the clubs.”

Asked whether Wednesday’s offer to the clubs was a sign of his confidence that he would strike a deal with the broadcasters, V’landys said: “Absolutely. The clubs have been fantastic to be frank. By the end of next week it will all be done (with the broadcasters).

“Everyone doubted the 28th of May (start date) and we are nearly there on that.”

The ARL Commission has an insurance policy in the form of a line of credit, Oakwell Advisory Group in England having come to the table with as much as $250m should the game need a helping hand.

V’landys would prefer not to rely on outside sources, although he and the commission may have their hand forced should the broadcasting deal continue to wreak havoc with the financial future of the game.

It is understood V’landys is close to striking a deal with Foxtel and while Nine is playing hard to get, they are bound by a contract that runs until the end of 2022.

The commission is open to extending that deal for as many as five years, although it would be on the condition that the networks play ball for this season.