Rugby broadcast deal worth $10m a year, after Raelene Castle rejected $125m offer
Haunted by former RA chief Raelene Castle’s rejection of a five-year, $125m offer, the code’s cut-price rate is laid bare.
The tough financial reality for Rugby Australia is that their next broadcast deal is likely to be worth no more than $10m a year for its domestic competition.
All up, a deal could be valued at $20m adding in $10m for Test matches. If RA secures a broadcast deal like this, it is $15m a year less than the deal offered by Foxtel to the Raelene Castle-led administration last November.
Back then a five-year $US125m deal was tabled and RA walked away in the hope of starting a bidding war. It never materialised.
RA interim chief executive Rob Clarke is left dealing with a harsh economic reality that means inevitable change, cost-cutting across the board and agility when it comes to developing a new competition model.
Clarke told The Australian he is working towards presenting a competition model with some “new assets” — possibly a “State of Union” series (like State of Origin) and an Anzac Day Bledisloe Cup — which he is hoping will generate additional TV broadcast interest and value.
He said there are parties outside of Foxtel who are interested in the broadcast rights but would not disclose them.
“My job is to do the best deal for the game and it’s incumbent upon me to pursue all potential partnerships that could lead to the best outcome for the game,” Clarke said.
The TV ratings for Super Rugby AU have been paltry with 69,000 viewers tuning in to the NSW v Queensland season opener (but 95,000 inclusive of Kayo and Foxtel Now). When rugby was humming, a match like that could draw 175,000 sets of eyeballs on Foxtel. The 2011 Super Rugby final won by Queensland over the Crusaders broke records when it reached 518,000 on Foxtel.
Today, in an effort to revive the sport, there are three competition models being considered by RA management for season 2021 and beyond.
“In the COVID environment with the restrictions and challenges being presented to us, it is critical we explore all avenues for competition structures, because that will help to establish a solid and profitable foundation for the future,” Clarke said.
“To that end, we have looked at a potential dismantling of the entire Super Rugby structure and going back to first principles.
“We have looked at different iterations around a domestic competition with an international crossover element. We are looking at the trans-Tasman competition as a foundation for expansion into the Asian Pacific. And a number of other iterations that involve new directions.
“The determining factors are not necessarily straightforward, they are influenced by existing SANZAAR partnerships, potential broadcast revenue and the ability to ensure whatever we do builds towards a sustainable and successful Wallabies program.”
Clarke stressed that the Wallabies were the jewels in the crown for Australian rugby. He is also keen to explore the option of boosting club rugby, noting competitions such as the National Rugby Championship failed to spark the tribalism among fans.
“If you went back to first principles in an ideal world, you would build on existing brands … that have reach and deep history. You would be mad not to build on those,” he said.
“The learning through the NRC and the ARC before that, it’s difficult to build fan tribalism with concocted teams. It would be great to have a competition where we liberate the top club rugby teams in the country and bring them into a competition where we are getting the best of the amateur game on show.
“If we can create a financially stable model here, it doesn’t preclude us still doing the club model and elevating that at the same time as a new model for Super Rugby … It’s is not an either or, it’s an and, and to do that, we really need to bring significant investment in the game.”
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