Cash-strapped Rugby Australia start tense broadcast negotiations with risk of reduced new deal

Rugby Australia has started talks on a new broadcast deal as it desperately tries to balance the books ahead of a home World Cup.

Rugby Australia CEO Phil Waugh. Picture: Brendon Thorne/Getty Images

Cash-strapped Rugby Australia has started talks on a new broadcast deal as it desperately tries to balance the books ahead of the home soil World Cup in 2027.

The governing body confirmed it was in talks with incumbent broadcaster Nine as the Wallabies line up against Wales in an international Test at Melbourne’s AAMI Park on Saturday night.

The new deal risks coming in lower than the current $29 million a year deal with the collapse of the Melbourne Rebels reducing Australia’s Super Rugby teams to four.

Industry sources have claimed there was tension over the involvement of Rugby Australia director Alexi Baker, a former Nine executive, in any broadcast talks.

Rugby Australia chief executive Phil Waugh was likely to lead discussions with Nine, with the help of the board, including Ms Baker.

There were tensions over the involvement of Rugby Australia director, and former Nine executive Alexi Baker, in any broadcast talks. Picture: Jane Dempster/The Australian.

“As is typical in a broadcast negotiation, a management working group has been established that has responsibility for this process. The Board will provide input throughout,” Rugby Australia said in a statement.

“Talks have begun. We don’t comment publicly on negotiations.”

Super Rugby is at a critical juncture, with Rugby Australia now having control of two teams.

The national body and ACT Brumbies signed a deal on Tuesday that transferred operational control of the franchise to head office. The Waratahs are run by Rugby Australia under a similar arrangement.

“Rugby Australia has committed to managing and supporting the organisation,” Brumbies chief executive Phil Thomson said.

“We’re encouraged by the collaborative nature and constructive outcomes of the RA-led Rugby summit, which continued last week in Sydney.”

Waugh noted Rugby Australia was determined to “unite the game”.

“There may be different models across different clubs, however the Brumbies and Waratahs have both seen the potential for great benefit in aligning their commercial operations with RA’s,” Waugh said.

Rugby Australia has already had to plan for life without Super Rugby.

And there is a renewed push on both sides of the Tasman to scrap Super Rugby and replace it with national club competitions.

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Nine’s capacity to splash cash on rugby was in doubt as it announced widespread job cuts last month.

The broadcaster has paid $300 million to screen the next three Olympics, including Brisbane in 2032.

The next rugby deal was likely to receive some interest from rival free-to-air network Seven.

Sources with knowledge of Seven’s thinking say that the Kerry Stokes controlled outlet were interested in the World Cup rights to find another Matilda’s moment.

Seven broke ratings records with more than 7 million tuning into the historic penalty shootout in August last year.

Previous broadcaster Foxtel’s interest was unclear as it has bet big on the AFL, and NRL, paying the lion’s share of the $6.5 billion deals signed by those codes along with free to air networks.

Foxtel is owned by News Corp, the publisher of this masthead.

Rugby Australia CEO Phil Waugh. Picture: Brendon Thorne/Getty Images

Rugby Australia has been battling to keep its head above water after it had to bankroll the Melbourne Rebels this season, leaving a $6 million hole in its budget.

Mr Waugh said in May when announcing the demise of the Rebels that Rugby Australia was “technically” a going concern.

The code has been pinning its hopes on a cash injection from the British and Irish Lions Tour next year and the 2027 World Cup.

The final, and potentially semi-finals, were still likely to be played in Melbourne at the MCG despite the Victorian Government being disappointed the Rebels were kicked out of Super Rugby.

The Wallabies face off against Wales in Melbourne at the smaller venue of AAMI Park, with some tickets still on sale.

“Following on from a great crowd (36k) in Sydney last weekend – not to mention a sold-out Marvel Stadium and 84k at the MCG for the last two Bledisloe Cups – plus a good performance from the Wallabies against Wales, we expect a strong crowd in Melbourne this Saturday. Tickets are selling well,” Rugby Australia said in a statement.

Seven declined to comment. Nine was approached for comment.

Originally published as Cash-strapped Rugby Australia start tense broadcast negotiations with risk of reduced new deal