In this edition:
- The NRL free-to-air broadcast deal - what does it mean?
The NRL historically has got mugged when it comes to broadcast rights agreements. It's hard to do much else when you're negotiating with a significant bidder that 50% owned the game, and also helped select the CEO heading your negotiation team.
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| The strings were almost invisible. |
This latest deal was different as the NRL was independent during the bidding process for the first time in a generation. Yet I still expected change would come incrementally - the dollars might be more on this occasion, but the deal structure largely the same.
Instead, they've managed to hammer through a free-to-air deal beginning in 2018 with a number of changes that benefit clubs and fans, along with (or sometimes more than) the broadcasting partner. It also strengthens their position for future negotiation rounds on Pay TV and simulcast rights.
It isn't quite the dream, but on first glance it's very good.
Here is a summary of three major aspects, along with my take.
1. Free-To-Air Content
WAS: Friday night and Sunday afternoon live, Friday night delayed
NOW: Thursday, Friday and Saturday night live, Sunday afternoon live
This arrangement has cost Channel 9 over double what it paid last time. This means an 100%+ price increase for Thursday night and Saturday night live matches, less a Friday night delayed match. Even if the Thursday game also indirectly boosts the ratings of the Thursday night Footy Show, it seems like a great outcome for the NRL. It is over 50% more than the $600m the Daily Telegraph estimated Ch 9 would pay.
For the NRL, it also puts them in a very strong position for negotiations with Foxtel. The introduction of a Thursday game effectively ends Monday night football - a ratings winner for Foxtel but death for live crowds, and also people wanting to talk about the footy at work on Monday morning. The introduction of a Saturday night game on Ch 9 also busts up their Super Saturday of three consecutive games. Without these and the emergence of Netflix for TV and films, the Foxtel model looks really shaky. Take out NRL and premium content and what is left - English Premier League and Real Housewives of Beverly Hills? That isn't going to sustain their business model.
I think Foxtel are going to have to pay a lot for the remaining games just to maintain current subscribers, as well as pay for simulcast rights for the Ch 9 games to keep together their Super Saturday package. And this might be optimistic - but it would be amazing if they stumped up the money to fund league expansion and bring a 9th game back for the Monday night. Brisbane Bombers and Perth Pirates anyone?
Most fans still don't have pay TV subscriptions, so generally four live games is better than two plus the Broncos (in NSW) on delay. There are also some additional benefits in the new deal...
2. Scheduling
WAS: 26 rounds, determined by broadcasters
NOW: 25 rounds, determined by the NRL
The NRL has partially uncluttered their messy schedule in this new deal.
They will control who plays what games, rather than Ch 9 and Foxtel nominating who plays where. This should mean each team is featured a bit more evenly on free television across the season - a win for lower profile clubs like the Raiders, as the additional exposure should help with sponsorship deals.
It isn't quite the dream, but on first glance it's very good.
Here is a summary of three major aspects, along with my take.
1. Free-To-Air Content
WAS: Friday night and Sunday afternoon live, Friday night delayed
NOW: Thursday, Friday and Saturday night live, Sunday afternoon live
This arrangement has cost Channel 9 over double what it paid last time. This means an 100%+ price increase for Thursday night and Saturday night live matches, less a Friday night delayed match. Even if the Thursday game also indirectly boosts the ratings of the Thursday night Footy Show, it seems like a great outcome for the NRL. It is over 50% more than the $600m the Daily Telegraph estimated Ch 9 would pay.
For the NRL, it also puts them in a very strong position for negotiations with Foxtel. The introduction of a Thursday game effectively ends Monday night football - a ratings winner for Foxtel but death for live crowds, and also people wanting to talk about the footy at work on Monday morning. The introduction of a Saturday night game on Ch 9 also busts up their Super Saturday of three consecutive games. Without these and the emergence of Netflix for TV and films, the Foxtel model looks really shaky. Take out NRL and premium content and what is left - English Premier League and Real Housewives of Beverly Hills? That isn't going to sustain their business model.
I think Foxtel are going to have to pay a lot for the remaining games just to maintain current subscribers, as well as pay for simulcast rights for the Ch 9 games to keep together their Super Saturday package. And this might be optimistic - but it would be amazing if they stumped up the money to fund league expansion and bring a 9th game back for the Monday night. Brisbane Bombers and Perth Pirates anyone?
Most fans still don't have pay TV subscriptions, so generally four live games is better than two plus the Broncos (in NSW) on delay. There are also some additional benefits in the new deal...
2. Scheduling
WAS: 26 rounds, determined by broadcasters
NOW: 25 rounds, determined by the NRL
The NRL has partially uncluttered their messy schedule in this new deal.
They will control who plays what games, rather than Ch 9 and Foxtel nominating who plays where. This should mean each team is featured a bit more evenly on free television across the season - a win for lower profile clubs like the Raiders, as the additional exposure should help with sponsorship deals.
It is also a potential win for neutral viewers just wanting a good game - no more mandatory Friday night Broncos, regardless of how good or bad they are, or seeing mediocre teams like the Tigers and Eels over represented while entertaining sides like the Cowboys and Storm make rare appearances.
The NRL should also be able to alleviate player burnout through controlling the schedule - I'd expect teams being asked to back up from a Sunday/Monday to play Thursday/Friday will become increasingly rare.
The reduction of the comp by one round is a remarkable thing to negotiate in a more profitable TV deal. I suspects it just means one less bye, and possibly the introduction of a split round, so there are still 26 weeks of footy and no changes to the total matches played. But it also presents the opportunity to simplify the draw and reduce the biases in the scheduling created by the random placement of byes around the Origin period.
3. Representative Footy
WAS: ANZAC Test match, Origin games on Weds, no clear international scheduling
NOW: One Origin game moved to Sunday, clear international window
The second State of Origin game will be played on Sunday night on a weekend devoid of club footy, guaranteeing Ch 9 ridiculous ratings, players more recovery time, and helping create a fairer draw for the league and clubs. It is significant for it to be the second rather than third match, as the series will always still be undecided for the Sunday ratings blockbuster.
David Smith has stated an aim was "preserving Origin as a marquee event of the year while minimising disruption to the premiership", and this timeslot shift goes further to achieving that goal than I expected was possible.
The Origin weekend will also include Pacific nation Test matches. These have previously been played on the same weekend as the ANZAC Test and City/Country Origin. It is apparent both concepts are finished after 2017.
The NRL should also be able to alleviate player burnout through controlling the schedule - I'd expect teams being asked to back up from a Sunday/Monday to play Thursday/Friday will become increasingly rare.
The reduction of the comp by one round is a remarkable thing to negotiate in a more profitable TV deal. I suspects it just means one less bye, and possibly the introduction of a split round, so there are still 26 weeks of footy and no changes to the total matches played. But it also presents the opportunity to simplify the draw and reduce the biases in the scheduling created by the random placement of byes around the Origin period.
3. Representative Footy
WAS: ANZAC Test match, Origin games on Weds, no clear international scheduling
NOW: One Origin game moved to Sunday, clear international window
The second State of Origin game will be played on Sunday night on a weekend devoid of club footy, guaranteeing Ch 9 ridiculous ratings, players more recovery time, and helping create a fairer draw for the league and clubs. It is significant for it to be the second rather than third match, as the series will always still be undecided for the Sunday ratings blockbuster.
David Smith has stated an aim was "preserving Origin as a marquee event of the year while minimising disruption to the premiership", and this timeslot shift goes further to achieving that goal than I expected was possible.
The Origin weekend will also include Pacific nation Test matches. These have previously been played on the same weekend as the ANZAC Test and City/Country Origin. It is apparent both concepts are finished after 2017.
The ANZAC Test will be replaced by a dedicated end-of-season international rugby league window. This sounds positive, although I'm sceptical whether it will translate into regular meaningful international footy. But even a token consideration of international rugby league by the NRL is an improvement from past attitudes.
City/Country has been dead even since NSW selectors allowed certain players not to play and the medicos let others miss it through dodgy sick notes from clubs. Hopefully they can play other meaningful matches in regional centres to replace it.
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