The NRL is facing the prospect of almost a A$60 million (NZ$64.2 million) drop in broadcast revenue as part of negotiations with its television partners, as Nine Entertainment Co attempts to secure a substantial discount for the shortened season.
With clubs and players waiting anxiously for the NRL to sort out its financial distribution model in 2020, the Sydney Morning Herald has learnt that Nine is trying to pay at least 24 per cent less than the terms of the original contract.
Sources close to negotiations have also told the Sydney Morning Herald that the Nine Network wants to pay less for the State of Origin series – which has been moved to after the grand final in November – arguing that it will not be able to write the advertising revenue that it would have in the middle of the year.
Nine believes already tough advertising conditions could be worsened by the potential broadcast of the Twenty20 cricket world cup scheduled to be played in October and November.
The NRL on Tuesday confirmed that it would play a 20-round season from May 28, which is four rounds less than the usual regular season. The coronavirus crisis has sparked a round of tense negotiations between the code and its two television broadcasters over who should bear the financial impact of the shortened season and weakened advertising markets.
Nine was due to pay A$118 million (NZ$126 million) in 2020 for the broadcast rights, although the network has now indicated to ARLC chairman Peter V’landys that it wants to pay only about A$90 million (NZ$96 million). V’landys, who has already persuaded a reluctant Nine into accepting the May 28 start date, may argue for a less substantial discount. Nine is the owner of this masthead.
Media sources say Foxtel, which was due to pay about A$190 million (NZ$203.5 million) this year, is willing to only deduct the value of the four rounds lost at a saving of about A$30 million (NZ$32 million).
THE BREAKDOWN: CHANNEL NINE’S 2020 NRL BROADCAST DEAL
- Total broadcast deal: A$118m (A$10m already paid as part of loan in 2018)
- Regular season value: A$80.24m (68 per cent)
- Per round (3 games): A$3.34m
- Per game (total 72 games): A$1.11m
- Finals and Origin value: A$37.76m (32 per cent)
- Already paid: A$38.5m
- Remaining: A$79.5m
- What Nine intends to pay: A$51.5m
- 2020 intended saving: A$28m
