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“It’s not a given that NRL has to be part of our future”

Nine continues to exert pressure on NRL over its broadcasting rights and negotiations.

Nine continues to apply pressure to NRL with a report today suggesting CEO Hugh Marks may yet walk away from the code.

Nine-owned The Age notes Marks has expressed a willingness to walk away from NRL if the sport does not significantly reduce its broadcast fee, and compete for AFL rights.

He spoke with analysts and investors as part of the Macquarie Australia Conference 2020 on Tuesday.

“It’s not a given that NRL has to be part of our future,” Marks said on the conference. “It has to just pay its way like all of our content does, and if it doesn’t, well … again, we are less reliant on that as a revenue source.

“COVID has changed how you need to consider sports rights and evaluation of sports rights for the future because if we don’t take that change now like we are in all other aspects of our business and we wait until the contract expires in two years … everyone’s in for a rude shock in two years.”

Broadcast rights for both codes expire in 2022, unless an extended deal for NRL can be negotiated at a cheaper rate. The AFL is also reportedly looking at a two-year contract extension to 2024 with Seven and FOX Sports at a reduced rate.

NRL, Nine and FOX Sports have currently agreed to a reduced 20 round season for 2020 from May 28.

16 Responses

  1. Nine continues to apply the pressure on the NRL. Sounds more like the biggest joke of 2020.

    Its more like Nine putting the pressure on Seven over both the sporting codes rights.

    Hugh Marks, ewill be looking for a new job before the end of 2020, and wiping the egg from his face, when Nine loses the NRL rights, and they don’t get the AFL rights.

  2. Advertising revenue continues to fall, this season has been disrupted by the pandemic. Marks is offering to pay less now for 2023 & 24, while the NRL is in financial trouble and needs the cash. He is threatening not to bid for 23/24 if they don’t leaving Seven and Ten to pay less, and threatening to try and strip the AFL of Seven like he did the Tennis, to cause them some worries when they are in financial stress.

  3. Foxtel are loosing millions as it is, how can they afford to keep them. Their future is looking shaky with the likes of netflix and co’s being in the market. Seven sounds a bit cash poor as well so who does that leave?? Not many….

  4. Both NRL and AFL have been riding high on huge rights deals, and now the networks are seeing that the deals are not really worth the money. I think that the day’s of huge tv rights deals are going to be over, and the league’s will have to find another way to get the money. I only hope that the public are not going to be fleeced with higher admission costs. I have always thought that the players have been payed too much, I guess that they don’t think so, but obscene amounts of money have been passing hands to make the codes rich. The amount of money that Seven payed, cut down on the drama that they produced. With Seven shares fairly low, I can’t see them bidding on the rights. Or if they do it will not be able to put the same deal with the amount of money they owe.

  5. TEN/CBS need to jump on this. It could be an opportunistic time for them to take the rights and sell the NRL into the American market. I do recall TEN did have the League rights prior to Nine, and only lost them because they went into liquidation and Kerry Packer swooped on to the rights. Opportunity like this don’t come by everyday .

    1. The Americans don’t even know the difference between league and Rugby, why would they suddenly latch onto the NRL?
      It’s a loss leader for Nine, and with ad revenue down for the next few years, probably trying to find a way out or cutting costs, especially with falling FTA ratings.

  6. A dangerous game of chicken being played here, 7 aren’t in a position to shell out for rights, and whilst 10 would love the, they are still a loss leader and I doubt CBS would sign off on that level of costs, NRL are really over a barrel here

    1. 9 are the ones in trouble. V’Landys has correctly pointed out today that 9 signed a contract.

      Hugh Marks can whinge all he likes in his newspapers but he can’t get out of it.

    1. I’d be surprised. They can’t afford what they’ve got today…. would be a stupid decision in my humble opinion. The ratings return doesn’t warrant the exorbitant spend.

  7. … it’s interesting how Marks is using his newspapers to push his point of view … it’s almost like the “good-old-days” of proprietors like Sir Frank Packer …

    1. Except that Marks made these statements about the NRL at the Macquarie Australia Conference 2020.
      The Age is reporting on what was said at the conference as it was newsworthy.

  8. Bragging rights don’t pay the bills. There’s no point having high rating sports if they cost you more than you make back in ad revenue.

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