Ten cant afford to bid on AFL or NRL

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AstroboyUK

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Apr 25, 2008
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Not quite a rumour as its done the rounds on some TV apparently, but its speculation so close enough.

Apparently Channel Ten have done a big cost cutting exercise and have 'only' £250m to spend on programming next year / for a while (not clear the time frame).

Its therefore being speculated that they, by their self imposed budgeting restrictions, cannot afford to bid on either AFL or NRL games as part of the next rights deals.

AFL sneaks through its big deal while this was still not known and bidding assumed a competitive market.

NRL, a year later, find themselves with only one true bidder - Channel 9, with Foxtel already getting most of what they want out of NRL under the current agreement.

No doubt there is more to it than this very simplistic scenario - but on that score, surely the NRL are ****ed finanically or ****ed in terms of coverage - or probably both. A non-competitive bidding process, with no where else to go; the best money already taken, with everyone knowning anything 7 does will be merely to push up the price to 9 (ie not a serious bid).

the NRL are breaking up their package to sell rights to Origin, H&A and internationals separately on the the very logical basis it would get more for them this way. This logic was pretty sound up until now- isnt there a very big risk this may now find this bites them on the bum and seriously damage the prestige/brand of things like Origin if it doesnt raise serious money.

eg Channel 9 says: £250m for 6 years of H&A, because thats all its worth without Origin and Internationals. Agreed? Great,....now oh, just before we sign: you'll be throwing in Origin thanks.

NRL already cant afford to sustain itself properly, let alone bankroll expansion: so a static or even reduced rights income would stymie it significantly... and from a perception point of view: a bad rights result would almost be as bad as its poor crowd figures in terms of undermining its right to claim its status alongside AFL.. and this lost of prestige can mean less favours from TV, Governments, sponsors, stadium operators etc...

On top of this the NRL is having trouble agreeing its own management structure with its wrangling over the implementation of an AFL-style independent commission approaching farce proportions just a year out from rights negotiations. Compare this to the AFL who had a 5 year game plan to get to £1bn.

If I were the CEO of the NRL I dont know what trump cards i have left.

Will Ten really not put in a competitive bid?
 
Interesting. As Murdoch and Packer own shares in both Foxtel and Ten. As News-limited own part of NRL, it's in their best interests to keep the price of NRL's tv rights down.
 

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Looks like Lachie and Hancocks daughter have both bought into a lemon and if CH 10 dont have any mainline sports then they will struggle big time.

Rupberts kid should take note of how daddy makes his money he is currently trying to buy F1 formula racing and is making most of his TV money in the US from the NFL games.

Murdoch senior woke up many years ago that live sport on TV either pay or FTA was the way to go.
 
Interesting. As Murdoch and Packer own shares in both Foxtel and Ten. As News-limited own part of NRL, it's in their best interests to keep the price of NRL's tv rights down.

I think Murdoch's Foxtel/Ten conflict of interest kept Ten out of the bidding for the AFL, and will probably keep them out of the NRL.
 
But because state of orgin is such ratings gold it will always get close to what the afl ends up with, if didnt have state of origin it would struggle no end.

Its not in the same order of magnitude, I know, but in some senses you could argue things like the Anzac day match, and to a lesser extent Dreamtime Match.. are almost our equivilent 'marquee' games. I wonder if the AFL would ever consider breaking out the rights to individual games in the same way.

Back on thread...there's pretty good evidence that RL SOO has peaked as both a spectacle, and in terms of exposure and interest. (peaked at a pretty high level, mind you)....so you could also speculate that that particular asset wont always be as valuable as it has been. It will have good years and bad years, but it no longer demands the blanket attention of the general theartre going public as it once did - not even in NSW.
 
Looks like Lachie and Hancocks daughter have both bought into a lemon and if CH 10 dont have any mainline sports then they will struggle big time.

Rupberts kid should take note of how daddy makes his money he is currently trying to buy F1 formula racing and is making most of his TV money in the US from the NFL games.

Murdoch senior woke up many years ago that live sport on TV either pay or FTA was the way to go.

Lachie and Hancock's daughter didn't buy 10 intending it to become a massive moneyspinner. They bought it because it's relatively cheap as far as FTA tv stations go and because owning a FTA tv station gives them incredible ability to advance their own political agendas.

There's a REASON that Andrew Bolt got his own show on 10 so soon after Rinehardt or whatever her name is bought in. Ch10 will be run on the minimum possible resources, and basically be a life-support system for news/opinion shows pushing Murdoch & Rinehardt's agenda. And since Murdoch owns foxtel as well as 10, of course he's going to want high-rating shows like the AFL & NRL on pay - he's not going to have Ch10 raise the price foxtel pays for the rights by acting as a rival bidder.

The money in TV is in Foxtel. The POWER in TV is in the FTA stations. Murdoch wants both. Rinehardt just wants the power, cos her real money is in mining, and having a slice of Ch 10 gives her a media platform to help her fight against stuff like the mining resource tax, or various climate change measures that bite miners.
 

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Only time will tell if this rumour is true or not.

I will say that i don't think the NRL will get a massive boost from Foxtel as i think i read somewhere that Foxtel think that subscriptions in NSW and QLD have plateaued and as a result i don't think Foxtel will be breaking the bank for the NRL when there is very little to gain from it. As long as Foxtel have 4 or 5 NRL games a week at a minimum cost i think they will be happy.
 
Lachie and Hancock's daughter didn't buy 10 intending it to become a massive moneyspinner. They bought it because it's relatively cheap as far as FTA tv stations go and because owning a FTA tv station gives them incredible ability to advance their own political agendas.

There's a REASON that Andrew Bolt got his own show on 10 so soon after Rinehardt or whatever her name is bought in. Ch10 will be run on the minimum possible resources, and basically be a life-support system for news/opinion shows pushing Murdoch & Rinehardt's agenda. And since Murdoch owns foxtel as well as 10, of course he's going to want high-rating shows like the AFL & NRL on pay - he's not going to have Ch10 raise the price foxtel pays for the rights by acting as a rival bidder.

The money in TV is in Foxtel. The POWER in TV is in the FTA stations. Murdoch wants both. Rinehardt just wants the power, cos her real money is in mining, and having a slice of Ch 10 gives her a media platform to help her fight against stuff like the mining resource tax, or various climate change measures that bite miners.

Ah but neither of them esp Lachie would want to own a losing/declining business and look like they were sucker bait.Seven will laugh that 10 are out of the game and for the AFLs sake it would be better for seven to sell two games to CH 9.
 
Latest Foxtel ratings on the GC vs Brisbane game just adds more grist to the mill it seems. Foxtel have no upside in RL either in the 'heartlands' of Qld and NSW... and little to be gained in the rest of Australia (who either dont have teams or arent that intersted.)... but it seems that Qld is pretty interested in AFL and there's upside for them there: justifying their increased bid.

Apart from some petty re-packaging of content, Why would Foxtel pay more for NRL than last time? where's the upside?

So NRL - no competitive bids on FTA side, and no upside on PayTV side. Ouch!
They have good ratings across the board, so that clearly justifies a steady figure.. but theres nothing on either side to justify a much bigger investment.
 

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