Commission to deliver TV windfall
IT STARTED as a plan to regain control of the game from News Ltd and that desire led to the ARL effectively voting itself out of existence.
While the ARL will survive in name only, with the new independent body likely to be known as the Australian Rugby League Commission, officials ensured during the past eight weeks of negotiations that the NSWRL and QRL have two votes between them to block any proposed constitutional changes.
More than 15 years after launching a series of raids to lure clubs and players away from the ARL to the rebel Super League competition, News Ltd is set to exit the game at the end of this season.
News Ltd will retain the first and last rights of refusal on the pay-television rights over which the Murdoch empire started the Super League war, and it wants to extend that arrangement from 2022 to 2027.
However, the media company's only direct involvement will be as majority shareholder in Brisbane, as News intends to push ahead with plans to find a buyer for Melbourne.
Guaranteeing the Storm's losses for five years as a condition of the sale is one of the key issues to be resolved, as News Ltd wants $30 million to do so but others believe only about $13 million of funding is required if last year's premiers and grand finalists of the past four years were to operate on a more frugal budget.
Should the Storm be able to do so, a guaranteed $27 million will flow into the game over the next five seasons, as News take $8 million from the NRL each year.
But a far greater financial windfall is expected to come via an improved television deal as the game will be able to conduct a genuine auction for the broadcast rights for the first time in decades.
With the Packer family no longer owning Channel Nine and News Ltd giving up its 50 per cent stake in the NRL, no one is beholden to any of the bidding parties.
The fallout from NRL chief executive David Gallop's comments in the Herald supporting the new rugby league program hosted by Matthew Johns on Channel Seven indicates that Channel Nine bosses know it will game on when the free-to-air rights go on the auction block.
And even if there is no reality to the perception that News Ltd has an advantage in negotiations over the pay-TV rights - it has representatives sitting on both the NRL side of the bargaining table and Fox Sports side - some rival bidders do not believe they have a genuine chance, as evidenced by Kerry Stokes's decision to go to court over the dealings with his failed C7 network.
Angst over the superior television deal the AFL managed to negotiate was one of the key reasons representatives of the NRL clubs, led by Gold Coast Titans chief executive Michael Searle and Sydney Roosters chairman Nick Politis, approached News Ltd 18 months ago to inquire what it would take for the media organisation to hand back control of the game.
Tired of being blamed for all of the game's ills and conflict-of-interest accusations, News Ltd representatives indicated they were willing to exit - but were not prepared to allow the ARL to have charge of the code again.
A deal negotiated between News Ltd chief operating officer Peter Macourt, and Searle and Politis, entitled the 16 clubs to one vote each in electing the eight independent commissioners but gave the ARL no voting rights.
After initially insisting on the same voting rights as the clubs, ARL chairman Colin Love and chief executive Geoff Carr quickly realised that News Ltd would never agree to simply hand its 50 per cent stake to the clubs and allow its Super League war enemy to survive with its existing half share in the NRL.
To bring the issue to a head and guarantee the departure of News Ltd that so many in the game wanted, Love and Carr negotiated a deal that helped safeguard representative football and junior development by giving the two state bodies one vote each - sufficient, they believe, to prevent any clubs from exerting undue influence on a commissioner as 75 per cent - or 14 - of the 18 votes is required to gain election.
In addition, just two votes are required to block any constitutional changes - ensuring the clubs cannot band together to change the not-for-profit independent commission to a limited company and siphon money away from the grassroots.
Source: http://www.smh.com.au