Rugby League's TV deal

[DIEHARD]

TV stations must use their broadcast rights or lose it for $1

COMMERCIAL broadcasters that are not prepared to broadcast some iconic sporting events live could be forced to on-sell the rights to a rival for $1 under new anti-siphoning legislation expected to be introduced into federal parliament later this month.

An exposure draft of the legislation obtained by The Australian spells out for the first time the new "use it or lose it" provisions the Seven, Ten and Nine networks could face for not showing popular sporting events included on the anti-siphoning list that are "protected" for free-to-air broadcasters.

The exposure draft was circulated late on Friday afternoon among the free-to-air networks and peak broadcasting bodies by the office of Communications Minister Stephen Conroy, which has called for comments by 5pm on Monday.

Senator Conroy's office said it was the "government's intention" to introduce the much-anticipated Anti-Siphoning Bill in the winter sittings of parliament, which begin today.

The exposure draft also reveals that free-to-air television networks and pay-TV group Foxtel will be forced to provide the Australian Communications and Regulatory Authority with details of all sports broadcast rights deals in writing or face fines of up to $55,000. This ruling is not popular among the majority of broadcasters, who already regard the regulator as unnecessarily intrusive.

The exposure draft confirms that so-called "Tier A" events including the AFL and NRL grand finals have to be shown live, although the much larger "Tier B" category of events -- which includes regular season AFL and NRL games and non-finals games of the Australian Open tennis -- must be broadcast no more than four hours after they start.

Free-to-air broadcasters that do not comply are required to on-sell the rights to another network for $1 or face "a civil penalty provision" presumably from ACMA.

In reality, the likelihood of a free-to-air network breaching the rules is low. They are allowed to show "Tier B" on digital multi-channels while delayed coverage of AFL games, for example, would be commercially risky given every regular season match is shown live on pay-TV.

The Bill also gives the minister discretion to form special "anti-siphoning groups" for sports such as the Australian Open or the Commonwealth Games, where it would be difficult to show every individual event live on free-to-air channels. The minister can declare a minium number of hours for a group event to be broadcast live. The Anti-Siphoning Bill does not cover the mechanism that governs how AFL games will be divided between free-to-air and pay-television, although this is believed to be settled.

Senator Conroy is expected to announce a deed co-signed by the government and the AFL that ensures the fee-to-air networks get the "best quality" game on a Friday night and the second-best quality game on a Saturday night.

The Australian

[DIEHARD]

Channel Nine boss David Gyngell says league games will need more stoppages for ad breaks if they want $1bn TV deal

THE NRL dare not dream about a $1 billion TV deal unless it punctuates games with mandatory stoppages for commercials, according to Channel 9 boss David Gyngell.

In a candid declaration of Nine's approach to the upcoming rights negotiations, Gyngell yesterday challenged the NRL to manipulate longer breaks of play at scrums and drop-outs to match AFL's ad-friendly format.

He also revealed the network's views on a range of other crucial broadcast issues, including:

A CLEAR preference for a second Brisbane team, which would allow Nine to abandon Friday night double-headers;

STRIDENT opposition to any moves for State of Origin to be sold-off separately and the implementation of a fixed schedule; and

DENIAL of speculation that a free-to-air carrier will be awarded all eight games.

However, Gyngell's most radical proposal to a Sydney lunch of league powerbrokers - including NRL boss David Gallop - was a slew of ad-conducive rule changes that would be introduced at some cost to a game's rhythm.

He said "pressure" on Gallop to equal the AFL's recent $1 billion deal was unfair, given the rival code now enjoys natural breaks after each goal on top of two further intermissions.

"If you try to compare AFL to NRL ... you get more commercial breaks in AFL," Gyngell said.

"We've got to be comparing apples to apples if everyone is going to put pressure on the NRL to get the big numbers. If we are talking about big money then it needs to be more commercial for free-to-air.

"You look at scrums and goal-line drop-outs ... we only need 15-second grabs."

Gyngell said his proposal had not yet been discussed "in detail", but a sub-committee of club bosses intend to raise them at today's CEOs conference. More radical moves to insert water breaks or even quarter-time stoppages will also be canvassed.

Extra breaks would draw opposition from many fans, and Gyngell is mindful of disrupting the game's "integrity".

"You need to look at everything without damaging an incredible product," he said.

"We are looking for subtleties that buy us a couple of minutes. A couple of minutes per hour could work out to $50,000 more (in ad revenue) per game.

"I wouldn't call it a revolution. I'd call it an evolution. We are not going to damage the integrity of the sport.

"When it went from eight-ball overs to six-ball overs in cricket, the game didn't get destroyed. (But) if you keep bench-marking the AFL, which has all these differences, it's unfair to put all this pressure on the NRL.

"I believe it's the best TV product. I know we've got to step up to the plate financially. But the game needs to help itself - it can't just sit back."

Still waiting for the Independent Commission to be formed until negotiations begin in earnest, Gyngell was nevertheless bullish about Nine's prospects of retaining its rights.

"Channel 9 will be paying a lot more money than it is now for rugby league," he said.

"We've got such a strong belief in the product. We're fighting to the death for rugby league rights.

"Channel 9 will not be losing the rights.

"This is going to be an extraordinary time for rugby league if we get it right. We will be paying extra money.

"But we have to get it right (otherwise) the AFL will kill us."

@joshmassoud

massoudj@dailytelegraph.com.au

http://www.couriermail.com.au/

[DIEHARD]

ooooo extra money.... That means nothing to me. We'd get "extra money" with CPI adjustment alone.

Show us the REAL money we are worth. I'm sick of being ripped off. And worse, feeding the money back into the pockets of our rival the AFL.

Fox Sports as well. We built Fox Sports. And I used to have to watch Euro Super League matches on a week's delay.

Go for the kill ARLC!

[DIEHARD]

League ready for fight with TV bullies

SOUTH Sydney chief executive Shane Richardson says the time has come for the code to stop being bullied by broadcasters as it prepares to open negotiations over a deal that officials believe could define the next 100 years.

On the same day Nine Network supremo David Gyngell acknowledged his network would have to pay more for the game from 2013, Richardson sounded a rally call by declaring the game would no longer sell itself short.

Richardson's comments came on the eve of a summit involving chief executives and chairmen from the game's 16 clubs to discuss the impending broadcasting negotiations, changes to the season schedule and the formation of the independent commission

"The clubs are very confident in the product they have got," Richardson said. "They're also very cognisant that the last couple of times we may have sold it far too cheap. We're not going to be like we were in the past, whether it be the (Kerry) Packer era or the new era, where we are lemmings going over a cliff. We know the value of what we have got and we know that value is going to increase significantly over the next five years."

Richardson bristled at the suggestion that recent speculation claiming the NRL was prepared to snub Foxtel and take all its product to free-to-air networks -- sacrificing money short-term in order to highlight how valuable it was to pay television -- was an act of brinkmanship.

"I have been saying for a long while now that it's not brinkmanship," he said. "If they think we're bluffing, they're kidding.

"If we really want to reward the players and people for what they're producing, we have to be strong and make sure it is fair and reasonable."

Gyngell, who described himself as a "sucker for rugby league" at a Canterbury lunch yesterday, certainly made it clear his network was prepared to outlay more money for the rights from 2013. However, he stressed that the NRL had some big calls to make.

"The game is definitely going to get more money," Gyngell said.

"The challenge for the game is what are they going to do with that money. How is it going to be redistributed to the clubs and how do we fend off AFL?

"If there is going to be more money, then we need to talk about how we slice and dice the games. Are we selling nine games (per round) or eight games? How can we get more breaks into the game so we can get more (ads).

"How do you let us schedule games? If we've got Canberra versus Cronulla or Canberra versus Auckland on a Friday, it's going to rate 50 per cent worse in Sydney than Parramatta playing Canterbury. If Foxtel gets the good game, we need to be sure it pays for it."

Broadcasting negotiations have been put on hold pending the formation of the independent commission, which is likely to be finalised within weeks.

The NRL has hired consultant Colin Smith to help prepare for those talks.

"What we do now and the parameters we set now are going to set the pace for the next 100 years," Richardson said.

http://www.theaustralian.com.au/news/sport/

[DIEHARD]

If the cap fits: NRL chiefs will enjoy a double bonus

NRL club bosses will be told today their annual grants are likely to be even higher than an increased salary cap under the new broadcast rights deal.

The Herald understands NRL boss David Gallop will brief club chief executives and chairmen today on projections for the salary cap based on targets from the next broadcast deal, which will come into play in 2013. Yesterday, he revealed it was his priority not only to achieve parity between the grant and the salary cap, but to ultimately exceed it.

While the cap will rise minimally next year, Gallop will tell the club bosses that they can expect a more significant rise for 2013. The Herald has been told the NRL is eyeing a figure of about $5 million for that year.

Gallop was reluctant to give details on any salary-cap projections last night, but confirmed his goal was to ensure club grants - which are currently $750,000 lower than the salary cap - are, in years to come, even higher than the ceiling on player payments. That is a significant statement given he has previously stated the NRL's desire was to simply equal the cap.

Gallop said the projections were ''based on the grant equalling and then exceeding the top-25 cap … and this TV deal will certainly be an opportunity to do that''.

''Closing the gap and exceeding it is a priority,'' Gallop added.

Based on a billion-dollar broadcast deal - the goal for many in the game - it is expected the salary cap would be lifted by almost a million dollars for 2013, giving clubs comfort as they try to lock up key personnel for that year and beyond. That is lower than has been speculated, and whatever figure is put forward would still need to be negotiated with the Rugby League Players' Association.

Players will still be paid more but the windfall might not be as high as some expected. However the increased hand-out will ensure clubs are more financially viable; thus, players might feel it is a case of the NRL robbing Petero to pay Penrith.

But South Sydney chief executive Shane Richardson said the clubs were united in their attempts to secure the best broadcast deal - and top dollar for the players.

''We're not going to be bullied like we have in the past,'' Richardson said. ''We're not going to be the lemmings jumping off the cliff. The game has never been better prepared for this negotiation …

''I think it's about time the players are paid more than what they're on now. We're not going to be underdone like we have in the past. The game is fully behind David Gallop.''

The independent commission is considered a key to the clubs' united front, as well as its bargaining power. Rabbitohs chairman Nicholas Pappas will take another step today towards formalising the long-awaited body when he announces the eight inaugural commissioners to the bosses.

Also on the agenda will be the contentious season structure. That is also linked with the broadcast deal. Most of the significant changes can only be achieved in 2013, with a clean broadcast slate. Gallop will put forward changes including switching State of Origins to Monday night, scrapping City-Country and playing Test matches after the NRL season.

Gallop said that one of the goals was to ''alleviate players' workloads''.

http://www.smh.com.au/rugby-league/

[DIEHARD]

NRL media deal to dwarf AFL rights

THE NRL's growing sense of optimism over the approaching media rights negotiations was dramatically highlighted yesterday when chairmen and chief executives from the 16 clubs were told the next broadcasting deal could reap the code $1.4 billion - dwarfing the amount netted by the AFL.

During a meeting lasting almost six hours with its clubs in Sydney, the NRL outlined a series of scenarios for the salary cap and club grant from 2013 based on what it expects from media rights.

The starting point was $1bn, the very minimum the game expects to generate from the rights for club, State of Origin and international football. At the top end was $1.4bn for the five years from 2013, an average of $280 million a year and a marked rise on the existing deal, which equates to about $90m a season.

Under the $1.4bn model - the AFL will receive $1.253bn over five years from next season - the salary cap would start at $6.6m and the club grant at $7.2m. Both would continue to rise over the life of the media deal. The NRL's ambitious view on the value of its product came only a day after Nine Network executive director David Gyngell acknowledged he would need to step up financially and South Sydney chief executive Shane Richardson warned the game would no longer be bullied by broadcasters.

NRL chief executive David Gallop declined to confirm the broadcasting figures when he spoke to the media yesterday, although he said the game was in an enviable position and was intent on capitalising on it.

"It's not my place to confirm the numbers we discussed because that was done on a confidential basis," Gallop said.

"We just did numbers we thought were relevant.

"We modelled a number of assumptions. They are assumptions only. We certainly modelled a scenario where I think everyone is going to be very happy with what the result is.

"I know you would love me to tell you a number, but I am not going to. We're certainly conscious of the number the AFL got and we're conscious of how well our game is going so you can draw your own inference from that."

Asked about the dramatic increase in the size of the grant based on the clubs receiving 37 per cent of the revenue, Gallop said: "We put forward a proposal based on a minimum percentage distribution of the game's revenue.

"We felt it would be irresponsible to model a lift in that percentage in circumstances where particularly the club chairmen have made it clear that they want the commission to make those kind of strategic decisions.

"It was a minimum level and shouldn't be taken as anything other than that."

It is understood some club chairmen felt more money should be directed towards the clubs, although the final decision will fall to the independent commission when it takes over running of the code from News Limited (publisher of The Australian) and the Australian Rugby League, the game's co-owners, within weeks.

On a momentous day for the code, Queensland's John Grant was confirmed as the inaugural chairman of the commission while the NRL also revealed sweeping changes to its schedule from next season designed to ease the load on the game's elite players. But the broadcasting talks were the most significant discussion point.

Consultant Colin Smith, who has been advising the NRL on the broadcasting landscape, claimed the NRL was the country's leading television sport.

"This is a fantastic television sport, it is the leader," Smith said.

"You've got three great products, the NRL home and away and finals, State of Origin and then internationals. That is what's so terrific about this game."

Gallop said several issues still needed to be ironed out between News Limited and the ARL, although it is understood that is merely a fait accompli.

http://www.heraldsun.com.au

[Skyfire]

Simply would be the best thing ever for rl. I'd hope for at least the same as the AFL. But I am excited. New teams and more $$$ for development and promotion.

[Coaster]

Simply would be the best thing ever for rl. I'd hope for at least the same as the AFL. But I am excited. New teams and more $$$ for development and promotion.

Would be nice to have a level playing field

[DIEHARD]

How the NRL can cash in on TV

NRL matches could be worth an extra $70 million a year to free-to-air broadcasters by using existing stoppages in play as advertising opportunities.

The estimated windfall is detailed in a proposal from NRL Stats chief executive Andrew Moufarrige, who has looked at the amount of time lost in matches due to stoppages for scrums, goal-line dropouts and conversions, and found that more than 10 minutes of extra game time could be found by simply stopping the clock for 15 to 30 seconds each time to allow a television commercial.

The time-off might also appease fans who complain about time wasting due to such stoppages and trainers being constantly on the field as they would only be allowed to give players drinks during designated breaks.

Moufarrige has discussed the idea with a number of leading officials and coaches, who believe it would have little impact on the game itself while providing obvious benefits.

He also predicted such changes would encourage a bidding war between all the commercial free-to-air networks for matches, as even the lower-ranked games would have far greater advertising opportunities.

The issue has emerged as officials prepare to start negotiations for the next television deal beginning in 2013 once the independent commission is formally in place, with Channel Nine boss David Gyngell saying this week that the league needed to create more opportunities for commercial breaks to have any chance of matching AFL's recent $1.2 billion broadcast deal.

Under his proposal, Moufarrige said State of Origin games could be worth an additional $3 million each, and a regular season NRL match up to $300,000.

''Remember, we have got MasterChef, [Australian] Idol, Oprah and Seinfeld all rolled into one,'' Moufarrige said. ''The grand final and State of Origin is like having four Super Bowls. Advertisers would pay a premium for commercial slots in those games, and people would watch them because the ads would be so good.

''NRL is the No.1 TV product. It has seven of the top 10 programs on free-to-air and 72 of the top 100 on pay TV. Also, NRL is the No.1 TV product in 16 of the 20 key TV markets in Australia and New Zealand. AFL only wins in Melbourne, Adelaide and Perth.

''AFL is a longer game, and there are advertising opportunities after every goal. But we can add an extra $70 million in ad revenue for NRL games with some small changes to breaks and restarts that give everyone consistency.''

Under Moufarrige's proposal, each half would be played over 50 minutes of real time that included stoppages for scrums, penalties, tries, restarts and video referee rulings. The players would have to be ready to resume play after the 15- or 30-second break for each stoppage or risk a penalty.

He also suggested introducing a two-minute drinks break after 25 minutes when interchanges could be made. ''That would divide the game into 25 minute packets of content which are more suitable for mobile and broadband providers,'' he said. ''What we want is to get all the free-to-air broadcasters and Telstra competing with Fox Sports.

''Games one to four will rate and pay for themselves on free-to-air without these changes but with them they could be worth up to $300K extra per game. The bonus is that games five to eight would now become valuable on free-to-air with even 300,000 to 500,000 viewers, as there is now 10 to 15 minutes ad time set over two hours.''

http://www.brisbanetimes.com.au/

[DIEHARD]

How the NRL can cash in on TV

NRL matches could be worth an extra $70 million a year to free-to-air broadcasters by using existing stoppages in play as advertising opportunities.

The estimated windfall is detailed in a proposal from NRL Stats chief executive Andrew Moufarrige, who has looked at the amount of time lost in matches due to stoppages for scrums, goal-line dropouts and conversions, and found that more than 10 minutes of extra game time could be found by simply stopping the clock for 15 to 30 seconds each time to allow a television commercial.

The time-off might also appease fans who complain about time wasting due to such stoppages and trainers being constantly on the field as they would only be allowed to give players drinks during designated breaks.

Moufarrige has discussed the idea with a number of leading officials and coaches, who believe it would have little impact on the game itself while providing obvious benefits.

He also predicted such changes would encourage a bidding war between all the commercial free-to-air networks for matches, as even the lower-ranked games would have far greater advertising opportunities.

The issue has emerged as officials prepare to start negotiations for the next television deal beginning in 2013 once the independent commission is formally in place, with Channel Nine boss David Gyngell saying this week that the league needed to create more opportunities for commercial breaks to have any chance of matching AFL's recent $1.2 billion broadcast deal.

Under his proposal, Moufarrige said State of Origin games could be worth an additional $3 million each, and a regular season NRL match up to $300,000.

''Remember, we have got MasterChef, [Australian] Idol, Oprah and Seinfeld all rolled into one,'' Moufarrige said. ''The grand final and State of Origin is like having four Super Bowls. Advertisers would pay a premium for commercial slots in those games, and people would watch them because the ads would be so good.

''NRL is the No.1 TV product. It has seven of the top 10 programs on free-to-air and 72 of the top 100 on pay TV. Also, NRL is the No.1 TV product in 16 of the 20 key TV markets in Australia and New Zealand. AFL only wins in Melbourne, Adelaide and Perth.

''AFL is a longer game, and there are advertising opportunities after every goal. But we can add an extra $70 million in ad revenue for NRL games with some small changes to breaks and restarts that give everyone consistency.''

Under Moufarrige's proposal, each half would be played over 50 minutes of real time that included stoppages for scrums, penalties, tries, restarts and video referee rulings. The players would have to be ready to resume play after the 15- or 30-second break for each stoppage or risk a penalty.

He also suggested introducing a two-minute drinks break after 25 minutes when interchanges could be made. ''That would divide the game into 25 minute packets of content which are more suitable for mobile and broadband providers,'' he said. ''What we want is to get all the free-to-air broadcasters and Telstra competing with Fox Sports.

''Games one to four will rate and pay for themselves on free-to-air without these changes but with them they could be worth up to $300K extra per game. The bonus is that games five to eight would now become valuable on free-to-air with even 300,000 to 500,000 viewers, as there is now 10 to 15 minutes ad time set over two hours.''

http://www.brisbanetimes.com.au/

[DIEHARD]

State of independence: Steve Mortimer says commission can reach $1.4bn target

CANTERBURY legend Steve Mortimer has endorsed the NRL's pursuit of a $1.4 billion media rights pay-day but warned the game would be in a better place to realise its true value once the independent commission was given free rein to guide the negotiations.

Mortimer's assessment of the NRL's ambitious aim came as chairman-elect of the commission John Grant - who held talks with NRL chief executive David Gallop yesterday - described the media deal as "the elephant in the room" and acknowledged negotiations were a priority for him and his fellow commissioners.

Mortimer, a long-standing supporter of the commission's formation, said he was not surprised by the NRL chasing a media rights deal well in excess of $1bn given the popularity surge the code is experiencing. "The three State of Origin games blew every other code out of the water in regards to ratings," Mortimer said.

"We have the product. It's shown up in the ratings. It was built for television.

"Now that the independent commission is in place and we have businessmen and women on board, we don't have politics or agendas - the only agenda is to benefit our game.

"The commission will do the review and assessment of the game, then prioritise what needs to be done first."

Grant made it clear the broadcasting talks were at the top of the list. Gallop, media consultant Colin Smith and a selection of commissioners will likely handle the negotiations, which officials optimistically hope will surpass the $1.253bn the AFL secured from commercial and pay-TV.

"I have to presume there is already a lot of stuff going on around that because it is a big issue for the game and it is a big opportunity for the game," Grant said. "I think we need to be careful about the commission being seen as the cure-all. It's not. The commission certainly solves a bunch of structural issues.

"Things will happen over time but we need to be very careful about creating too much urgency and expectation too early in the process. But there's no doubt the elephant in the room is the media deal so that has to be nutted out pretty quickly." While the clubs were told there were no immediate plans for expansion at a summit on Thursday - Gallop reinforced his personal view that it should not occur before 2014 - Mortimer believes extra teams are vital if the game is to reach the $1.4bn figure.

He advocated Perth and a second team in Brisbane, although he would also like to see a side on the NSW Central Coast.

"In the next five years I believe that at least two new teams will have to be included if they're going to realise that sort of cash," Mortimer said.

"That brings it from 16 to 18 (teams). I have no doubt Perth will be the first one. I went over there recently and that many people recognised me. There are so many people over there saying they can't wait to get a team.

"The next one I think would be Brisbane although I would like to see a team on the Central Coast."

Meanwhile, Gallop and Grant had their first meeting yesterday and agreed to start preparing for the commission to take control of the game. A handful of issues need to be resolved before the ARL and News Limited (publisher of The Weekend Australian) finalise their exits from the game, although the public announcement of the eight commissioners indicates it is close to taking place.

http://www.theaustralian.com.au

[DIEHARD]

League's new rulers to stop anomalies

RUGBY League's new commission will help the code avoid embarrassing scenarios such as its highest-paid star, Johnathan Thurston, receiving $300,000 less a year than a third-year AFL player.

Rugby league needs cash. And more cash. And it wants it as soon as it can get its needy hands on it.

For all the rhetoric about future planning, rule changes, judiciaries and juniors, the eight-person commission's first priority is simply this ... get the game some cash.

NRL boss David Gallop and his underlings can look after the nuts and bolts -- but the first thing the game needs is cash.

When it comes to player payments, rugby league has dropped off the back of the pack.

It has got to the point that Melbourne Demons youngster Tom Scully, with a five-year, million-dollar-a-year offer to join the Greater Western Sydney AFL franchise, makes Thurston's $700,000 a year deal look modestly mid-range.

Compare Thurston's deal to the $1.5 million-a-year deal signed by Australian rugby union star Matt Giteau -- five years ago.

But rugby league pays what it can. Only four NRL clubs made profits last year.

Clubs are been squeezed from every direction -- the poker-machine tax in NSW has killed leagues club profits; the AFL has swooped on star players Israel Folau and Karmichael Hunt and overseas rugby union clubs are making massive offers.

League's new television rights deal -- bringing between $1 billion and $1.4 billion -- truly feels like Christmas in July even though it might take the commission a year or more to put it in place.

Grassroots league also needs urgent help.

Most school parents in Australia are aware the slickly organised AFL Auskick program outstrips anything offered by league.

That will change under the new deal.

The eight commissioners come from broad backgrounds.

Chairman John Grant is a former Brisbane Souths and Australian back while Wayne Pearce is a former international forward and coach respected on both sides of the NSW-Qld border.

Most of the board come from the top end of town.

Long-time former Queensland administrator Kevin Brasch hopes league has got the balance right.

"It's OK having high-flyers but I really do hope these people are familiar with the game's grass roots," Brasch said.

"Rugby league has always been a working class game and a game for the people.

"If it needs these people so greatly now and they are so important to its future you could ask where have they been for the past 10 to 20 years?"

Source: http://www.heraldsun.com.au

[Titanic]

Geez, now we judge league's popularity by how many people recognise Turvey ... I've heard it all ... I reckon there are a few who probably recognised Bin Laden too ... doesn't mean they supported him.

Turvey the Terrorist :-)

[DIEHARD]

Well it does mean that there is a healthy understanding of Rugby League. I don't think that casual Rugby League fans would recognise Turvey.

I believe it shows understanding of Rugby League and probably alot of former East Coasters moving over.

I highly regard Steve Mortimer. He is a RL heart and mind of the highest order. And one of the very first champions for an Independent Commission.

[GoldCoastTitans100]

NRL can come out and say they have signed a deal for 1.4billion but considering fox will get the rights and News Limited own 50% of the nrl I would not Believe it for one second.