Nine and Foxtel are reportedly close to finalising a seven-year, $5 billion agreement with the NRL for broadcast rights, making it the richest payout for a sporting code in Australia.
The deal, valuing NRL broadcast rights at $700 million a year, would give Foxtel pay-television and Nine the free-to-air.
This would make it the biggest in Australian sports rights history. Seven and Foxtel in 2022 fought off other networks for the AFL with $4.5 billion for seven seasons to 2031.
Under the NRL deal, expected to be ratified this week, Foxtel would pay $500 million and Nine about $150 million. A broadcaster in New Zealand would pay about $50 million.
“The deal, which would run until the end of 2034, would give Nine exclusive coverage of the State of Origin and the NRL grand final,” the AFR reported.
“It will continue to broadcast three matches a week and finals on Nine Network and 9Now.
“Foxtel and its streaming service, Kayo Sports, will remain the only place to watch all regular season matches and the finals, excluding the grand final.”
Part of the deal will be set in advertising collateral but the size of this against cash isn’t known.
The Australian Rugby League Commission is due to meet Wednesday.
Live sports is a bright spot for free-to-air TV, which is in structural decline.
“The free-to-air TV market makes up over 25% of Australia ad spend, and is in structural decline, with revenues dropping around 4% annually over the last 10 years, consistently underperforming the broader industry,” according to analysts at Macquarie.
“The NRL are currently negotiating its upcoming rights renewal for 2028-2032, and Nine … has expressed interest in acquiring additional SVOD rights.
“That said, sports rights are competitive, with other operators like Amazon, Paramount and Southern Cross Media also expressing interest in the NRL rights.
“FTA TV viewing behaviours have changed, particularly across generations, with paid subscription services (SVOD) now a popular format to view content, with households in general having three or more simultaneous subscriptions.”
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