Peter V'landys, the colorful rugby league administrator, is poised to become a kingmaker in Australian television history with his influence over the NRL broadcast deal. The outcome of these negotiations will have far-reaching consequences, potentially reshaping the landscape of Australian sports broadcasting. V'landys and outgoing CEO Andrew Abdo have been in meetings with broadcasters, and their decision will determine the future of Australian TV.
The NRL has been steadily gaining popularity, with its grand final drawing an average audience of almost 4.5 million viewers, surpassing the AFL's showpiece event for the first time in a decade. The men's State of Origin series has also seen a 6% year-on-year increase in viewers, while the women's series consistently attracts around 1 million viewers, a figure that is the envy of women's Australian rules. These figures indicate a growing interest in the NRL, challenging the dominance of the AFL.
The current AFL deal with Seven and Foxtel, worth $4.5 billion over seven years, was seen as a high watermark for sports rights deals. In contrast, the NRL's deal with Nine Entertainment and Foxtel, worth around $400 million per year, is up for renegotiation. The growth of international streaming companies like Netflix has been seen as a potential savior for sports broadcasting, but their interest in local competitions has been limited. The NRL's potential to exceed the AFL's deal is now a topic of ridicule, but a perfect storm of factors has propelled the NRL towards a possible outcome.
The key players in this negotiation are Foxtel, purchased by global streaming company DAZN, and Nine Entertainment's Stan. Foxtel, as Australia's major pay TV company, has more than 4 million Australian subscribers and a new owner with deep pockets. Stan, owned by Nine Entertainment, has become a legitimate player in Australian sport, securing rights to rugby union, tennis, combat sports, and more. Amanda Laing, a former Foxtel executive, now spearheads Nine's broadcast and streaming efforts, bringing her expertise in rugby league.
The NRL's desire for prime-time exposure and revenue from both free-to-air and subscription platforms aligns with Stan's cross-spectrum offering. However, this development is closely watched by competitors like Seven owner Southern Cross Media Group, which may partner with Foxtel to act as a spoiler for Nine. If V'landys hands Nine Entertainment the full suite of NRL matches, it would be a costly but diversifying move for the company.
On the other hand, if V'landys turns to Foxtel, it would leave Nine without rugby league for the first time since the early 1990s, shaking the foundations of Australian TV. The stakes are high, and the numbers on the cheques will be substantial. V'landys' influence will be felt, and the TV gods will have a say in the outcome.
