Peter V'landys, the colorful rugby league administrator, is poised to become the 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 last year's grand final drawing an impressive 4.5 million viewers, surpassing the AFL in TV ratings for the first time since 2015. The men's State of Origin series attracted nearly 4 million viewers, a 6% increase year-over-year, while the women's series consistently draws around 1 million viewers, figures that are the envy of women's Australian rules. These numbers highlight the NRL's growing appeal and its potential to surpass the AFL in terms of viewership.
The current AFL deal with Seven and Foxtel, worth approximately $640 million per year, was signed in 2022. As television advertising declined and the government considered restrictions on gambling advertising, this deal was seen as the peak for sports rights. In contrast, the NRL's deal with Nine Entertainment and Foxtel, ending in 2027, is valued at around $400 million annually. The growth of international streaming companies like Netflix was briefly seen as a solution, but there has been limited interest in local competitions outside the US.
The key to the NRL's success lies in the competition for broadcasting rights. The rights are only as valuable as the second-highest bidder is willing to pay. The NRL's expansion push towards 20 teams means more content to sell each week, but the real value lies in the two major bidders for the rights.
Foxtel, now owned by DAZN, a global streaming company, has more than 4 million Australian subscribers. The new owners, with deep pockets, are unlikely to let go of their key properties soon after the takeover. On the other hand, Nine Entertainment's Stan has become a legitimate player in Australian sport, securing rights to various sports, including the Premier League and NBA. Amanda Laing, a former Foxtel executive, now spearheads Nine's broadcast and streaming efforts, bringing her expertise in rugby league.
The NRL's negotiations will have a significant impact on Australian entertainment. If V'landys hands Nine Entertainment the full suite of NRL matches, it would result in massive co-promotion across free-to-air and subscription platforms, diversifying Nine's operations. However, this move could also cut Foxtel out of the NRL for the first time since the 1990s, leaving Nine without rugby league and one of Australia's major winter codes.
The stakes are high, and the numbers on the cheques will be substantial. V'landys' influence will shape the future of Australian TV, and the outcome will be felt beyond the sports world. The negotiations will determine the fate of traditional TV operations and the rise of streaming services, leaving a lasting impact on the Australian entertainment industry.
