If there’s one thing the NRL can do that the AFL cannot, it is maintain just one partner – in broadcasting terms at least. The 30 year marriage will continue at least to the end of 2027 with the National Rugby League (NRL) agreeing to terms with Nine Entertainment (ASX: NEC) for a 5-year extension of Nine’s NRL broadcast rights on Free-To-Air TV.
By signing the agreement ahead of the 2022 NRL season, which would have been the final year under the current deal, the NRL will be able to proceed without the difficult task of negotiating a new deal during a live season.
“We are very pleased to extend our 30-year partnership with the NRL for a further five years. This certainty enables Nine to continue to bring the game live and free to all Australians, and partner with the NRL to further develop the game for the clubs and the broader community,” said Nine CEO, Mike Sneesby.
“This is an outstanding result as together we build a strong media partnership delivering quality, and free, NRL coverage for all Australians for the next six years.”
The new deal is valued at $115 million per annum between 2023 to 2027 with a further $15m in non-cash services (contra) to be provided annually. This is largely in line with the current 2018-22 deal valued at $115 million per annum plus $10m non-cash services.
Included in the deal are also the radio and audio streaming rights, for at least four matches each week.
Unlike the previous deal however, Nine has its biggest new challenger in the form of Video-on-Demand streaming services which did not exist when the previous agreement was inked. In this instance, Kayo streams all NRL games live on its app with limited in-game advertising. On Free-to-Air, Nine will only broadcast 3 premium live games a week, on each of Thursday and Friday evenings and Sunday afternoons, as well as the Finals series, and other special event matches.
The deal is a big win for Australian Rugby League Commission Chairman, Peter V’landys AM, who locks in the future revenue at a time where professional sports have been hugely reliant on their broadcast partners due to the absence of crowds throughout the pandemic.
“Today is an exciting day for our fans with the free to air broadcast deal of the NRL Telstra Premiership, NRLW and Ampol State of Origin locked in until the end of 2027,” said V’landys.
“This is more than a broadcast deal, it’s a partnership to grow rugby league using all of Nine’s media platforms – television, radio and print. It was a priority for the Commission to secure the long term future of the game.
“In doing so it was important to ensure that a long term partnership reflected the Commission’s desire to grow the game at all levels, to invest in innovation and to ensure we have a partner that can help grow the game from participation to pathway competitions and premierships.”
Also new to the broadcast deal is the addition of the NRL’s 17th team with the Redcliffe Dolphins to join the league in 2023. Nine will be able to broadcast all Brisbane Broncos and Redcliffe Dolphins matches into Brisbane on 4BC.
The NRL-Nine extension comes after the NRL extended its broadcast deal with Fox Sports in 2020, including Kayo’s (owned by Foxtel) access, which also came in the form of a 5-year extension covering 2023-27.
At the time of the Fox Sports deal being struck, V’landys chose not to disclose the value of that extension with the News Corp owned network but did confirm the deal was worth more than the current one.
Alfred Chan is an Analyst at Emerald Financial, specialising in ASX-listed small cap companies.
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