The Winners & The Losers In The NRL’s New Mega Rights Deal
When Channel Nine announced its $925 million NRL rights deal on Monday it was great news for some (namely the fans who got more live games free) and bad news for others (namely Channel Ten). Here B&T talks to sports marketing specialist, Jack Watts, the managing director of Bastion EBA, on who’ll profit and who’ll lose from Australia’s biggest sports rights deal…
Who would have loved Monday’s announcement and who would’ve hated it?
Whenever you see these big broadcast deals there’s always winners and losers. You’d have to say the clubs that rate the highest, that have the biggest attendances, the best grounds; what this deal will do will bring them a lot more money. They can charge more for sponsorships, they get more members, they get great more commercial revenues, they sell more merchandise and the rich clubs will get richer and the poorer clubs will get poorer.
Can you see teams that don’t rate well on TV having to merge, move or fold?
I don’t think that will happen initially. Even the struggling clubs are going to get a lot of money out of this deal from the broadcast rights. Is it dished out equally? No. Well, that’s certainly what happens in the AFL but the NRL needs to make sure even the struggling clubs are looked after; that everyone’s a winner.
If you look at the Knights, the Raiders, the smaller teams in the over-crowded Sydney market they may be at some sort of risk. The reality is in the scheduling… which the NRL controls as part of this deal… but despite that they will be beholden to deliver the ratings that Nine expects and the problem here is what’s good for the game is not necessarily good for the broadcaster.
The NRL and Nine wants all the teams to be strong. Nine certainly don’t want teams to fold. Eight games a week is a significantly stronger proposition than seven games a week; that would put a major dampener on the value of the broadcast rights. Nine doesn’t just want the occasional blockbuster, it needs all the games to rate well.
Could Nine try and change the format of the game to accommodate more ads? Longer breaks or 20 minutes halves to flog more ad space?
It’s a very good question. You only need look at the Origin coverage and that’s just flooded with brands and I think that takes away from the viewer experience. Again, it’s about Nine putting on the best broadcast not just the most profitable broadcast. Unless Nine continue to spit out a good product then the viewers will tune out.
Clubs are going to want more for sponsorships etc. Could some brands be forced out due to the costs?
For sure. I have no doubt that the clubs will see this deal and its live TV rights and want more money from sponsors. Increased reach means increase in value and increase in investment. But I think the NRL views that as a good thing. Putting a more premium value on the product and the cost of being involved with a club.
I think a problem for the NRL is… take the apparel sponsors (on jerseys and shorts) they’re everywhere and what the teams have done is have lots of brands and sold them for less rather than have one premium brand. And the NRL want the national, the international brands behind the clubs not just the local car dealership. These big brands want to associate with likeminded brands but when there’s a local brand there’s limited residual value in national brands coming on-board.
It’s no coincidence that you are seeing the bigger clubs with the bigger brands charging more. The international brands just aren’t going to come onboard with smaller, lesser known brands.
You’ve worked with a lot of players and on a lot of club sponsorships. Your advice to a young player coming into the game following this deal?
My advice is (A) play well and (B) don’t do anything stupid. Which is harder than it looks a lot of the time. But I don’t think the broadcast deal is that relevant to the players. Nine will now be out hitting up advertisers big time; at the same time the clubs will be asking for more money, the players will be looking for individual endoresmeent deals. So with so many stakeholders in the game there’s going to be a bit of cannibilisation of the total pool that can be generated. Will Nine be taking money from advertisers that may have gone to the clubs and vice versa? Everybody will be trying to convince brands not only of the value of the game but their position in it. Some brands will take the position of supporting the clubs while other brands will want to target the entire code. Everybody is still going to have to fight for their piece of the pie.
Is there a loser in this? Clubs, brands, networks?
In these huge broadcast deals I don’t think there’s too many losers; maybe the networks that bid and didn’t get it wouldn’t say that. The fans are better off, clubs get more money, the game increases in value, the broadcaster – if they can get increase on their investment – comes out a winner. The thing to watch would be an unfair distribution of the TV monies and that can often mean poorer clubs missing out. But I am sure the NRL will put systems in place to ensure that doesn’t happen.
Should the AFL be worried?
Yes and no. The AFL would be worried that the NRL will have increased reach…
Will the two codes be fighting for the bigger brands? As an example, there’s only so much money the likes of Emirates, Toyota or NRMA can splash about…
On the other hand it also sets a benchmark for the AFL’s upcoming broadcast rights deal. The big thing here is that the NRL has gone first to market and they know their plans. Nine can get to market before the AFL. But as you say there’s only so much money to go around from brands and Nine and the NRL and the clubs can go to market immediately with security around what the broadcast rights now look like.
Latest News
Sydney Comedy Festival: Taking The City & Social Media By Storm
Sydney Comedy Festival 2024 is live and ready to rumble, showing the best of international and homegrown talent at a host of venues around town. As usual, it’s hot on the heels of its big sister, the giant that is the Melbourne International Comedy Festival, picking up some acts as they continue on their own […]
Global Marketers Descend For AANA’s RESET For Growth
The Australian Association of National Advertisers (AANA) has announced the final epic lineup of local and global marketing powerhouses for RESET for Growth 2024. Lead image: Josh Faulks, chief executive officer, AANA Back in 2000, a woman with no business experience opened her first juice bar in Adelaide. The idea was brilliantly simple: make healthy […]
Is Meta’s New AI Chatbot Too Left-Wing?
Meta's chatbot accused of being left-wing after being caught wearing a Che Guevara T-shirt & listening to Billy Bragg.
TV Ratings (23/04/2024): Why Did No One Tell Angela That Farmer Wants A Wife Is Set On A Farm?
As wonderful as this headline is, let's face it, we all know an 'Angela', don't we?
PubMatic Unveils New AI Partnership To Turn Social Posts Into Ads For Any Digital Channel
Here's some nifty tech for turning social posts into ads. Assuming said posts aren't one-star character assassinations.
Intuit Mailchimp Makes A Splash With Its First Australian Brand Campaign
Ever laugh along at a gag you didn't get so as not to appear dumb? Get ready for more feigning with this new work.
GumGum’s Rob Hall: Advertisers Can No Longer “Rely On Binary Descriptions” Of Consumers
If anyone's got their finger on adtech's pulse, it's Rob Hall. He also avoids using the good paper in the office printer
Mastercard Nabs Florencia Aimo From Marriott International
Marriott International's Florencia Aimo jumps from the hotel business to the exploitative credit card one.
Bastion Agency Appoints Cheuk Chiang As New ANZ CEO
Cheuk Chiang takes the reins over at Bastion Agency. But not the rains down in Africa.
Spotlight On Sponsors: Major Sponsorship Wins After A Disappointing Week In Sport
B&T continuing our deep dive into local sport sponsorships & that's despite not a single offer of a free ticket as yet.
Macca’s Marketing Director, Samantha McLeod On Big Mac Chant: “What Was Once Old Is Now Cool Again”
Macca's using the power of nostalgia in latest Big Mac campaign. Well, only for those who've ever eaten one sober.
World Premiere Of Midnight Oil: The Hardest Line To Open Sydney Film Festival 2024
Oil's biopic to open Sydney Film Festival. Here's hoping Molly Meldrum will take his pants down at the premiere.
Entries Are Now Open For The 2024 Brandies, IntelligenceBank’s Annual Brand Marketing Awards
The Brandies are, of course, a prestigious marketing gong and not the mystery tipple favoured by nannas everywhere.
The Fred Hollows Foundation Appoints Ardent For PR
Yes, we all like to have a joke at PR's expense. But sometimes it does important work, like this.
AI, eCommerce & Marketing Specialists Are In Increased Demand By Businesses, New Data From Fiverr Shows
Has your philosophy & anthropology degree left you with nothing but a huge HECS debt? Here's what you should've studied.
Perth’s First 3D Anamorphic Billboard Arrives Courtesy Of oOh!media
Do you love a buzzword? Now you can add anamorphic to the list as it relates to billboards, not a colleague's ears.
MasterChef Australia & Crown Resorts Launch Unique Dining Experience With ALUMNI
A pop-up restaurant staffed by MasterChef contestants! That's fine dining prices for first-year apprentice chef cuisine!
Amanda Laing Announces Resignation From Foxtel Group
Foxtel's chief commercial & content officer heads for the exits. Read nice things the bosses said about her right here.
The Lost Letters From Our Diggers: News Corp Unveils ANZAC Day Special
It's nice when brands respectfully acknowledge ANZAC Day.
Howatson+Company Acquires Akkomplice
Large indie acquires a slightly smaller indie. Much like a shark eating a tuna, just with less thrashing and blood.
Google Delays Third-Party Cookie Deprecation Again
In good news for the sale of picture library biscuit photos, Google continues to tease over the end of cookies.
Education A Low Priority For Aussies More Concerned With Cost Of Living Forethought Study Reveals
Study finds Aussies cutting back on education due to cost of living. Booze & Uber Eats sales remain largely unaffected.
“I’m Still The Same Person That I Was”: Rikki Stern Says “Fucc It” To Cancer Stereotypes
B&T always happy to promote the anti-cancer cause. Even brands that massively overdo it with the hot pink.
The Unapproved Climate Certification Allegedly Causing Mass Greenwashing
Are you left flummoxed in the canned tuna & free range eggs aisle? Just wait till this green certification gets up.
TV Ratings (22/04/2024): Fans Mock “Over The Top” Reaction To New MasterChef Judges
MasterChef returns for its 2024 season. B&T stands by putting peppercorns in Gravox & no one will be any the wiser.
Dentsu Restructure: Muddle, Harvey & Johnston Take Leadership Baton As Bass & Yurisich Exit
A large broom has swept through Dentsu's local ops this morning, taking with it some big names & the air con's cobwebs.
Industry Shares Trends Shaping The Industry This International Creators Day
B&T's asking adland creators to reveal their top trends. And it's not good news for your Jenny Kee cardigan collection.
Mable Extends HOYTS Sensory Screenings Partnership
Mable has extended its HOYTS sensory screening partnership. Vigorously defends its two-star Oppenheimer review.
Orphan Launches ‘They Need Our Help. We Need Yours’ For Children’s Cancer Institute
Anything to do with childhood cancers has B&T's 110% support. That said, we do ignore the red meat & alcohol warnings.
Smile Team Orthodontics & Keep Left Collaborate On Smile-Inducing Campaign
As parents would attest, given the cost of orthodontics you'd expect this campaign to be a lavish production indeed.
Opinion: How Video Calls Neglect Learning Diversity
Need an excuse to duck out of a video call this arvo? Show this to your boss.
DoubleVerify Achieves First-Of-Its-Kind Responsible AI Certification From TrustArc
DoubleVerify receives responsible AI certification. However, not its robotic vacuum that's been seen menacing the cat.
Smile For A Good Cause: The Social Media Campaign Giving Back To The Community
Are you known as the office Austin Powers? More for you teeth than shagability? Get snappy new fangs with this news.
Elon Musk Mocks Albo After ESafety Wins Court Injunction Against X
Albo's 2024 from hell continues - Rabbitohs in crisis, down in the polls and now feuding with world's richest man.
Real Estate Developer In Hot Water Over “Sexually Exploitative” OOH Campaign
Real estate agents again tops in the 'least trusted profession' polls, nudging used car salesmen & ad creatives.
Epsilon’s Shane Hanby: Post-Cookie Era Relies On “Teamwork” Between Brands, Marketers & Tech
This pro predicts more "teamwork" in a post-cookie era. Which spells bad news for the uncooperative or plain stubborn.