Nine Entertainment is in pole position to secure the English Premier League for another six years and is willing to pay as much as it does for the NRL, according to a report in the Nine-owned Australian Financial Review.
The broadcaster, which currently streams the Premier League on Stan, is in “advanced discussions” over a deal worth up to $US600 million ($860 million) over six years.
On a per annum basis, this would see Nine forking out between US$90 million and US$100 million ($145 million) per annum, which is nearly as much as the $145 million it will pay to broadcast the NRL from next year.
The two deals, although similar in monetary terms, are not directly comparable. Nine’s arrangement with the NRL is to show only three games per week, the finals series and exclusive rights to the State of Origin; Foxtel, pays more than $500 million per annum to show every game except the State of Origin and Grand Final.
Any deal with the Premier League would be for every match in the 38-round competition, which Nine currently streams on Stan, but could potentially extend to broadcast TV.
The report indicates that no other broadcasters are in the running for the Premier League, which is the most watched football competition in the world. It complement’s Stan’s coverage of the UEFA Champions League and English FA Cup.
Fusion Strategy managing director and media expert Steve Allen believes the leap in cost from $60 million per annum to circa $145 million could make it “really tough” for Nine to see a pay off.
“That said, FIFA World Cup ratings each time remind us of the seemingly pent-up demand for high quality soccer. No doubt there will be a surge in popularity thus ratings in the immediate future,” Allen said.
“Nine through Stan would already know the level of subscription interest, both prior to FIFA World Cup, and since, and that is the key. Nine now introducing an advertising tier to Stan is obviously also a key component.
“Nine via Max Stanton would no do anything which did not make financial sense.”
Is Stan the new home of football?
Nine locking down the EPL would cement Stan’s its position as the go-to destination for Australia’s estimated 6 million football fans.
Nine took over the Premier League rights from Optus Sport halfway through the current six-year rights cycle after the telco decided to pivot away from showing live sport which it initially used to acquire new customers but had proven to be a loss making venture in recent years.
Nine currently pays around $60 million per annum for the Premier League, with Optus footing the rest of the bill.
The new rights deal, which would run from 28/29 season until May 2034, dwarfs the current amount but is viewed internally as a magnet for subscribers.
Since picking up the Premier League, Stan Sport subscribers have increased by 40 per cent, and the cost of Stan Sports has jumped up by $5.
In Nine’s most recent annual report, Stan’s EBITDA increased 31 per cent, largely driven by a surge in Stan Sports subscribers and improved average revenue per user (ARPU). Stan’s subscriber numbers were reported as 2.5 million.
