The National Rugby League (NRL) has signed a A$5.3 billion (US$3.7 billion) media rights agreement with Foxtel Group, Nine Entertainment and Sky NZ, claiming it as an Australian record for sports.
On a revenue-per-year basis, the seven-year agreement just shades the $4.5 billion the rival Australian Football League (AFL) secured for a six-year deal in 2023, albeit the AFL agreement ends three years earlier in 2031.
The NRL partnership covering 2028 to 2034 also beats the $2 billion that rugby league’s governing body got for a five-year agreement with the same broadcasters for the period 2023 to 2027.
The Australian Rugby League Commission (ARLC) did not detail how much Foxtel, Nine and Sky NZ each contributed to the deal, but under the last agreement Foxtel was reported to have paid 71% of the total.
But ARLC Chairman Peter V’landys said 95% was in cash with 5% consisting of ‘contra’, or non-cash services like advertising.
The ARLC said that under the new long-term partnership:
- it would receive a 90% increase in cash per annum compared to the current deal
- Foxtel would continue to televise all NRL and National Rugby League Women (NRLW) Premiership matches, including finals
- Nine would exclusively cover the NRL Grand Final and Men’s and Women’s State of Origin Series and simulcast three weekly NRL and NRLW fixtures
- Sky NZ would will place more than 130 fixtures on its free platforms to continue the NRL’s growth in New Zealand where fan numbers have almost tripled in the last five years.
- It had secured a new international rights revenue sharing and marketing agreement with Foxtel, and
- it would control the season’s structure, scheduling and draws.
“Today marks a defining moment for rugby league,” V’landys said in a media release.
“This agreement is the largest commercial deal ever secured by an Australian sport, but its significance goes well beyond the financial outcome.
“It returns the draw back to the NRL and will ensure fair and equitable scheduling for all clubs.”
Foxtel Group CEO Patrick Delany said Foxtel had been a partner in the growth of rugby league for 30 years and invested $1 billion every year in sports rights and production.
“This renewed NRL partnership is a great outcome for the game, fans and our subscribers and maintains Kayo Sports and Foxtel as the home of NRL and live sport in Australia well into the next decade,” he said.
Nine Entertainment Chair Peter Tonagh said the new agreement extended Nine's partnership with the NRL into its fourth decade.
At the time of writing, Nine (ASX: NEC) shares were trading unchanged at 91 cents, valuing the company at $1.44 billion.
Sky Network Television (ASX: SKT) were trading one cent (3.75%) higher at A$2.77, capitalising it at $367.59 million.
Since the last NRL media rights deal was announced, Foxtel has been sold by News Corporation and Telstra to sports streaming platform DAZN, owned by the London-based Access Industries investment group founded by Sir Len Blavatnik.
