Media Insider: Sky TV in box seat for ‘record’ NRL and Warriors rights deal - part of a massive $A5 billion, seven-year broadcasting agreement

A massive $A5 billion NRL TV rights deal is about to be confirmed in Australia - just what does that mean for New Zealand viewers? And at what cost?

Sky TV appears to be in the box seat – literally, as it so happens – to retain NRL and Warriors broadcast rights for the next seven years, but at a hugely inflated price.

The publicly listed pay-TV operator is likely to need to eat into the millions of dollars it’s saved as a result of losing HBO Max entertainment content, to fend off interest in the NRL from TVNZ.

Reports out of Australia on Friday said that the existing Australian rights holders, Nine and Foxtel, had agreed in principle to a new $A700 million ($NZ854m) annual deal to retain joint rights to the NRL across the Ditch.

“Sources with knowledge of the deal, who were not permitted to speak publicly, said it comprised about $A500 million a year from Foxtel for the pay-television component, about $A150 million a year from Nine for the free-to-air rights, and about $A50 million a year from a broadcaster in New Zealand,” reported the Australian Financial Review.

That equates to a total deal worth almost $A5 billion ($NZ6.1b) over the next seven years.

A $A50m ($NZ61m) annual fee for New Zealand rights would be a hefty increase on what Sky currently pays - perhaps around an extra $NZ15m a year, according to one source.

Sky has refused to comment this week on the NRL rights.

The NRL has not responded to an earlier request for comment.

The new deal - which is not expected to be confirmed until next week - would kick off at the end of next season and run until the end of 2034.

Earlier this week, the Australian Financial Review reported NRL chair Peter V’landys was close to signing a new “record” deal with Sky TV in New Zealand, despite TVNZ’s attempted raid as revealed by Media Insider three weeks ago.

The report said Sky would need to dig deeper into its pockets “especially as the code considers adding a second team to New Zealand in a few years,” reported the AFR.

Sky TV chief executive Sophie Moloney socialised with V’landys and outgoing NRL chief executive Andrew Abdo in a corporate box area during the Warriors’ NRL match at Christchurch’s new Te Kaha stadium on Sunday.

We know this because, helpfully, Sky’s own cameras filmed Moloney in casual discussions with the pair in the corporate area shortly after halftime.

Whether by design – Sky’s commentator seemed very prepared in rattling off their three names – or by accident, the footage certainly sent a message to TVNZ that Moloney had a direct line to the NRL at a critical time in the rights discussions.

The AFR was also careful to report earlier this week that no deal had been signed.

“A decision cannot be made before the next NRL Commission meeting, scheduled for next Wednesday. Sky must lodge a notice with the New Zealand stock exchange as soon as a deal is done.”

TVNZ head of sport, events and partnerships Melodie Robinson was aware of the footage of Moloney at the Christchurch game.

“A normal part of the process of having a crack at rights is making sure your relationships are good and getting in front of them, and I would say Sophie Moloney is one of the best in the business at doing that ...” Robinson told Newstalk ZB’s Heather du Plessis-Allan.

“She’s got access through her current relationship with the Warriors as well. So, a good move from her.”

The AFR reported that the new deal was a win for V’landys and Abdo.

They had pinned their reputations “on securing a result bigger than the AFL’s $4.5 billion, seven-year agreement that runs until 2031″.

“How much of the prospective deal is cash versus free advertising is unknown, and it is also unclear whether the production costs paid by the media companies are counted towards the total value,” reported the AFR.

Editor-at-Large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at NZME including Managing Editor, NZ Herald Editor and Herald on Sunday Editor and has a small shareholding in NZME.