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Premiership Rugby facing a huge drop in value of its broadcasting rights - report

(Photo by Richard Heathcote/Getty Images)

Failure to agree to a new deal with either BT Sport or Sky before the coronavirus crisis has left Premiership Rugby facing a potential huge drop in the value of its broadcasting rights. With private equity firm CVC Capital Partners buying 27 per cent of Premiership Rugby last year for £200million, there was a belief that more lucrative commercial and TV deals would follow.

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However, the outbreak of the coronavirus pandemic has proven untimely, with The Times reporting that the English top-flight might now struggle to get anything close to the £40m a year it currently receives from BT, whose six-year deal is set to elapse at the end of the 2020/21 season. 

It is said that broadcasters had expected the sale of the latest TV rights to be wrapped up before June. However, with the 2019/20 season indefinitely suspended since March, uncertainty surrounds the sport amid speculation that some Gallagher Premiership clubs are in danger of going bust due to the stoppage. 

The delay in the arrangement of a new TV deal for the English league is one of many gloomy financial stories circulating about the game. Last week it was reported that the CVC buy-in to the Guinness Six Nations (and a separate deal with the Guinness PRO14) had also been delayed by the global virus pandemic.

The Financial Times suggested papers were to be signed last month regarding the deal but the Six Nations said: “We have not agreed to either take a break nor to push through a completed agreement. The conversations are simply ongoing and obviously take into account the new environment created by the current pandemic.”

 

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J
JW 9 minutes ago
'Passionate reunion of France and New Zealand shows Fabien Galthie is wrong to rest his stars'

Where? I remember saying "unders"? The LNR was formed by the FFR, if I said that in a way that meant the 'pro' side of the game didn't have an equal representation/say as the 'amateur' side (FFR remit) that was not my intent.


But also, as it is the governing body, it also has more responsibility. As long as WR looks at FFR as the running body for rugby in France, that 'power' will remain. If the LNR refuses to govern their clubs use of players to enable a request by FFR (from WR) to ensure it's players are able to compete in International rugby takes place they will simply remove their participation. If the players complain to the France's body, either of their health and safety concerns (through playing too many 'minutes' etc) or that they are not allowed to be part in matches of national interest, my understanding is action can be taken against the LNR like it could be any other body/business. I see where you're coming from now re EPCR and the shake up they gave it, yes, that wasn't meant to be a separate statement to say that FFR can threaten them with EPCR expulsion by itself, simply that it would be a strong repercussion for those teams to be removed (no one would want them after the above).


You keep bringing up these other things I cannot understand why. Again, do you think if the LNR were not acting responsibly they would be able to get away with whatever they want (the attitude of these posters saying "they pay the players")? You may deem what theyre doing currently as being irresponsible but most do not. Countries like New Zealand have not even complained about it because they've never had it different, never got things like windfall TV contracts from France, so they can't complain because theyre not missing out on anything. Sure, if the French kept doing things like withholding million dollar game payments, or causing millions of dollars of devaluation in rights, they these things I'm outlining would be taking place. That's not the case currently however, no one here really cares what the French do. It's upto them to sort themselves out if they're not happy. Now, that said, if they did make it obvious to World Rugby that they were never going to send the French side away (like they possibly did stating their intent to exclude 20 targeted players) in July, well then they would simply be given XV fixtures against tier 2 sides during that window and the FFR would need to do things like the 50/50 revenue split to get big teams visiting in Nov.

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