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Report: NZR facing big revenue drop as Rugby Australia finally on the up
By Ben Smith
NZR are reportedly facing the prospect of a significant revenue drop on their next broadcasting deal as Sky New Zealand has tabled a much lower offer than the current arrangement according to reports.
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A report by The Roar Rugby detailed the reversal of fortunes for Rugby Australia and NZR as negotiations continue for the next broadcasting cycle.
Rugby Australia swallowed a reduced contract on their last deal, but the silver lining was more free-to-air exposure with Nine Entertainment and Stan Sport.
They are set to extend that partnership according to News Corp with a new five-year deal with a revenue bump this time around.
As negotiations continue, a key stumbling block has been with New Zealand where Sky has reportedly offered NZD$30 million less per year than the current deal. The current TV rights deal is worth NZD$80 million per year to NZR.
The downgrade would implicate both national bodies as they have joint SANZAAR interests including Super Rugby Pacific.
A 37.5 per cent drop in annual TV revenue would add more pressure on NZR in the area of player retention, with the broadcast deal a significant portion of the total income stream.
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With NZR having a minority ownership stake in Sky, the two organisations have enjoyed a long and fruitful partnership over the years. A downgrade of this magnitude highlights the structural issues within the industry facing long-term decline.
Rugby Australia is not without retention issues, with a host of high profile players off-contract after 2025 including openside flanker Fraser McReight and star centre Len Ikitau, who is reportedly been offered a mega deal in Japan.
Forward Langi Gleeson was dropped from the first Wallabies camp of 2025 for signing with Top 14 club Montpellier.
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NZ and Aus had an agreement to compete in Super until 2030?
I can't see much value in that being honored. Current Super would save more than it would take off from Sky's offer I'd imagine. I'd be happy to got with the NPC now and just lose a bunch of All Blacks as a result, but keeping the budget intact is paramount imo.
I mean I know the ABs aren't everything but they should keep the other costs (womens\admin\community\7s etc) and just drop the 30 most expensive players etc.
NZD$50 million per year is approximately USD $ 27.7 million and about what the local broadcaster in SA pays SA Rugby just for the Currie Cup competition.
SA has 12x the population of NZ, so not really a sensible comparison.
Comparable you say? I don't think it's enough, Skys coverage is also terrible. Should look for offers.
Highlights the need for a comparable URC type competition to be part of, or just run it for longer and hope the Aussies participate.
Well that’s what broadcasters pay for teams that are not ranked number 1 or number 2 in the world.
Nar, they would definitely still be considered the #1 team. Sky just don't have much to offer anymore with technology chances. Product is failing badly and it could be the end.
That's not too bad, considering the only reason they got 80 million in the first place was due to competition. Now that no one's competing with Sky NZ anymore, they have all the power.
Their revenue/budget are well into the 200 million range. It's not going to cut it, and has always been thought of previously as more around the 100mil value (not 80).
With Super up in the air they can cut like a 2 year deal and ditch Sky when something new comes out.