New TV deal to turnaround Australian Rugby finances

The Australian Rugby Union (ARU) is set to announce a new broadcasting deal that will help turnaround the sport’s current financial plight.

Bouyed by the massive broadcasting deal that the English Premier League has secured, worth $10 billion dollars for the period 2016-2019 – a rise of 70% from the previous deal, the ARU and its New Zealand and South Africa counterparts in the SANZAR alliance are expected to soon release details of a television deal that should double the amount Australia receives from broadcasters.

The Australian Financial Review (AFR) has reported that the deal could be worth between $35 and $40 million annually for five years from 2016.

The AFR reported sources confirming the deal will see Fox Sports Australia retain all live rights to Wallabies matches and Super Rugby while Network Ten will simulcast the Wallabies games and show one Super Rugby game on replay each weekend.

ARU Chief Executive Bill Pulver told the AFR of being “nervous " a year ago when faced with looming budgetary issues in the sport, but said his fears have largely been allayed by the looming broadcast deal and a cost-cutting program that has found $10 million in savings out of the ARU.

Pulver told the AFR "Australian rugby will be in a much better shape from 2016 through to 2020. We've been through a broadcast negotiation (and) resolved the negotiations around who gets what share and that's been a very co-operative negotiation.

Pulver admitted that the ARU and the five Australian Super Rugby franchises face a difficult 2015 and admitted the game has been close to insolvency, with the governing body headed for a $5 million to $10 million loss from revenue of $75 million, after losing a similar amount from $100 million of income last year.

Currently the ARU is collecting a controversial participation levy from all grassroots players to help with financial issues and, later in the year, is expected to embark on a whole-of-game strategic plan for the next five years later in 2015. 

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