After the media outlet agreed to a mammoth broadcast rights deal with the AFL last week, itโs been reported that the NRL will seek tens of millions of dollars in compensation from Foxtel.
The NRLโs current deal, which was negotiated in the context of the early days of the COVID pandemic, was supposed to include a โmost-favouredโ clause, which the Sydney Morning Herald reports would have prohibited the broadcaster from making a better deal with the AFL in the future without compensating the NRL for the significant sacrifice they made during challenging times.
This request was rejected by Foxtel, but reports suggest NRL clubs were under the impression that the current deal could be renegotiated before the completion of its seven-year term if the AFL were given a better package during that time.
The current deal sees the NRL receiving around $200 million per season from Foxtel, which becomes $400 million when combined with the free-to-air agreement reached with Channel 9 and other outlets.
As it stands, the AFLโs deal is worth $640 million per year, with $400 million of that coming directly from Foxtel.
Peter VโLandys and Andrew Abdo have both come under fire since the AFLโs deal made headlines, accused of leaving money on the table during the NRLโs negotiations.
VโLandys is confident an agreement can be reached but is refusing to comment since his initial response last week.
The Herald reports that there was a perceived verbal agreement between the NRL and Foxtel that the NRLโs desire to make concessions to strike a deal during the uncertain times of the pandemic would be rewarded in the future.
โAt the time, Fox needed an asset on its sheet to continue its viability. If we didnโt come to play, thereโd be no Foxtel,โ VโLandys told the Herald.
โIf Foxtel coughs, all the codes catch a cold. If you havenโt got them in play, the other parties wonโt be paying as much as they should. You need that competitive tension.
โWhen COVID hit, they were the only ones. If they went under, there was no one else available.โ
VโLandys is currently embroiled in financial battles on multiple fronts, also involved in an ongoing dispute with the NSW Government regarding the suburban ground funding withdrawals in the wake of the recent NSW flood disaster.