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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.
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.
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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Latest Comments
Was strange game, full of errors and the usual refereeing decisions. Both teams suffered as a result but Ospreys discipline was a major factor. I think this weekend will be different as the Ospreys will pick a full strength team but Scarlets will gain confidence in the fact that only Tipuric was missing in the forwards and they dominated that pack for the whole 80 minutes. If they can repeat that dominance at scrum and breakdown then the Scarlets backs will always have more to offer on the front foot.
Go to commentsAll non-British and Irish players should be excluded anyway. It should be for players born in the UK and Ireland not imports on residency! The Barbarians have sold out and are now a predominantly a SH team and the Lions are going the same way. It would be interesting to see what is on VDM’s passport, probably still South Africa. I feel quite strongly on this and would hope that the Lions committee see it the same way but money talks and so the decline begins.
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