Observers are concerned about future TV revenues for Australian sports leagues amid reports that Channel Nine could go into receivership next year.
The Sydney Morning Herald reports that that a 12 per cent fall in advertising income in the first half of 2009 could lead the banks to move on Channel Nine which holds the Cricket Australia and National Rugby League contracts.
According to the paper, private equity firm CVC Asia Pacific injected a further A$325 million into debt-laden PBL Media, which owns Channel 9. It followed a move by PBL to enlist a supply chain consultancy group to identify more cost savings, reinforcing the steps that the company will take to keep the receivers away.
However NRL chief executive, David Gallop, said: "Everything is positive. Our current TV deal does not involve sharing of revenue, meaning any advertising downturn does not affect us. It's not rights fees plus a share of profits. It's all guaranteed."
But despite that optimism, observers believe that should Nine go into receivership, rugby league may be forced to deal with channels Seven and Ten, who share the AFL contract. New high-definition channels would allow these networks, subject to legislative change, to screen both NRL and AFL.
The NRL would be reluctant to farm Nine's three games to Fox Sports, which at present shows five games a week. After all, only a quarter of Australian homes subscribe to pay TV, meaning codes such as soccer and rugby union are restricted in growing their audience, sponsorship base and potential playing talent.
