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The National Rugby League reached a seven-year agreement worth $5.3 billion with Nine and Foxtel. Nine will pay $145 million annually while Foxtel will pay about $520 million per year.
The deal was announced Tuesday after months of negotiations. Nine will pay $145 million in cash each year plus $10 million in advertising commitments. In exchange, Nine gains rights to broadcast up to three games weekly along with exclusive coverage of State of Origin matches and the grand final.
Foxtel will contribute about $520 million annually, nearly double its previous payment. The company must generate additional subscriber revenue to cover the increase.
Officials discussed whether Kayo subscription prices would rise to offset costs. One executive said the agreement aims to keep viewing affordable for fans but did not rule out price increases. Foxtel plans to add three new teams by 2029 and expand the league internationally to grow its subscriber base. Past attempts to globalize the competition have had limited success.
The NRL will receive a 90 percent increase in cash payments compared with the prior deal. Some of the additional funds will support raising the salary cap from $12 million to $20 million. The agreement strengthens the position of the NRL executive chairman ahead of a leadership vote later this year.
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