Pressure on Castle grows
SYDNEY: Raelene Castle's future as Rugby Australia chief executive could be in doubt as the national body scrambles to find a new broadcasting partner.
Incumbent rightsholder Foxtel announced on Wednesday that its talks had come to an end with Rugby Australia, following a lengthy period of negotiations.
Rugby Australia will now take test match and Super Rugby rights to the market, in which Optus appears to be the only serious bidder.
The search for a new broadcast deal has, as a result, left Castle's position hanging in the balance according to The Sydney Morning Herald chief rugby reporter
Georgina Robinson.
Robinson told Wide World of Sports Radio on 2BG she believed Castle's position was ‘‘entirely dependent’’ on what happens with the new deal.
‘‘If their initial instincts are correct, their research is correct, there is competitive tension, and she can secure a decent deal for rugby in the current environment because noone is handing out dollars for free, then she will stay on,’’ Robinson said.
‘‘If she can't and Fox don't put a bid in and Optus lowballs, then Raelene Castle won't see out the end of March.’’
In 2015, Foxtel agreed to pay $A285 million ($NZS296 million) over five years to Rugby Australia but the payTV broadcaster was only willing to bid in the mid$30 million range.
Optus is reportedly willing to top that.
Fox Sports, however, is the only broadcaster of the Super Rugby competition in Australia.
‘‘It's not just what Fox or Optus would be prepared to pay for it,’’ Robinson added.
‘‘It’s actually what the other partners such as South Africa, New Zealand and a broadcaster in the UK are prepared to pay, because that's where the 148% increase came from this time five years ago.’’
Meanwhile, Fox Sports bosses reportedly believe Rugby Australia always intended to pull the pin on the pay TV deal in a bid to move the struggling code on to freetoair television.
The Daily Telegraph, owned by Fox Sports Australia's majority owner News Corp Australia, has reported that the broadcaster's executives now believe Castle never intended to strike a new deal.
The newspaper said she rejected Fox Sports’ opening offer of $200 million, but remained silent for months without indicating her preferred price.
Fox Sports executives believe the RA boss scuppered a deal so she could take the struggling code on to freetoair television on Network Ten.
The report suggested Castle was also gambling on a bid from Optus, which is yet to make any offer, to make up for any shortfall in funding.
New Zealand and South Africa both confirmed their respective broadcasting partnerships through to 2025 last year.
New Zealand Rugby signed back on with Sky in a deal under which All Blacks tests (excluding the World Cup), Super Rugby matches, Mitre 10 Cup and other domestic competitions will be televised on the platform.
NZR became a 5% shareholder in the company as part of the deal. — The New Zealand Herald/AAP