TNT Sports, formally known as BT Sports, is closing in on a deal to continue showing Premiership Rugby, with the broadcaster eyeing up a discount for the new contract.
With only one more season left in the three-year contract between the Warner Bros Discovery Inc (NASDAQ:WBD) and BT Group PLC (LSE:BT.A)-owned firm and the rugby union league, negotiations are currently underway.
However, executives at TNT want to get a discount on the new deal after three clubs, including London Irish, plunged into administration following a financial crisis within the world of English club rugby.
All thirteen clubs made losses in the 2021/22 season and with Wasps and Worcester Warriors both being removed from the league, there is an argument to made in paying less for the rights when instability surrounds the sport and fewer games are being played.
Initially the broadcaster had hoped for a rebate because of the missed matches, but reports indicate it will aim for a discount on the new contract instead.
TNT Sports believed it spent over the odds when it purchased the rights for the last three seasons for around £110 million, according to sources close to the matter, and is hopeful that its involvement in the Premier League football auction, which kicked off last week, will further lower the price for Premiership Rugby.
Industry sources believe the deal could be better for the rugby league if it strikes an agreement sooner rather than later, with TNT Sports’ newly appointed president of UK and Ireland Andrew Georgiou aiming to maintain the channels presence in sports while also fighting off a debt pile of around US$50 billion.
Tom Harrington at Enders Analysis said: “Even without taking into account downward pressure on sports rights costs and subscription fees/ad revenues (which makes monetisation harder) and a clear drop in the quality of the competition (with fewer teams), TNT should be in line for a big reduction.”