Nine (ASX:NEC) share price on watch following $650m NRL deal

Nine is extending its deal with the NRL…
The post Nine (ASX:NEC) share price on watch following $650m NRL deal appeared first on The Motley Fool Australia. –

The Nine Entertainment Co Holdings Ltd (ASX: NEC) share price will be on watch on Tuesday.

This follows the release of a positive update after the market close on Monday.

Why is the Nine share price on watch?

The Nine share price could be given a boost today from news that it has secured the broadcast rights to the NRL for the 2023 to 2027 seasons. This extends its partnership with the league beyond three decades.

According to the release, the agreement will see the live broadcast of NRL matches on Free-To-Air TV remain broadly in line with Nine’s current contract, except for an extra three matches per year. This is due to the expansion of the league to a 17-team competition in 2023.

Nine’s agreement includes the exclusive Free-to-Air broadcast of three premium live games a week, on each of Thursday and Friday evenings and Sunday afternoons, as well as the Finals series, and other special event matches. Nine will also show a Saturday night match live in each of the last five rounds of the weekly competition.

Furthermore, the NRL Grand Final and State of Origin will continue to be exclusively shown on Nine and 9Now. All State of Origin matches will be broadcast on Wednesday evenings from 2023.

Finally, the company has secured the radio and audio streaming rights for at least four matches each week, as well as the finals series and State of Origin series.

What is Nine paying?

The good news for Nine is that there hasn’t been an escalation in prices for these rights.

Nine is paying an average of ~$115 million per annum, which is in line with the price it paid for the 2018 to 2022 contract. The only difference this time is the additional ~$15 million per annum of contra and other non-cash services that will be provided. This is up from ~$10 million per annum previously.

Nine’s Chairman, Peter Costello, said: “This is a major deal for our business to bring this exciting sport to the Australian public across our platforms. The negotiation has been constructive and in the spirit of partnership across our businesses and we thank the NRL for the positive engagement in the process for an outcome that benefits all Australians and fans of the game.”

This sentiment was echoed by Nine’s CEO, Mike Sneesby.

He commented: “We are very pleased to extend our 30-year partnership with the NRL for a further five years. This certainty enables Nine to continue to bring the game live and free to all Australians, and partner with the NRL to further develop the game for the clubs and the broader community. This is an outstanding result as together we build a strong media partnership delivering quality, and free, NRL coverage for all Australians for the next six years.”

The post Nine (ASX:NEC) share price on watch following $650m NRL deal appeared first on The Motley Fool Australia.

Should you invest $1,000 in Nine right now?

Before you consider Nine, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Nine wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

5 things to watch on the ASX 200 on Tuesday

These 3 ASX 200 shares are topping the volume charts on Friday

ASX shares to buy for the Omicron COVID outbreak

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!