NZR are reportedly facing the prospect of a significant revenue drop on their next broadcasting deal as Sky New Zealand has tabled a much lower offer than the current arrangement according to reports.
A report by The Roar Rugby detailed the reversal of fortunes for Rugby Australia and NZR as negotiations continue for the next broadcasting cycle.
Rugby Australia swallowed a reduced contract on their last deal, but the silver lining was more free-to-air exposure with Nine Entertainment and Stan Sport.
They are set to extend that partnership according to News Corp with a new five-year deal with a revenue bump this time around.
As negotiations continue, a key stumbling block has been with New Zealand where Sky has reportedly offered NZD$30 million less per year than the current deal. The current TV rights deal is worth NZD$80 million per year to NZR.
The downgrade would implicate both national bodies as they have joint SANZAAR interests including Super Rugby Pacific.
A 37.5 per cent drop in annual TV revenue would add more pressure on NZR in the area of player retention, with the broadcast deal a significant portion of the total income stream.
With NZR having a minority ownership stake in Sky, the two organisations have enjoyed a long and fruitful partnership over the years. A downgrade of this magnitude highlights the structural issues within the industry facing long-term decline.
Rugby Australia is not without retention issues, with a host of high profile players off-contract after 2025 including openside flanker Fraser McReight and star centre Len Ikitau, who is reportedly been offered a mega deal in Japan.
Forward Langi Gleeson was dropped from the first Wallabies camp of 2025 for signing with Top 14 club Montpellier.
