EXCLUSIVE: Premiership Rugby faces MORE trouble as BT Sport demand multi-million pound cut after it was confirmed the league will shrink to just 10 teams next season following London Irish’s suspension
Premiership rugby clubs face further financial difficulties as their main broadcasting partner BT Sport is demanding a multimillion-pound cut following confirmation that the league will shrink to 10 teams next season.
Mail Sport has learned that preliminary talks over BT’s compensation demands began after Wasps and Worcester were ejected from the Gallagher Premiership earlier this season and negotiations are now expected to intensify after London Irish’s demise was confirmed on Tuesday.
BT has one season left on a £110m three-year deal with Premiership Rugby but has lost nearly a quarter of the clubs that were set to compete, which they say has significantly reduced the value of the TV contract.
The broadcaster’s frustration is compounded by the fact that they’re being rebranded as TNT Sports this summer after being bought by Warner Brothers Discovery, so they’re mindful of having compelling products to attract and retain customers.
Premiership Rugby is sympathetic to BT’s position but will fight hard to limit the size of the rebate as many of their remaining 10 clubs are beset by financial problems.
London Irish was suspended on Tuesday after the club failed to pay all staff for May
Next season’s Gallagher Premiership will now have just 10 teams following the withdrawal
BT Sport are demanding a multi-million pound rebate and their frustration is compounded as they want to retain customers at a time when they are rebranded as TNT Sports this summer
Government Covid-19 loans have yet to be repaid, while the loss of three clubs next season will lead to a significant reduction in their receipts.
One possible compromise mentioned in the talks would be for Premiership Rugby to offer TNT Sports a discount on the next three-year rights cycle starting in 2024, which will be subject to negotiations shortly.
Despite Premiership Rugby’s efforts to maintain a competitive tendering process, there has been little interest from elsewhere so far.
Sky Sports have just spent over £1bn to secure EFL live matches over the next five years from 2024, and their immediate priorities are to retain the majority of live Premier League rights beyond 2025 and secure Super League of the Rugby League in a bargain deal from next season .