Actually Dan, where we are headed is a little different. The two major models being put forward are not workable for one partner or the other:
a) shrink Aus to Kiwi greatness
b) Playing field leveler by NZ boosting Aus teams for Aus greatness (and lessor overall quality to NZ)
If the players are honest some form of middle ground will be found. I personally don't see what it can be, at which pint we end up with an untenable TT, and NZ shrinks into NZ, perhaps with PI, and Aus commits to domestic with all the hazards involved.
I think that final scenario is better for Australia than NZ, hence to me logically Aus can afford to play harder - if they have the balls for it.
Foxtel does not make the decision though will definitely have an opinion which will effect what they are prepared to do. But Foxtel is certainly indicative of broadcast value - which is something that both sides of the ditch need to hold front and center.
So far we just have continued posturing (both sides but mostly NZ) and the clock is ticking down.
Sorry, I'm a little confused about the two options you present and the outcomes you infer?
I'm also unconvinced that NZ regress by not having continuous competition of a equal standard (as they see it). In this day of resting All Black players, allowing sabbaticals in the Japanese competition (seen as easier on the players) and the recent comments from various NZ players isn't it apparent the playing at such a standard week in and week out may be a challenge.
You make life too onerous for your NZ talent and they start looking at better paying gigs for less toll elsewhere like Japan. We already lost players like McMahon for such reasons.
I also don't see the longterm economics for a NZ comp working. Even if NZ expand there are limitations to what Sky (their prime source of income) can pay. Their agreement was for a 14 team competition worth of content. NZRU would either have to make up the shortfall, spreading their resources or negotiate an adjustment to their agreement.
The true value is the AllBlacks but I get the sense Sky have extended themselves as much as they can already.
Let’s say you go 8 teams in NZ like Dan mentioned, where does the extra money come from? Sky doesn't suddenly get a whole lot of extra subscriber dollars nor do I see the export price of the product suddenly increasing for a lot of other markets. Is there more dollars to be extracted from the NZ Rugby public, I'm not so sure.
Honestly it would be interesting seeing NZ go that route as they haven't really had to stick their neck out at all the whole time Super Rugby has been running. It's been the status quo pretty much since it started and they've really had the easiest market to navigate in many ways. Rugby AU have had much greater challenges with a competitive sporting landscape and SARU have had their own issues with the relative strength of their currency and the growing renumeration up in Europe which has taken a large toll on their local player stocks, not to even mention some of their player quota challenges and other dynamics in their market.
Also as others have mention, I'm not sure that it is clear at this stage that Foxtel are the only option. Optus and perhaps TEN were being discussed with some seriousness before COVID broke out. I agree with Reg and the crew on the podcast the other day, I was kind of look forward to a change of broadcaster just for the simple fact that a refresh would be nice.