If the broadcasters came back demanding financial compensation - we're fucked.
The ARU should be veto'ing every proposal that involves cutting our teams. They have that right under SANZAAR. We can't lose 20% of our broadcast revenue 2 years into the broadcast deal that saved us from insolvency!
The broadcast contracts are signed till 2020. I've got no problems with Foxtel sucking eggs and overpaying for SuperRugby! Run the competition to the ground and eek every last cent from Rupert.
The Western Force stand to buy back their licence (Why the Force financials are an issue is pure east-coast hyperbole considering the ARU's total "bailout" was 1.5$mil compared to the $5mil-odd that has been sunk into the Rebels in half the time). The Rebels are sponsor-heavy and viable until 2020 at least.
Our provinces are looking collectively in better stead (off-field) wise then they have for the better part of 5 years. If it weren't for the ARU refusing to back AUS rugby to a hilt, the Force might be in the hands of their fans with the ARU being $1.5mil richer already!
I guess what I'm saying is that we should be consolidating financially and any tinkering must be done with the format until this deal finishes.
I respect your thinking, but the calculus for all the SANZAAR broadcasters is way more complex than this.
They make their rugby TV income from advertising and subscriptions and some (minor) on-sale rights. They justify what they pay to SANZAAR partners based solely on projected income, subscription base and market share calculations. The sheer number of S18 games by a certain number of teams played does not in itself, necessarily and intrinsically, drive their income lines from S18 and Tests. That's because for viewers, quality matters for them to turn on, not just endless feeds of game quantity for quantity's sake (as we see so clearly with negative Aus Foxtel viewership trends for S18 and Tests).
If they sit there and play poker with SANZAAR as both say in standoff mode - no change to anything in S18 - then the broadcasters know that if viewers decline (as is happening markedly in most markets for S18) and pay TV subscribers decline both materially (these two parameters are related over time for sports-driven subscribers), so will their $ income quite quickly decline. Advertisers pay for predictable and validated eyeballs of a certain demographic. This viewership level risk is a potential P&L killer for them as they have large contractually fixed payments to make over numerous years to the SANZAAR parties.
The broadcasters must maximise year-on-year income to justify the sports-buying deals they make in the first place. They know that if a sports format in either quality or (bad) quantity terms turns off viewers big time, then the original deal they did can turn bad financially for them quite quickly.
My point being:
the broadcasters have a big, big monetary vested interest in SXX rugby + Tests succeeding in aggregate, and sustainable aggregate, viewership terms. Equally, they will know that if they hit SARU and the ARU too hard in income reductions for (say) a new S15 comp, these unions may fall into severe financial difficulty and not be able to fill the broadcasters' screens with adequate quality of, or even quantity of, product.
And the hard-heads in SANZAAR (hopefully........?) know this. So the poker game is something like this from SANZAAR to the TV companies: 'you force us to reduce income from you just to now get a product that works for both you and us better than we have today that is not working.....OK, then we'll stay with what we have and you can see your income fall, likely very badly, whilst you still have high fixed and fixed term cost payments to us, etc. You'll end up far worse off and we still get the original payments. So, on rational grounds, let's agree maybe some moderate-only income reduction over 3 more years, but you agree to a major format change that is really a clear win-win for both the RUs and broadcasters as it stands a good chance of holding viewership up (i.e. broadcaster income) or even increasing it'.