With four teams from the UK currently competing in the rugby world cup (the Ireland rugby team incorporates Northern Ireland), the sport’s profile in the country is high. Indeed Ampere Sports’ latest consumer data shows that almost a third of sports fans in the UK are fans of rugby union, although only 3% say that it is their favourite sport. 

In fact, UK fans of rugby union are generally fans of many other sports, following an average of 9.2 sports compared to 6.0 for the average UK sports fan. In turn, they also follow more sports competitions, with rugby union fans on average saying they enjoy 17.7 competitions, while the average UK sports fan follows 12. 

Among rugby union fans, willingness to pay for rugby competitions remains relatively low, which may be explained by the fact that rugby isn’t the favourite sport for most of them, along with the fact that big tournaments such as the Six Nations and Rugby World Cup have traditionally been shown free-to-air. However, when considering all the sport content they are willing to pay for, rugby union fans say they would spend over £3 more per month on average (£19.88) than the average UK sports fan (£16.64). This, coupled with the fact that they follow a large number of competitions, makes them prime targets for pay TV or OTT sports services.

These higher amounts UK rugby union fans are willing to pay to watch live sport may help to explain why BT/TNT paid £38m per season for the rights to the English Premiership Rugby in 2013. That deal more than doubled the domestic value of the league, which had previously generated £18m per season through deals with Sky and ESPN – with BT/TNT also having to pay a premium as a new market entrant. Since then, however, with BT/TNT retaining the rights for the subsequent two cycles, the value of the league has plateaued.

One reason could be the financial struggles currently being experienced by Premiership clubs, which has seen three clubs go into administration and be relegated. Having a league reduced from 13 to 10 teams has also reduced the number of fixtures, further depressing the potential value of a new broadcast rights deal. 

Amid this uncertainty, the league has sought to continue its partnership with BT/TNT to maintain a level of stability, both financially for the clubs and also for fans. This puts BT/TNT in a potentially strong bargaining position for future cycles, with clubs and the league looking to guarantee a portion of their future income rather than risk the uncertainty of negotiating a deal with a new broadcast partner.