Rugby Australia chief executive Raelene Castle will rely on the knowledge of former Foxtel executives in critical negotiations for broadcast rights that have upset the News Corp owned pay TV giant.

Media Rights Value, an organisation launched last year that counts former Foxtel chief executive Peter Tonagh as a director, has assisted Rugby Australia with market research, The Sydney Morning Herald and The Age have confirmed.

Rugby Australia's CEO, Raelene Castle, in Moore Park, Sydney. 8th November 2019 Photo: Janie Barrett

Rugby Australia is expected to take its key broadcast rights to an open tender later this month in a move that has upset long time TV partner Foxtel. Highly regarded former NRL executive Shane Mattiske will lead the process for RA.

Media Rights Value, which seeks to help rights holders maximise the value of their content, is led by Foxtel's former head of strategy Chris Harvey. Former chief financial officer Gavin Dumsday is a director alongside Mr Tonagh. Media analyst Colin Smith and data scientists Stuart Allen and Andrew Worsley are also involved.

Mr Tonagh was succeeded by Patrick Delany as Foxtel CEO in 2018 after it merged with Fox Sports.

Rugby Australia’s open tender will come two months after Foxtel withdrew its offer to renew rights to the Super Rugby competition and Wallabies Tests for another five years.

While there is still a chance the News-Corp owned pay TV company and Rugby Australia will strike a deal, Optus is also known to be interested as it looks to expand its live sport offering.

Wallabies tests are protected on the government's anti-siphoning list and shown on Network Ten under a simulcast agreement. Sources close to Ten said the CBS owned free-to-air broadcaster is also interested in the rights.

In 2019, the flagship Rugby Championship tournament averaged 431,000 viewers nationally across Foxtel and Network Ten. The highest rating match was between the Wallabies and New Zealand, and was watched by 845,000 viewers.

If Optus acquires the rights, it will mark an end to a 24-year-long broadcast arrangement between rugby and Foxtel, which is 65 per cent owned by News Corp and 35 per cent owned by Telstra.

Outgoing Optus chief executive Allen Lew has previously flagged broadcast rights acquisitions after securing the rights to the English Premier League for the 2019 to 2022 season for $189 million.

A number media analysts have expressed concern that if Rugby Australia landed an exclusive arrangement with a telecommunications provider, it could hurt the sport.

Rugby Australia is still hoping to land a deal worth between $30 million and $40 million a year. However Foxtel sources have previously said that they would only offer $20 million.

In 2015, the Australian Rugby Union said the SANZAAR venture (which involves South Africa, New Zealand, Australia and Argentina) had signed a $285 million deal, a 148 per cent increase from the previous deal.

In a statement in November, chief executive Raelene Castle said rugby was still in discussions with “key executives” at Foxtel.

Foxtel posted a $417 million financial loss last year, has previously said it would cut spending on ‘non-marquee sporting content’, and will remove Eurosport from its offering at the end of this month.