AFL announces 4.5billion, 7 year media deal (2025-2031 inclusive)

[Freomaniac]

You across the financial problems at 7, 9, 10 & Fox?

From The Aus:
'Both the NRL and AFL are already in talks with their free-to-air and pay-TV broadcasters, with the possibility of extending their deals at slightly less than the current rate.
There had been suggestions that codes could stream some matches exclusively on online networks by linking with global giants such as Amazon, Google, Twitter, Apple and Facebook.

But sports marketing expert Con Stavros said while many expected those brands to bring big bucks into sports, that’s not the case. “The problem with those platforms is they’re perceived to be super rich and wealthy, but they run a tight ship,” said Stavros, an associate professor at RMIT University.

“In many ways they tend to go to the sports and say we will give you the viewers, millions of peoples around the world.

“But we’re not going to give you a lot of dollars.”

NoCookies | The Australian

www.theaustralian.com.au

sports-rights-streaming-no-white-knight-media-experts-warn/news-story/6c5c87d3fbc0711f300993046fd77e91


The financial world we are entering will take years to evolve & sports media rights are in the middle of that mix, look back for what happened.

Funny how foxtel is financally struggling. Back in the 2000s and 2010s, they had the upper hand to a degree. Foxtel made money by monthy subsciptions. Buy the AFL and NRL and any other popular sports to give customers the incentive to pay for it.

Not a bad Idea for getting 2 million Australians to pay $50 a month for the basic package and sports. thats 100 million a month and 1.2 billion a year. Foxtel would of made money off sports subscriptions alone.

Foxtel still have those 2 million suscribers a month, but they paid more for the sports.

As someone mentioned, channel 7s advertising revenues has dropped by 50%. So theres some of channel 7 money gone too

 

[Kwality]

Funny how foxtel is financally struggling. Back in the 2000s and 2010s, they had the upper hand to a degree. Foxtel made money by monthy subsciptions. Buy the AFL and NRL and any other popular sports to give customers the incentive to pay for it.

Not a bad Idea for getting 2 million Australians to pay $50 a month for the basic package and sports. thats 100 million a month and 1.2 billion a year. Foxtel would of made money off sports subscriptions alone.

Foxtel still have those 2 million suscribers a month, but they paid more for the sports.

As someone mentioned, channel 7s advertising revenues has dropped by 50%. So theres some of channel 7 money gone too

You didnt address how these entities are going to pay more for media rights .... remember the sports are in breach of the current contracts & the game recommencing does not resolve the commercial implications.

Sevens problems are deeep:

The money or the box: Kerry Stokes faces stark choice in bid to save Seven

Kerry Stokes, the Perth-based billionaire, is shaping up as rescuer of last resort for the debt-ridden Seven West Media group which, without a lifeline, potentially faces an existential threat.

www.smh.com.au

 

[Kwality]

In the schmozzle that is engulfing the NRL restart post Covid, there was mention of digital rights - does the AFL have a similar digital asset

The Herald reported on Saturday that Nine Entertainment Co, the NRL’s free-to-air broadcaster, is interested in acquiring the NRL’s digital arm as part of a strategy to lower costs and renegotiate the existing broadcast deal.

&

As former ARLC chairman John Grant urged the governing body not to part with its digital arm, telling the Herald it could be a $2 billion asset for the game,

V'landys sends message to broadcasters as talks heat up

The ARL Commission chairman rejects the argument that the NRL will be less valuable for TV partners if there are no crowds.

www.smh.com.au

 

[Kwality]

in the schmozzle that is the NRL attempt to restart post covid, there has been a reference to NRL.com as a digital asset - is that the equivalent of the AFL website?
It appears to be a very generous valuation by the former ARLC chairman !!



The Herald reported on Saturday that Nine Entertainment Co, the NRL’s free-to-air broadcaster, is interested in acquiring the NRL’s digital arm as part of a strategy to lower costs and renegotiate the existing broadcast deal.

V'landys sends message to broadcasters as talks heat up

The ARL Commission chairman rejects the argument that the NRL will be less valuable for TV partners if there are no crowds.

www.smh.com.au

As former ARLC chairman John Grant urged the governing body not to part with its digital arm, telling the Herald it could be a $2 billion asset for the game,

'Two-billion-dollar asset': Don't sell digital arm, Grant warns

Selling NRL.com to Nine would be a major mistake, according to the man who helped build rugby league's digital arm.

www.smh.com.au

 

[Ned_Flanders]

in the schmozzle that is the NRL attempt to restart post covid, there has been a reference to NRL.com as a digital asset - is that the equivalent of the AFL website?
It appears to be a very generous valuation by the former ARLC chairman !!



The Herald reported on Saturday that Nine Entertainment Co, the NRL’s free-to-air broadcaster, is interested in acquiring the NRL’s digital arm as part of a strategy to lower costs and renegotiate the existing broadcast deal.

V'landys sends message to broadcasters as talks heat up

The ARL Commission chairman rejects the argument that the NRL will be less valuable for TV partners if there are no crowds.

www.smh.com.au

As former ARLC chairman John Grant urged the governing body not to part with its digital arm, telling the Herald it could be a $2 billion asset for the game,

'Two-billion-dollar asset': Don't sell digital arm, Grant warns

Selling NRL.com to Nine would be a major mistake, according to the man who helped build rugby league's digital arm.

www.smh.com.au

At least we know what Nine has been working for now. Getting the digital for a song is a smart move.

I'm still interested to see what seven will do on AFL and cricket. Stokes isn't known to like leaving money on the table

 

[Freomaniac]

in the schmozzle that is the NRL attempt to restart post covid, there has been a reference to NRL.com as a digital asset - is that the equivalent of the AFL website?
It appears to be a very generous valuation by the former ARLC chairman !!



The Herald reported on Saturday that Nine Entertainment Co, the NRL’s free-to-air broadcaster, is interested in acquiring the NRL’s digital arm as part of a strategy to lower costs and renegotiate the existing broadcast deal.

V'landys sends message to broadcasters as talks heat up

The ARL Commission chairman rejects the argument that the NRL will be less valuable for TV partners if there are no crowds.

www.smh.com.au

As former ARLC chairman John Grant urged the governing body not to part with its digital arm, telling the Herald it could be a $2 billion asset for the game,

'Two-billion-dollar asset': Don't sell digital arm, Grant warns

Selling NRL.com to Nine would be a major mistake, according to the man who helped build rugby league's digital arm.

www.smh.com.au

interesting negotiating tactics

 

[Our Game]

Funny how foxtel is financally struggling. Back in the 2000s and 2010s, they had the upper hand to a degree. Foxtel made money by monthy subsciptions. Buy the AFL and NRL and any other popular sports to give customers the incentive to pay for it.

Not a bad Idea for getting 2 million Australians to pay $50 a month for the basic package and sports. thats 100 million a month and 1.2 billion a year. Foxtel would of made money off sports subscriptions alone.

Foxtel still have those 2 million suscribers a month, but they paid more for the sports.

As someone mentioned, channel 7s advertising revenues has dropped by 50%. So theres some of channel 7 money gone too

Dont forget Foxtel rely on advertising a lot as well Thanks to Howard giving them the rights to run ads.

.They are also carrying $2.6 Billion in debt that has to be paid for.I cant see them lasting more than 5 years as they are already bleeding subs at an alarming rate.

 

[Freomaniac]

Dont forget Foxtel rely on advertising a lot as well Thanks to Howard giving them the rights to run ads.

.They are also carrying $2.6 Billion in debt that has to be paid for.I cant see them lasting more than 5 years as they are already bleeding subs at an alarming rate.

I f foxtel goes under in 5 years then NRL anf AFL will suffer financially

 

[Kwality]

I f foxtel goes under in 5 years then NRL anf AFL will suffer financially

Not only that they wont be the major funder in the next media rights deal & FTA is not flash ....

 

[Our Game]

I think it will be a very different sports landscape when we are finally out of the current crisis which could last at least a couple of years.
Who knows if the media companies will recover or are badly damaged with little money to spend.

 

[Kwality]

I think it will be a very different sports landscape when we are finally out of the current crisis which could last at least a couple of years.
Who knows if the media companies will recover or are badly damaged with little money to spend.

We will know more when the AFL financials come out, how much they get paid for this year - see the unresolved & very public negotiations by the NRL with 9/Fox.

 

[Supercoach Bargain]

Channel Nine eyes AFL rights, heaps pressure on NRL

Nine chief executive Hugh Marks has expressed a willingness to walk away from NRL if the sport does not significantly reduce its broadcast fee, stoking suggestions the network could make an AFL play.

www.theage.com.au

More of a negotiating tactic with the sniffers, but does anyone care which channel shows footy?

 

[Our Game]

Yep I wondered how long it would take Nine to threaten the NRL with doing the AFL.
The last time the did telecast the AFL they did a pretty good job!

 

[BigVic]

I remember 9 showing a game at 1pm live to all centres on a Sunday afternoon from 2002-06.

 

[Kwality]

Channel Nine eyes AFL rights, heaps pressure on NRL

Nine chief executive Hugh Marks has expressed a willingness to walk away from NRL if the sport does not significantly reduce its broadcast fee, stoking suggestions the network could make an AFL play.

www.theage.com.au

More of a negotiating tactic with the sniffers, but does anyone care which channel shows footy?

Wrong version of rugby.

 

[Redline]

Channel Nine eyes AFL rights, heaps pressure on NRL

Nine chief executive Hugh Marks has expressed a willingness to walk away from NRL if the sport does not significantly reduce its broadcast fee, stoking suggestions the network could make an AFL play.

www.theage.com.au

More of a negotiating tactic with the sniffers, but does anyone care which channel shows footy?

I think supporters struggled when 9/10 had the rights for the AFL years ago but the swap of Cricket and Tennis between the Channels didn't seem to cause too much concern so maybe viewers don't care as much now a days.

 

[Kwality]

Yep I wondered how long it would take Nine to threaten the NRL with doing the AFL.
The last time the did telecast the AFL they did a pretty good job!

The writing is on the wall for both codes, negotiating their way out of a breach of contract in a very weak advertising market

• https://www.3aw.com.au/sportsday-co-host-has-no-doubt-something-is-brewing-with-the-afls-tv-rights/

Nine, which owns 3AW, last broadcast the AFL in 2006.

• The Australian

The value of the AFL's prized TV rights is tipped to fall as the sports media industry reels from the coronavirus crisis.

• PANDEMIC CRISIS SET TO SHRED NEXT AFL BROADCAST DEAL

The AFL will have to take a cut on its broadcast rights deal for the first time in history, as the league prepares to sit down with the players union to rejig its collective bargaining agreement in the wake of the COVID-19 crisis.

 

[NoobPie]

The writing is on the wall for both codes, negotiating their way out of a breach of contract in a very weak advertising market

• https://www.3aw.com.au/sportsday-co-host-has-no-doubt-something-is-brewing-with-the-afls-tv-rights/

Nine, which owns 3AW, last broadcast the AFL in 2006.

• The Australian

The value of the AFL's prized TV rights is tipped to fall as the sports media industry reels from the coronavirus crisis.

• PANDEMIC CRISIS SET TO SHRED NEXT AFL BROADCAST DEAL

The AFL will have to take a cut on its broadcast rights deal for the first time in history, as the league prepares to sit down with the players union to rejig its collective bargaining agreement in the wake of the COVID-19 crisis.

Yeah I think it is pretty obvious the sport pulling regular healthy metro ratings is in a much better renegotiating position ;-)

 

[Kwality]

Yeah I think it is pretty obvious the sport pulling regular healthy metro ratings is in a much better renegotiating position ;-)

9 is recapitalised, 7 is loaded with debt .... interesting to watch it play out. Ability to pay is related to the weak advertising market.

I see 7 has committments to motor racing in October, CEO James Warburton has his own money in motorsport ... interesting.

 

[Kwality]

What role will AFL.com.au play in the next media rights?
There is an interesting article in The Aus today by arguably our best financial journo on sport:

....can sports make as much money from telecasting their own matches via their digital arms or from selling the games to broadcasters? Some, such as Tennis Australia, produce their own broadcast.

It is costly but they can tailor it to any market in the world. The AFL had grand plans for its media division, before it signed its last $2.5bn broadcast deal in 2015.

NoCookies | The Australian

www.theaustralian.com.au

What NRL.com is worth to the code versus if it has any value if it were sold. Even whether or not it makes a profit. We can be sure that what is playing out publicly in the NRL is going on behind closed doors.

 

[Saucery]

Funny how foxtel is financally struggling. Back in the 2000s and 2010s, they had the upper hand to a degree. Foxtel made money by monthy subsciptions. Buy the AFL and NRL and any other popular sports to give customers the incentive to pay for it.

Not a bad Idea for getting 2 million Australians to pay $50 a month for the basic package and sports. thats 100 million a month and 1.2 billion a year. Foxtel would of made money off sports subscriptions alone.

Foxtel still have those 2 million suscribers a month, but they paid more for the sports.

As someone mentioned, channel 7s advertising revenues has dropped by 50%. So theres some of channel 7 money gone too

And Newscorp is bleeding money in Australia, even after Murdoch threw in 700m recently to help prop it up.

Rupert Murdoch gives up his bonus as News Corp loses US$1bn in three months

Huge losses driven partly by fall in valuation of Australian pay TV service Foxtel and decline in news advertising revenue

www.theguardian.com

Caro on FC mentioned a possible drop in the next TV rights deal of 15-20%, I think that's optimistic and frightening at the same time, with the league now carrying a 600m debt.

 

[Gigantor]

You'd happily accept 15% at the moment (as a cut)

 

[Kwality]

The woes of Foxtel are being quantified by both Telstra & News:

NoCookies | The Australian

www.theaustralian.com.au

The Foxtel writedown of $US931m by News – the 65 per cent owner of the subscription TV buiness – also triggered a $300m writedown by Telstra on Friday which owns the remaining Foxtel stake. Telstra said it would make the non-cash writedown in its full year results.


News Corp chief executive Robert Thomson .... foreshadowed a “fundamental reset” of sports rights in the longer term following the COVID-19 outbreak, which has had a material impact on subscribers to the company’s sports streaming service Kayo.

While Foxtel’s sports streaming service Kayo had reached 470,000 subscribers by March 22, suspensions of the NRL, AFL and US NBA season have severely impacted numbers, which had dropped to 272,000 by May.

Mr Thomson said there would need to be a “fundamental reset” in terms of the amount paid for broadcast rights for sports such as the NRL and AFL.

“There obviously needs to be a fundamental reset, the idea that things will return to normal this season is absurd.

“It’s not just the quantity of games it’s the quality of experience and that has obviously been diminished. And that reset has to apply longer term to us in Australia.”

 

[Freomaniac]

You'd happily accept 15% at the moment (as a cut)

it would save the AFL.

Saying that the 2019 Salary cap was 13 million. So take away 15 % of that equals 11 million per club.

Happy for the short term pain then stability for the next few years.

 

[Saucery]

it would save the AFL.

Saying that the 2019 Salary cap was 13 million. So take away 15 % of that equals 11 million per club.

Happy for the short term pain then stability for the next few years.

Na write down gate receipts, sponsor ships (AFL and clubland), coteries etc and the fact that Caro is spruking the AFL's ambit claim, the AFL's salary cap will come in well short of 11m per club.

Also the solvent clubs will less happy to carry the load when the TV rights evaporate. The reality is the old media institutions are having their Kodak moment and may not exist a few years from now, the world has sped up in terms of media change and it's going to be a rough ride for highly leveraged sports.