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

Aug 14, 2011
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at current rates

7 will make an offer the AFL can not refuse, less $s, 7 is loaded with debt.
The free-to-air television and publishing company, which was struggling before the coronavirus pandemic with more than $541m of debt on its books, warned on Tuesday that visibility of future ad bookings was “now insufficient to provide meaningful earnings guidance for the remainder” of the 2020 financial year.

 
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big_e

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7 will make an offer the AFL can not refuse, less $s, 7 is loaded with debt.
The free-to-air television and publishing company, which was struggling before the coronavirus pandemic with more than $541m of debt on its books, warned on Tuesday that visibility of future ad bookings was “now insufficient to provide meaningful earnings guidance for the remainder” of the 2020 financial year.

Any company that thinks it can issue meaningful projections right now is lying.
 
Aug 14, 2011
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The AFL and NRL are likely to be offered extended but reduced sports rights deals in the wash-up of the coronavirus crisis, which will likely never see the sports return to a high watermark of previous multi-billion-dollar broadcast deals.


The AFL was only two months ago looking to extend its $2.5bn sports broadcasting deal with Seven West Media and Foxtel, which expires in 2022, but is now staring down the barrel of having to negotiate a longer and less lucrative rights deal. The code has about $100m of broadcast revenue coming in each quarter from its deal with Seven West Media and Foxtel, which will now not be paid as a result of the league shutting down.
 

BringBackTorps

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Claims the NRL Clubs will be linking up directly with the Nine Network; & the clubs will be "...holding sway, who have no use for expansion or international competition. The clubs & at least one network have formed an unholy alliance to topple a teetering administration at Head office. This could get ugly".

 
Aug 14, 2011
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Claims the NRL Clubs will be linking up directly with the Nine Network; & the clubs will be "...holding sway, who have no use for expansion or international competition. The clubs & at least one network have formed an unholy alliance to topple a teetering administration at Head office. This could get ugly".


At some point reality will kick in amongst the players ..... maybe??!! ..... RA hasnt.
The biggest asset in League is Origin not the club comp.

There isnt a Kerry Packer in Aus TV these days imho to drive any of these discussions.
 
You can buy all of Seven West Media ie 7 Network and more, for just over $100m. I don't think they are in a hurry to pay more for the footy TV rights. No Footy, no Olympics, maybe no Cricket in 2020.

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Seven West Media Limited is an ASX-listed media company[2] and is Australia's largest diversified media business, formed by the acquisition by West Australian Newspapers Holdings Limited (WAN) of the Seven Media Group. It has a leading presence in broadcast television, radio, newspaper publishing, magazine publishing and online. Seven Group Holdings Ltd (SGH), a company controlled by Australian Capital Equity, is Seven West Media's largest shareholder with 33.2% of Seven West Media shares and $250m Seven West Media convertible preference shares (CPS).

Seven West Media owns the Seven Network, Australia's largest commercial television network (by audience and advertising market share) and Pacific Magazines, publisher of leading lifestyle brands including Marie Claire, Better Homes and Gardens and New Idea. It also owns The West Australian and Kalgoorlie Miner (the two daily newspapers in Western Australia)[3] and The Sunday Times (that state's sole Sunday paper), acquired in 2016,[4] and 21 Western Australian regional newspapers, including Community Newspaper Group in a joint venture with News Corp Australia, and[4] nine regional radio licences.

Stokes via his private company owns 68% of ASX listed Seven Group Holdings


Seven Group Holdings Limited (SGH, formerly Seven Network Limited) is an Australian diversified operating and investment group in the media, mining and construction industries

 

BringBackTorps

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"The AFL is on the verge of extending its current TV rights deal for 2 years...The AFL receives $418m per year and, according to Wilson, the same agreement (@ $418m pa) will now continue to 2024".

"It will be announced in months, possibly 1 month" Wilson said.

 
Aug 14, 2011
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Ch. 9 WWOS C. Wilson 16.3

"The AFL is on the verge of extending its current TV rights deal for 2 years...The AFL receives $418m per year and, according to Wilson, the same agreement (@ $418m pa) will now continue to 2024".

"It will be announced in months, possibly 1 month" Wilson said.


the Seven West Media CEO knows time is ticking on $683m of debt ....

How much of a haircut will the AFL take or will they risk not doing a deal?
 

BringBackTorps

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The Age C. Wilson 9.4

"The AFL & Ch.7 look set to reinforce...a potential two-year extension of the game's media rights...(in) a new marginally reduced contract that would run until 2024".

An historic triumph for the Australian game.




Thank you, Mr Swan. Now a GWS fan (Former name Jeff Sarau, played for S Kilda in the late 70's)

 
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Aug 14, 2011
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.... the broadcasters are playing hard ball, insisting the games, should they eventuate, will be worth less due to the compromised nature of the season.
Given the certainty of lessened broadcast revenue in 2020 it is understood Seven is open to maintaining reduced, four-times-a-year instalments, easing the short-term pain for the competition by averaging the broadcast rights money over a two-year period or even longer.

Having reduced AFL staff numbers by 80 per cent in the short term, overseen similar cost cutting across the 18 clubs, negotiated a reduced pay deal with the players for 2020 and secured a $600 million line of credit from NAB and ANZ, McLachlan must now complete the crucial media component of the puzzle in the hope that the competition can complete the remaining 144 home-and-away season games.


AFL, Seven working to extend broadcast deal
AFL, Seven and Fox Sports explore a marginally reduced contract that would run until 2024.
www.theage.com.au
www.theage.com.au
 

Our Game

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.... the broadcasters are playing hard ball, insisting the games, should they eventuate, will be worth less due to the compromised nature of the season.
Given the certainty of lessened broadcast revenue in 2020 it is understood Seven is open to maintaining reduced, four-times-a-year instalments, easing the short-term pain for the competition by averaging the broadcast rights money over a two-year period or even longer.

Having reduced AFL staff numbers by 80 per cent in the short term, overseen similar cost cutting across the 18 clubs, negotiated a reduced pay deal with the players for 2020 and secured a $600 million line of credit from NAB and ANZ, McLachlan must now complete the crucial media component of the puzzle in the hope that the competition can complete the remaining 144 home-and-away season games.


AFL, Seven working to extend broadcast deal
AFL, Seven and Fox Sports explore a marginally reduced contract that would run until 2024.
www.theage.com.au
www.theage.com.au

With the reduced costs across the board that will most likely go on for a few years after footy returns the AFL can afford to take a small cut to TV revenues.
 
Aug 14, 2011
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With the reduced costs across the board that will most likely go on for a few years after footy returns the AFL can afford to take a small cut to TV revenues.

Remember the new expenditure on loan repayment & interest.
$600 mil over 20 years is $30mil p.a, $1.5 mil per club plus interest.

Make it a 30 year term, its a mere $1mil + per club.

IMF expecting worst downturn since Great Depression
 

NoobPie

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I think one thing is for certain, and any one with basic financial literacy and (and a clue in general) can see is that the AFL will come out of this in easily the best health in Australian sport
 
Aug 14, 2011
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Someone is in the wings over the NRL rights (if it is to believed in the current battle over the TV coverage ):

' Those behind the pitch believe the quality of the product will be every bit as good as current telecasts. The initiative would also give the NRL creative and editorial control and could open the door for other sports to use the services. It also opens up the prospect of rugby league being on-sold to a mix of traditional broadcasters, including free-to-air and pay TV, as well as Netflix, Google, Optus and Amazon. Those platforms could also potentially be involved in simulcast arrangements with traditional partners.
The NRL has already committed $150 million towards its digital strategy, including a huge investment into nrl.com. That gives the game the option of providing more of its own exclusive content directly to subscribers or on-selling games to a variety of providers.'
 

Our Game

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the Seven West Media CEO knows time is ticking on $683m of debt ....

How much of a haircut will the AFL take or will they risk not doing a deal?
Yep Seven in in a load of trouble and income from advertising is going to be way down (maybe 50% is being predicted) for the rest of this year at least
 
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Remember the new expenditure on loan repayment & interest.
$600 mil over 20 years is $30mil p.a, $1.5 mil per club plus interest.

Make it a 30 year term, its a mere $1mil + per club.

IMF expecting worst downturn since Great Depression
so 600 million over 20 years?

30 million a year?

I reckon the AFL will pay it quicker than that.
 
Aug 14, 2011
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Nah not even that. the AFL tv rights money incresases every 5-6 years

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.”

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.
 
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