AFL seeks $1m for radio rights
Caroline Wilson
The Age
July 29, 2006
THE AFL has put a $1 million price tag on its 2007 radio rights and restructured its weekend broadcast packages in a move expected to marginalise the ABC and set up a bidding war between 3AW and sporting newcomer SEN.
The AFL's senior executive in charge of broadcasting, Ben Buckley, confirmed yesterday that the league was considering buying a stake in SEN.
The station revealed two days ago that it would bid against 3AW and Triple M for the top level of radio rights. "SEN are interested in bidding for all the packages we have on offer and we are looking at a relationship with them," Buckley said.
Triple M has already put forward an enthusiastic and impressive presentation to the AFL. Only one other commercial station in Melbourne will be included in what has been termed the "A-class package", so it is possible that AFL stalwart 3AW could miss out or be relegated.
The A-class package has been unofficially costed by the AFL at $1 million per station, a figure 3AW, which met the AFL yesterday, and Triple M have baulked at. Industry assessments yesterday placed the eventual annual cost of that coverage at between $600,000 and $800,000.
The cheaper B-class package, which 3AW would be unlikely to accept in total, would mean covering the bulk of interstate games involving Victorian teams. These are not all currently broadcast into Melbourne, a situation the AFL wants to change.
"Part of our goal is to make sure all games are covered in their entirety," Buckley said.
Of the bidding clash between 3AW and SEN, he said: "The scenario you've mentioned could be played out."
He also confirmed that the radio deal was likely to be a three-year agreement, rather than the five-year, record $780 million, deal done for television.
"The media landscape is changing," he said, "and we don't want to tie ourselves down."
The AFL, which in coming weeks is expected to announce a $50 million internet agreement with Telstra's Big Pond, has been frustrated at what it believes has been a bargain basement price for radio rights.
Key commercial stations 3AW and Triple M (owned by Southern Cross and Austereo respectively) paid an estimated $180,000 to cover AFL games this season.
The AFL is pushing for a 500 per cent increase for the rights, and wants to sell two separate packages. The A-class package would include Friday night, the best Saturday games and the 2.10pm Sunday fixture and cost $1 million a year over three years.
The B-class package, originally expected to have been taken up by the ABC and SEN, would also include Friday night, as well as the inferior Saturday games, the earlier Sunday game and the soon-to-be-introduced twilight fixture, which is proving an unpopular radio commodity.
The ABC's national sport chief, Peter Longman, said that his network had received no confirmation of the plans.
The change would mean 774 ABC was pushed out of the present system that allows it, 3AW and Triple M to alternate in covering the best games.
"Of course we'd be disappointed," Mr Longman said.
"But we would continue to cover AFL football because it's important to us and we can take it to a national audience. "
He said $1 million was "a bit out of our league".
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