Broadcast deal gets final polish Caroline Wilson
April 25, 2011A RESOLUTION to the AFL's projected $1 billion-plus broadcast rights agreement is now just days away, with the Seven Network reportedly lifting its bidding price over the Easter break by $25 million over the five-year contract.
League bosses Mike Fitzpatrick and Andrew Demetriou look likely to announce the historic new deal by Thursday, in a landmark agreement which will reap the AFL and its clubs at least an estimated $925 million from Foxtel and Seven alone, even before the Telstra online contract and marketing and advertising additives are taken into account.
Although Seven will offer Channel Ten two of its four contracted free-to-air games, there remains genuine doubt now as to whether Ten's new boss Lachlan Murdoch and his board will be prepared to pay its share of what now amounts to free-to-air rights of $425 million over five years, with an additional $50 million in contra.
As the AFL, Foxtel, Seven and Telstra make the finishing touches to shape football fans' viewing habits from 2012 until 2016 both Seven and Ten have denied internal conflicts have led to Ten's decision to remove itself from negotiations, with Ten also casting doubt on a reported interest in bidding alone for the free-to-air NRL rights.
And in other developments in recent days:
■ Foxtel has refused to lift its bid from $500 million plus a marketing component and will televise every AFL game except the grand final live, with five exclusive home-and-away games each week.
■ The AFL has tentatively agreed to push Friday night games back by 10 minutes in return for live coverage on both Seven and Foxtel.
■ It has emerged that Network Ten remains in contact with Seven but has repeatedly indicated an unwillingness to pay its scaled share of the free-to-air rights, which would have seen Ten televise two of the five grand finals from 2012 and two Anzac Day clashes.
■ Seven has told the AFL it was prepared to televise all four free-to-air games available each week generally scheduled on Friday night, Saturday afternoon, Saturday night and Sunday afternoon should it fail to reach an agreement with Ten or Channel Nine.
Foxtel, as previously reported by The Age, has proved successful in its push for all nine home-and-away games live each week, four of which will be simulcast with free-to-air showing identical advertisements. Foxtel, for the first time, will also televise all finals except the grand final live and simulcast also.
Telstra's bid for the AFL's online rights has been placed by industry experts at $100 million over five years, with IPTV and extended mobile telephone coverage. Should that negotiation prove successful, Fitzpatrick and Demetriou's broadcast package would earn the league an Australian sporting rights record payday of $1.25 billion, even before advertising and marketing are taken into account.
Not only will the AFL's investment into new markets, the Gold Coast and western Sydney, have won a massive vote of market support but the league's existing clubs would have their immediate to medium-term futures guaranteed. The rights deal will also prove a major fillip for AFL players who are pushing for 25 per cent of the game's total revenue, along with a significantly increased and restructured retirement fund.
http://www.theage.com.au/afl/afl-news/broadcast-deal-gets-final-polish-20110424-1dt11.html#ixzz1KSSqJEdo
