$700 million TV offer from Seven-Ten bid

[mightytiges]

My understanding is once their offer is on the table that's it. They only get the one chance. But I just don't get it. If their offer is worth so much more than the 7/10 one why don't they just make a bid.

Thanks for that WP.

The other thing I don't understand is, if the figure of $135 million a year from Ch9/Fox is correct how can Ch9 justify it to its shareholders when they lose money on the footy now anyway.

From what I've heard there's a ego factor in all this in terms of hurting the opposition more. Following the logic that they'll lose more than we will type of thing . Ch 7 had the footy for around 45 years so losing the rights was a body blow to them.

As for the finals I don't think KP was too happy about that lol. Ch 10 hit the jackpot in that deal. 

[one-eyed]

AFL boss spurns networks' offer
By Caroline Wilson
The Age
December 21, 2005

CONFUSION prevailed in the AFL industry yesterday over the next broadcast rights deal, with league boss Andrew Demetriou not only rejecting but refusing to respond to the Seven and Ten networks' proposal delivered five days ago.

After the AFL Commission had talks early on Monday, several AFL directors confirmed the competition had no official offer on the table for the next round of rights when the current deal expires at the end of next season.

However, channels Seven and Ten, which antagonised the AFL when they joined forces in March to bid for the rights and retain the right to match any rival offer, had put forward an offer to the league last Friday.

Demetriou told Seven and Ten executives in a curt meeting yesterday that their offer was unacceptable. It featured a revised five-year deal with a cash value of close to $600 million and unprecedented free-to-air coverage into Sydney and Brisbane.

Demetriou has kept his cards close to his chest with the networks and has not detailed publicly the reasons for his refusal, but it is understood he remains confident a Channel Nine proposal will financially outweigh that of Seven and Ten.

Demetriou would not comment yesterday on whether Nine — which is expected to bid for the next rights with Foxtel — had put forward a proposal. Nine on its own appears capable of televising only four free-to-air games a weekend.

The AFL chief also told the consortium that despite their improved coverage into Sydney and Brisbane — and key regional areas of New South Wales and Queensland — their bid is no better in terms of the developing markets than a potential Nine proposal yet to be seen.

In October the AFL requested $135 million a year over a five-year period from channels Seven and Ten — an asking price 50 per cent higher than the current agreement. Seven and Ten's response in cash terms alone is about 30 per cent better than the current agreement.

The consortium responded by requesting a six-year deal but now appears to have accepted that the AFL will accept only five years. The league believes it can secure another massive broadcast rights increase beyond 2011.

The AFL subcommittee dealing with the broadcast rights told the networks that they would have to pay more to secure a deal.

Seven and Ten last Friday put forward an official five-year offer for all eight home-and-away games each weekend of the season — along with finals and the Brownlow Medal count — worth close to $120 million a year and at least $575 million over five years.

Independent experts, who took into account the marketing and advertising components of the deal, along with the cost of regional coverage into New South Wales and Queensland, and Channel Ten's prime-time Saturday night coverage into Sydney and Brisbane, valued the offer at more than $700 million over five years.

Seven and Ten propose to televise five free-to-air games each round with Foxtel broadcasting three but the AFL will not accept a five-game offer and has insisted on a figure for all eight games given that Foxtel has no pay-TV competitor in these negotiations.

Under the deal involving Channel Nine, Friday night coverage into Sydney and Brisbane on free-to-air television would be pushed back even later because of Nine's decision to televise back-to-back rugby league matches next season.

http://www.realfooty.theage.com.au/realfooty/articles/2005/12/20/1135032019518.html

[mightytiges]

CONFUSION prevailed in the AFL industry yesterday over the next broadcast rights deal, with league boss Andrew Demetriou not only rejecting but refusing to respond to the Seven and Ten networks' proposal delivered five days ago.

Demetriou has kept his cards close to his chest with the networks and has not detailed publicly the reasons for his refusal, but it is understood he remains confident a Channel Nine proposal will financially outweigh that of Seven and Ten.

Under the deal involving Channel Nine, Friday night coverage into Sydney and Brisbane on free-to-air television would be pushed back even later because of Nine's decision to televise back-to-back rugby league matches next season.

Yep, Andy D is looking after footy's long-term interests . Firstly not combating the new Gold Coast Titans RL team just when Aussie Rules was finally getting some decent popularity in SE QLD and now this with the proposed TV coverage or lack of it.

Poor Julz  .

[WilliamPowell]

Well by keeping his cards close to his chest at Caro calls it Andy D, seems to have shown his hand.

Channel 9 at all costs seems his policy 

Gotta say from an ethical prespective it raise a helluva lot of questions and a decidedly bad taste too boot - supposedly telling the commission they didn't have an offer when they clearly have an offer and a bloody good one too regarding FTA coverage

The only thing Aandy D seems to looking after is Channel 9's long term interests - poor form Andy very poor form 

[Razorblade]

Seems to be only worried about the money!

Really he doesn't have much say in it, as ch7 has the last rights bid!

[bluey_21]

I couldn't give a stuff who has the rights to air the footy as long as i can watch it on telly

[WilliamPowell]

Well it appears that there's been a Christmas miracle at AFL headquarters because in the space of 3 days Ch 9/Foxtel's bid has appeared and the AFL have accepted their bid

So much for no decision until mid January

Press conference going on now

7/10 have 14 days to match the bid

A disgraceful effort by the AFL - I smell a rat

[mightytiges]

7/10 have 14 days to match the bid

Agree WP. It is suss. Apparently that's 14 calendar days so great timing by Andy D with all the public holidays around Christmas and New Year's.

Apparently Nine/Foxtel are offering $780 million over 5 years.

Rumour on SEN has SBS joining the deal to show games live FTA on Friday nights into NSW and QLD.

[mightytiges]

Apologies for the double post:

PBL have won the rights on behalf of Nine for $780 million over 5 years ($156 million a year)

They can on-sell up to 4 games per round to FTA or pay TV.

Andy D and Evans said there'll be "enhanced coverage in the northern states" but no details will be revealed until the final winner is declared.

Seven/Ten have 14 calender days to match the offer.

[WilliamPowell]

Still the One, for now
4:48:43 PM Fri 23 December, 2005
Luke Buttigieg and Jason Phelan
Sportal for afl.com.au

The AFL has announced that it has accepted a five-year, $780 million TV broadcast rights offer from PBL on behalf of the Channel Nine network to telecast the game from 2007-2011.

After what both AFL Commission chairman Ron Evans and chief executive Andrew Demetriou both described as a 'long and thorough process', the league revealed that it has agreed terms with PBL to cover all eight games every week from 2007.

"Like everyone else at the AFL, I'm thrilled with today's announcement, but I'd just like to reinforce … that Channel Seven and Channel 10 still have the right to respond to the offer that we've accepted today," Demetriou said from Telstra Dome on Friday.

"We are delighted with the financial result. This income will greatly assist the game to grow nationally at all levels.

"We believe this is a great result for football and we hope that view will be shared by all supporters of Australia's indigenous game."

There was more to the agreement than just the dollar value, however, with market reach and exposure given equal weighting in the decision-making process.

"We have endeavoured in accepting this offer to obviously optimise our financial return, but have been absolutely conscious of the priority given to the reach and the coverage in our developing markets and, of course, the protection in South Australia and Western Australia of the free-to-air component," Demtriou continued.

Evans echoed Demetriou's sentiments.

"We have collectively worked closely with all interested parties to ensure everyone fully understands the AFL's objective of an optimal financial package combined with coverage of the game nationally," Evans said.

"The position of the AFL as Australia's premier sporting competition, we believe, has been reinforced by this decision."

As part of the arrangement, the Nine Network will then have the right to sublicense the rights to up to four matches per week to another broadcaster, either free-to-air or pay. It is expected that the Fox Footy Channel will receive the bulk of these, although it is believed that Nine is still in discussions with other free-to-air broadcasters.

But both Evans and Demetriou emphasised several times the fact that the deal is not yet over the line, rather the Channel Seven and Channel 10 alliance now has 14 days - until January 6 - to respond to the offer.

Five years ago Channel Seven paid for the first and last rights, meaning channels Seven and Ten can now claim the rights if they are willing to match PBL's offer both financially and in terms of coverage. Seven was the AFL's broadcaster between 1957 and 2001, with the exception of one year.

The 16 AFL clubs have been made aware of the broad implications of the deal, but final details of the complete package will not be made public until Channel Seven reaches its decision.

The AFL also confirmed that Friday's announcement did not include narrowband, broadband, 3G and other new media rights, which also come up for renewal at the end of 2006.

http://afl.com.au/default.asp?pg=news&spg=display&articleid=241728

[WilliamPowell]

Andrew Demetriou's remarks
4:44:08 PM Fri 23 December, 2005
Andrew Demetriou
Australian Football League
Obviously, like everyone else at the AFL, I am thrilled with today’s announcement, but I would just reinforce Ron’s comments that the Seven and Ten Networks still have the right to respond to the offer that we have accepted today.

As Ron mentioned, getting the best combination of audience coverage and financial outcome was our main objective. While the final details of the coverage will only be known when we have received our response from the 7 and 10 Networks, we know that nationally, coverage will be better than we have currently, especially in our key growth markets.

Obviously the financial offer is also important. It may surprise some of you to know that since the last broadcasting rights were negotiated, the number of participants nationally has grown by another 100,000, with 60,000 more children in Auskick alone.

This means there is also growth in the demand for grounds, club rooms, training facilities, equipment, coaching materials, volunteers and uniforms.
 

In addition, the costs of running the AFL competition have also grown, while the launch of initiatives like the talent academies in Sydney and Brisbane and the AFL apprenticeship scheme also place financial demands on the AFL.

As such, we are very pleased with the financial result. This income will greatly assist the game to grow nationally and at all levels.

One of the other benefits of the new arrangements is that the increased advertising allowance clearly improves our ability to market the game. The AFL’s ability to stage and promote initiatives like community camps, themed rounds, the NAB Cup and the annual Finals series is enhanced by the offer we have accepted today.

This has been a tough process.

As Ron mentioned, we have been working on today’s announcement for over two years, and we have been negotiating with highly professional, commercially astute broadcasters.

We don’t expect anyone to feel sorry for us, because that is the job that we have taken on, but we also believe that we have been entrusted look after the interests of our great game.

We take that responsibility seriously, and that has been our driving motivation throughout this negotiation.

We believe that this is a great result for football, and we hope that view will be shared by all supporters of Australia’s indigenous game.


http://afl.com.au/default.asp?pg=news&spg=display&articleid=241723

[WilliamPowell]

Obviously, like everyone else at the AFL, I am thrilled with today’s announcement, but I would just reinforce Ron’s comments that the Seven and Ten Networks still have the right to respond to the offer that we have accepted today.

I am sure you are your preferred Broadcaster since day dot

As Ron mentioned, getting the best combination of audience coverage and financial outcome was our main objective. While the final details of the coverage will only be known when we have received our response from the 7 and 10 Networks, we know that nationally, coverage will be better than we have currently, especially in our key growth markets.

How you can make that statement when you wont tell anyone what the offer is - proves that this will more than likley be a 4/4 split.

Obviously the financial offer is also important. It may surprise some of you to know that since the last broadcasting rights were negotiated, the number of participants nationally has grown by another 100,000, with 60,000 more children in Auskick alone.

The most important

This has been a tough process.

We don’t expect anyone to feel sorry for us, because that is the job that we have taken on, but we also believe that we have been entrusted look after the interests of our great game.

I feel many things but sorry for you is not one of them - disgust is the nicest thing I can say at the moment

We take that responsibility seriously, and that has been our driving motivation throughout this negotiation.

We believe that this is a great result for football, and we hope that view will be shared by all supporters of Australia’s indigenous game.

Well I am sorry to disappoint you but guess what? From what I've read on bigfooty and heard on talkback radio this afternoon and this evening people are not head over heels with this announcement.

I suppose at least this time you had the sense to not make another - "no-one will be worse off under this agreement" speech because we all know that would be classed as crap

Can someone explain this to me - last time when they made the announcement (2000) the AFL hod no hesitation in telling the world what the 9/10/foxtel bid was made up of despite ch 7 having the last right to bid then - why wont they tell us this time? The crap they are spinning about they can't because of the first and last right to bid clause is just that crap. 

As I said I smell a rat and it will be the "average punter" who will suffer especially those who cannot afford paytv

[one-eyed]

$780m AFL deal the richest in Aussie sport
Damian Barrett
Herald-Sun
24dec05

THE AFL yesterday secured the richest deal in Australian sports history when it accepted a $780 million five-year offer from Channel 9 to broadcast matches beyond 2006.
 
Acceptance of the Nine offer has left a consortium containing Channels 7 and 10 until January 5 to match it or be left without football in 2007-11.

Nine, in partnership with Foxtel and News Limited, publisher of the Herald Sun, got AFL commission approval yesterday.

If its bid remains the preferred AFL option, it will broadcast four matches each week, leaving up to four games a week for Foxtel.

It is believed between $80 million and $100 million of the $780 million deal is contra.

AFL chairman Ron Evans said the proposed contract with Nine's parent company, PBL, was 50 per cent higher than the current value.

Nine, Ten and Foxtel have contributed $500 million (about $100m contra) for the 2002-06 broadcast rights.

"There is a mixture of cash and kind," Mr Evans said. "Be assured the cash is a significant proportion of the $780 million."

Nine convinced the AFL to accept its offer when it matched the dollars with a promotional package into blackspots in the northern states.

Chief executive Andrew Demetriou said details of the package would not be revealed until after the outcome of the Seven-Ten last-rights option.

"What I can say is in accepting this offer we have endeavoured to obviously optimise our financial return, but we have been absolutely conscious of the priority given to the reach and coverage in our developing markets, and of protection in SA and WA of the free-to-air component," he said.

"There will be enhanced coverage, without doubt, in the northern markets in NSW and Queensland, both in the capital cities and in regional areas, but we cannot go into specifics."

It is believed Foxtel will be used regularly to broadcast matches live or near live into the northern states, with Nine to also broadcast the matches once its commitments to rugby league have been completed.

There is a possibility of Nine selling Saturday matches to Ten and striking a deal with SBS.

SBS sports head Les Murray said last night Nine had approached his network, but that it was highly unlikely a deal would be struck.

Seven and Ten last night said they had always expected the broadcast rights talks to reach the last-rights stage.

Seven director of corporate development Simon Francis said his network would spend today analysing the Nine bid.

"We submitted a very strong financial offer and we also outlined a far-reaching strategy for increasing the coverage of AFL in the northern markets," he said.

Manoeuvring for the AFL's rights became heated in March when Ten formed an alliance with Seven.

The AFL was angered by the deal as it felt it was struck with a view to keeping the price down.

The Herald Sun revealed in July that Nine had teamed with Foxtel, and last week revealed the Nine bid was $15 million a year higher than its rival.

Mr Demetriou said Seven and Ten had 14 calendar days, which takes in Christmas, Boxing Day and New Year public holidays, to submit a new bid, and were required to match all components offered by Nine.

"The process is not complete. Seven and Ten have purchased first and last rights, we respect that, and there is an obligation to deliver them the offer and they will have to match the offer as we present it to them," he said.

"They have paid for the ability to match and now it is up to them to take away this offer and discuss the pros and cons."

Seven paid the AFL $20 million in 1997 for the contractual rights to bid first and last in the broadcast rights negotiations.

http://www.heraldsun.news.com.au/common/story_page/0,5478,17654347%255E661,00.html

[mightytiges]

How you can make that statement when you wont tell anyone what the offer is - proves that this will more than likley be a 4/4 split.

It stands out like anything that it'll be most likely a 4/4 split. It's what they've been saying the Nine/Foxtel offer was all along. Foxtel will want a better deal than they have now as I believe they are putting in significantly more $$$ this time around. SBS don't appear to be interested and PBL don't have to ask SBS even if they choose that option until after the rights are decided. Nine may also tell Ch 10 to shove off for siding with Seven so Nine get all the finals, GF, brownlow, etc to themselves. I also agree with those on BF that night GFs will be the norm by 2011. This is all about generating the maximum $$$.

The TV schedule could be something similar to what's posted on bomberblitz:

VICTORIA

Friday night - Nine (1 hr delay @ 8:30pm)
Saturday afternoon - Fox Footy (Live @ 2pm)
Saturday night - Fox Footy (Live @ 7pm)
Saturday night - Nine (1/2 hr delay @ 7.30pm)
Sunday afternoon - Nine (Live @ 1pm)
Sunday afternoon - Fox Footy (Live @ 2pm)
Sunday afternoon (Melbourne based match) - Nine (2 hr delay @ 4pm)
Sunday evening - Fox Footy (Live @ 5pm)

NSW/QLD

Friday night - Fox Footy (Live @ 7:30pm); Nine (Delayed until after NRL double headers @ 1am)
Saturday afternoon - Fox Footy (Live @ 2pm)
Saturday night - Fox Footy (Live @ 7pm)
Saturday night - Nine (Delayed until after NRL)
Sunday afternoon - Nine (Live @ 1pm); NRL to be shown at 4pm.
Sunday afternoon - Fox Footy (Live @ 2pm)
Sunday afternoon (Melbourne based match) - Nine (Delayed Late Night)
Sunday evening - Fox Footy (Live @ 5pm)

Can someone explain this to me - last time when they made the announcement (2000) the AFL hod no hesitation in telling the world what the 9/10/foxtel bid was made up of despite ch 7 having the last right to bid then - why wont they tell us this time? The crap they are spinning about they can't because of the first and last right to bid clause is just that crap. 

They'll claim contract confidentiality of the tenders but it's obvious Andy D wants Nine/Foxtel to win the rights. I mean the AFL accepted their offer in the afternoon on the last business day prior to the Christmas/New Year's break knowing that the 14 calendar days Seven/Ten have really is only about seven business days at best and with many its staff on holidays.

It appears that's it. 5 more years of Collingwood getting the best prime time spots with Eddie possibly becoming head of Ch.9 in Melbourne as well as president of the Pies   .

As I said I smell a rat and it will be the "average punter" who will suffer especially those who cannot afford paytv

Looks like we're heading the way of the US where professional sport is mainly shown on cable/pay tv  .

[Razorblade]

Andy D is all about the money, screw whats best for the supporters! 

Saying that though ive got pay tv (well at home i do, im moving out end of next month for a year or so) so either way i won't be affected personally, especially since we have hardly any sunday games in 2006 which might possibly air in the "death zone" aka Sunday avo at 4pm where you only see 1/2 the match, which is cut up my about 1,000 stuffing ads!

What will happen to all of Channel 10's commentators?

No way Tim Lane goes back to 9, and Fox Footy need a proven commentator.

I cringe at the thought of Walls and Ayres commentating at the sametime though!