Next AFL TV rights deal [merged]

[one-eyed]

According to Caro.

Extended to 2023-24 with Seven & Fox.

[Diocletian]

A badly needed cash injection...bet it was unders...

[one-eyed]

VIDEO: https://wwos.nine.com.au/videos/afl/afl-set-for-tv-rights-deal-extension/ck7uh395w00070gmnaonrpxa7

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AFL set to extend TV deal amid COVID pandemic

By Chris De Silva
Nine WWOS
17 March 2020

The AFL is on the verge of extending its current TV rights deal for two years, despite being set to embark on a shortened home and away season.

According to veteran AFL reporter Caroline Wilson, the league has moved quickly to agree to a two-year extension on the current $2.5 billion deal struck back in 2017 amid the current state of uncertainty around the AFL brought about by the COVID-19 pandemic.

Under the current deal which was set to expire at the end of the 2022 season, the AFL receives $418 million per year, and according to Wilson, the same agreement will now continue through 2024.

"We know that Channel Seven and Fox Footy will pay less money for the rights this year, 15-20 percent would be my guess," Wilson told Footy Classified.

"Behind the scenes, the AFL is on the verge of announcing a two-year extension on the broadcast rights deal that currently runs until 2022.

"My belief is that it will happen, it will be announced within months, potentially one month. The current media rights deal will remain largely unchanged until 2024.

"The deal was on the verge of being done in the first half of this season. Clearly things are changing by the day, but talking to all parties, no one has denied to me that it won't go ahead."

The extension stunned Wilson's Footy Classified co-host Craig Hutchinson, who questioned the timing of such an agreement.

"I'm shocked at that," Hutchinson said.

"In these circumstances ... I don't think it's the time for those types of deals for anybody.

"If what you're saying is true, it's Gil's finest hour and his best ever deal."

https://wwos.nine.com.au/afl/league-set-for-tv-broadcast-deal-extension-despite-shortened-season/605c74fd-6de4-4ca1-95a7-14a74f251bc9

[WilliamPowell]

A badly needed cash injection...bet it was unders...

Next TV deal was never going to be more than the current one as both Ch7 and Foxtel are making the mega bucks anymore

Smart move if true. I  the current climate looking in a guaranteed number for another 2 years is very prudent

[one-eyed]

Don’t be surprised to see Channel 9 and the AFL start chatting about the league’s next media deal, reports Caroline Wilson.
 
Caro told Rowey & Bicks on the FIVEaa sports show:

     
    “I wouldn’t be surprised if we don’t hear about Channel 9 just entering the conversation with the AFL in the next few weeks.
     
    “Gillon McLachlan needs to create some competitive tension. I’m surprised he hasn’t already spoken with Channel 9. I’m not sure whether the parties have spoken in the last few days but my understanding before that is that they had not spoken. We know that Channel 9 loved having Friday night football…
     
    “Channel 7 -- their financial situation is a disaster -- but they’re still determined to extend their media agreement with the AFL. They want to cheapen it but extend it over an extra two years…
     
    “I know that Gillon McLachlan loves a bit of tension and loves competition so I don’t think that one’s over yet, but I think we’ll have a new broadcast deal this year absolutely.”

https://www.fiveaa.com.au/sport/another-broadcaster-tipped-enter-conversation-about-afl-media-deal

[one-eyed]

Sportsday co-host Sam McClure says he’s got “no doubt” Nine Entertainment will try and make a play for the AFL when the next broadcast rights deal comes up.

It comes after Nine boss Hugh Marks said on Tuesday it was “not a given” the NRL would be part of the network’s future.

“There is no doubt in my mind that part of Nine’s anger with the NRL and (them) trying to get out of as much money as they can is looking towards the end of this deal and if they can swap codes, from the NRL to the AFL,” Sam McClure said.

The AFL’s current deal expires in 2022.

McClure said it was worth noting that AFL boss Gillon McLachlan was traditionally “very loyal” when it came to broadcast deals and would likely given Seven every chance of retaining the rights.

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

[one-eyed]

New AFL TV deal announcement looming: Caroline Wilson

The AFL, Fox Footy and Channel Seven could announce a new TV deal by the time the 2020 season resumes, according to Caroline Wilson.

Speaking on Channel Nine’s Footy Classified, Wilson says negotiations over a two-year broadcast rights extension are progressing well with the current $2.5 billion deal set to expire at the end of 2022.

The AFL’s current TV deal is worth approximately $418 million per season.

“A major piece of the return to play puzzle is the media negotiation the AFL is doing at the moment with Fox Footy and Channel Seven,” Wilson said.

“I’m still convinced that there’s a two-year extension coming. I would not be surprised if we don’t get news of something this week.

“The negotiation is going on and it’s going well.

"I’m not saying it’s going to be this week, but my view is it could and certainly by the time the players return to play in June, I think there will be a new media agreement.”

https://www.sen.com.au/news/2020/05/12/new-afl-tv-deal-announcement-looming-wilson/

[one-eyed]

AFL stands to lose at least $104 million of TV rights cash in revised deal.

https://www.heraldsun.com.au/sport/afl/more-news/afl-stands-to-lose-more-than-100-million-in-tv-rights-cash-in-revised-deal/news-story/cb2943816437cfd68927d7a747e8f0d0

Negotiations between the league and its broadcast partners over a reduced arrangement for the 2020 season are continuing. But industry figures say five fewer rounds and shortened games will slice a minimum of 25 per cent off this year’s contracts. The league pockets an average of $417m a year in TV rights as part of its bumper six-year, $2.5 billion deal with Channel 7, Foxtel and Telstra that expires at the end of 2022.

A more savage 50 per cent reduction in broadcast fees this year would equate to lost revenues of $208.5m. The revised deal for 2020 is expected to fall within the 50-75 per cent range of the original agreement.

Source: The Australian

[one-eyed]

AFL to resist push for rights deal cut after Nine, Foxtel get NRL discount

Zoe Samios
The Age
1 June 2020

AFL boss Gillon McLachlan is expected to drive a harder bargain with the code's commercial broadcasters Seven West Media and Foxtel after its rival the NRL accepted a discount in its television rights extension last week.

Under a revised NRL deal announced last Thursday, Nine Entertainment Co reduced the price of its existing TV contract and expects to save about $27.5 million in financial years 2021 and 2022. The television, publishing and digital company is expecting to save between $90 million and $100 million over the remaining three years of its contract, a reduction of between 25 and 28 per cent, according to industry sources. Pay-TV operator Foxtel also reduced the cost of its deal.

The Kerry Stokes-controlled Seven, which has been in discussions with the AFL about two-year extension on its existing deal, is looking to secure a similar reduction in costs to what Nine (owner of this masthead) received under its revised NRL contract. Pay TV operator Foxtel, which extended its contract with the NRL by five years, is also looking at a two to three year extension for the AFL.

But both media companies are expecting pushback from the AFL which believes NRL executive chairman Peter V'landys could have extracted more money from Nine and Foxtel. Media industry sources familiar with the AFL's thinking said its key executives believe the NRL could have driven a harder bargain.

The terms of Foxtel's deal with the NRL have not been disclosed. But Foxtel did decide to not make its digital rights available on mobile beyond 2022, meaning the sport may no longer be available on Telstra's Live Pass. Foxtel is part owned by Telstra and Rupert Murdoch's News Corporation.

"We are... disappointed to learn the NRL through their agreement with Foxtel has decided not to make those digital rights on mobile available beyond 2022," a Telstra spokesman said. "We have not been a party to those discussions and will obviously need to engage with the NRL to understand what the implications are for our partnership in the long term."

The NRL and its broadcasters have tried to limit the amount of information about their new deal to keep the AFL and Seven in the dark. The AFL's existing $2.5 billion deal also expires in 2022. Foxtel is contributing $1.3 billion of the total, while Seven West Media's contribution is $840 million in cash plus $60 million in contra.

The AFL's return will boost Seven's ratings and strengthen Foxtel's subscriber proposition. But both media companies believe the games have lost value, in part, due to the absence of crowds and reduced lengths of games. For television broadcasters sport can be seen as a way to reach mass audiences, which attracts advertisers. But in recent years media executives have publicly disputed the amount they pay for sport, arguing it is a loss-making exercise as the production costs that they incur in addition to the fees they pay are not made up for in advertising dollars.

Media companies like Foxtel and Seven, which were already challenged before the coronavirus pandemic, are under increased financial pressure due to significant reductions in advertising spending caused by factors relating to the crisis.

Morningstar analyst Brian Han in April said that Seven's balance sheet had been compromised by the coronavirus to the extent that it was "incorporating the probability of there being zero value in the equity". The company has since sold its magazine business for $40 million, property in Western Australia, and is also looking to sell off assets including parts of its Seven Studios business.

Foxtel has cut almost 300 jobs in the last few months due to coronavirus related factors and has already spent large amounts of money on securing a multi-year deal with HBO, worth between $100 million and $200 million annually, the launch of entertainment service Binge and the NRL extension.

But the suspension of sport has also put pressure on codes like the AFL, which has had to reduce staff numbers and recently secured new credit facilities with its banks. Unlike third tier sports such as the rugby union or motorsports, the AFL deal is a way to shore up subscriber numbers and advertiser interest.

"You can't play around the edges on the AFL and the NRL", one industry expert said.

The competition restarts on June 11, but sources said there is no immediate rush on Foxtel's end to lock in a revised deal, given paid the second instalment in advance. Seven, Foxtel and the AFL declined to comment.

https://www.smh.com.au/business/companies/afl-to-resist-push-for-rights-deal-cut-after-nine-foxtel-get-nrl-discount-20200531-p54y4c.html?js-chunk-not-found-refresh=true

[one-eyed]

AFL close to extending TV deal with Seven as Foxtel holds out for discount

By Zoe Samios and Jake Niall
The Age
June 5, 2020

The AFL is on the brink of securing a two-year extension of its television rights deal with Seven West Media at a reduced price but pay TV operator Foxtel is holding out for an even bigger discount.

Multiple media industry sources who requested anonymity because the negotiations are confidential told The Age that Seven is seeking a cost reduction on its current deal in exchange for a two year extension that would give the AFL more financial certainty in a weakening economy.

Foxtel, Seven and Telstra secured a $2.5 billion six year deal with the AFL in 2015 that runs until 2022. Seven's two year extension would take its deal with the AFL out to 2024.

Seven, which is controlled by billionaire Kerry Stokes, is aiming to save between $30 million and $40 million on its AFL rights bill this year based on a 22 to 23 per cent reduction in games played this season, sources said.

A pro-rata payment based on an 153-game season along with finals, previously reported by The Age, is at the foundation of the re-negotiation but sources also indicated Seven was also looking to suspend the three per cent annual inflation rate included in the deal.

Seven was expected to pay about $150 million to the AFL this year under its existing deal.

Both Seven and Foxtel have been facing significant financial challenges in a tough environment for media companies that predates the coronavirus pandemic. The broadcasters believe AFL games this year have lost significant value due to the absence of crowds and reduced lengths of games, but AFL chief executive Gillon McLachlan is still expected to drive a hard bargain in the negotiations.

In an indication of how tightly held the negotiations have been, Hawthorn president Jeff Kennett, a member of the AFL's 'war cabinet' during the COVID-19 pandemic, said he had "no idea" about the situation. "I have no idea. We haven't been taken into the AFL's confidence," Kennett said.

Seven and Foxtel declined to comment.

Seven, which booked a $66 million half-year loss in in February, has net debt of $541.5 million and chief executive James Warburton has been looking to slash costs across the business.

The AFL currently costs Seven about $20 million to produce annually, but that figure would be reduced in the interim due to talent being unable to fly interstate and reduced staff on site during matches.

Foxtel, which is controlled by Rupert Murdoch's News Corp, has also been battling subscriber losses amid fierce competition from streaming services. News Corp wrote down the value of the business by $1.3 billion in May.

The pay TV provider is holding out for an even larger reduction on its AFL rights costs than Seven to account for the loss of games and subscriptions to its set top box and sports streaming service, Kayo.

Foxtel, which contributed about $1.3 billion to the AFL deal in 2015, now believes it overpaid, sources said.

The company has stood down more than 200 staff and axed more than 300 jobs in the last few months due to the suspension of sport and large falls in spending from advertisers due to COVID-19.

In recent years media executives have publicly disputed the large amounts they have paid for sport, which in many cases acts as a loss leader for other programming. They argue production costs they incur in addition to rights fees cannot be recouped up in advertising dollars.

https://www.theage.com.au/sport/afl/afl-close-to-extending-tv-deal-with-seven-as-foxtel-holds-out-for-discount-20200604-p54znm.html

[one-eyed]

Tom Browne Says The AFL’s New TV Deal Could Be Done As Soon As Tonight

MMM
11 June 2020

Hot Breakfast chief footy reporter Tom Browne says that the AFL’s new TV deal could be announced before the Collingwood v Richmond game tonight.

“There’s real momentum this morning on a new TV deal with the free to air network 7 and Foxtel,” Browne said.

“I think there’s cautious optimism at the AFL level that that deal could be announced ahead of tonight’s game… talks have been ongoing overnight and they’ll continue this morning.”

Browne said it would be an extension on the current deal in place.

“I think it would be an adjustment to the existing deal, and an extension of two or three years,” he said.

He said that the TV deal will lift some roadblocks for other issues to be worked through.

“[It] will pave the way for the AFL to be able to talk to the players about their pay,” he said.

“Also lock away the club budgets for the next year, and also talk about the football deparment caps.

“So a lot of things flow from getting this TV deal which Gil’s been working on in place.”

https://www.triplem.com.au/story/tom-browne-says-the-afl-s-new-tv-deal-could-be-done-as-soon-as-tonight-162376

[mightytiges]

Bruce said just the TV deal with Seven has been extended until 2024.

[one-eyed]

AFL secures revised broadcast deal with Seven and Foxtel

Zoe Samios, Jake Niall
The Age
12 June 2020

The AFL has secured a revised broadcast rights deal with its television partners and sealed a two-year extension with Seven West Media just moments ahead of the return of this year's season.

Seven and pay TV operator Foxtel were finalising the deal in the hours leading up to Thursday evening's Collingwood v Richmond kick-off, and have agreed to a reduction on this year's payments based on a reduced 153-game season and finals.

AFL boss Gillon McLachlan told clubs on Thursday night that he had agreed to a 12 per cent to 13 per cent discount between the parties over three years, in what is considered to be a good result for the league.

The deal has enormous ramifications for players and the 18 clubs since it provides more than 60 per cent of the game's revenue in normal circumstances and much more than that during the COVID-19 crisis. It is considered a better agreement for the sports code than the deal struck by the NRL two weeks ago, which included a 25-28 per cent discount for Nine Entertainment Co (owner of this masthead) and a reduction and five year extension with Foxtel.

Seven will receive a discount of about 19 per cent and an $87 million net benefit between 2020 and 2022 based on reduced production and rights fees. It has also secured a two-year extension on "improved terms", a statement on the ASX said. AFL industry sources said Seven's reduction, excluding production costs, was about $70 million over three years.

The AFL will now receive $730 million from Seven over the next five years, an average annual payment of $147 million each year. Seven was expected to pay about $150 million this year, with production costs of about $20 million.

Industry sources indicated Foxtel, which is owned by Rupert Murdoch's News Corp and Telstra, will save almost $30 million a year under the existing deal, which will alleviate some of the financial pain caused by the pandemic. However, the broadcaster has not secured an extension.

Telstra, which is the mobile rights provider, will continue to pay $50 million per year.

The AFL had been in negotiations on the terms of its existing $2.5 billion six-year contract, which was secured by Foxtel, Seven and mobile rights partner Telstra and set to expire in 2022, after the coronavirus pandemic shut down the season and caused losses in advertising and subscription revenue for the broadcasters.

The Age reported last week that the AFL was on the verge of securing a two-year extension of its television rights deal with Seven in exchange for a cost reduction, but that Foxtel was holding out on an extension for a larger discount.

Chief executive James Warburton thanked Mr McLachlan for the AFL's commitment to its broadcasters.

"The AFL and Seven are a core part of each other’s DNA, and we are delighted to have not only reached a revised agreement for the current contract term, but to have extended our relationship for a further two seasons taking the agreement through until the end of 2024," Mr Warburton said.

Seven's revised arrangement will provide further financial relief to the broadcaster, which has been cutting costs to offset the severe decline in advertising revenue caused by the pandemic. The company, which is trying to reduce its $541.5 million net debt pile, recently sold its magazines arm for $40 million, its West Australian headquarters for $75 million and axed a large number of roles.

Foxtel has lost a large number of subscribers due to the suspension of sport and had been trying to renegotiate to receive compensation for the loss of sponsors and subscribers. The company has stood down more than 200 staff and axed more than 300 jobs in the last few months.

Media executives have previously stated that they overpaid for sport, which is considered a loss-making content due to the production costs they incur in addition to rights fees.

Foxtel, which contributed about $1.3 billion to the AFL deal in 2015, believes it overpaid, sources previously said.

https://www.smh.com.au/sport/afl/afl-secures-revised-broadcast-deal-20200611-p551nc.html

[one-eyed]

AFL signs U.S. broadcast deal with ESPN

Niall Seewang
ESPN
14 June 2020

The AFL's quest for a foothold in the U.S. has received a boost, with the league signing a deal with ESPN to broadcast two games per week on American television for the rest of the season.

Just days after the AFL signed an extended domestic broadcast agreement, the league will now be shown on U.S. television via ESPN2 and ESPN3. The first match broadcasted way Friday night's [AEST] Geelong-Hawthorn clash on ESPN2. Sunday's Sydney-Essendon game at the SCG will be streamed on ESPN3.

A total of 34 AFL games across 17 weeks will be showcased on the U.S. network, as well as finals, with commentary and graphics to come from the host broadcaster.

https://www.espn.com.au/afl/story/_/id/29299093/afl-signs-us-broadcast-deal-espn

[one-eyed]

A NEW two-year extension to the broadcast rights agreement with Foxtel and Telstra will help the AFL and its clubs rebuild the industry's battered finances by the end of the 2024 season, CEO Gillon McLachlan says.

Signed by the AFL on Wednesday, the deal follows on from the earlier extension by the Seven Network, with the two arrangements set to bring in $946 million over the 2023-24 period.

https://www.afl.com.au/news/539225/new-broadcast-deal-to-add-certainty-as-afl-clubs-rebuild