Ten set to be a player in AFL broadcast rights Jon Pierik
The Age
April 21, 2014 Channel Ten chief Hamish McLennan has confirmed the former AFL broadcaster shapes as a player in the next rights deal.
Ten shared the free-to-air rights with Nine and Foxtel between 2002 and 2006 and with Seven between 2007 and 2011, but opted to pull out of the latest deal, with Ten at the time interested more in securing the NRL rights.
That did not eventuate, leading to a falling out between then Ten chief executive Lachlan Murdoch and then News Corp Australia chief Kim Williams, the latter now an AFL commissioner.
Ten’s interest in the next round of AFL rights could help bump up the price.
"Yes, we’re keen. All depends on what is on offer," McLennan said.
Ten had televised two Saturday matches through the home-and-away season and had been involved in finals and the grand final.
Asked what slots Ten would be interested in, McLennan said: "Depends on price etc, but maybe Saturday again and what is on offer."
McLennan understands the importance of live sport to his hopes of resurrecting Ten’s stocks, with cricket’s Twenty20 Big Bash League and the Sochi Winter Olympics providing strong ratings, and a temporary lift in share price. Ten is also aware it needs a major winter sport to compete with Seven and Nine, the latter with the rights to the NRL.
The current five-year, $1.25 billion deal with Channel Seven, Foxtel and Telstra expires after the 2016 season. Discussions on a new deal are expected to intensify later this year.
AFL general manager of broadcasting Simon Lethlean has said the league’s preference would be to secure a deal by late next year.
Leading media analyst Roger Colman, an experienced research analyst with CCZ Stratton Equities, has not ruled out a new broadcasting deal reaching $2 billion but said it was more likely to fall short.
The AFL is also considering producing its own coverage and showing matches exclusively on its own website. However, former AFL commissioner Graeme Samuel, now an NRL commissioner, has warned sports they could jeopardise hopes of securing greater riches should they bypass networks and deal directly with viewers.
Collingwood president Eddie McGuire has also warned the AFL that it needs to preserve and enhance the number of blockbusters, ensuring the networks of strong ratings and, in return, a more lucrative deal for the AFL. He has also warned of the threat the NRL, and Samuel, pose.
"Out there is rugby league land, where Graeme Samuel has got all of our IP (intellectual property), and is now a commissioner on their board, they are going big time. They are going after us," McGuire said on SEN.
"That is why night grand finals and these big games have to be big, because we have to have something to go to the TV rights holders and say, 'This is why you have to pay $140 million next year, not $125 million'.
"And, if you have a look at last year, the last one, I reckon we left probably $20 million on the table. So, we don’t want to be doing that a second time."
Williams’ recent addition to the AFL commission has been viewed as the AFL improving its knowledge of the media landscape.
Former Nine boss Jeff Browne, a long time friend and associate of McGuire’s, has long been mentioned also as a possible commissioner.
"I was on the last selection panel and Jeff’s name was mentioned there. It wasn’t a situation that he was able to put his name in the frame for because of his business and personal situation at the time," McGuire said.
"But Jeff is a bloke who has tremendous credentials to fill the job. Why wouldn’t you get someone who has been involved in every major television decision for rights, probably going back to the mid ’80s. He wrote the AFL rules, he knew what the AFL rules were about."
http://www.theage.com.au/afl/afl-news/ten-set-to-be-a-player-in-afl-broadcast-rights-20140421-zqx7x.html
