Re: The [Serious] Broadcast Rights Negotiations thread
Posted: Sun Apr 12, 2015 12:25 pm
AFL could face real challenges to secure 2017-2021 TV rights deal with clubs on league’s back
Jon Ralph
Herald Sun
August 20, 2014 8:00PM
The AFL might have to brace for tough negotiations when it comes to the next TV rights deal.
THE AFL has been warned it faces real challenges to secure a $1.5 billion TV rights deal as clubs urge the league to extract every dollar from the next rights agreement.
The league will start official negotiations for the 2017-2021 deal over the off-season with Nine, Ten, Seven and Foxtel.
Club bosses believe the AFL needs to extract $1.5-$1.8 billion given the AFLPA’s likely cash grab and discontent from clubs about equalisation taxes.
But leading media analyst Steve Allen warned yesterday the expectation of untold riches was not supported by the perilous balance sheets of the AFL’s suit
The AFLPA’s collective bargaining agreement expires ahead of the 2017 season and new boss Paul Marsh will push for significant pay rises after modest increases in recent review.
Poor clubs want more money and the anger from rich clubs is apparent over equalisation luxury taxes that will bite hard, with a review of those deals also coming after the 2016 season.
The AFL has also tipped more money than first budgeted into expansion sides Gold Coast and Greater Western Sydney.
The TV rights produce 70 per cent of the league’s wealth and in principle the league should be primed for a big increase on the last $1.258 billion deal.
The AFL will secure a massive increase in digital rights, has a Thursday night package to sell, and has all options on the table about selling off individual timeslots to all networks.
Allen said yesterday those positives were offset by the financial position of networks and ratings up only fractionally this year.
“I don’t think there will be another bumper deal, I think it is fully priced,” Allen said.
“They will get an increase because they can create some competitive tension, but if you analyse the position of each of the major player, why would they substantially increase their bids?”
“Ten is a basket case. Would their shareholders be happy about funding another round of rights?
“The audience for Seven has bounced around and they haven’t suffered under their deal but have they gained? Are they prepared to bid a lot more?
“Nine have been involved before but historically the NRL and AFL are vital enemies for revenue and ratings. I don’t think Nine having both sits comfortably with them.
“The AFL would say we want Friday nights on your main channel and the NRL would say get stuffed, we have that timeslot.
“Most sporting rights are not getting close to fully priced. Nine is publicly listed, Ten is publicly listed, Seven is quasi-listed and they can’t do stupid things because execs will be fired.”
Telstra paid $153 million for the AFL’s digital rights and the expansion in that marketplace alone will guarantee a rise in the league’s TV rights deal.
Some clubs believe the league will secure a similar jump in rights to the one that saw the AFL go from a $780 million deal to $1.258 billion only five years later.
But while Ten boss Hamish McLennan is on record as keen for a slice of the rights, it is believed it could afford only a game per week at most.
http://www.heraldsun.com.au/sport/afl/a ... 7031143151
Jon Ralph
Herald Sun
August 20, 2014 8:00PM
The AFL might have to brace for tough negotiations when it comes to the next TV rights deal.
THE AFL has been warned it faces real challenges to secure a $1.5 billion TV rights deal as clubs urge the league to extract every dollar from the next rights agreement.
The league will start official negotiations for the 2017-2021 deal over the off-season with Nine, Ten, Seven and Foxtel.
Club bosses believe the AFL needs to extract $1.5-$1.8 billion given the AFLPA’s likely cash grab and discontent from clubs about equalisation taxes.
But leading media analyst Steve Allen warned yesterday the expectation of untold riches was not supported by the perilous balance sheets of the AFL’s suit
The AFLPA’s collective bargaining agreement expires ahead of the 2017 season and new boss Paul Marsh will push for significant pay rises after modest increases in recent review.
Poor clubs want more money and the anger from rich clubs is apparent over equalisation luxury taxes that will bite hard, with a review of those deals also coming after the 2016 season.
The AFL has also tipped more money than first budgeted into expansion sides Gold Coast and Greater Western Sydney.
The TV rights produce 70 per cent of the league’s wealth and in principle the league should be primed for a big increase on the last $1.258 billion deal.
The AFL will secure a massive increase in digital rights, has a Thursday night package to sell, and has all options on the table about selling off individual timeslots to all networks.
Allen said yesterday those positives were offset by the financial position of networks and ratings up only fractionally this year.
“I don’t think there will be another bumper deal, I think it is fully priced,” Allen said.
“They will get an increase because they can create some competitive tension, but if you analyse the position of each of the major player, why would they substantially increase their bids?”
“Ten is a basket case. Would their shareholders be happy about funding another round of rights?
“The audience for Seven has bounced around and they haven’t suffered under their deal but have they gained? Are they prepared to bid a lot more?
“Nine have been involved before but historically the NRL and AFL are vital enemies for revenue and ratings. I don’t think Nine having both sits comfortably with them.
“The AFL would say we want Friday nights on your main channel and the NRL would say get stuffed, we have that timeslot.
“Most sporting rights are not getting close to fully priced. Nine is publicly listed, Ten is publicly listed, Seven is quasi-listed and they can’t do stupid things because execs will be fired.”
Telstra paid $153 million for the AFL’s digital rights and the expansion in that marketplace alone will guarantee a rise in the league’s TV rights deal.
Some clubs believe the league will secure a similar jump in rights to the one that saw the AFL go from a $780 million deal to $1.258 billion only five years later.
But while Ten boss Hamish McLennan is on record as keen for a slice of the rights, it is believed it could afford only a game per week at most.
http://www.heraldsun.com.au/sport/afl/a ... 7031143151