AFL to benefit from backlash against NRL TV deal
The Australian |
August 17, 2015 12:00AM
Anger at the NRL’s premature decision to shut other media organisations out of its new broadcasting deal with the Nine Network will result in a windfall for the AFL.
Negotiations to conclude a new AFL broadcast deal with Foxtel accelerated last week as a response to the NRL’s $925 million deal with Nine to broadcast four games a week from 2018. The NRL announcement coincided with the arrival in Australia of News Corp ’s board, including chief executive and Essendon supporter Robert Thomson, and executive chairman Rupert Murdoch, which resulted in swift competitive action.
The Australian understands that Thomson led the negotiations with the AFL in Melbourne and preparations were being made for an announcement on Friday afternoon in Melbourne, with Mr Murdoch preparing to fly south from Sydney to attend. Negotiations were not concluded and are believed to have continued during the weekend.
Mr Murdoch has extended his stay in Australia, although it is not known whether he did so for the AFL negotiations.
News Corp Australia and its anticipated free-to-air partner on the post-2017 deal and partner on the current deal, the Seven Network, would not comment on negotiations.
But The Australian understands the NRL’s decision not to tender its broadcast rights after accepting Nine’s four games a week, $925m deal stunned Nine’s competitors across the sector and sparked furious deal-making with the AFL.
The NRL-Nine deal is likely to lead to a lower overall deal, with the value of subscription TV and digital rights for the code now diminished. It has no chance of reaching the NRL’s anticipated $2 billion total.
Indeed, its decision to give Nine a Saturday night game took away Fox Sports’ competitive advantage with the code as Saturday’s sole broadcaster, a move exacerbated by the NRL’s move to abandon Monday Night football, which is broadcast on Fox Sports.
It then handed Thursday night games to Nine in a double whammy against Fox Sports that has effectively killed any interest other broadcasters might have in the four least attractive games each round.
The NRL’s seeming abandonment of the benefits of round-the-clock coverage of its sport on Fox Sports and in News Corp newspapers and digital sites, including The Daily Telegraph and Courier-Mail, is likely to see News Corp’s attention swing to the AFL.
It is not clear whether Foxtel (a Telstra and News Corp Australia company) will even share NRL broadcasts with Nine in the post-2018 deal.
The AFL will be the beneficiary with current rights holder Foxtel close to broking another lucrative cross-sector deal with another FTA broadcaster, anticipated to be Seven.
AFL chief executive Gillon McLachlan, who as chief operating officer negotiated the previous broadcast rights deal, will deliver on his hope of a substantial increase on the record $1.25bn deal signed in 2011 between Seven, Foxtel and Telstra.
The AFL will also attack the NRL by programming more Thursday night games from 2017.
Fox Sports’ increased focus on the Fox Footy channel is believed to have resulted in improved subscriptions in its previously troubled Melbourne market.
The NRL’s expectation that it will boost its rights deal from digital players also appears to be misplaced, with streaming giant Netflix reiterating to The Australian last month that it had no interest, here or in the US, in broadcasting sport.
Global experience suggests that digital players are yet to embrace sport as lead broadcasters. The American National Football League’s recent speculative decision to give one match next year to a digital player exclusively did not see Google or its YouTube interested, although Yahoo bought the match.
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