AFL may buy station
22 March 2005 Herald Sun
Damian Barrett
http://www.heraldsun.news.com.au/footy/ ... 42,00.html
FOOTBALL'S broadcast rights fight took two shock twists yesterday, with the AFL considering owning its own TV station as well as reducing the length of the next deal.
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In a move similar to the NFL and NBA in the US, the league is analysing either becoming a partner in an established pay-TV station or owning one outright.
Involvement with a station would allow the AFL to control the pay-TV component to its broadcast bundle and to potentially use it as leverage in its dealings with free-to-air networks.
The current broadcast deal encompasses 2002-06 and it had been accepted the next deal would also be five years in duration (2007-11).
But the AFL is assessing the possibility of a shorter-term deal.
AFL chairman Ron Evans confirmed to the Herald Sun yesterday the terms were not locked.
"The options are open. The last period was five years because it suited at the time, but whether it is five years this time is yet to be determined," Evans said.
"It is one of the AFL's options. It is the AFL's rights to be sold, so we are in a position where we can set the terms and conditions to best suit our needs, bearing in mind, the television stations also have got requirements."
Evans said deliberation on the length of the next agreement was not provoked by last week's bombshell announcement of a Channel 10Channel 7 alliance, which left the Nine network on the outer.
"The term is really determined by the technology which is changing so rapidly," Evans said.
"One argument is if you go too long, the technology can change and that can work against you or for you.
"On the other hand, the best arrangement seems to provide a term where both sides can get some benefit."
On the possibility of the AFL taking a share of Fox Footy channel, or running its own station, Evans said: "I don't think I want to comment on that."
It is understood key AFL officials, including chief executive Andrew Demetriou's key advisers on broadcast rights Ben Buckley and Gillon McLachlan, analysed the NFL-owned NFL Network pay-TV station while in the US for last month's Super Bowl.
Fox Footy representatives did not return calls yesterday.
While the Ten and Seven networks are talking down the financial component to their bids, the AFL remains confident of receiving up to $130 million a year when all facets of the deal – free-to-air, pay-TV, internet and other media – are included.
"All the indications from within Australia and also in the US, are that there have been significant increases reported," Evans said. "We have had a couple of independent experts that have indicated that should be the case (with the AFL) as well."
The broadcast rights were discussed by AFL commissioners at a strategic meeting in Melbourne yesterday.
