Talking Footy

The AFL's broadcasting rights could be worth $1.6b in 2016

Date February 18, 2014

Jon Pierik
Sports writer with The Age

A leading media analyst predicts the next AFL broadcast rights contract will be worth up to $1.6 billion, as the league moved to beef up its intricate knowledge of the media by appointing former News Corp chief Kim Williams to its board.

Williams, a Port Adelaide supporter, has replaced Rio Tinto boss Chris Lynch, who is based in London, on the nine-member board.

The current $1.25 billion, five-year broadcast rights deal with Seven West Media (Channel Seven), Foxtel and Telstra does not expire until after the 2016 season but talks are likely to accelerate later this year.

The AFL had already strengthened its broadcasting knowledge, securing former Foxtel executive Peter Campbell last year to head its AFL Media division.

Williams was in charge at News Corp when Foxtel brokered its most recent deal with the AFL. He had previously been chief executive of Foxtel for a decade.

Roger Colman, an experienced research analyst with CCZ Stratton Equities, would not rule out a new broadcasting deal reaching $2 billion but said it was more likely to fall short. ''I gave 5 per cent per annum on $1.25 billion, I got to between $1.5 billion and $1.6 billion. That's what I think it's worth even at a premium inflation rate compared with expected TV advertising growth,'' he said.

''[It includes] a premium inflation rate with sports rights, with a certainty of ratings and cross-promotional benefits and the fact it is 'tentpole' stuff that networks need relative to general advertising and product revenue availability.''

What could inflate the contract is if networks Nine and Ten join the bidding. Nine was not involved in discussions in 2011, while Ten initially wanted to retain the rights it had held since 2002 (initially with Nine and Foxtel) but pulled out because of financial problems.

However, with the value of live sport escalating, in part because it cannot be illegally downloaded, there are suggestions Ten, also buoyed by its ratings for the Big Bash League and the Sochi Winter Olympics, could be involved in a bid.

''We will look at any significant sport rights contract, as long as it makes economic sense for our business,'' Neil Shoebridge, Ten's director of corporate affairs, said on Monday.

Williams said on Monday that developments in the digital side of the business would be ''incredibly interesting''. His nomination was recommended by a sub-committee of Collingwood president Eddie McGuire, West Coast chairman Alan Cransberg, commissioner Linda Dessau and AFL chairman Mike Fitzpatrick.

The Australian Financial Review reported on Monday that Williams' appointment had an even deeper meaning, and was linked to the fierce behind-the-scenes battle between the AFL and the reporting of the Essendon supplements scandal by News Corp newspapers, the Herald Sun and The Australian.

''News Corp is perceived to have taken the side of suspended Essendon coach James Hird. After Mr Williams lost his reform battle at News against senior editorial executives Peter Blunden and Chris Mitchell, his appointment as an AFL commissioner is being seen as payback by AFL chief executive Andrew Demetriou,'' AFR columnist Joe Aston wrote.

Fitzpatrick and Williams, however, denied the claims.

''I'm quite perplexed by that,'' Williams said. ''I could actually construct it in quite a different way and say it arguably links the organisations through an intimate understanding on both sides.''

Fitzpatrick said ''Andrew had nothing to do with this appointment''.

Read more: http://www.theage.com.au/AFL/AFL-news/t ... z2ti3aTnrb

NRLCrap1 wrote:

The ONLY thing the other networks would want is SOO. Not the rest of it. But they all want AFL.

The ONLY reason the NRL deal "doubled" was that Nine told the NRL that they could have that amount - as long as Nine could tell the NRL when to schedule their games!! What sort of deal is that eh?

NRLCrap1 wrote:

The ONLY thing the other networks would want is SOO. Not the rest of it. But they all want AFL.

The ONLY reason the NRL deal "doubled" was that Nine told the NRL that they could have that amount - as long as Nine could tell the NRL when to schedule their games!! What sort of deal is that eh?

NRLCrap1 wrote:

Prove that Nine lost their right to dictate the schedule/draw.

Prove that Seven ban 5.4 teams from major timeslots (Who is the 0.4 team????).

The_Wookie wrote:

pussycat wrote:

Bulldogs , another Melbourne team, The Suns, the giants and an Adelaide are banned from the Fri night timeslot.

Ch 9 previous got to choose the games 6 and 10 weeks in advance now its 20 weeks.

You could always try looking.

haha bullshit. They arent banned, they are amongst the lower drawing teams in terms of support and tv audience, and thus they dont get scheduled with the agreement of the league and channel 7, and even that is getting changed this year. You could have put half the league into the category of missing friday night matches.

pussycat wrote:

The NRL more than doubled last time Whilst that sought of growth can't be expected this time I expect our lead over the AFL will increase!!!

Infact, with CH 7,9 and 10 all mad keen to get league it hard to work out who will bid for the AFL. Maybe the ABC, 800k my be a more realistic figure

pussycat wrote:

The_Wookie wrote:

pussycat wrote:

Bulldogs , another Melbourne team, The Suns, the giants and an Adelaide are banned from the Fri night timeslot.

Ch 9 previous got to choose the games 6 and 10 weeks in advance now its 20 weeks.

You could always try looking.

haha bullshit. They arent banned, they are amongst the lower drawing teams in terms of support and tv audience, and thus they dont get scheduled with the agreement of the league and channel 7, and even that is getting changed this year. You could have put half the league into the category of missing friday night matches.

These team are not allowed to be telavised in the Friday night time slot as part of the tv deal call it what you like but its hardly bullshit.

adamj1300 wrote:

pussycat wrote:

The NRL more than doubled last time Whilst that sought of growth can't be expected this time I expect our lead over the AFL will increase!!!

Infact, with CH 7,9 and 10 all mad keen to get league it hard to work out who will bid for the AFL. Maybe the ABC, 800k my be a more realistic figure

rubbish the NRL's ratings are down

Raiderdave wrote:

adamj1300 wrote:

pussycat wrote:

The NRL more than doubled last time Whilst that sought of growth can't be expected this time I expect our lead over the AFL will increase!!!

Infact, with CH 7,9 and 10 all mad keen to get league it hard to work out who will bid for the AFL. Maybe the ABC, 800k my be a more realistic figure

rubbish the NRL's ratings are down

& yet RL's figure was STILL 11 Million more then the fumbles & bumbles was :_<> :_<> :_<> :_<> :_<>

watch it set new records in 2014
&
when we have an extra 24 games in 2018 , watch that 11 million lead become 15 Million
will the fumbles & feebles beat RL ever again in the ratings ?

I think not folks
I



think not