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AFL announces 4.5billion, 7 year media deal (2025-2031 inclusive)
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Revenue looks like holding where it is or going down I believe.
The AFL Comm said no to a Night GF this year on Monday.
Seven West Media owner of Ch 7 has just posted a loss of $66 million so it will be interesting to see if the AFL can get an increase on their last TV deal.
I think there are apparently talks of extending the current deal with news ltd / telstra / 7 for two years and adding inflation. At worst, I suspect that suggests the AFL thinks that it is more likely to get an uplift after that period
The last EBA explicitly did not include Marvel stadium revenues used to pay down the loan the AFL took out, but won't be next time
The main reason the players insisted on the revenue formula was to ensure they would get any increase above that forecast which
Pay bonus for AFL players after $70m revenue boost
AFL players are poised to get a pay bonus after the league confirmed revenues were up $70 million on forecasts over the past two-and-a-half years.www.theage.com.au
Players had previously complained that the AFL always based their CBA pay rises on low revenue projections that proved to be significantly lower than the reality at the end of the agreement.
As it is, they have already benefited from the arrangement
RussellEbertHandball
Flick pass expert
Since I posted the following AFR story from 8th Feb in the Kayo, Foxtel Go, Optus subscriber numbers thread, I have been trying to work out who paid what for the cricket rights.
Kayo on a sticky wicket as Foxtel and News Corp's cricket bet fails to pay off (paper headline)
Whether Kayo's shock slump is a hiccup or something more remains to be seen, but Foxtel and News Corp executives will be sweating on their $105 million per year bet on cricket. Deep in the release of News Corp's results on Friday, it was revealed Kayo, the sports streaming service that has been identified as a core pillar of Foxtel's future, showed a decline leading into the end of 2019.
This story is the best I can find.
finance.nine.com.au
The Seven Network and Foxtel have secured Australian cricket media rights in a blockbuster $1.182 billion deal that positions both for future growth and ends the Nine Network's four-decade hold on the sport.
Seven will pay $450 million over the six-year deal to broadcast all home Test matches and 43 Big Bash League games. Foxtel has paid almost $670 million for a portfolio that includes all digital rights, simulcasts of free-to-air games and exclusive rights to one-day and T20 International games, plus 16 BBL matches.
finance.nine.com.au
So $105mil probably increases by 4% each year so that would be $668mil cash.
$450mil + $668mil = $1,118mil and means $64mil is in advertising contras to get to $1,182mil total value.
Kayo on a sticky wicket as Foxtel and News Corp's cricket bet fails to pay off (paper headline)
Whether Kayo's shock slump is a hiccup or something more remains to be seen, but Foxtel and News Corp executives will be sweating on their $105 million per year bet on cricket. Deep in the release of News Corp's results on Friday, it was revealed Kayo, the sports streaming service that has been identified as a core pillar of Foxtel's future, showed a decline leading into the end of 2019.
This story is the best I can find.
Finance News Headlines | 9News
All the latest financial news headlines across banking, taxation, budgets, personal finance, retail and more.
finance.nine.com.au
Seven will pay $450 million over the six-year deal to broadcast all home Test matches and 43 Big Bash League games. Foxtel has paid almost $670 million for a portfolio that includes all digital rights, simulcasts of free-to-air games and exclusive rights to one-day and T20 International games, plus 16 BBL matches.
Finance News Headlines | 9News
All the latest financial news headlines across banking, taxation, budgets, personal finance, retail and more.
finance.nine.com.au
So $105mil probably increases by 4% each year so that would be $668mil cash.
$450mil + $668mil = $1,118mil and means $64mil is in advertising contras to get to $1,182mil total value.
BringBackTorps
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This is an anonymous reddit poster, who claims he recently attended a Telstra Conference- where a Telstra Project Manager, in a keynote speech, allegedly provided information
"Telstra planning to push monetisation of AFL App- looking to 50,000 paying users by Easter"
Another reddit respondent said
"Maybe Telstra knows they are going to have to pay way more, and are trying to figure out if they can monetise it".
I have no expertise in these areas. Are there any valuable insigths here?
"Telstra planning to push monetisation of AFL App- looking to 50,000 paying users by Easter"
Another reddit respondent said
"Maybe Telstra knows they are going to have to pay way more, and are trying to figure out if they can monetise it".
I have no expertise in these areas. Are there any valuable insigths here?
Should be noted that there are already paid subscribers of the AFL App....unless they mean they are going to start charging subscriptions to the great number of AFL Live subscribers that must be Telstra telephony customers? I'dd be surprised if that is the case.
Interesting from that the recent report in the AFR that RussellEbertHandball linked to...
Interesting I did not pick up on the bolded when I first read it....I flicked over it and just picked up the "inflation increase". There are going to be a lot of disappointed people if the AFL gets a real increase of any magnitude from such an extension
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It makes sense that the AFL would push for an increase in the price to lock in an extra two seasons because they would look silly if they agreed the current sum, and then the NRL got a substantial uplift when they went to market.
I agree. I think it would depend on what the strategy was. Maybe they think the prospects of a more lucrative streaming deal will be more plausible in the middle of this decade? I suspect rugby league is currently at it its peak ratio to the AFL rights
Ultimately though, talk of the AFL getting an increase is at odds with the idea that things iwll stagnate or go backwards
Not surprising, although my post above was more whether they do it in the event they get a 2 year extension (i.e. in 2023 or 2024).
I don't think Amazon would be interested in stopping at 6 doco's.
www.theage.com.au
Could commercial TV match the kind of money they might throw about?
How Eddie McGuire and Amazon could shake up the AFL on TV
The AFL's television landscape is set for a shake-up after global streaming giant Amazon agreed to a $10 million deal with Collingwood president Eddie McGuire’s media company.
Could commercial TV match the kind of money they might throw about?
I don't think Amazon would be interested in stopping at 6 doco's.
How Eddie McGuire and Amazon could shake up the AFL on TV
The AFL's television landscape is set for a shake-up after global streaming giant Amazon agreed to a $10 million deal with Collingwood president Eddie McGuire’s media company.
Could commercial TV match the kind of money they might throw about?
Interesting....certainly healthy to establish that relationship ahead of the next rights negotiations
Gotta say that this is bugbear of mine...this is very misleading
Looking at the annual report, even if you add contra and ignore the consolidated figure it is only 60%. It is barely over 50% of total AFL revenue. More importantly it is barely over a quarter of the AFL competitions revenue (i.e. including the clubs)
No doubt it is vital but you'd think someone paid full time to write about the game could get something as basic as this right
RussellEbertHandball
Flick pass expert
Eddie's footy department said no. Sam McLure's following up story from 30 minutes ago.
Magpies say no to president Eddie's pitch
Collingwood president Eddie McGuire wanted the Magpies to be involved in the upcoming Amazon documentaries, but the rest of Collingwood didn't agree.
www.theage.com.au
Collingwood’s football department has rejected a push from club president Eddie McGuire’s media company to be part of an AFL documentary series to be streamed on Amazon.
The Magpies were one of several clubs targeted by Amazon executives who are making the streaming giant’s first foray into Australian football content, in a move that could foreshadow a future bid for AFL broadcast rights.
....
Magpies say no to president Eddie's pitch
Collingwood president Eddie McGuire wanted the Magpies to be involved in the upcoming Amazon documentaries, but the rest of Collingwood didn't agree.
Collingwood’s football department has rejected a push from club president Eddie McGuire’s media company to be part of an AFL documentary series to be streamed on Amazon.
The Magpies were one of several clubs targeted by Amazon executives who are making the streaming giant’s first foray into Australian football content, in a move that could foreshadow a future bid for AFL broadcast rights.
....
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Eddie's footy department said no. Sam McLure's following up story from 30 minutes ago.
Magpies say no to president Eddie's pitch
Collingwood president Eddie McGuire wanted the Magpies to be involved in the upcoming Amazon documentaries, but the rest of Collingwood didn't agree.
www.theage.com.au
Collingwood’s football department has rejected a push from club president Eddie McGuire’s media company to be part of an AFL documentary series to be streamed on Amazon.
The Magpies were one of several clubs targeted by Amazon executives who are making the streaming giant’s first foray into Australian football content, in a move that could foreshadow a future bid for AFL broadcast rights.
....
In this sort of situation, normally, someone would stand down.
RussellEbertHandball
Flick pass expert
Why? This is the AFL industry.
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Conflict of interest trying to do business with an organisation your are ‘President’ of.
If you were Chairman of a company and were approaching them with a business offer you would normally take steps to make sure you didn’t influence the decision.
While his track record isn’t good, maybe/hopefully he did the right thing this time.
RussellEbertHandball
Flick pass expert
When has conflict of interest been something Eddie and the rest of the AFL industy been that interested in?
He has had conflicts for 22 years and it's never stopped him once.
Not wishing to criticise the late Ron Evans but he was the master & it wasnt limited to AFL footy, Spotless in the Evans era had the MCG locked up.
Latest from Sam McLure:
Amazon want all AFL clubs in documentary series
www.theage.com.au
Amazon want all AFL clubs in documentary series
Amazon want all AFL clubs in documentary series
Further details are emerging as to what tech giant Amazon's plans are for the documentary series on the AFL.
Spcculation by Paul Marsh of the AFLPA:
The Australian also understands broadcasters want to put on the backburner any negotiations about an extension of the record $2.5bn deal that ends in 2022.
The AFL has privately been encouraging negotiations on a so-called “roll and renewal” of the rights for an extra two years but the calamitous impact of the coronavirus has shifted the landscape.
“The players feel a deep sense of responsibility to deliver,” he said. “We understand the AFL’s position on 17 games for the 2020 AFL season. However, given the AFL has announced the 2020 season now has a 40-week window, players urge the AFL to be open to the possibility of a 22-round home-and-away season should it be feasible.”
www.theaustralian.com.au
I read that as no one wants a pay cut, the AFL need to bank that for use at the next CBA discussions.
The Australian also understands broadcasters want to put on the backburner any negotiations about an extension of the record $2.5bn deal that ends in 2022.
The AFL has privately been encouraging negotiations on a so-called “roll and renewal” of the rights for an extra two years but the calamitous impact of the coronavirus has shifted the landscape.
“The players feel a deep sense of responsibility to deliver,” he said. “We understand the AFL’s position on 17 games for the 2020 AFL season. However, given the AFL has announced the 2020 season now has a 40-week window, players urge the AFL to be open to the possibility of a 22-round home-and-away season should it be feasible.”
NoCookies | The Australian
I read that as no one wants a pay cut, the AFL need to bank that for use at the next CBA discussions.
BringBackTorps
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MR TV Australia 16.3
"C. Wilson Reporting Seven and Foxtel set to agree on 2 year extension of the AFL Broadcasting Rights".
twitter.com
(go to 16.3 Sports Industry Tweet, then click on" Mr TV Australia")
Quantum of new agreement not stated- but AFL was seeking a continuation of current $418m pa, + CPI.
Can this be seen as a strong likelihood there will be 9 games pw (18 or 19 clubs) from 2025?
"C. Wilson Reporting Seven and Foxtel set to agree on 2 year extension of the AFL Broadcasting Rights".
sportsindustry (@footyindustryAU) | Twitter
The latest Tweets from sportsindustry (@footyindustryAU): "News Wrap | Friday, May 8th | WA AFL teams miss out on home games early, India still plan on coming to Australia, Kayo subs take a 30% hit, RA solvency questions https://t.co/ZI3V1TYArR"
twitter.com
Quantum of new agreement not stated- but AFL was seeking a continuation of current $418m pa, + CPI.
Can this be seen as a strong likelihood there will be 9 games pw (18 or 19 clubs) from 2025?
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Starburns_
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MR TV Australia 16.3
"C. Wilson Reporting Seven and Foxtel set to agree on 2 year extension of the AFL Broadcasting Rights".
(go to 16.3 Sports Industry Tweet, then click on" Mr TV Australia")sportsindustry (@footyindustryAU) | Twitter
The latest Tweets from sportsindustry (@footyindustryAU): "News Wrap | Friday, May 8th | WA AFL teams miss out on home games early, India still plan on coming to Australia, Kayo subs take a 30% hit, RA solvency questions https://t.co/ZI3V1TYArR"
Quantum of new agreement not stated- but AFL was seeking a continuation of current $418m pa, + CPI.
Can this be seen as a strong likelihood there will be 9 games pw (18 or 19 clubs) from 2025?
The AFL would jump at that right now as a means to space the recovery out over 5 years. Question is would it even still be on the table?
No games, no pay.
Starburns_
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Yeah, for 2020. There'll be games from 2021 onwards though, an extra 2 years at current rates gives the AFL some certainty on how much they'll have to spend and how to recoup the 2020 losses (and pay back the loans) over a longer timeline.
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