AFL announces 4.5billion, 7 year media deal (2025-2031 inclusive)

[Kwality]

The move to remove live games from NSW and QLD will have 100% come from Ch7 who don't want to show these games. Whereas they want to show them live into SA and WA but it's Fox who don't want them to (because they want those states to pay for foxtel, whereas NSW and QLD already have high take up due to NRL). So in the end, both broadcasters are trading off what they don't want for what they want in opposite states. Think the AFL really should have stood firm in NSW and QLD, but can see how they needed to concede so that 7 would agree to losing access to games in SA/WA

The product has a value.
Do the AFL maximise the dollars or settle for less for better access to the big Sydney, Brisbane & northern NSW/Gold Coast viewing markets?

Its an example of the heartland clubs advantage over the developing markets that is often denied IF it is addressed (cola).

 

[The_Wookie]

The AFL is banking on a thrilling climax to its finals series to finalise an extended broadcast deal, despite analysis of commercially confidential data showing the ratings have fallen drastically from pandemic peaks to below pre-pandemic levels.

Current rights holders, Seven West Media, owner of Channel 7, and Foxtel, owner of streaming service Kayo, believe they are in the “box seat” to finalise the broadcast deal as early as this week. AFL CEO Gillon McLachlan and chairman Richard Goyder hosted Seven West Media chairman Kerry Stokes at the Fremantle game in Perth on Saturday night in another sign the deal is close.

The pending deal comes despite the extraordinary intervention of federal Communications Minister Michelle Rowland to warn the AFL against moving more live games behind a pay wall.

But the 7/Foxtel bid is believed to have cleared a significant hurdle between themselves which will allow Channel 7 to stream several key games on its 7Plus service, which will also allow the AFL to placate the government.

The first week of AFL finals helped to push Seven to a strong ratings position at the weekend in the climax of one of the AFL’s closest and most thrilling seasons.

The knock-out match between Brisbane and Richmond Thursday night drew 786,000 viewers, with 434,000 tuning in from Melbourne.

The AFL finals helped Seven to continue to dominate the TV ratings on Saturday. The Saturday Afternoon Football Finals, which saw Geelong beat Collingwood by six points at the MCG, was the most-watched program of the day, bringing in an audience of 747,000. On Saturday night, Fremantle scored a 13-point victory in a comeback over the Western Bulldogs to win 11.7 (73) to 8.12 (60) and reach 731,000 people.

The AFL will hope that big crowd pullers Collingwood can continue their good run, despite losing a close game to Geelong, and that Sydney – through to a home preliminary final after an impressive win on Friday night – Brisbane and Fremantle can keep their seasons alive to help drive a national audience.

But deeper analysis by The Australian Financial Review of the commercially available ratings data collected by OzTAM provides some red flags for the AFL and its future broadcaster.

The five capital city average audience for all AFL matches in the home-and-away season shows that the average ratings have fallen by close to 20 per cent from last year and about a quarter from the peaks of the pandemic lockdown in 2020.

Perhaps more concerning is that the average audience has fallen below the pre-pandemic levels set in 2019.

Despite the simplistic picture it presents, the five-city average for this year’s home-and-away series totalled 435,185 viewers. That is down from 508,030 last year and the peak of 544,099 in 2020. It is also below the 506,540 viewer average in 2019.

The novelty of Thursday night AFL also appears to be waning, with the average audience falling from 588,642 in 2019, to 550,733 in 2021 but just 453,211 viewers this year.

It’s a similar story for Friday and Saturday night games.

This year’s Friday night games have fallen from 568,163 in 2019, 584,771 in 2020, 561,925 in 2021 to 480,180 viewers this year.

The Saturday night games have dipped even more steeply, from 486,088 in 2019 to 504,130 in 2020, 485,949 in 2021 but just 394,186 this year.

The ratings dip might go some way to explain why speculation continues about an “underwhelming” bidding race that might only draw a “modest increase” on the last broadcast deal.

Reports have suggested a bid from Network Ten and streaming partner Paramount Plus and a bid from Nine Entertainment and its streaming service, Stan, might not have topped the $500 million a year benchmark, while the AFL had been hoping to push the price closer to $600 million a year.

But the AFL has a recent track record of bringing home the goods in the end. The grand final in Perth last year attracted a national audience of 4.11 million, the most watched show of the year, just ahead of the 2020 grand final in Brisbane. This year the Grand Final is back to the traditional start time at the MCG, but a big entertainment line up led by Robbie Williams should help boost eyeballs.

Foxtel and Seven clinched a record $2.5 billion deal with the AFL for six years from 2017.

A two-year extension was agreed in late 2020 until the end of the 2024 season for the publicly disclosed figure of $946 million – putting the current rights at a value of $473 million a year, a figure considered to be a discount because of the cancellation of games during the pandemic and creating a benchmark of about $500 million a year.

 

[The_Wookie]

​

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After months of negotiations, arguments and a surprise intervention from the communications minister, the AFL appears set to lock in a new long-term broadcast deal with the Foxtel Group and Channel 7.​

Under the terms of the new deal which is now expected to be finalised this week, Channel 7 and the Foxtel Group are set to extend their existing arrangements with the AFL in a move that significantly ensures the long-term success of both broadcasters

While the league attempted to create a bidding war by drumming up interest from alternative broadcasters including Paramount+/Channel 10, Stan/Channel 9 and Amazon Prime, ultimately the experience and partnership of Foxtel/Kayo and Channel 7 was too good for the AFL to walk away from.

TV Blackbox understands Kayo’s significant existing customer base, particularly in the key growth markets of NSW and Queensland was a key factor in the AFL’s decision to stick with its incumbent broadcast partners.

While the final terms of the deal are still to be signed off upon in coming days, the AFL looks set to pocket approximately $550 million in cash and contra per year under the new arrangement

TV Blackbox understands key changes under the new deal will see all Saturday afternoon and night football during the home and away season become exclusive to the Foxtel and Kayo platforms in what is being described as a “Super Saturday” block of programming.

Foxtel, who pay the bulk of the rights fees for the sporting code is also expected to close a loophole that currently allows Channel 7 to live broadcast Foxtel produced coverage of interstate teams into their local markets.

Under the new deal it’s expected this ‘local team’ coverage for interstate teams will be broadcast on a two-hour delay on 7mate allowing Foxtel/Kayo to maximise its live broadcast rights.

As compensation for the loss of Saturday football, the Seven Network is expected to receive a significant increase in the number of Thursday night games, with that timeslot set to become a permanent fixture of the ‘home and away’ season.

The new deal is also set to see footy fans receive an alternative streaming option for the first time.

Channel 7 is believed to have secured permission to stream its coverage of Thursday night, Friday night and one Sunday afternoon game on the network’s own streaming platform 7Plus.

Seven’s advertiser-supported streaming coverage on 7Plus will compete against the commercial-free alternative on Kayo for the first time. Alternatively, Foxtel/Kayo will look to distinguish its subscription streaming coverage by providing its own commentary line-up for all nine games of each round.


The move will enable fans to have the option of switching between Seven’s commentary line-up of James Brayshaw and Bryan Taylor or Fox Footy commentators including Anthony Hudson, Dwayne Russell and Mark Howard.

Importantly, free-to-air viewers look set to maintain access to all finals football via the Seven Network.

Channel 7 and Foxtel’s existing agreement with the AFL is currently set to expire at the end of the 2024 season, with the new deal set to commence in 2025.

TV Blackbox has approached Channel 7 and Foxtel for comment.

 

[Bjo187]

Sounds shit!

• No footy on fta on Saturday (not good for the growth of the game)
• Lesser coverage in expansion markets (delays)
• Too many Thursday night games
• The same poor coverage from ch7 no doubt.
• No additional tv network added for increased exposure across multiple channels.

 

[calculon559]

TV Blackbox understands Kayo’s significant existing customer base, particularly in the key growth markets of NSW and Queensland was a key factor in the AFL’s decision to stick with its incumbent broadcast partners.

Yeah, Kayo has a huge customer base there because guess what? Kayo has all the Rugby League!
Unless Foxtel somehow proved that those customers also watched AFL, I don't see how that would be a factor in all this.

Channel 7 is believed to have secured permission to stream its coverage of Thursday night, Friday night and one Sunday afternoon game on the network’s own streaming platform 7Plus.

So will this mean we have three national games now or will this vary state-to-state like the current arrangement?

Importantly, free-to-air viewers look set to maintain access to all finals football via the Seven Network.

That's great & important, as the article says.
But does Fox still miss out on the Grand Final live?
Seems like something people might want to know...

 

[JohnZ]

But does Fox still miss out on the Grand Final live?

100%. Foxtel will never show the AFL nor NRL grand final, because doing so would bring too much heat from the Gov about the anti-siphoning list (a line that they're already straddling, as seen by the recent comments by the minister)

 

[RUNVS]

Rugby Union going more to pay tv killed the sport. I hope the AFL remember that. Better to take less money so as many people as possible can watch the games than more money with fewer viewers.

 

[calculon559]

100%. Foxtel will never show the AFL nor NRL grand final, because doing so would bring too much heat from the Gov about the anti-siphoning list (a line that they're already straddling, as seen by the recent comments by the minister)

See, I never got the problem with it as long as the free-to-air network produced the footage and broadcast it live, like the arrangement Fox has with every other Ch7 match. It follows the letter of the law, the FTA network would get money from any on-sell deal they make, and gives people a choice on how to watch it. The laws are outdated anyway since they don't cover streaming, whether they need to encroach on that space or back off pay tv is up for debate.

 

[Seedsfan]

Rugby Union going more to pay tv killed the sport. I hope the AFL remember that. Better to take less money so as many people as possible can watch the games than more money with fewer viewers.

Yeah exactly, 100% agree with this

 

[calculon559]

Rugby Union going more to pay tv killed the sport. I hope the AFL remember that. Better to take less money so as many people as possible can watch the games than more money with fewer viewers.

This. The Pay TV 'problem' is solved, what needs to happen is more matches on FTA, across multiple networks if need be.

 

[Kwality]

Yeah, Kayo has a huge customer base there because guess what? Kayo has all the Rugby League!
Unless Foxtel somehow proved that those customers also watched AFL, I don't see how that would be a factor in all this.

Yes Foxtel would know those numbers & would use that info in putting in their offer to the AFL.

 

[burge13]

Sounds s**t!

• Too many Thursday night games
• The same poor coverage from ch7 no doubt.

First dot point is wrong. Thursday footy is great

7 need to sack BT, Darcy, and get boundary riders who can speak well though. Silk and Nate Jones aren't it...

Fox footy need an overhaul of their commentary!!

 

[Black Panther]

Re: SEN - Nine/Stan have put in a late bid blowing Seven/Fox out of the water and AFL now waiting for a response from Seven/Fox

Update -

The AFL is set to sign the richest broadcasting deal in Aussie sporting history after Nine threw in a massive $500 million a year offer, shaking up the television rights landscape.

A late-offered $2.5 billion deal, to run from 2025 to 2029, could be finalised as soon as tonight, though an announcement later in the week is more likely.

Each bidder — including incumbent holders Seven and Fox Sports — is putting forward offers in a silent auction. Nine and its streaming service Stan have made a bid for the AFL after missing out on the NRL streaming rights last year.

Although Seven West Media and Foxtel had been tipped to retain the rights, a source close to the negotiations, speaking on condition of anonymity, suggested it was now a “50-50” situation.

 

[Redline]

I get that to get the money they needed to give up something but to lose free to air on a Saturday night is a really poor outcome.

Be interesting to see which Sport can capitalise on that.

 

[BigVic]

Nine would be good. Adding a count up clock will be an innovation to their broadcast in 2025 should they win the rights. I wouldn’t had survived on Saturday or any of our close Collingwood wins this season.

 

[calculon559]

AFL TV rights: Monster shake-up in broadcasting rights bidding war​

The AFL will sign the richest broadcasting deal in Australian sports history after Nine came in with a late $500 million a year offer.

A $2.5 billion deal, to run from 2025-29, could be finalised as soon as tonight as each bidder — including incumbent holders Seven and Fox Sports — puts forward offers in a silent auction.

However, an announcement is more likely to be made later this week.

Nine and its streaming service Stan have bid for the AFL after missing out on the NRL streaming rights last year when Fox Sports extended its partnership with rugby league until the end of 2027.

Nine has the free-to-air NRL rights until 2027, but aims to prop up its streaming service Stan, which obtained rugby union rights in 2020 and has tennis, but cannot compete with Fox Sports without one of the two major codes.

Over the weekend, it was tipped Seven West Media and Foxtel would retain the rights. But a source close to the negotiations, speaking on the condition of anonymity, suggested it was a “50-50” situation.

Seven and Fox Sports are working in partnership to retain the AFL rights, but it’s understood Seven would need to lift their offer to $200 million a year, which has not been confirmed yet.

The AFL had asked Network Ten and their streaming platform Paramount for $600 million. They initially came back with a figure well short of the demand, and are repositioning their final offer.

Seven and Fox Sports have a renewed set of rights from 2022-24 that yields a total $946 million for the AFL in cash and advertising, but that will be dwarfed by the new deal, the last to be negotiated by outgoing AFL chief executive Gillon McLachlan.

Sporting broadcast rights have become critical to the television and streaming business models given the consistently high viewership.

An industry insider said that the Nine offer was a ploy to put pressure on Seven. “It’s not just the AFL that wants Seven to pay more, it’s also Nine.”

The risk to the AFL was Nine’s capability to deliver on all their requirements, not just the financials, the insider said. Nine’s questionable performance in managing its two rugby codes would be a concern to the AFL.

Another insider said a broadcaster could confidently forecast ratings for major sports a year in advance and be close to the mark, unlike major drama and reality shows which tend to be less predictable.

With the proliferation of streaming services, the competition for eyeballs is greater than ever, and sport is the glue most networks will use to sell their other programs.

Seven and Fox Sports recently came to an agreement over the streaming portion of their joint bid, which will allow Seven to stream some games on its 7 Plus service, while Fox would retain exclusivity over Saturday matches.

A major strength of the joint Seven and Fox bid is that Foxtel operates a cable and satellite service, which has more reliable reach in regional areas where internet services are not as competent as in the metropolitan cities.

Foxtel is 65 per cent owned by News Corp Australia, publishers of this website.

Nine, Seven and Fox Sports did not wish to comment.

 

[RedV3x]

So 7s concerns about overpaying for the rights being addressed.

For Test cricket and BBL.

 

[offtherails9]

So really all I can get from these articles with the new rights, is that the fans lose? Interstate fans lose out on watching their interstate teams - which is something I don't really feel one way or the other about. But to have no footy on FTA on Saturday's is such a step backwards and really is pretty poor. Finally, one of the drawcards of Fox Footy for me was being able to watch say Friday Night Footy commercial free, but now Fox are going to throw their shit production even further over the top of that with their own commentary too? It was bad enough that they would continually suck out the atmosphere of a game by heading back to their soul-less studio. I know the 7 guys aren't popular but I'd much rather JB and Hodge than Derwayne and Huddo. Wow.

 

[calculon559]

I do wonder how far Fox Footy will go if they can commentate over 7s footage.
Will they have access to other camera angles and be able to use their own graphics, like 7 does for Fox's Cricket coverage? I think that would be more interesting than just Fox commentators talking over 7's feed.

 

[Tasmanian saint]

I get that to get the money they needed to give up something but to lose free to air on a Saturday night is a really poor outcome.

Be interesting to see which Sport can capitalise on that.

I imagine they think they can get extra Thursday night games in with a 19 club hence why they want the extra income

 

[The_Wookie]

 

[jimbler]

It's a silent auction, but everyone knows how much each channel is bidding? How does that work?

 

[The_Wookie]

 

[RussellEbertHandball]

AFL TV rights: Monster shake-up in broadcasting rights bidding war​

The AFL will sign the richest broadcasting deal in Australian sports history after Nine came in with a late $500 million a year offer.

A $2.5 billion deal, to run from 2025-29, could be finalised as soon as tonight as each bidder — including incumbent holders Seven and Fox Sports — puts forward offers in a silent auction.

However, an announcement is more likely to be made later this week.

Nine and its streaming service Stan have bid for the AFL after missing out on the NRL streaming rights last year when Fox Sports extended its partnership with rugby league until the end of 2027.

Nine has the free-to-air NRL rights until 2027, but aims to prop up its streaming service Stan, which obtained rugby union rights in 2020 and has tennis, but cannot compete with Fox Sports without one of the two major codes.

Over the weekend, it was tipped Seven West Media and Foxtel would retain the rights. But a source close to the negotiations, speaking on the condition of anonymity, suggested it was a “50-50” situation.

Seven and Fox Sports are working in partnership to retain the AFL rights, but it’s understood Seven would need to lift their offer to $200 million a year, which has not been confirmed yet.

The AFL had asked Network Ten and their streaming platform Paramount for $600 million. They initially came back with a figure well short of the demand, and are repositioning their final offer.

Seven and Fox Sports have a renewed set of rights from 2022-24 that yields a total $946 million for the AFL in cash and advertising, but that will be dwarfed by the new deal, the last to be negotiated by outgoing AFL chief executive Gillon McLachlan.

Sporting broadcast rights have become critical to the television and streaming business models given the consistently high viewership.

An industry insider said that the Nine offer was a ploy to put pressure on Seven. “It’s not just the AFL that wants Seven to pay more, it’s also Nine.”

The risk to the AFL was Nine’s capability to deliver on all their requirements, not just the financials, the insider said. Nine’s questionable performance in managing its two rugby codes would be a concern to the AFL.

Another insider said a broadcaster could confidently forecast ratings for major sports a year in advance and be close to the mark, unlike major drama and reality shows which tend to be less predictable.

With the proliferation of streaming services, the competition for eyeballs is greater than ever, and sport is the glue most networks will use to sell their other programs.

Seven and Fox Sports recently came to an agreement over the streaming portion of their joint bid, which will allow Seven to stream some games on its 7 Plus service, while Fox would retain exclusivity over Saturday matches.

A major strength of the joint Seven and Fox bid is that Foxtel operates a cable and satellite service, which has more reliable reach in regional areas where internet services are not as competent as in the metropolitan cities.

Foxtel is 65 per cent owned by News Corp Australia, publishers of this website.

Nine, Seven and Fox Sports did not wish to comment.

Given the way that story is written it looks like the $2.5bil cash includes Telstra monies as it is a News Corp paper that says - "Seven and Fox Sports have a renewed set of rights from 2022-24 (sic) that yields a total $946 million for the AFL in cash and advertising, but that will be dwarfed by the new deal, the last to be negotiated by outgoing AFL chief executive Gillon McLachlan."

That $946m amount for 2023-24 not 2022-24 as per the HS story, is made up of;

$66m advertising contra - that $33m was the annual amount of $200m, over 6 years by - 7 $60m and Foxtel $140m.
$100m cash Telstra monies - The_Wookie has said the $50m/year Telstra paid in 2017-22 deal didn't change for 2023-24
$780m cash paid by 7 and Foxtel. My best guess is 7 is 156+162= 318 and Foxtel is 227+235 = 462.

The original 2017-22 deal saw in 2022 Channel 7 paying cash amount of around $150m and Foxtel around $218m. I just applied 4% compound growth after the report in The Age and its sister papers on 23 December 2020 after the AFL announced the deal with Foxtel and Telstra for 2023-24.

The deal represents a 25 per cent increase on the revised rights agreement the AFL struck with Foxtel because of the pandemic, but is only slightly higher than the original deal. "The extension of the rights deal resets the discounts associated with COVID and is financially little changed from the original 2017-22 agreement," a Foxtel spokesman said.

$2.5bil cash means on average $60m/year extra cash over 2023-24 average of $440m/year, is a good deal, but isn't the $600m a year the AFL and media was spruking a couple of months ago.

If its $2.5bil from 7+Foxtel and then another $300m+ from Telstra, then the AFL can rightly say how great the deal they have negotiated is.

 

[Synth]

This deal looks to be a complete failure. In real terms, with inflation, it’s basically no gain in value since the original deal was signed but for what seems to be worse outcome for fans. How can anyone at AFL house claim this as a win for the game.