The 2017 Rights Deal Discussion thread

[Crawb]

Saw this on twitter, also goes to your point about number of different properties they have to offer networks;

Good to see someone factored in the precious regionals

 

[bigleague]

Seven in a jam as NRL, AFL TV rights deals loom

The Australian
May 18, 2015 12:00AM

The National Rugby League is inclined to move at least one game from Fox Sports to be broadcast live on free-to-air television.

While maintaining it has a blank-sheet approach, the NRL has identified some clear objectives ahead of its meetings with broadcasters over the coming weeks: it wants more live games and better free-to-air coverage.

This could work nicely for Nine, which is trying to take an NRL game from Fox for Saturday nights, because it currently doesn’t have any free-to-air games on Saturdays.

Given the NRL wants more live games, it’s also possible that one of the two Friday night games could move to Thursday.

With the first round of briefings with broadcasters starting this week, the NRL last Tuesday announced a formal adviser to handle its rights process, Credit Suisse chief executive John Knox, who was also adviser to Cricket Australia in its rights bid. Knox has previously worked with veteran Graeme Samuel, who ran the process for the NRL as an independent adviser.

But Credit Suisse has recently lost managing director Emma Jane Newton, who was appointed head of corporate development at Telstra in July. “EJ”, as she’s known in the industry, was heavily involved in Nine’s refinancing. Interestingly, she is the daughter of The Australian’s founding editor Max Newton.

Seven’s longstanding lawyers Clayton Utz have accepted the brief from the NRL to act in its forthcoming rights tender — and this has caused some disquiet at Pyrmont. It means that Seven’s sports legal work will come up for tender. It’ll be a lucrative contract, keenly sought-after among law firms.

As a long line of execs from Seven, Nine, Ten and Foxtel traipse through NRL headquarters over coming weeks, one who will have a long commute is Jeffrey Browne, who Diary revealed last week is running Nine’s negotiations. He’s basing himself in the south of France for Australia’s winter. Only Browne could run a rights negotiation while sunbaking and sipping malbec in Aix-en-Provence.

If the NRL signs a five-year deal, it will mean the rights are locked in for 7½ years from now. If it’s a seven-year deal, it will take the rights out of action for a decade.

Meanwhile, the fact the NRL opened their bidding process 2½ years early caught the AFL napping. The NRL seems to be determined to no longer play a poor cousin to the AFL.

By jumping ahead of the AFL, all FTA broadcasters are serious bidders on the NRL for the first time, including Seven. How could the network be prepared not to bid when it doesn’t have a guarantee on retaining the AFL rights?

The AFL now will have to decide whether it waits or runs its bidding process simultaneously.

But networks are already planning their AFL strategy. Diary understands Foxtel is keen to take a game off FTA. Ben Buckley is running its bid. If it goes ahead, the collective rights, including digital, could *potentially see valuations of $4.5 billion of deals done in the next few months.

http://www.theaustralian.com.au/bus...ights-deals-loom/story-fnab9kqj-1227358241584

 

[The_Wookie]

Perhaps the Australian has forgotten that the AFL started negotiating last year.

 

[bigleague]

Perhaps the Australian has forgotten that the AFL started negotiating last year.

Yeah, but it's hard to know where the AFL are atm, most reports have had them delay negotiations until a resolution around Ten's ownership, been very quiet for a while now. What's with the Broncs avatar? Carlton's form hasn't driven you to rugby league has it!?

 

[Our Game]

Yeah, but it's hard to know where the AFL are atm, most reports have had them delay negotiations until a resolution around Ten's ownership, been very quiet for a while now. What's with the Broncs avatar? Carlton's form hasn't driven you to rugby league has it!?

The problem of CH10 is the same for both comps and I dont think the AFL would be sitting on their hands just because of the NRL.
As I have said before the market will pay what it thinks the rights are worth not what the AFL and NRL want or are dreaming of getting.
The NRL might get the same or more than the AFL for the TV rights but in all other areas of income the AFL is miles ahead.

 

[||-GOB-||]

Perhaps the Australian has forgotten that the AFL started negotiating last year.

Did you lost a bet Wookie? Avatar looks good

 

[Oneiros]

Did you lost a bet Wookie? Avatar looks good

I've been wondering about that!

 

[ringleader]

Perhaps the Australian has forgotten that the AFL started negotiating last year.

The AFL aren't negotiating until the sale of Ten http://www.smh.com.au/business/medi...aiting-network-tens-fate-20141217-1292tl.html http://www.theaustralian.com.au/bus...hts-negotiations/story-fna045gd-1227158696344

 

[bigleague]

For what it's worth;

The NRL's television rights are up for review at the end of next year and it looks like one of the tv networks has already put in a significant offer that's about half a billion more than what they got last time.

Supposedly the offer has been knocked back meaning that ANY of the networks potentially has a chance to take the NRL television rights as of the 2017 season.

"$1.5 [billion] has been offered I believe and they've knocked it back. The NRL are under the belief that they'll get closer to $2 billion, it's quite unbelievable," said Matty.

http://www.triplem.com.au/sydney/sh...l-tv-rights-ricky-stuart-john-singleton-more/

 

[Kwality]

Not sure of the real importance of 7s latest moves:
Seven Network has thrown down the gauntlet in the battle to retain its AFL TV rights by launching free sports apps to livestream some of its biggest franchises.

Sports fans can watch Royal Ascot, Wimbledon, the Davis Cup in Darwin, The FINA World Swimming Championships, and three major golf tournaments on four dedicated apps from next month.

The golf tournaments include The Australian Masters, The Australian Open and The Australian PGA Championships. The initiative, which will last for 40 days, could be a test case for the future of live sport on free-to-air television as the Seven, Nine and Ten networks show more interest in grabbing digital rights on top of the traditional telecast.

Seven is showcasing its evolving broadcast capabilities as negotiations between networks and major sports codes over new media rights deals heat up.

http://www.theaustralian.com.au/bus...rts-rights-fight/story-e6frg996-1227365030515

 

[The_Wookie]

Not sure of the real importance of 7s latest moves:
Seven Network has thrown down the gauntlet in the battle to retain its AFL TV rights by launching free sports apps to livestream some of its biggest franchises.

Sports fans can watch Royal Ascot, Wimbledon, the Davis Cup in Darwin, The FINA World Swimming Championships, and three major golf tournaments on four dedicated apps from next month.

The golf tournaments include The Australian Masters, The Australian Open and The Australian PGA Championships. The initiative, which will last for 40 days, could be a test case for the future of live sport on free-to-air television as the Seven, Nine and Ten networks show more interest in grabbing digital rights on top of the traditional telecast.

Seven is showcasing its evolving broadcast capabilities as negotiations between networks and major sports codes over new media rights deals heat up.

http://www.theaustralian.com.au/bus...rts-rights-fight/story-e6frg996-1227365030515

It means Seven could probably put a bid in for the mobile/tablet rights as well, that have traditionally gone to Telstra/phone companies. Theres money in the apps both the AFL and NRl ones seem to be doing ok, and Cricket apparently does well too.

 

[bigleague]

GYNGELL’S NRL BID

Nine boss David Gyngell has tried to lock up the NRL media rights quickly, with sources saying he was prepared to pay as much as $1.5 billion. Sources close to Gyngell insist he told NRL boss Dave Smith earlier this month that Nine was willing to pay the record amount for a new five-year deal, although Nine’s spin doctor denies the figure.

Either way, Smith was not tempted to take Gyngell’s gold so early in the negotiating process, telling him he was committed to fully testing the market. Eddie McGuire’s buddy and former Nine exec Jeff “Buckets” Browne has been lured back to handle negotiations for the network. NRL bosses are hoping Fox Sports combines forces with the cash-strapped Network Ten to drive the price up towards $2 billion.

http://www.dailytelegraph.com.au/ne...-women-of-league/story-fni0cx12-1227365878144

 

[Our Game]

If the NRL can get 2 billion which I doubt the the AFL has to be worth a lot more due to its better demographic % of female viewers who are so often the people the advertisers are chasing plus the longer time span of games and more matches all live against the gate add up to a better National product to sell.

Im certain the AFL would be pushing these advantages pretty hard.

 

[Old_Man_James]

If the NRL can get 2 billion which I doubt the the AFL has to be worth a lot more due to its better demographic % of female viewers who are so often the people the advertisers are chasing plus the longer time span of games and more matches all live against the gate add up to a better National product to sell.

Im certain the AFL would be pushing these advantages pretty hard.

Another reason that I'm staggered that the NRL managed to get close to the AFL deal is the amount and placement of advertisements. With the AFL the 20+ 30second after a goal must be some of the most captive ads on TV, as they are too short for people to do anything. I haven't watched a full NRL broadcast in a while, but how many in game ads do they get?

I'm sure there are plenty of ads during the break, but just like the AFL quarter breaks, most the time people get up and get a drink, talk, go to the bathroom etc. and they lose their effectiveness.

 

[papabear]

Another reason that I'm staggered that the NRL managed to get close to the AFL deal is the amount and placement of advertisements. With the AFL the 20+ 30second after a goal must be some of the most captive ads on TV, as they are too short for people to do anything. I haven't watched a full NRL broadcast in a while, but how many in game ads do they get?

I'm sure there are plenty of ads during the break, but just like the AFL quarter breaks, most the time people get up and get a drink, talk, go to the bathroom etc. and they lose their effectiveness.

watching the raiders for the first time on FTA for a while and the ads were quite short one or two after a try as they are bringing the telecast back for the goal kicking.

Half time there are a lot of ads, similar to afl quarter time and halftime.

Can't really compare to afl, as I only watch it on fox, where its coverage is the same as leagues, only ads in the formal breaks.

The delayed Friday channel 9 game is pretty diabolical, but I understand that is going to be fixed next time round.

As for a higher percentage of female viewers, I am not sure how much extra cash you are going to get on that.

Hypothetically, if you are advertising during a football match of any code you are generally flogging cars and beer and not really going for the female market at all.

 

[bigleague]

Macquarie joins team AFL for broadcast negotiations

The Australian Football League has drafted in Macquarie Capital ahead of its potential $1.8 billion broadcast rights negotiations.

Street Talk understands Macquarie will work with the AFL as it prepares to kick off talks in coming months with broadcasters including Seven West Media, Nine Entertainment Co, Ten Network Holdings and Foxtel, which is owned by News Corporation and Telstra.

It's believed the investment bank will take more of a number crunching and market analysis role, given the AFL is well-credentialled in negotiating experience.

The AFL has told the networks it is looking for around $1.75 billion over five years, up from $1.2 billion.


It will be interesting to see how Macquarie deals with the media companies and Telstra, given it has worked closely with them in the past. Macquarie was a joint lead manager on Nine's initial public offering in 2013, an adviser to Seven's independent board committee on a rights last month, worth up to $612 million, and advised Telstra on its $11 billion National Broadband Network negotiations.

The National Rugby League moved early on its negotiations because it was concerned much of the money in the TV market would have been sucked out by the AFL.

The NRL is working with Credit Suisse Australia chief executive John Knox, who also advised Cricket Australia in its rights bid.

AFL chief executive Gillon McLachlan played a central role in negotiating the prior $1.2 billion deal with Seven and pay-TV monopoly Foxtel. Kim Williams was appointed to the AFL commission last year. He led AFL broadcast negotiations from the other side of the table during his tenure as News Corp Australia boss and head of Foxtel prior to that. Former Foxtel sports executive Peter Campbell runs AFL Media.



Nine has its former managing director Jeff Browne in its corner, while Seven will be led by commercial director Bruce McWilliam.

Nine is expected to push hard for a couple of games a week after it bought TV stations in Adelaide and Perth in 2013.

http://www.afr.com/street-talk/macquarie-joins-team-afl-for-broadcast-negotiations-20150527-ghae88

 

[bigleague]

State of Origin’s ad haul stirs rights split talk

State of Origin fever has emerged as the pound-for-pound most lucrative sporting event in Australia, driving TV advertising rates to a record high as rugby league bosses give serious consideration to splitting up the media rights to score even bigger profits.

Fierce interstate rivalry between Queensland and NSW has delivered an advertising bonanza for exclusive TV rights holder the Nine Network, which has bumped up rates by 5 per cent, according to insiders. Advertisers in last night’s telecast paid up to $150,000 for a 30-second TV spot amid extraordinary demand.

The Origin series has now eclipsed the AFL and NRL grand finals as the most valuable winter sporting event, putting the three-game series on course to deliver at least $20m in advertising revenues.

The advertising take is a combination of advertising dollars spent on commercial breaks and long-running sponsorships negotiated with the NRL’s commercial partners such as Holden.

A 30-second spot in the NRL grand final can fetch about $100,000 while AFL grand final spots can go for about $135,000.

In an age of fragmented, time-shifted media consumption and increasingly volatile free-to-air TV audiences, one-off events like the Origin series have become even more lucrative for advertisers because they guarantee a large, live audience.
Outside of live sport, only the finals of popular reality franchises such asMasterChef, The Voice, and My Kitchen Rules can charge a similar premium for advertising slots.

Last year’s Origin series topped the ratings, with the first two games the most watched on Australian TV along with the NRL grand final.

Last night’s telecast was expected to attract 4 million viewers nationally amid bumper audiences across metropolitan and regional markets in NSW, Queensland and Victoria.

It means the tussle between the Blues and the Maroons pales in comparison to the match that really matters — the one between media companies for control of the rights to show NRL on TV.

In recent high-level briefings for the next TV rights deal, the Australian Rugby League Commission told broadcasters it was likely to separate the game’s major assets in a clear sign of Origin’s arrival as an annual sports event with almost unrivalled commercial pulling power.

Such a move could see the Seven and Ten networks grab sole rights for State of Origin from incumbent Nine, which will fight hard to retain the series as the NRL touts a record-breaking deal that should pass the $1.5 billion mark.

Under the NRL’s new five-year deal it had TV revenue of more than $225m last year, up from $101m in 2012 under the previous contract.

Broadcast revenue accounted for 65 per cent of the code’s total income of $344.9m, creating an operating surplus of $49.9m.

Holden has used its three-year $10m naming rights deal to repeat its commitment to manufacturing cars in Australia until 2022. Last night, it launched a new marketing campaign, demonstrating an off-road adventure ride through back-country New Zealand in the new Colorado model.

Holden executive director of marketing Geraldine Davys said the sponsorship was a “perfect fit with the Holden brand”. “Holden is passionate about Australian sport and the State of Origin series is an event that captures the imagination of the nation,” Ms Davys told The Australian.

Nine is not the only winner this week, with metropolitan newspapers like The Daily Telegraph writing additional advertising dollars as big brands book tactical advertisements.

Advertisers including William Hill, Dan Murphy’s and CrownBet have all leveraged an expected spike in print sales, which will be boosted by a 12-page Origin lift-out.

http://www.theaustralian.com.au/bus...ights-split-talk/story-e6frg996-1227371904773

 

[RodneyMaynard]

Splitting the rights could affect the build-up for origin. For example, should Channel 9 have the NRL and Ten have Origin, if I were David Gyngell I'd put a blanket ban on my commentators even mentioning origin during games. And then there's the issue of missing players during the origin period. I'm sure Nine is happy to have a few weeks of mediocre, star-less matches now, but what about if those stars were out to bolster matches being broadcast on a rival channel. I think splitting the rights will only really work if they're all bought by the same channel.

FWIW, if I were David Gyngell I would also eat less and start exercising.

 

[Kwality]

The Origin series has now eclipsed the AFL and NRL grand finals as the most valuable winter sporting event, putting the three-game series on course to deliver at least $20m in advertising revenues.

 

[Our Game]

I hope they do split the Origin away from the NRL games as it will go backwards as a rival comp to the AFL as all interest will be concentrated on the Origin Matches and the NRL will become an even more a second rate suburban competition.

 

[1873 United]

The Origin series has now eclipsed the AFL and NRL grand finals as the most valuable winter sporting event, putting the three-game series on course to deliver at least $20m in advertising revenues.

I think some perspective is needed with regards to when, and why State of Origin is played.

State of Origin is played in prime time on a Wednesday night, the AFL Grand Final on a Saturday afternoon. Einstein could inform all and sundry that Saturday afternoon is hardly the domain of rating programs such as 60 minutes, National News or Master Chef.

State of Origin captures all Rugby League fans as club loyalty is disposed for state allegiance in this sport. Note well, many RL fans prefer State of Origin over the NRL. The AFL on the other hand is club centric, meaning that the overall GF viewership is dependent on the competing teams, especially as the game is not mid week during prime time.

IF the NRLC separate SOO from the NRL they could jeopardise the NRL, as the network who ends up with the club comp could have many meaningless matches throughout the SOO period. Meaning a potential hit to the overall TV income.

Food for thought.

 

[bigleague]

I hope they do split the Origin away from the NRL games as it will go backwards as a rival comp to the AFL as all interest will be concentrated on the Origin Matches and the NRL will become an even more a second rate suburban competition.

Rubbish. The NRL competition rates comparable to the AFL, no fan of their club would stop watching them play because origin is on another station, they are both big enough to stand on their own.

 

[bigleague]

I think some perspective is needed with regards to when, and why State of Origin is played.

State of Origin is played in prime time on a Wednesday night, the AFL Grand Final on a Saturday afternoon. Einstein could inform all and sundry that Saturday afternoon is hardly the domain of rating programs such as 60 minutes, National News or Master Chef.

State of Origin captures all Rugby League fans as club loyalty is disposed for state allegiance in this sport. Note well, many RL fans prefer State of Origin over the NRL. The AFL on the other hand is club centric, meaning that the overall GF viewership is dependent on the competing teams, especially as the game is not mid week during prime time.

IF the NRLC separate SOO from the NRL they could jeopardise the NRL, as the network who ends up with the club comp could have many meaningless matches throughout the SOO period. Meaning a potential hit to the overall TV income.

Food for thought.

Note well, no they don't!

Origin is an event now, it brings in more than just those who watch the NRL, but for casual or rusted on supporters it doesn't take precedence over their clubs season, no NRL club supporter wants their state to win origin over their club winning a premiership.

 

[Kwality]

I think some perspective is needed with regards to when, and why State of Origin is played.

State of Origin is played in prime time on a Wednesday night, the AFL Grand Final on a Saturday afternoon. Einstein could inform all and sundry that Saturday afternoon is hardly the domain of rating programs such as 60 minutes, National News or Master Chef.

State of Origin captures all Rugby League fans as club loyalty is disposed for state allegiance in this sport. Note well, many RL fans prefer State of Origin over the NRL. The AFL on the other hand is club centric, meaning that the overall GF viewership is dependent on the competing teams, especially as the game is not mid week during prime time.

IF the NRLC separate SOO from the NRL they could jeopardise the NRL, as the network who ends up with the club comp could have many meaningless matches throughout the SOO period. Meaning a potential hit to the overall TV income.

Food for thought.

Not food for thought, more like the bleedin' obvious. Reality is NRL have 4 x premium products for TV that draw premium rates for advertising, aka TV lifeblood.

Not sure your characterisation of NRL fans is anything but self serving by an AFL fan in denial?

 

[||-GOB-||]

Splitting the rights could affect the build-up for origin. For example, should Channel 9 have the NRL and Ten have Origin, if I were David Gyngell I'd put a blanket ban on my commentators even mentioning origin during games. And then there's the issue of missing players during the origin period. I'm sure Nine is happy to have a few weeks of mediocre, star-less matches now, but what about if those stars were out to bolster matches being broadcast on a rival channel. I think splitting the rights will only really work if they're all bought by the same channel.

FWIW, if I were David Gyngell I would also eat less and start exercising.

Doesn't matter what channel State of Origin is on. It's like the Melbourne Cup or big Ashes tests, everyone knows when it's on and everyone watches it.

It isn't like the NRL Nines or All Stars match where cross-promotion helps gain awareness.

Not food for thought, more like the bleedin' obvious. Reality is NRL have 4 x premium products for TV that draw premium rates for advertising, aka TV lifeblood.

Not sure your characterisation of NRL fans is anything but self serving by an AFL fan in denial?

During the last media rights deal he spent day and night posting online, trying to convince everyone that the NRL rights would top out at $700M.
I'm not sure how he's going to react when the ARLC negotiates a larger media deal than the AFL.