Fox Sports and Seven tie up AFL rights in $2.5bn deal with Telstra retaining digital rights
News Corp owned Fox Sports and Seven Network have tied up the rights for the AFL for six years for a record breaking $2.508bn, double the previous amount.
The agreement takes them from 2017 to the end of 2022 with Telstra to remain as the digital rights holders for the sport which is seen as crucial for networks to dominate in Melbourne, Adelaide and Perth.
It follows the NRL tying up a five-year $950m deal with the Nine Network last week. There is “around $200m of contra” included in the deal according to AFL CEO Gill McLachlan, who said “the AFL’s challenge is to stay Australia’s game”.
The rights should also see matches made available on Telstra’s new streaming service Telstra TV from 2018.
Shit.
what does Gil mean by “around $200m of contra”
Apologies for my ignorance
A lot of money for a game only popular in half the country.
Another obscene amount of money, going to football at the expense of drama. make the AFL richer. Good thing I do not subscribe to Foxtel.
Interesting take on things Bob.
NRL is big in NSW and Qld. AFL is dominant in Vic, SA, WA, Tas and the NT, plus has strong following in the two traditional NRL states of NSW and Qld (stronger than NRL in the traditional AFL states).
I suspect you don’t let facts colour your POV.
Hi 1256,
That’s basically the value of all those ads etc you see on Seven, Fox Sports etc for the AFL, its community programs etc- over the course of the deal. So the AFL isn’t receiving $2.5bn in cash.
Cheers,
Alex – editor, Mumbrella
“…work out a way to start broadcasting on AFL in high definition on Channel Seven from the start of the next rights cycle.”
Surely you can offer HD, say next season? One year to sort it out….
Lom, while I understand your frustration, I think the target of your angst is wrong,
My understanding is that under the Broadcast Services Act, the primary channels must be SD, and only the secondary channels can be HD. So have a word with Turnbull.
JG is correct. Legislation must change. Why would the networks decide to simulcast HD on the sister station to cannibalise ad spend?
Telstra retaining the digital rights is a disaster. Sets us back years, when we should be moving forward.
Have the AFL learned nothing from the US? I thought they would be smarter.
JG will obviously have the answer, but I agree with bob that it’s a lot of money for a game which is only popular in half the country. Yes, we can make it seem larger by listing all the AFL States & adding the NT (what about the ACT?) but it is still only half the population. Yes, AFL does have a following in NSW & QLD, but JG may not have noticed how poorly the AFL rates in those two states. I wouldn’t call it a strong following.
Lets look forward to 6 more years of even worse TV.
Total revenue last year – for all times – was $1.7 bn. And advertising revenue is _falling_. Seven loses bucket loads of money for every second of the 3 matches they get a week, which has to come out of the budget for all their other programming.
thanks Alex, much appreciated
It’s not “Australia’s game”. Its people outside of NSW and Queensland’s game – about half the country. That will never change.