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today is a good day

mongoose

Coach
Messages
11,215
Fox over paid massively for AFL, 7 probably had a decent deal.

NRL was the opposite, 9 overpaid and foxtel got a bargain.

Guess there will be some corrections
 

colly

Juniors
Messages
1,015
AFL close to extending TV deal with Seven as Foxtel holds out for discount

The AFL is on the brink of securing a two-year extension of its television rights deal with Seven West Media at a reduced price but pay TV operator Foxtel is holding out for an even bigger discount.

Multiple media industry sources who requested anonymity because the negotiations are confidential told The Age that Seven is seeking a cost reduction on its current deal in exchange for a two year extension that would give the AFL more financial certainty in a weakening economy.

344ec68c8e455bd310d01edf9ac4cb83b4ebafa9

The AFL is close to securing a deal with Seven West Media.CREDIT:GETTY IMAGES

Foxtel, Seven and Telstra secured a $2.5 billion six year deal with the AFL in 2015 that runs until 2022. Seven's two year extension would take its deal with the AFL out to 2024.

Lovin it Chanel seven on the canvass -66 million dollar loss- Check
Foxtel wanting huge/bigger dicounts really saying it's not worth it. Check
Players revolt in the AFL. Check.
Gill looking like a polo playing geek he is. Check ie Remember after the last deal at the Press Club Gill announced - where going to expand next New Zealand , I knew then he was a blow hard. Well run organization, my arse, only if believe what they say - as opposed to what they do. Ah Ah NZ. Now the cows are coming home. Watch 7 implode over the next 2 years. No one to run to then.



Seven, which is controlled by billionaire Kerry Stokes, is aiming to save between $30 million and $40 million on its AFL rights bill this year based on a 22 to 23 per cent reduction in games played this season, sources said.


A pro-rata payment based on an 153-game season along with finals,previously reported by The Age, is at the foundation of the re-negotiation but sources also indicated Seven was also looking to suspend the three per cent annual inflation rate included in the deal.

Seven was expected to pay about $150 million to the AFL this year under its existing deal.

Both Seven and Foxtel have been facing significant financial challenges in a tough environment for media companies that predates the coronavirus pandemic. The broadcasters believe AFL games this year have lost significant value due to the absence of crowds and reduced lengths of games, but AFL chief executive Gillon McLachlan is still expected to drive a hard bargain in the negotiations.
Seven and Foxtel declined to comment.



Seven, which booked a $66 million half-year loss in in February, has net debt of $541.5 million and chief executive James Warburton has been looking to slash costs across the business.

The AFL currently costs Seven about $20 million to produce annually, but that figure would be reduced in the interim due to talent being unable to fly interstate and reduced staff on site during matches.

Foxtel, which is controlled by Rupert Murdoch's News Corp, has also been battling subscriber losses amid fierce competition from streaming services. News Corp wrote down the value of the business by $1.3 billion in May.

The pay TV provider is holding out for an even larger reduction on its AFL rights costs than Seven to account for the loss of games and subscriptions to its set top box and sports streaming service, Kayo.

Foxtel, which contributed about $1.3 billion to the AFL deal in 2015, now believes it overpaid, sources said.

The company has stood down more than 200 staff and axed more than 300 jobs in the last few months due to the suspension of sport and large falls in spending from advertisers due to COVID-19.

In recent years media executives have publicly disputed the large amounts they have paid for sport, which in many cases acts as a loss leader for other programming. They argue production costs they incur in addition to rights fees cannot be recouped up in advertising dollars.

The AFL will return on June 11.

https://www.theage.com.au/sport/afl...l-holds-out-for-discount-20200604-p54znm.html
 

Desert Qlder

First Grade
Messages
9,081
AFL faces cash crunch as big TV rights deal in limbo

AFL boss Gillon McLachlan faces a deepening drama if the league fails to strike a revised deal with broadcasters Channel 7 and Foxtel before the season restarts. And as the networks push for a payment cut due to COVID-19, the game’s finances could be hit hard .
https://www.couriermail.com.au/spor...n/news-story/186491aa233e7f2319d63f2fd19ba4f0
similars

The AFL is in danger of restarting its season without a TV rights deal in a deepening drama for league boss Gillon McLachlan.

Failure to strike a revised agreement with broadcasters Channel 7 and Foxtel before next Thursday night’s Collingwood-Richmond MCG clash will leave the game’s finances in a precarious position.

“There’s a lot of uncertainty,” an insider told the Herald Sun on Thursday night.

The networks are pushing for a reduction of about $150 million on their 2020 payments because the season has been compromised by the COVID-19 crisis.

The size of the TV shortfall will be crucial in determining cash distributions to all 18 clubs, the extent of staffing culls across the industry and pay for players.

It can also be revealed discounted payments for 2021 and 2022 are being sought by both broadcast partners.

The prospect of a two-year extension for seasons 2023 and 2024 also remains unclear.

“The various parties are nowhere near a deal on that,” the insider said. “The game has changed in the media world and peak sports rights are five years ago, really.”

Reports on Monday that Seven and Foxtel had withheld payments to the AFL were incorrect.

The league received a full payment last December and again in mid-March, meaning broadcasters have forked out two instalments for a single round of football.

The next payment is due in July. An AFL commission subcommittee, including McLachlan, former News Corp boss Kim Williams, Paul Bassat and Robyn Bishop, is leading the league’s negotiations.

Seven this week announced it was dumping its Monday night and Sunday morning footy review programs because of savage costs cuts, while Fox Footy and Kayo subscribers have been lost during the season shutdown.

Broadcasters are also concerned they have no clarity on the AFL fixture beyond Round 5, while a decision has not been made on what date or time of day the Grand Final will be played.

Rival code NRL, which relaunched its season last weekend, has already locked away an extended new TV rights deal.

Before the coronavirus, the AFL pocketed an average of $417 million a year in TV rights as part of a six-year, $2.5 billion deal with Seven, Foxtel and Telstra that expires at the end of 2022.

Google, Facebook and Amazon are not considered serious players in the race for the AFL’s broadcast rights.

Club chiefs are bracing for cuts in TV revenues of 15 to 20 per cent.

Hawthorn president and ex-Seven board member Jeff Kennett said last night: “It’s essential that we get a good price because if there is a reduction, every dollar it is reduced by will impact on the code — not only this year but will have a flow on effect next year — because of the borrowings that the AFL will have to undertake.”

RMIT sports marketing expert Con Stavros last month said the league’s media rights would take a hit in the post-COVID world, declaring the free-to-air networks were “not the money-making machines they once were”. Broadcast money accounts for about 62 per cent of the AFL competition’s total revenues.

CURRENT SIX-YEAR AFL TV RIGHTS DEAL
FOXTEL $1.3b

CHANNEL 7 $900m (includes $60m contra)

TELSTRA $300m

TOTAL $2.5b

AVERAGE ANNUAL PAYMENT
FOXTEL $217m

CHANNEL 7 $140m (plus $10m contra)

TELSTRA $50m

TOTAL $417m

REVISED 2020 DEAL
WORST CASE 50 per cent payment — $208.5m total, $108.5m from Fox, $70m (plus $5m contra) from Seven, $25m from Telstra

TOTAL LOSS $208.5m

BEST CASE 75 per cent payment — $313m total, $163m from Fox, $105m from Seven (plus $7.5m contra), Telstra $37.5m

TOTAL LOSS $104m

https://www.couriermail.com.au/spor...o/news-story/1c7a9912eadf5bad063177a4def71c31
 

Johnny88

Juniors
Messages
1,195
Fox Footy last night post match for AFL was very cheap looking. Still had the podcast setup only 3 people casually talking at a table with microphones. Before covid they would have 5 to 6 people all dressed in suits on a big set talking for at least an hour.
It was I bit strange for the preferred game lol.
Fox League is back to normal for there pre and post games.
 

Canard

Immortal
Messages
34,147
So the truncated Australian only Super Rugby is going with a 10 game season (Fox only) with timeslots clashing with the NRL.

Seems like TV ratings suicide.
 

tri_colours

Juniors
Messages
1,812
Fox over paid massively for AFL, 7 probably had a decent deal.

NRL was the opposite, 9 overpaid and foxtel got a bargain.

Guess there will be some corrections

Nine got exclusive access to 4 of the highest rating games in the country. They also got streaming rights to there own games. I don't think they did to badly. I would sooner say there CEO is an incompetent arsehole whose looking to blame everybody but himself.
 

Perth Red

Post Whore
Messages
65,411
Nine got exclusive access to 4 of the highest rating games in the country. They also got streaming rights to there own games. I don't think they did to badly. I would sooner say there CEO is an incompetent arsehole whose looking to blame everybody but himself.

nine did alright once you take into account the $55mill a year that fox gives them for simucast and Saturday nights. They only ended up paying $130mill a year for a dash over three games whilst seven paid $166.6mill for 3.5 games.
 

colly

Juniors
Messages
1,015
nine did alright once you take into account the $55mill a year that fox gives them for simucast and Saturday nights. They only ended up paying $130mill a year for a dash over three games whilst seven paid $166.6mill for 3.5 games.
Yes that true however that has been fixed in this deal as Foxtel has allready secured their games/rights (But not exculive streaming ) with NO SIDE $PAYMENTS.
 

Perth Red

Post Whore
Messages
65,411
Yes that true however that has been fixed in this deal as Foxtel has allready secured their games/rights (But not exculive streaming ) with NO SIDE $PAYMENTS.

devil will be in the detail, if that includes Saturday night and simucast in the Fox deal then we will get significantly less in the next fta deal.
 

taipan

Referee
Messages
22,402
devil will be in the detail, if that includes Saturday night and simucast in the Fox deal then we will get significantly less in the next fta deal.

Depends on what interest ch10 has then.Ch9 can't get AFL now ,due to 7 deal extension.
Maybe they thought they had a chance with the AFL ,by not extending the NRL FTA.Ch7 grabbed an extra 2 years and 9 may have no choice now.
If 10 offers more V'Landys is not going to play the long term ch9 loyalty crap.The NRL can split SOO and the NRL and or final series, they have the product and the choices.
The NRL has at least long term revenue from its major broadcasting source.
 
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