2023-2028 next tv deal discussion

[Idris 84]

Can someone give a year by year break down of AFL v NRL? Thanks in advance.

AFL boss Gillon McLachlan told clubs on Thursday night that he had agreed to a 12 per cent to 13 per cent discount between the parties over three years, in what is considered to be a good result for the league.

The deal has enormous ramifications for players and the 18 clubs since it provides more than 60 per cent of the game's revenue in normal circumstances and much more than that during the COVID-19 crisis. It is considered a better agreement for the sports code than the deal struck by the NRL two weeks ago, which included a 25-28 per cent discount for Nine Entertainment Co (owner of this masthead) and a reduction and five year extension with Foxtel.

 

[franklin2323]

Ch7 extended with AFL so the lengths are different to compare.

$200m reduction for AFL shows that NRL weren’t too bad with what they got

 

[Nerd]

No extension to the AFL deal by Fox is interesting.

 

[franklin2323]

No extension to the AFL deal by Fox is interesting.

Yet extended ch7... weird way to do it

 

[Get Rid of The Donkeys]

Ch7 aren't in a healthy position. If ratings for fumbleball don't improve and advertising continues to fall then they might go under. If they go bust and are bought by an American company then they won't be throwing large sums at Awful in the next deal.

 

[The_Wookie]

Ch7 aren't in a healthy position. If ratings for fumbleball don't improve and advertising continues to fall then they might go under. If they go bust and are bought by an American company then they won't be throwing large sums at Awful in the next deal.

Foxtels position isnt that great either at the moment.

 

[Get Rid of The Donkeys]

Foxtels position isnt that great either at the moment.

Foxtel is in deep trouble.

 

[ayatollah_murdoch]

We won't be able to make an apples to apples comparison.

However AFLs initial deal was circa $415m p.a. which has reduced to about $350m p.a. for the remaining fox and seven contract. This includes contra.

NRL was about $360m p.a. and if there has been a 20% discount, this goes down to about $290m. However, we have a provision to increase the revenue once we expand.

When you consider that the AFL still has to prop up the Suns and Giants indefinitely without private ownership, looks like we are pretty well placed.

Having seen this, and it's just my own opinion, but PVL has done a stunning job. The numbers do look like we've given up more but we will bridge that gap very quickly by expanding to existing markets.

 

[taipan]

Ch7 extended with AFL so the lengths are different to compare.

$200m reduction for AFL shows that NRL weren’t too bad with what they got

So let me get this ,with the NRL broadcast deal their reduction was a disgraceful , commercially stupid "gift" to the Tv stations in troubled times. For the $200m reduction in the AFL's deal ,it was a commercially sensible and needed reduction in troubled times.
Oxford Dictionary memo.The word GIFT now has two meanings.

 

[taipan]

Foxtels position isnt that great either at the moment.

I agree ,but at least Rupert & co will throw cash at it to sustain it ,and at least honour contracts, even though I have little time for him and his crew.

 

[Idris 84]

We won't be able to make an apples to apples comparison.

However AFLs initial deal was circa $415m p.a. which has reduced to about $350m p.a. for the remaining fox and seven contract. This includes contra.

NRL was about $360m p.a. and if there has been a 20% discount, this goes down to about $290m. However, we have a provision to increase the revenue once we expand.

When you consider that the AFL still has to prop up the Suns and Giants indefinitely without private ownership, looks like we are pretty well placed.

Having seen this, and it's just my own opinion, but PVL has done a stunning job. The numbers do look like we've given up more but we will bridge that gap very quickly by expanding to existing markets.

I think though that 7 are saving money in production costs which makes a bit of a difference, so it's not money the afl recieve anyway but it goes down as a ch7 saving close to 20 million a year. So the money going into the afl from 7 is only a few million dollars less per year than it has been, because they will broadcast games from the tv, get rid of a few afl tv talk shows etc. That's if i'm understanding it correctly, it's quite confusing the way these tv rights articles are written.

 

[Steel Saints]

If the NRL does expand to 17 teams with the introduction of a second Brisbane team, will it increase the current value of fox's deal?

 

[Cactus]

So let me get this ,with the NRL broadcast deal their reduction was a disgraceful , commercially stupid "gift" to the Tv stations in troubled times. For the $200m reduction in the AFL's deal ,it was a commercially sensible and needed reduction in troubled times.
Oxford Dictionary memo.The word GIFT now has two meanings.

Yes. It went very quiet in here even at the intimation that the afl was to renegotiate for less.

Be vewwy vewwy qwiet............we hunting financial wabbit holes

 

[Perth Red]

Its still all guess work really as there are no firm figures quoted by sources from NRL, AFL or TV execs. Everyone is very cagey lol.

So far what the media are saying:

FTA
AFL: Seven net saving $87million ($70mill cash value to AFL) over the 20-22 AFL deal.
2 year extension. total 5 year contract worth $730million ($146million a year)
NRL: Nine saving $124million* over the 20-22 NRL deal. No FTA extension ($144million a year)
(*Note these savings may not be all direct cash savings, they are not defined where the savings are being made in their businesses. Afl reduction is reported to be $70mill with the other $17mill savings in production costs)

STV
AFL: Reduced amount allegedly of $30mill per year for remaining term of contract ($186million a year). No extension
AFL Telstra deal same at $50mill a year
NRL: Reduced deal and extension signed for 5 more years after this contract end. 2020-2026. Only figure mentioned has been " around $1billion" but unsubstantiated and unclear if that is for full 7 years or just 5 year extension. If 7 years that is a discount of around $33million a year compared to 2018- contract. If only for 5 year extension period it is an increase of $25million a year for extension and no mention of what discount is for 20-22.
NRL Streaming rights no longer available to Telstra from 2023
No word on the NZ SkyTV deal.

So potentially it looks like it is around AFL $330mill a year, NRL $269Million a year for 20-22 (Telstra excluded), maybe!
Some nice gifts all round
The bolded parts are the only bits we can be confident about as came straight from the horses mouth.

 

[Perth Red]

If the NRL does expand to 17 teams with the introduction of a second Brisbane team, will it increase the current value of fox's deal?

Unclear, there has been mention that "provision has been made" but who knows what that means!

"In the new broadcast deal negotiated by V’landys with Channel 9 and Fox Sports, there is contractual scope for a 17th team to be added"
https://www.couriermail.com.au/subs...f1710fdc6bd3bf&memtype=anonymous&mode=premium

 

[Perth Red]

Yet extended ch7... weird way to do it

Depends how they view the future of streaming and if they want to lock in Fox or test the market.

 

[T-Boon]

If there is an extra game each week sell it to ten or seven. We don't need nines approval to do anything. After their past 3 months they can sit on it Potsy.

 

[Perth Red]

If there is an extra game each week sell it to ten or seven. We don't need nines approval to do anything. After their past 3 months they can sit on it Potsy.

There wont be, we are only expanding, maybe, by one team! It reads to me like the contract (which would say something like NRL commits to delivering a 16 club comp with 8 games a week) has a option in NRL's favour to deliver a 17 team comp.
As for value, hard one to judge. Gygnell claims it was valuable to have another Brisbane club yet did nothing to make it happen when in charge of Nine so makes you wonder why not?
Will another Brisbane club add more Fox subscriptions? Will it add major viewing figures to a FTA partner? I suspect the value would be in extra content but we need two new clubs to deliver that.

 

[T-Boon]

As for value, hard one to judge. Gygnell claims it was valuable to have another Brisbane club yet did nothing to make it happen when in charge of Nine so makes you wonder why not?
Will another Brisbane club add more Fox subscriptions? Will it add major viewing figures to a FTA partner? I suspect the value would be in extra content but we need two new clubs to deliver that.

A second Brisbane team would increase Fox subscriptions in Brisbane. Definitely more so than a Perth team would in Perth.
Anyway. We need a second Brisbane team regardless of the money it will bring in from TV. If we had one over the last 15 years it would have almost killed the Lions.
A second Brisbane team will create a great rivalry (something Brisbane has never had at club level in any sport) which will bring out the best in the Broncos increase the games popularity up there etc.

 

[Perth Red]

A second Brisbane team would increase Fox subscriptions in Brisbane. Definitely more so than a Perth team would in Perth.
Anyway. We need a second Brisbane team regardless of the money it will bring in from TV. If we had one over the last 15 years it would have almost killed the Lions.
A second Brisbane team will create a great rivalry (something Brisbane has never had at club level in any sport) which will bring out the best in the Broncos increase the games popularity up there etc.

Dont disagree on either point. Will it pay its own way to the point FOX will pay for it? It would require at least 50,000 new KAYO subscribers to make it worth their while (leaving aside the ignominity of paying extra to set up a rival business to your own in the same city )