As AFL teams prepared for the final round of the regular season last week, media executives were huddled around computer screens, tweaking contracts for lawyers to pore through.
One participant of the talks described recent movements as the high drama-phase of
what may be the biggest broadcast rights deal in Australian sports history.
With the top eight now decided, outgoing CEO Gillon McLachlan could deliver news of an agreement as early as this week.
For some time, AFL has held a claim to be the true national sporting competition. If the game’s executives can finalise a multi-year deal worth more than $500 million a year, the AFL will again show its status as the top dog in Australian sport.
Current rugby league, cricket, tennis and soccer deals will likely pale in comparison to the deal being negotiated to air the AFL beyond the 2024 season.
One source close to the negotiations predicted a strong result for the AFL, with observers predicting the game will secure something moderately above its previous deal.
Leaks and concessions
Leaks to the media from the supposedly secret negotiations have complicated the process.
The AFL’s investment committee – made up of CEO McLachlan, chairman Richard Goyder, and commissioners Paul Bassat and Robin Bishop – has been apparently left frustrated as patchy details about the negotiations have trickled into public view. Some have been dismissed as broadcasters trying to “talk their book” in the press.
Seven West Media, owner of Channel 7, along with pay-TV provider Foxtel have been privately confident of again being the game’s broadcast partners, as this masthead reported last week.
A
report from The Sydney Morning Herald claimed a significant hurdle had been cleared for the 7/Foxtel bid, which would see Channel 7 stream games on its 7Plus service.
But a source close to the negotiations said things are far from certain. Bids from Channel 10, with its streaming platform Paramount+, and Nine, owner of streamer Stan (and
The Australian Financial Review), are still being considered.
If the AFL were to take the rights away from Seven – it’s free-to-air partner for all but a few years of the competition’s history – it would send shockwaves through the local broadcasting industry.
Tech on the sidelines
Despite their best efforts, Australian sporting codes have been unable to drum up support for global tech and media giants to enter the fray.
A feature of recent global rights deals has been the presence of Amazon, Disney and Apple. Viewers “cord cutting” – that is, turning away from traditional cable bundles – has opened the door for these companies to offer low-fee monthly access to streaming platforms.
With these cashed-up companies around the negotiating table, competitions like the NFL, Indian Premier League cricket and English Premier League soccer have been able to secure mammoth deals. In June, the IPL signed a mammoth rights extension with Disney and a local broadcaster worth more than $8.5 billion for five years after Amazon sought out the rights.
Whoever succeeds McLachlan at the AFL will hope the tech and media giants come to the table next time around, ensuring the rights to Australia’s premiere football competition keep going up.
A record deal of more than $500 million a year would cement the AFL’s position at the top of Australian sport.
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