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http://www.news.com.au/adelaidenow/story/0,,25991315-5016212,00.html
Jon Ralph
August 27, 2009 11:30pm
AFL chief executive Andrew Demetriou has privately acknowledged the league's projected $1 billion price for the next TV rights deal is unattainable.
As negotiations warm up, rival networks are increasingly confident they will be able to cover any bid Nine puts up for a slice of the AFL rights.
While Demetriou and AFL chief operating officer Gillon McLachlan have publicly pushed the $1 billion figure, the financial climate means such a deal is unlikely.
Demetriou is well aware of the financial picture of the networks, and their inability to offer a sum that might significantly increase the current $780 million deal.
The capacity to win a billion-dollar deal would have seen the AFL able to effortlessly underwrite the two expansion sides as well as continue to prop up ailing Melbourne clubs.
The league will have the inducement of a ninth game through its two extra teams, but it does not necessarily mean that a massive increase in rights money will follow.
The free-to-air networks will have little interest in showing games involving western Sydney and the Gold Coast, both of which will take several years to be competitive.
The AFL's one ace in the hole is a new TV timeslot that would allow Foxtel an exclusive timeslot similar to its Sunday twilight game.
Foxtel is in a strong financial position and could fund any potential growth in TV rights, which secured the AFL $780 million between 2002-6.
It would be prepared to pay good money for Monday night football, just as it does for exclusive Monday and Saturday football in the NRL competition.
While Nine has declared it is keen to again broadcast AFL, its hopes might rest with trying to attain one specific timeslot such as Friday night football.
It has this year committed to a $500 million content deal on its main and digital channels and, with Foxtel, paid over $100 million for the 2010 and 2012 Olympic Games.
But the AFL is unlikely to cut up each of its nine games and sell them as individual timeslots to maximise its TV rights booty.
The most likely result from early negotiations would be networks Ten and Seven keeping similar timeslots and paying marginally more, with Foxtel given a Monday or Thursday slot and contributing significantly more money.
The AFL needs Nine to be a player in the rights negotiations, just as it was when Kerry Packer's massive deal forced rival networks to eclipse it under their last-rights option.
As much as supporters are desperate for more live Friday night football, it remains to be seen if the league will force Seven's hand if it keeps that game.
Industry sources say Seven's decision to broadcast Better Homes and Gardens on Fridays before the football makes the network upwards of $20 million a year through its nation-wide advertising platform.
Showing football live in Melbourne and Adelaide would reduce its Friday night revenue greatly, without providing a ratings boost.
Jon Ralph
August 27, 2009 11:30pm
AFL chief executive Andrew Demetriou has privately acknowledged the league's projected $1 billion price for the next TV rights deal is unattainable.
As negotiations warm up, rival networks are increasingly confident they will be able to cover any bid Nine puts up for a slice of the AFL rights.
While Demetriou and AFL chief operating officer Gillon McLachlan have publicly pushed the $1 billion figure, the financial climate means such a deal is unlikely.
Demetriou is well aware of the financial picture of the networks, and their inability to offer a sum that might significantly increase the current $780 million deal.
The capacity to win a billion-dollar deal would have seen the AFL able to effortlessly underwrite the two expansion sides as well as continue to prop up ailing Melbourne clubs.
The league will have the inducement of a ninth game through its two extra teams, but it does not necessarily mean that a massive increase in rights money will follow.
The free-to-air networks will have little interest in showing games involving western Sydney and the Gold Coast, both of which will take several years to be competitive.
The AFL's one ace in the hole is a new TV timeslot that would allow Foxtel an exclusive timeslot similar to its Sunday twilight game.
Foxtel is in a strong financial position and could fund any potential growth in TV rights, which secured the AFL $780 million between 2002-6.
It would be prepared to pay good money for Monday night football, just as it does for exclusive Monday and Saturday football in the NRL competition.
While Nine has declared it is keen to again broadcast AFL, its hopes might rest with trying to attain one specific timeslot such as Friday night football.
It has this year committed to a $500 million content deal on its main and digital channels and, with Foxtel, paid over $100 million for the 2010 and 2012 Olympic Games.
But the AFL is unlikely to cut up each of its nine games and sell them as individual timeslots to maximise its TV rights booty.
The most likely result from early negotiations would be networks Ten and Seven keeping similar timeslots and paying marginally more, with Foxtel given a Monday or Thursday slot and contributing significantly more money.
The AFL needs Nine to be a player in the rights negotiations, just as it was when Kerry Packer's massive deal forced rival networks to eclipse it under their last-rights option.
As much as supporters are desperate for more live Friday night football, it remains to be seen if the league will force Seven's hand if it keeps that game.
Industry sources say Seven's decision to broadcast Better Homes and Gardens on Fridays before the football makes the network upwards of $20 million a year through its nation-wide advertising platform.
Showing football live in Melbourne and Adelaide would reduce its Friday night revenue greatly, without providing a ratings boost.
