syd barrett agrees.
You know things are f**ken all over the place when you are happy for the Channel 9 deal and Ray Hadley is making sense.
Borbon Bec agreed that instead of seeing 20 pages of League, we'll soon start seeing 10 pages of League, and 10 pages of AFL.
For those foolhardy enough to still buy that rag, me thinks it's time to stop.
Suity
[FONT="]When is a $2.5 billion deal not really a $2.5 billion deal?[/FONT]
[FONT="]When is a $2.5 billion deal not quite a $2.5 billion deal? When it consists of payments that are staggered over time, like the AFL's broadcasting deal with the Seven Network, News Corp's wholly owned Fox Sports, and Telstra.[/FONT]
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[FONT="]Time is money. Just ask Telstra CEO Andy Penn, who joined luminaries, including Rupert Murdoch and Seven's Kerry Stokes, at the unveiling of the AFL deal. In 2011, Telstra valued its National Broadband Network deal at $11 billion, even though it will swing more than $90 billion to the telco over several decades. The $11 billion number was Telstra's estimate of how much the cash that was destined to flow over decades was worth to it right then, in 2011.[/FONT]
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[FONT="]A discount rate is applied to calculate the "net present value" of future cash flows, and it varies. Telstra used a 10 per cent rate, which is high. As a general proposition, however, future money is less valuable than current money because of inflation, and because money can be invested to earn extra money over time.[/FONT]
[FONT="]The AFL's current broadcasting deal runs for five years from 2012 to 2016, and has a headline value of $1.25 billion, or $250 million a year. The new deal runs for six years from 2017 to 2022, and will see Seven, Fox Sports and Telstra pay a total of $418 million a year, for a headline total of $2.5 billion 67 per cent more than the deal it replaces.[/FONT]
[FONT="]Using an 8 per cent discount rate, the net present value of the new deal is lower, however about $1.8 billion by my calculation. That's an average of $300 million a year, and an increase of about 19 per cent over the annual average of the 2012-16 deal.[/FONT]
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[FONT="]Payments that were made in the past are also worth more in today's dollars. Money invested into AFL broadcast rights between 2012 and 2016 at a rate of $250 million will have an implied value of about $1.6 billion by the time the current five-year deal is done. That's an average of $316 million a year a bit more than the discounted annual average of the new deal.[/FONT]
[FONT="]It's still an awful lot of money of course. The first broadcast deal covering 1971 to 1975 was priced at an average of $200,000 a year, and at the turn of the century, the AFL was still getting only $40 million a year. Fees took off as Foxtel became entrenched, reaching $100 million a year between 2002 and 2006.[/FONT]
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[FONT="]AFL is a great live-TV product. Its average weekly TV audience grew from 3.6 million in 2010 to 4.7 million in 2014, despite a 1.5 per cent drop in total attendances at games, and a 12 per cent decrease in average attendance per game. As Netflix and others expand, it is a key product for free-to-air Seven and Fox Sport's pay-TV customer, Foxtel. It just isn't as fabulous as the headline 67 per cent price increase for broadcast rights suggests.[/FONT]
http://www.smh.com.au/business/comm...really-a-25-billion-deal-20150819-gj2rth.html
Triple M just made the Do-not-watch/listen/read list.
Are they owned by News in any way or is Matty Johns so pathetic and desperate to keep his Fox job that he's on his knees at the first opportunity?
[FONT="]Ray Hadley calls it straight on News Corp's NRL threat[/FONT]
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[FONT="]You will have read that Rupert on Tuesday claimed that, despite its epic battle to takeover rugby league in the 1990s, his company has "always preferred Aussie rules".[/FONT][FONT="]
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[FONT="]Now that's probably smart business – after all, the media mogul is trying to strong-arm Dave Smith's NRL in their ongoing pay-TV rights negotiations.[/FONT][FONT="]
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[FONT="]But whether or not News Corp prefers Aussie rules, badminton or synchronised swimming is a bit beside the point – or so said many rugby league loving politicians who represent rugby league loving electorates.[/FONT][FONT="]
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[FONT="]That's certainly the view of prominent media analyst (and league commentator) Ray Hadley, as we discovered during our morning trip on the Murrays bus.[/FONT]
[FONT="]"I think Mr Murdoch is simply tormenting the NRL," said Hadley on his 2GB morning radio show. "At the end of the day, in my opinion, Fox needs the NRL much more than the NRL needs Fox."[/FONT][FONT="]
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[FONT="]By which he meant, if Newscorp's Foxtel wants to maintain – let alone grow – it's penetration rate, it will need more than those bits of the AFL it didn't get from Kerry Stokes's Seven.[/FONT][FONT="]
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[FONT="] But what about News Corp's campaigning tabloids? Couldn't they re-write the nation's sporting tastes?[/FONT][FONT="]
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[FONT="]Well it's not for charity, Hadley noted, that The Tele's Paul "Boris" Whittaker and the Courier Mail's Chris Dore fill their tabloids with coverage of rugby league. That's what their customers want to read about.[/FONT]
So many angry posters on here :lol:
Shows that you are just a troll of this sports site with the constant shit, just f**k off to your union site and be done, clown.
Not in Sydney it hasn't.
Suity
he's right though, so much angry posturing in this thread.
I'M NEVER GONNA READ THE TELE/WATCH FOX AGAIN
nek minute, DID YOU SEE WHAT THEY PUBLISHED IN THE TELE?