Perth Red
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They always announce the total deal and the yearly avg amount.Except they announced the total deal not the annual figure
$4.5b. Take out Telstra and it is around $3.8b that is total up until 2031.
It usually doesn't matter as much because deals are announced in the last 12 months, They can normally just keep escalating on the current rate not the case here
This was announced 3 years out and goes for 7 years instead of 5. As such the % of growth to allow for inflation is higher.
How does going from an avg of $416mill (2017) a year to $423mill (2023) a year to $550mill a year (2025) within 8 years have anything to do with inflation?
We went $380mill (2018) a year to $402mill (2023) a year, again no correlation to inflation
Inflation is around 5-6% in that period, the deals are announced as an avg and the actuals are paid at a 2-3% increase each year from a lower rate than announced to give that avg.
So back in the real world, once again!, our current tv deal taking out $5mill radio in the ch9 deal and assuming the announced $402mill is cash and contra with around $30mill contra value a year is:
Cash TV avg $367mill
Actual cash revenue realised:
2023 $353mill
2024 $360mill
2025 $367mill
2026 $374mill
2027 $381.5mill
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