AFL itching for broadcast rights talks, Ten or no Ten
Date
March 16, 2015 - 12:15AM
Jared Lynch and Dominic White
Negotiations for the AFL's next broadcast rights deal are set to begin before the start of the 2015 football season, with the league appearing unwilling to wait until the future ownership of Ten Network Holdings is decided.
Sources close to the deal say talks are imminent and will start before round one kicks off on April 2.
This is despite the auction for Ten Network – which the struggling free-to-air broadcaster and its advisor Citi had planned to finalise before Christmas – being yet to be resolved.
It is also understood that Nine Entertainment Co, which has the rights to screen rival code the National Rugby League, will not participate in the auction. It dropped out early in the previous AFL process.
The AFL has told the market it values its next broadcast rights deal at $1.75 billion over five years, and held informal talks with television networks late last year.
The league hoped the price could be pushed up further if Ten – perhaps in combination with Foxtel, which has made a joint takeover bid with Discovery Communications for Ten's key assets – joined the bidding. The league had delayed formal negotiations while the auction continued.
But the AFL is hoping to finalise its next broadcast rights deal before the end of this season. The existing $1.25 billion five-year agreement expires at the end of 2016.
Ten, which is in need of a major sporting code in its schedule, is preparing to participate in the process, having enjoyed much-needed ratings success with the Big Bash cricket league. But its financial capacity is limited when compared with rivals.
The incumbent rights holders, Seven West Media, Foxtel, Fox Sports and Telstra, have indicated they want to retain them.
Seven chief executive Tim Worner chose to maintain a "polite silence" on the fprthcoming talks last week, but believes sport, reality TV and news are the "three pillars" of the network.
He has also said Seven would not overpay for the AFL rights. "We love AFL but it is also well documented that we are not going to make an emotional decision on that," Mr Worner said after the company's interim results last month.
Bedi Singh, the chief financial officer of News Corporation, which owns Fox Sports and owns half of Foxtel, also has said the company would be "economically sensible" about broadcast rights.
"I don't think we are looking at getting into negotiations where you see the kind of stuff that's happening in the, UK hopefully," Mr Singh told analysts and investors this month.
He was referring to the record £5.136 billion ($10.17 billion) Sky and BT paid for live English Premier League TV rights for three seasons from 2016-17. This was a 70 per cent increase on Sky at BT's current £3 billion deal.
Mr Singh is not the only media executive who believes Australia will not see a British-style bidding war for AFL rights, with others questioning the $2 billion price tag some analysts have predicted, saying the cost of England's Premier League rights reflected a different sport in a different market.