The T.V Rights Thread Part III

[El Diablo]

speaking of 9 http://afr.com/p/business/marketing_media/cvc_scrambles_to_save_nine_j7HFJWsPDpcSNLmit6FcuI

 

[Brutus]

Meanwhile all Rothfield's got is "NRL is a woeful standard, Dragons v Eels was the worst game I've ever seen, how can rugby league expect 1.2 billion"

Agendas, agendas, agendas...

He simply writes for his pay master.

 

[El Diablo]

Meanwhile all Rothfield's got is "NRL is a woeful standard, Dragons v Eels was the worst game I've ever seen, how can rugby league expect 1.2 billion"

Agendas, agendas, agendas...

He simply writes for his pay master.

i read last week he has invited his good friend Demetriou to his 60th birthday party

sounds like kiddies

 

[Perth Red]

For me the pay tv bit is the most interesting. We know they have had a cheap ride so far but do they believe they are at risk of losing the rights enough to double their current payment?

Out of interest what is a realistic price for soo if sold separately?

 

[docbrown]

Out of interest what is a realistic price for soo if sold separately?

$125-$150 million approx over 5 years

 

[Karl]

$125-$150 million approx over 5 years

10 Mill a game?

 

[bobmar28]

10 Mill a game?

It has to be worth more than that.

 

[El Diablo]

Bigpoofy is still going :lol: http://www.bigfooty.com/forum/showthread.php?t=942403&page=45

 

[Karl]

It has to be worth more than that.

Why?

 

[carlosthedwarf]

10 Mill a game?

Sounds about right. I'm sure before it's been mentioned that the series is worth about $20-25m a year.

 

[docbrown]

Sounds about right. I'm sure before it's been mentioned that the series is worth about $20-25m a year.

Well I'm suggesting it'll attract a premium on that - anywhere upwards of another $25 million or so given where it sits at the core of everyone's attentions.

For once though we may hopefully get a public release of the individual breakdown. Every network is required to provide a breakdown of their bid estimate for each individual component of the overall package.

Correct if I'm mistaken guys, but think I saw that finally publically confirmed in one of the papers just after the Monday deadline passed.

 

[docbrown]

Bigpoofy is still going :lol: http://www.bigfooty.com/forum/showthread.php?t=942403&page=45

Now they're debating crowds as if it means much of anything to the TV rights negotiations. These are the same f**kwits who bitched about recent record State of Origin ratings and claimed they weren't good enough. :lol:

FFS they're talking about this more than we are.

Perhaps somebody should give them some phone numbers for counseling services for when they try to harm themselves in the next few weeks.

 

[carlosthedwarf]

Well I'm suggesting it'll attract a premium on that - anywhere upwards of another $25 million or so given where it sits at the core of everyone's attentions.

Sorry I should have been clearer, you're right - current value was $20-25million, so up to $30million isn't out of the question.

 

[Karl]

So explain to me, on an ROI basis, how 9, 7 or 10 makes a commercial rate of return on an outlay of the 10 Million Dollars per Game.

If you have $10,000,000 you can invest that in the sharemarket/equities/property and with little to moderate risk make say 10% return per annum, or a million dollars on it. I should get some capital growth as well, maybe 5%, so after a year I have $11.5 Million.

If I throw it at a Television Broadcast then the risk obviously is higher, there is no residual capital value so I need to make all of the investment back plus the return. I therefore want a much higher ROI in order to justify the risk and lack of capital security. A combined 11.5% return ain't gonna cut it, but for this lets say it does, that I am happy to spend 10 to make 11.5.

How do I generate 11.5 Million dollars from 1 State of origin game, even as an average return over 3 games in the series? Someone explain the numbers because I can't make it add up based on available advertising revenue, even allowing for a "halo effect" etc.

(forget for a second that if i have 30 Million to invest I can make a LOT more than 11.5% returns and still run very moderate risks compared to a major TV event.)

 

[whall15]

The halo effect is potentially huge, tbqh I'm surprised that Nine didn't just completely cut off all of the post match stuff to promote a new show like that Tricky Business off the end of it.

 

[Perth Red]

well for pre game, during game and post game shows there would be around 30+ adverts and then the Halo effect into the pre and post programming adverts and finally the whole corporate confidence thing that comes from the perception that you are the most popualr TV station due to overall viewing figures.

What that little lot adds up to in real $'s I have no idea. How much would a 20sec advert sell for during Origin?

 

[BuffaloRules]

So explain to me, on an ROI basis, how 9, 7 or 10 makes a commercial rate of return on an outlay of the 10 Million Dollars per Game.

If you have $10,000,000 you can invest that in the sharemarket/equities/property and with little to moderate risk make say 10% return per annum, or a million dollars on it. I should get some capital growth as well, maybe 5%, so after a year I have $11.5 Million.

If I throw it at a Television Broadcast then the risk obviously is higher, there is no residual capital value so I need to make all of the investment back plus the return. I therefore want a much higher ROI in order to justify the risk and lack of capital security. A combined 11.5% return ain't gonna cut it, but for this lets say it does, that I am happy to spend 10 to make 11.5.

How do I generate 11.5 Million dollars from 1 State of origin game, even as an average return over 3 games in the series? Someone explain the numbers because I can't make it add up based on available advertising revenue, even allowing for a "halo effect" etc.

(forget for a second that if i have 30 Million to invest I can make a LOT more than 11.5% returns and still run very moderate risks compared to a major TV event.)

Side point - tell me which share markets and properties are returning 10% per annum at the moment with "little capital risk"?

I'm hearing Facebook is going well...

The rest of your argument is pointless if we dont know how much the TV companies charge for ads that air in front of a 4 million audience...

 

[Karl]

Side point - tell me which share markets and properties are returning 10% per annum at the moment with "little capital risk"?

I'm hearing Facebook is going well...

The rest of your argument is pointless if we dont know how much the TV companies charge for ads that air in front of a 4 million audience...

If you have 10 MILLION in cash you have options open to you that someone with $10,000 does not have. You can acquire or invest in established, growing businesses with good asset backing and make 25% returns, you can get fully franked dividend returns, you can look at high performing, unlisted property trusts that are put out through wholesale investor networks, etc.

I said moderate risk, little capital risk, not "fixed bank interest" no risk.

 

[BuffaloRules]

If you have 10 MILLION in cash you have options open to you that someone with $10,000 does not have. You can acquire or invest in established, growing businesses with good asset backing and make 25% returns, you can get fully franked dividend returns, you can look at high performing, unlisted property trusts that are put out through wholesale investor networks, etc.

I said moderate risk, little capital risk, not "fixed bank interest" no risk.

My superannuation fund has tens of millions of dollars and they are going backwards...

Maybe you should be advising them?

 

[Karl]

My superannuation fund has tens of millions of dollars and they are going backwards...

Maybe you should be advising them?

They have very strict restrictions on how they invest.

Anyway, the point is that if you throw lots of money at things in a business environment, you have higher ROI expectations. You'd want better than 10% profit margin right?