today is a good day

Discussion in 'NRL Media Watch' started by Starkers, May 14, 2020.

  1. mongoose

    mongoose First Grade

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    Fox over paid massively for AFL, 7 probably had a decent deal.

    NRL was the opposite, 9 overpaid and foxtel got a bargain.

    Guess there will be some corrections
     
  2. colly

    colly Juniors

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  3. Desert Qlder

    Desert Qlder First Grade

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    AFL faces cash crunch as big TV rights deal in limbo

    AFL boss Gillon McLachlan faces a deepening drama if the league fails to strike a revised deal with broadcasters Channel 7 and Foxtel before the season restarts. And as the networks push for a payment cut due to COVID-19, the game’s finances could be hit hard .

    [​IMG]
    The AFL is in danger of restarting its season without a TV rights deal in a deepening drama for league boss Gillon McLachlan.

    Failure to strike a revised agreement with broadcasters Channel 7 and Foxtel before next Thursday night’s Collingwood-Richmond MCG clash will leave the game’s finances in a precarious position.

    “There’s a lot of uncertainty,” an insider told the Herald Sun on Thursday night.

    The networks are pushing for a reduction of about $150 million on their 2020 payments because the season has been compromised by the COVID-19 crisis.

    The size of the TV shortfall will be crucial in determining cash distributions to all 18 clubs, the extent of staffing culls across the industry and pay for players.

    It can also be revealed discounted payments for 2021 and 2022 are being sought by both broadcast partners.

    The prospect of a two-year extension for seasons 2023 and 2024 also remains unclear.

    “The various parties are nowhere near a deal on that,” the insider said. “The game has changed in the media world and peak sports rights are five years ago, really.”

    Reports on Monday that Seven and Foxtel had withheld payments to the AFL were incorrect.

    The league received a full payment last December and again in mid-March, meaning broadcasters have forked out two instalments for a single round of football.

    The next payment is due in July. An AFL commission subcommittee, including McLachlan, former News Corp boss Kim Williams, Paul Bassat and Robyn Bishop, is leading the league’s negotiations.

    Seven this week announced it was dumping its Monday night and Sunday morning footy review programs because of savage costs cuts, while Fox Footy and Kayo subscribers have been lost during the season shutdown.

    Broadcasters are also concerned they have no clarity on the AFL fixture beyond Round 5, while a decision has not been made on what date or time of day the Grand Final will be played.

    Rival code NRL, which relaunched its season last weekend, has already locked away an extended new TV rights deal.

    Before the coronavirus, the AFL pocketed an average of $417 million a year in TV rights as part of a six-year, $2.5 billion deal with Seven, Foxtel and Telstra that expires at the end of 2022.

    Google, Facebook and Amazon are not considered serious players in the race for the AFL’s broadcast rights.

    Club chiefs are bracing for cuts in TV revenues of 15 to 20 per cent.

    Hawthorn president and ex-Seven board member Jeff Kennett said last night: “It’s essential that we get a good price because if there is a reduction, every dollar it is reduced by will impact on the code — not only this year but will have a flow on effect next year — because of the borrowings that the AFL will have to undertake.”

    RMIT sports marketing expert Con Stavros last month said the league’s media rights would take a hit in the post-COVID world, declaring the free-to-air networks were “not the money-making machines they once were”. Broadcast money accounts for about 62 per cent of the AFL competition’s total revenues.

    CURRENT SIX-YEAR AFL TV RIGHTS DEAL
    FOXTEL $1.3b

    CHANNEL 7 $900m (includes $60m contra)

    TELSTRA $300m

    TOTAL $2.5b

    AVERAGE ANNUAL PAYMENT
    FOXTEL $217m

    CHANNEL 7 $140m (plus $10m contra)

    TELSTRA $50m

    TOTAL $417m

    REVISED 2020 DEAL
    WORST CASE 50 per cent payment — $208.5m total, $108.5m from Fox, $70m (plus $5m contra) from Seven, $25m from Telstra

    TOTAL LOSS $208.5m

    BEST CASE 75 per cent payment — $313m total, $163m from Fox, $105m from Seven (plus $7.5m contra), Telstra $37.5m

    TOTAL LOSS $104m

    https://www.couriermail.com.au/spor...o/news-story/1c7a9912eadf5bad063177a4def71c31
     
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  4. Johnny88

    Johnny88 Juniors

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    Fox Footy last night post match for AFL was very cheap looking. Still had the podcast setup only 3 people casually talking at a table with microphones. Before covid they would have 5 to 6 people all dressed in suits on a big set talking for at least an hour.
    It was I bit strange for the preferred game lol.
    Fox League is back to normal for there pre and post games.
     
  5. Canard

    Canard Referee

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    So the truncated Australian only Super Rugby is going with a 10 game season (Fox only) with timeslots clashing with the NRL.

    Seems like TV ratings suicide.
     
  6. tri_colours

    tri_colours Juniors

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    Nine got exclusive access to 4 of the highest rating games in the country. They also got streaming rights to there own games. I don't think they did to badly. I would sooner say there CEO is an incompetent arsehole whose looking to blame everybody but himself.
     
  7. Perth Red

    Perth Red Immortal

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    nine did alright once you take into account the $55mill a year that fox gives them for simucast and Saturday nights. They only ended up paying $130mill a year for a dash over three games whilst seven paid $166.6mill for 3.5 games.
     
  8. colly

    colly Juniors

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    Yes that true however that has been fixed in this deal as Foxtel has allready secured their games/rights (But not exculive streaming ) with NO SIDE $PAYMENTS.
     
  9. Perth Red

    Perth Red Immortal

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    devil will be in the detail, if that includes Saturday night and simucast in the Fox deal then we will get significantly less in the next fta deal.
     
  10. taipan

    taipan Referee

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    Depends on what interest ch10 has then.Ch9 can't get AFL now ,due to 7 deal extension.
    Maybe they thought they had a chance with the AFL ,by not extending the NRL FTA.Ch7 grabbed an extra 2 years and 9 may have no choice now.
    If 10 offers more V'Landys is not going to play the long term ch9 loyalty crap.The NRL can split SOO and the NRL and or final series, they have the product and the choices.
    The NRL has at least long term revenue from its major broadcasting source.
     
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