We should also be aiming for $1billion

[dimitri]

As per article below, AFL Is aiming to get $1billion from their next tv deal. If the NRL promises the TV Channels that they will add WA Reds and CC Bears we should also be aiming for $1billion


http://www.sportbusiness.com/news/169137/afl-pushing-billiondollar-tv-deal
AFL pushing for billion-dollar TV deal

The Australian Football League (AFL)'s broadcasting and new media chief has revealed he hopes the next TV rights deal for the League will reach one billion dollars.
The AFL’s current deal with the Seven and Ten Network from 2007 to 2011 is worth around A$780 million dollars over five years.
“I’d like to think we could get a billion dollars,” Gillon McLachlan told afl.com.au. “There’s no doubt that the value of our content continues to get stronger, and despite the tough economic conditions for media companies, we’re very confident in our product.
“Our balance sheet is very strong, we’ve got cash in the bank, and we’re forecasting to increase revenues this year, and there’s not many businesses doing that.”
The price of the current deal swelled considerably after an enormous bid by Channel Nine and pay-television broadcaster Foxtel, which Seven and Ten were forced to trump to gain the rights.
It is believed the AFL are planning an additional game to provide an extra broadcast opportunity each weekend.

 

[Paullyboy]

Can someone who has access to the facts tell me whether we out-rate AFL nationally or not?

I was always of the impression we did fairly regularly, if that's the case it should be the only thing that matters when negotiating our next deal. If we already have more people watching we shouldn't have to sell anything other than that fact.

 

[dimitri]

Can someone who has access to the facts tell me whether we out-rate AFL nationally or not?

I was always of the impression we did fairly regularly, if that's the case it should be the only thing that matters when negotiating our next deal. If we already have more people watching we shouldn't have to sell anything other than that fact.

Not sure

Does anybody know how much we get for tv rights in NZ?

 

[Cletus]

The only way they'll get $1 billion is if they resurrect Kerry Packer. It just isn't going to happen, despite what they say about having markets in NSW and Queensland it just doesn't rate here. ANd I think we've got as much chance as they have of getting $1 bil.

 

[Bulldog Force]

The only way they'll get $1 billion is if they resurrect Kerry Packer. It just isn't going to happen, despite what they say about having markets in NSW and Queensland it just doesn't rate here. ANd I think we've got as much chance as they have of getting $1 bil.

I don't think we can get that - especially given the direction fox has taken lately.

 

[dimitri]

I don't think we can get that - especially given the direction fox has taken lately.

There's no reason why we cant

NRL just needs to be very smart with how they sell the rights

 

[Thomas]

There's no reason why we cant

NRL just needs to be very smart with how they sell the rights

I've found a flaw in your argument...

 

[djst]

One thing to take into account is an Afl game can go for 120 minutes.
Being generally a high scoring style of game,this can provide lots of opportunities for ads.

 

[Cumberland Throw]

Can someone who has access to the facts tell me whether we out-rate AFL nationally or not?

I was always of the impression we did fairly regularly, if that's the case it should be the only thing that matters when negotiating our next deal. If we already have more people watching we shouldn't have to sell anything other than that fact.

You will probably need to clarify what you are asking,

simply if you added up the numbers of viewers all year who are reported to watch on TV NRL v AFL. Including FTA (Metro and Regional) PAY TV etc . AFL would win, simply becasuse they have 5 FTA games on a week that reach a much wider population than our 5 PAY Games a week, which can only be accessed in approx 40% of houses.

There are occasions where NRL outrates AFL games mostly on PAY TV, but the numbers are a lot less than the FTA figures..

 

[Parra]

The clubs handed the game over to the only real bidder.

The reason the media companies spent so much to control the game was so they wouldn't have to pay market rates for the rights.

 

[Slackboy72]

Given the GFC now is not a good time to be selling rights due to decreases in advertising revenues. That said we should be looking at around $150m per annum (don't forget the last AFL deal was only $137m per annum). We may outrate AFL but that is mostly due to regional Qld where advertising revenues are not the big bikkie that the major networks are after. They are after Sydney and Brisbane who represent 37% and 17% of the TV advertising dollar (Melbourne represents 25%). Hence we need more teams in QLD first. People rabbiting on about the Central Coast and Perth are ignoring leagues largely untapped heartland. Imagine three teams in Brisbane and one on the Sunshine coast.
Six QLD teams would guarantee three home games every week and far more product and advertising space in the fastest growing state. Like it or not QLD is the present and future of our game. AFL is a novelty sideshow in QLD and the AFL are shooting themselves in the foot with their GC expansion plans. We need to bring more QLDers in to the NRL fold. Only that will increase our worth to broadcasters and hence our revenue stream.

 

[butchmcdick]

And just where is this billion dollars coming from ?

Which network or group is going shell out that kind of cash in the current ecconomic climate ? Can you imagine all the hangers on in the NRL, QRL, NSWRL, CRL, ARL, the clubs and the players union all with their hands out all demanding a slice of the action if league got that kind of cash ?

This has to be pie in the sky stuff.

f**k it, lets go for 2 billion a year.

 

[butchmcdick]

Given the GFC now is not a good time to be selling rights due to decreases in advertising revenues. That said we should be looking at around $150m per annum (don't forget the last AFL deal was only $137m per annum). We may outrate AFL but that is mostly due to regional Qld where advertising revenues are not the big bikkie that the major networks are after. They are after Sydney and Brisbane who represent 37% and 17% of the TV advertising dollar (Melbourne represents 25%). Hence we need more teams in QLD first. People rabbiting on about the Central Coast and Perth are ignoring leagues largely untapped heartland. Imagine three teams in Brisbane and one on the Sunshine coast.
Six QLD teams would guarantee three home games every week and far more product and advertising space in the fastest growing state. Like it or not QLD is the present and future of our game. AFL is a novelty sideshow in QLD and the AFL are shooting themselves in the foot with their GC expansion plans. We need to bring more QLDers in to the NRL fold. Only that will increase our worth to broadcasters and hence our revenue stream.

So on the one hand AFL are stupid for creating another team in QLD yet the NRL should put 3 more teams in QLD as it is the fastest growing state and more teams = more revenue ? Can you see the irony ?

 

[Slackboy72]

So on the one hand AFL are stupid for creating another team in QLD yet the NRL should put 3 more teams in QLD as it is the fastest growing state and more teams = more revenue ? Can you see the irony ?

You haven't really clued on to the fact that people in QLD support league in far greater numbers than they support AFL, have you?
AFL putting a second team in QLD would be like NRL putting a second team in Melbourne.

 

[butchmcdick]

You haven't really clued on to the fact that people in QLD support league in far greater numbers than they support AFL, have you?
AFL putting a second team in QLD would be like NRL putting a second team in Melbourne.

Well seeing as I live in QLD and support league then I feel I can say I understand who gets the most support. That said have you clued onto the fact that if the AFL have another team here in what you admitt is the fastest growing state in the country can only be a positive for their code in terms of popularity and rtv revenue. THe AFL have said they are prepared to support a new club in QLD for at least the next decade. Add to that their plans to put another sydney team in and it seems that the AFL are doing the equivlent of putting not just two teams in melbourne but three.

What are we doing to counter the threat of AFL ? Sitting back and consoling ourselves that it just can't work because we are so strong and nobody follows AFL in Qld/NSW. I seem to remember people saying the same things about the swans and the bears/lions when they came into the comp some 20 plus years ago and they are both still here.

 

[Billythekid]

One thing to take into account is an Afl game can go for 120 minutes.
Being generally a high scoring style of game,this can provide lots of opportunities for ads.

This may be true and i'm sure there are other factors that allow AFL to get more money from their tv contract.

Having said that what i don't understand is how they got so much extra money AND got so many little perks with their contract. For example getting lives games shown in NSW and QLD, despite embarrassingly bad viewing figures. Both 10 and 7 must be throwing away money doing this. How did the AFL get them to agree to this sort of deal whilst still paying FAR more than what 9 pays for league?

 

[Thomas]

Because the NRL has been bent over backwards while taking a long length of man-wand...that's why.

 

[dimitri]

Because the NRL has been bent over backwards while taking a long length of man-wand...that's why.

haha

 

[sting]

One thing to take into account is an Afl game can go for 120 minutes.
Being generally a high scoring style of game,this can provide lots of opportunities for ads.

Bingo.

I'm no stats man and these are just random numbers but....

If 2 million people watch a 2 hour telecast with x amount of ads

or 1.5 million people watch a 2.5- 3hr telecast with y amount of ads,

which tv rights are worth more?????

 

[Perth Red]

AFL has a perception of having a bigger profile (wether justified or not) and a national presence (wether justified or not). they also have an independent board running the game. I will be surprised if they get $1bill but they will get equal or more to the last deal and we will get a bit more but still get a lot less than AFL and a lot less than the game is worth, and needs to grow.

You only have to look at the noises coming out of the two camps: AFL "we want a billion" NRL "we are getting what we deserve" to see where it is heading.