AFL silences doubters with $1.25 billion broadcast deal

By Michael DiFabrizio / Expert

It’s now official. In a massive coup for the game, the AFL today announced the rights to broadcast football from 2012-2016 have been sold for $1.253 billion. Channel Seven and Foxtel will be the TV broadcasters, while Telstra have won the mobile rights.

The final figure was well above the AFL’s original goal of $1 billion, which was seen by many as a target they couldn’t reach.

Here’s how it’s all going to work:

– Seven will show four games on free-to-air each round, although they may on-sell one or two of those games to either Channel Ten or Channel Nine. All four of these games will be shown in New South Wales and Queensland on 7mate, while Friday night games will be shown live into Victoria.

– Foxtel will show all nine games each round live and will also return to having a dedicated AFL channel, to be called Fox Sports AFL. The only game Foxtel will not hold the rights to is the Grand Final. Fans in South Australia and Western Australia will benefit from no longer putting up with “black spots” where certain games don’t get shown at all.

– Telstra will broadcast all games live to mobiles and tablets, the first time the AFL has sold such rights in Australia. One match a week will be shown via Telstra’s T-Box product.

So what does this mean for fans?

Well, those with enough disposable income to afford Foxtel or Austar have every right to be over the moon at the moment. Every game being shown live, combined with the return of a dedicated AFL channel, is a huge win for pay-subscribing fans.

Those who are not as fortunate have some right to feel disappointed. While four games will still be shown on free-to-air – just as with the last deal – the fact there will be nine games from next year onwards means a smaller percentage of games for these supporters, and that means less opportunities for them to watch their favourite team.

It’s at this point where it must be remembered the pay TV take-up rate still hovers around one third of the population. That leaves a lot of people unable to watch when games aren’t shown free-to-air.

On the plus side, there will be more live football for free-to-air fans, something that was long overdue.

So what does this mean for the future growth of the game?

Mostly, this is great news for the AFL’s future. $1.253 billion is a lot of money to have flowing through the game. Grassroots will benefit, the expansion push will be strengthened, memberships and tickets can stay affordable, more money can be stored in the war chest … there are many positives.

Perhaps the ratio between free-to-air and pay TV might lead to less engagement from casual or younger supporters – remember, kids don’t control the family budget or have the option of “going to the pub” – but you’d have to think in this case, the positives far outweigh the negatives.

$1.253 billion certainly puts the AFL in a very good position looking forward. It also underscores the AFL’s position as Australia’s number one football code.

The Crowd Says:

2011-05-01T00:10:59+00:00

Richard

Roar Guru


Pity they gave it to Channel 7. Their coverage has been woeful over the past years. Terrible camera technique, poorly produced and directed, overuse of the close-up making it hard to follow the action as a result. Channel 10 have been much better.I hope they buy some games and stay in it. However, Foxtel have been the best. I've decided to keep Foxtel after all.

2011-04-29T22:35:12+00:00

The Cattery

Guest


Good post Tooks. I too join with you in wishing all other sports the very best. We are all winners.

2011-04-29T11:46:41+00:00

Bruce

Guest


Let me help you here. I think you meant to say "Yet you're commenting".

2011-04-29T05:09:52+00:00

JVGO

Guest


The AFL is a corporation, it acts in an imperialist manner, and with its money aims to impose its will on the people north of the Barassi line. Makes perfect sense to me, as does Roy who is credible enough to have an article on the front page of the SMH today.

2011-04-29T04:17:53+00:00

footy_fan

Guest


Have we learned nothing from what happened to sport in the UK? My Dad was over here on holiday and was amazed at how much soccer there is on free to air. It's Britain's national game and unless they have pay TV they don't see any. Used to be loads of matches on free to air when I was kid. If we let foxtel slowly whittle away at the free to air broadcasts, and they will, we will soon all have to pay and get foxtel or not see any games. That is what they would really love. It makes me really angry that it's all done by stealth over a few years. At the moment there is only about a 30% takeup of foxtel in WA, my mate works for them and always says he takes as many out as he puts in. We have to be careful that we don't restrict young kids from viewing and getting involved in the game or it will die. I used to love playing and watching soccer and thought I would miss it. I don't and have slowly lost interest. It used to be great when they had the premiership roundup on free to air but that is now on foxtel. I also remember enjoying watching boxing and important bouts would always be on free to air. Now to get a decent boxing match on TV you usually have to pay EXTRA on top of the usual foxtel fee. It's got to the point now where the average sports fan wouldn't have a clue who the world champions are in any weight. When I was a kid we were all interested in boxing and knew just about all the world champions. They have done a great job there of just about killing off the sport. Soccer could be much better supported here too if it was on free to air. None of my kids or me give a toss about how Perth Glory have gone on as we aren't likely to see the match. They had one of the best support bases in the country when they first started. Maybe they will see the light and take up some of the free to air time freed up to show soccer? Doubt it though.

2011-04-29T03:32:30+00:00

Nathan

Guest


I think he means the people's corporate communist scourge.

2011-04-29T03:21:58+00:00

amazonfan

Roar Guru


:D It is absurd.

2011-04-28T23:47:38+00:00

me, I like football

Guest


"corporate imperialist scourge of the people" oh dear

2011-04-28T23:43:15+00:00

Tooks

Guest


What is particularly fascinating about this deal is how it uses Pay TV and the extra digital channels on FTA to help guarrantee live to air games. Four on FTA, and all games on Pay TV to be live. All the focus has been on the money surrounding this deal, but for me this is the trully historic achievement. There may be some quibbles about ratios of FTA to Pay TV games. But there is no such thing as a perfect solution when bottom lines for the broadcasters have to be taken into account. But mathematics aside, there will be no less games on FTA TV. And for those of us in AFL starved northern states, it's very good indeed (better obviously if you have Foxtel of course, but that's not a bad compromise when $1.25 Billion is there as a tradeoff!). And Giants & Suns fans/administrators will be glad to hear their team/sbrands will be freely available for years to come. So it's a big fillip for the key growth areas the AFL is targetting. This is a model all the other codes should now follow. Historically big networks have left true sports fans stuck with delayed and often edited telecasts, midnight broadcasts or worse: no live access at all. NRL fans have been horribly treated for years. And in the case of the A-League and Union as the only money was from Pay TV subs, they had no choice but to accept that their codes would suffer the indignity of 30k to 100k viewers normally getting exposed to home and Away fixtures and this has been ultimately detrimental IMHO. I wish the NRL, Union and Soccer fans all the best getting a similar result for their codes.

2011-04-28T23:39:06+00:00

me, I like football

Guest


Are they paying over the odds? I believe the FTA worth last time was $425m. By reports Ch7 are paying $475m this time (though admitedly not with 4 exclusive games), wouldn't even cover inflation. Foxtels worth is in its subscription and I expect them it to rise heaps in the football markets where they have a relatively small take-up rate.

2011-04-28T23:32:46+00:00

me, I like football

Guest


From memory Telstra payed $60m last time, and couldn't show the games live. considering it's a growing media plus the extras and inflation. They seem to have got it very cheap.

2011-04-28T22:08:40+00:00

Redb

Roar Guru


The Link, I don't think the NRL has too much to worry about, but soccer and union would be concerned as the AFL and NRL will again dominate the free to air and pay tv landscape.

2011-04-28T22:03:01+00:00

Redb

Roar Guru


yeah whatever JVGO, Masters has been called out and has egg all over his face. A lot of AFL fans and media have taken notice. Cant get away with hiding in Sydney any more with his prejudice. Here's my tribute to Uncle Roy: http://www.theroar.com.au/2009/05/12/sports-journalism-in-need-of-a-few-good-men/

2011-04-28T20:48:10+00:00

The_Wookie

Roar Guru


cheers for clearing that up.

2011-04-28T20:40:32+00:00

ChrisH

Guest


Certainly don't understand the intricacies of how these deals are done, but with seven and fox paying over the odds, it's reasonable to suggest they won't be in a great position to bid for NRL a year or so from now. Where will the price pressure come from to drive that deal to $1bil

2011-04-28T17:41:19+00:00

Brendon

Guest


Will be interesting to see how this impacts the NRL TV rights. Main difference between the AFL and NRL is that most of the AFL viewers are in major cities whereas a lot of NRL viewers are in regional areas.

2011-04-28T15:58:30+00:00

Nathan

Guest


You are one person. You are a minority.

2011-04-28T15:36:52+00:00

Nathan

Guest


And best of luck to it.

2011-04-28T15:34:02+00:00

The Link

Guest


phenominal deal for ther AFL, particularly on the Fox side, they obviously see potential for subscription growth in this new deal. will this crowd out the cash for the other codes?

2011-04-28T15:29:07+00:00

Nathan

Guest


There were many talking points out of that match, and Messi's (astounding) goals were the only positives. That game was no advertisement for football.

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