Mammoth AFL rights deal finally hunted down

By Geoff Lemon / Expert

So the mail is in, and the mystical billion-dollar mark has been obliterated. Like when petrol tipped over a dollar a litre, or the years ticked past 2000, people’s fascination with big round numbers makes this a milestone day.

Rugby league will be scrambling for the role of jilted lover once again, demanding through a stream of tears to know what that scrag has got that she hasn’t got, even as the happy couple stroll up the aisle.

Football wouldn’t even have got an invite to the wedding, and its supporters will be just as antagonised, pointing out that the Socceroos have provided pay-TV’s highest-rating matches in recent years.

But there it is. 1.253 billion dollars for a five-year AFL deal, from a combination of Channel Seven, Foxtel, and Telstra.

The deal is touted by the AFL as being the best deal ever for allowing fans to access the game. Every game will now be shown live in every state on at least one network.

This is due to Foxtel, who will show each round’s nine matches live, with five of those matches being exclusive.

Foxtel will create a dedicated 24-hour AFL channel to handle the load, which will be included with their standard sports package. Clashing matches will be shown on alternate Fox Sports channels.

Their main innovation is that all Foxtel matches will now be uninterrupted, siren to siren. This includes the pre-season competition, and all finals bar the big one.

It’ll be a blessed relief to punters who thought that freedom from ads was the point of pay TV in the first place, and have spent years being done over.

The Grand Final is the only match that Foxtel will miss out on, with that prize going exclusively to Seven.

Seven will have four games a week, screened in the traditionally favoured TV spots of Friday and Saturday nights, and Saturday and Sunday afternoons. Only the Saturday afternoon matches will be on delay.

Seven’s live broadcasts will be consistent across all states. The rise of digital television has made this possible, with Seven subsidiary 7mate to handle live broadcasts into the ACT, New South Wales, and Queensland.

Telstra will chip in more than 100 million dollars for the rights to broadcast all matches live online and to smartphones. They’re going to need to flog a lot of fake Viagra.

The impact of so much live footy on memberships and gate receipts remains to be seen. But then, the league will probably have a few bucks it can chip in.

Channel Ten, part of the negotiations for so long, pulled out late in the piece. With their recent financial worries and stakeholder make-up, they’re instead trying to buy up matches from Seven’s allotment at a reduced price.

There’s the hint that those negotiations might just be for show, though, if Ten investor Lachie Murdoch is deliberately tanking the free-to-air station’s bid in order to give a leg-up to his family’s main business at Fox.

Just how this sort of conflict of interest is allowed to happen is unclear.

But there’s also the prospect that Murdoch’s old foes over at Channel Nine might step in to snap up Seven’s scraps.

There is, of course the suggestion that a deal of this magnitude is unsupportable. The Australian economy in general appears to have been dangerously inflated beyond the capacity of its base to support.

These days you’ll pay fifty dollars for a day’s parking in Melbourne, five bucks for a coffee in Perth. For the price of a modest house in Darlinghurst you could buy this Polish mansion.

Valuing our dollar above that of the United States is a fanciful notion, and the rates are killing Australian exporters.

With all this boom, it only seems a matter of time until it busts. But there’s a reason why sports writers are not economists, and it’s not just because Macquarie Bank wouldn’t let me in the building with this haircut.

Whether the networks can extract their billion dollars’ worth from the marketplace remains to be seen. What pressures that might put on consumers remains to be seen too.

Nonetheless, the deal is done. And whatever the goods, the ills, the just desserts and the injustices, it is an extraordinary achievement for a domestic league with no overseas interest or participation.

And please don’t get riled at me for sweeping generalisations. No, a handful of Paddies and the efforts of the Denmark U-16s don’t actually count.

Perhaps the AFL testament will eventually spread to New Zealand, though not if Jeff Kennett keeps making friends there at his current rate. But calling the Kiwis ‘international’ is like calling a movie with your cousin a date.

At least we know who the AFL will be holding hands with for the next five years.

The Crowd Says:

2011-04-30T22:50:53+00:00

The Cattery

Roar Guru


Fox News had Sarah Jones interviewing Jason Dunstall about why this was a great deal for everyone, well, they would say that!

AUTHOR

2011-04-30T12:46:51+00:00

Geoff Lemon

Expert


Yep. And I think they're actually right that the punters will do better out of it. More live games, and better access for interstaters, is a win all round.

AUTHOR

2011-04-30T12:45:25+00:00

Geoff Lemon

Expert


I'm not sure why it necessarily needs overseas exposure. And if the ICC's Associate teams have taught us anything, it's that trying to transplant foreign sports in locations with no ground-roots demand for them is a very long and work-intensive process. Will take generations of commitment.

AUTHOR

2011-04-30T12:43:13+00:00

Geoff Lemon

Expert


And Seven were full of chest-thumping in the news conference about how they were the Number 1 station in the country and "going to stay that way for a very long time." If they think this is what it takes, they'll go for it.

AUTHOR

2011-04-30T12:41:33+00:00

Geoff Lemon

Expert


Not a lot of investment decisions, Fussball, but God knows I've made some other ones where the bill has been just as bad.

AUTHOR

2011-04-30T12:40:39+00:00

Geoff Lemon

Expert


Maybe the AFL could pass a rule that four league converts could be played for each AFL player left out? On current evidence that would be reasonable.

AUTHOR

2011-04-30T12:39:14+00:00

Geoff Lemon

Expert


I'm enjoying the options available too, Cattery. Much better a buffet lunch than the one pot roast.

AUTHOR

2011-04-30T12:38:09+00:00

Geoff Lemon

Expert


"you may have missed the part where i said “Not seriously and usually drunk”. The Wookie, I for one didn't miss it, but I want it on my tombstone.

2011-04-29T22:33:08+00:00

The Cattery

Guest


We will only know the truth of that in the next few years. I do note this, looking over the past decade: ch 9 was the no. 1 station when it had the AFL rights, ch 7 won the top spot when it won the rights over 9. It's that sort of eventuality that compels a station like ch 7 to "pay over the odds". It's silly for anyone to think that it's done on a whim.

2011-04-29T04:53:48+00:00

Nathan

Guest


Except when they are different widgets. Not all games rate the same and given that 7 will be broadcasting all games for interstate teams into those states, they are getting a substantially larger slice of pie than simply 4 versus 9 would imply.

2011-04-29T03:58:47+00:00

Fussball ist unser leben

Roar Guru


I keep telling you ... Football, for me, is kicking the ball - in the backyard, in the park, in the street, on the beach, in the patio ... heck, it doesn't even have to be a ball - a squashed drink can does the job if you have reasonable foot skills. Watching sport on TV or in the stands is a simply a form of entertainment for me. Just like going to an art gallery or theatre is entertainment; but if you're an artist or performer you want to actually paint and perform ... not simply watch.

2011-04-29T03:48:45+00:00

amazonfan

Roar Guru


"coercion and bribery" For a soccer fan, you should be wary about talking about such things in relation to other codes. Anyway, I don't think Wookie was being serious.

2011-04-28T23:27:35+00:00

Timmypig

Guest


I'm keen to see what Roy Masters writes in his next column .....

2011-04-28T16:06:51+00:00

Fussball ist unser leben

Roar Guru


@ Nathan The undisputed fact is that Ch 7 has paid $475m for 4 games and FoxSports has paid an additional $125m for 5 extra games than Ch 7. So, even if Channel 7 sells the games on to Ch 9/10, it still means Ch 7 has paid too much compared to FoxSports - unless Ch 9/10 are fools and pay Ch 7 more for these game than Ch 7 paid the AFL! You see ... if I buy 9 widgets for $9, my unit price is $1 per widget. Now, if you buy 4 widgets for $8, and on-sell 2 widgets to The Wookie for $4 you're still left with 2 widgets and your outlay is $4. You've paid $2 per widget, which is twice the price that I paid ... and, you've got a dud deal compared to me.

2011-04-28T15:32:40+00:00

Nathan

Guest


Depends on the games given, however. Also, if Channel 9 or Ten/OneHD want to screen them then they have to purchase from 7 at a premium, ameliorating some of 7's costs.

2011-04-28T14:37:54+00:00

jamesb

Guest


I think alot of AFL fans should be thanking NRL fans or other sports fans for not responding to the REPEATED negative dribble thats coming out of "The recalcitrant" I also think "The Roar" would appreciate that.

2011-04-28T14:21:01+00:00

The_Wookie

Roar Guru


as opposed to people actually wanting to watch it.

2011-04-28T14:00:56+00:00

Fussball ist unser leben

Roar Guru


And, yet, in the USA and Australia every day of every week of every year, more people participate in Football than NFL or AFL sports respectively! No matter how much the AFL spends and no matter how many watch on TV ... more people still want to actually play Football.

2011-04-28T13:36:46+00:00

The Cattery

Guest


Obviously it's not something we would want to pursue in the short term, but just like the Tassie situation, we should perhaps always leave the door open for such an eventuality. Afterall, we're in this together, and just as the good Samaritan lent a helping hand, we should never eschew an opportunity to do the same.

2011-04-28T13:32:55+00:00

The_Wookie

Roar Guru


settle down jeez

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