TV rights pact important for football’s pathway

By Robbie Di Fabio / Roar Guru

Since the reformation of Australian football in 2005, there has seemingly never been a more crucial period in the game’s history.

Following the inaugural season of the invigorated domestic competition, Football Federation Australia signed off what was the most lucrative television deal in the sport’s history – putting pen to paper on a $120 million, seven-year deal with Foxtel broadcaster Fox Sports.

With the current contract expiring in June 2013, FFA chief executive Ben Buckley holds the key to unlocking a bigger, better and more rewarding financial package in the new TV rights deal.

The current seven-year venture had plenty of critics, arguing that the length of the contract was far too long, whilst the lack of free-to-air component had limited the sport’s reach to a more mainstream market.

However, if we think on a more lateral level, it provided the game with a sound financial backing for an extended period of time, something that football wasn’t accustomed to in years gone by. Realistically, if Fox Sports didn’t come to the party, there are grave doubts that the A-League, as we know it today, wouldn’t exist.

Buckley, formerly Andrew Demetriou’s right-hand man at the AFL, was the protagonist behind its previous TV rights deal from 2007-2011, negotiating an impressive $780 million, five-year pact with free-to-air networks Seven and Ten, and additionally Fox Sports.

While Buckley may not be universally loved by enthusiasts of the round-ball code – often due to his former alliance with Aussie Rules and an inability to financially stabilise the A-League – he certainly has the opportunity to put his critics to bed, with a cavernous cut of the pie in the new TV deal.

Many critics believe that $30-35 million per annum would be a fantastic outcome for the code, significantly aiding the A-League – contributing towards clubs’ salary cap wages – underpinning a more vibrant and financially viable competition. In retrospect, this would be a brilliant result, although there are many factors to consider when assessing the new TV rights deal.

While the competition is still in its infancy, undeniably the product has matured enormously over the past few years. Technically the game has enhanced considerably, coaches are much more tactically astute, a higher quality of imported players are plying their trade down under, Socceroos stars Harry Kewell and Brett Emerton are conveying a greater interest in the media, while TV audiences and crowds continue to rise in this campaign.

All these factors – particularly the upward trend in TV audiences, up around 50 per cent this season – will significantly help in the FFA’s negotiation process.

With besieged outfit Gold Coast United uncertain of its A-League future beyond this weekend – after FFA revoked the licence off mining tycoon Clive Palmer – FFA knows too well the financial ramifications that would be imposed if the league contracts to a nine-team competition during the negotiation phase. It’s imperative that the Gold Coast community rally behind its club, seek a shrewd community ownership model – a consortium of local businessman, in conjunction with Asian investors, are reportedly keen on bankrolling the club – and demonstrate that an A-League club is viable in the region.

The area has a wealth of potential – the sixth largest market in Australia, predicted to top 700,000 residents by 2021 – however it was unable to realise it under the boorish management of Mr. Palmer. The national governing body should be doing everything in its powers to keep Gold Coast in the competition, not only for the future development in the region and competition – with a long-term ambition of a 12-14-team league – but importantly for the financial pay packet with the forthcoming TV rights deal.

In addition, FFA has made no secret of its desire to have a team situated in Western Sydney as soon as possible – an area considered the heartland of Australian football. While it’s only a matter of time before a team is positioned there, Canberra is also looming as a realistic prospect for a future A-League licence.

Bid leader Ian Slavich has secured financial backing from the ACT government, private investment and 2,000 foundational members, who have donated $200 each. While the bid is approximately $2-million short of reaching the financial demands set by FFA, there is still optimism circling the nation’s capital.

Assuming the Gold Coast licence is reinstated, the A-League could realistically have a 12-team competition within the next two to five-year period. The prospect of more teams, initiates a longer season and an improved cause for an enhanced TV deal.

In regards to FTA, is it time for football to liberate its shackles on Foxtel and allow FTA networks to also telecast the A-League and Socceroos matches?

In an ideal world, Australian football would be on FTA, along with Fox Sports. The notion of having this scenario would have fans jumping for joy. SBS is the obvious choice – with its sound football heritage – but it’s exceedingly doubtful that it could compete with Foxtel’s big dollars. Currently, SBS televises the prestigious UEFA Champions League tournament and select international fixtures, while also hosting the weekly review show, The World Game.

Channel 10’s OneHD could also be another option, although it’s unknown whether the broadcaster is interested at present. While channel nine, who lost the bidding war to host AFL, could also be a contender. Its HD station GEM poses another alternative.

The FTA market is colossal, boasting 70 percent of television’s reach. FFA has made no secret about its desire to have a FTA component, although it must be for the right price. Similar to the current AFL package, it would be advantageous for the FFA to have a similar deal – where Foxtel has the rights to a certain number or all of the games, while FTA has a set amount each week and a highlights package.

Unfortunately, without the rudiments of FTA, the A-League is limiting its potential reach. For the competition to cultivate and continue in an upward trend, FTA may be the catalyst for football to move into a new degree of professionalism.

Fox Sports do offer a stylish, enjoyable viewing experience. Their expert panellists, in particular Mark Bosnich and Adam Peacock, are charismatic and bring a sense of fun to the table. Moreover, in the new TV rights deal, more concrete analysis of the game is a necessity, if the code wants to compete with the AFL’s Fox Footy coverage or the various NRL shows on offer.

Currently, Fox Sports dedicates a one-hour programme on the week’s football issues – where only half-an-hour is solely bestowed towards Australian football – A-League, Socceroos etc – while the other half is habitually focussed on the English Premier League. This is not nearly enough in-depth analysis on the code’s chief talking points, in contrast to the rival codes.

People may believe that the demand isn’t there for a wider range of football shows or extended coverage of its present format. However, it’s evident that football has a vast following throughout the nation. If Fox Sports decides to persist with Fox Sports FC as the sole talkback panel programme, it must encompass a more construed effort towards the local game and the issues confronting the code.

Furthermore, when Australian clubs compete in the Asian Champions League, it’s perplexing that Fox Sports decides to abandon its magazine style program for the week. It’s a clear illustration of the code’s lack of media transparency, and must be rectified in the new TV agreement.

Whilst on the local scene, the National Youth League – an important pathway to the A-League, where the next generation of players are unearthed – is generally neglected by the media. If FFA wants to seriously foster, and nurture the development of the country’s best prodigies, then the media must also dedicate more time towards this competition.

In the NRL, its youth league – the Toyota Cup – is televised on Fox Sports on a weekly basis. Whereas in the AFL, the various state league competitions, essentially the AFL clubs’ reserve squads – the VFL, SANFL, WAFL etc – are also broadcast weekly.

If youth are a key priority for football, then FFA must follow suite with its rival codes and look at airing NYL games – even if it’s only one-game per round. NYL curtain-raisers to A-League fixtures could be the way to implement the process. Fans are generally interested in their club’s youth set-up, and would certainly warm to the concept of NYL coverage.

By and large, the football community should feel optimistic with the game’s direction. We must remember it wasn’t that long ago where Australia didn’t have the privilege of a professional national competition, engulfed with a glut of mainstream media coverage. There are still many impediments to overcome; it won’t always be smooth sailing.

However, if we can take confidence from where the game has come, to the proficient environment it is immersed in today, then football will certainly be a mainstay in Australia’s clustered sporting atmosphere.

The new TV rights deal is important for the code’s imminent direction and financial security. Whether it includes FTA, remains to be seen at present. Although, improved coverage and of course, a superior cash settlement will go a long way towards securing a brighter future from the grassroots, all the way through to the A-League competition.

Courtesy of Goal Weekly. Follow Robbie on Twitter @RobertDiFabio.

The Crowd Says:

2012-03-26T18:41:41+00:00

Emric

Guest


Fuss I can remember them offering a increase wasn't sure how much. I hope that Soccer gets a nice increase in payments it certainly needs stability. I'm a rugby fan with a interest in the phoenix but soccer should be well funded in NZ/Aus as Rugby is well funded with SANZAR (430 Million USD)

2012-03-26T18:36:53+00:00

Emric

Guest


Titus its good in theory, but getting someone to put up substational money based on a theory is going to be a challenge. Fox and Sky will want to look at the last 5 years and see what risk they should place on the next 5 - lucky for the A-League its tv audience has grown in both countries which means it should see a better deal. I just can't see them giving the A-League an awesome deal which will allow a FTA component - the choice is going to be very simply FTA for less money or awesome money for exclusive. The risk then is up to the FFA to make

2012-03-26T11:42:16+00:00

Titus

Guest


The difference between Football and Rugby is that the Super 15 is already the pinnacle of Rugby, it can't get much better, it can grow steadily but it is as good as it will get. Pouring more money into Rugby wont get you more viewers, as is the case with AFL and League. The a-league is operating on a shoestring budget, there would be more Football fans who don't follow the a-league than Football fans that do follow the a-league. It is never going to be the EPL but as you improve the quality, more and more Football fans will get into it, as will more and more neutrals.Investing more money into Football will increase the viwers substantially.

2012-03-26T11:15:16+00:00

Tizzo

Guest


I was referring only to the A-league and none of the other competitions.

2012-03-26T11:09:12+00:00

Fussball ist unser leben

Roar Guru


18 months ago Fox wanted to enter a new $60m p.a. 5 yr broadcast rights deal with the FFA, but the FFA said "no thanks". We must not be complacent, but, as far as I'm concerned, things are falling into place very nicely for the next broadcast rights.

2012-03-26T10:52:00+00:00

Emric

Guest


If Soccer gets 30,000 PA over 5 years or 150,000,000 it will be doing pretty well. The reality is that neither Soccer or Union rate well in Australia and while the A-League has done a remarkable job in building its brand but I'd be surprised if a FTA channel was prepared to cough up the cash for the A-League. Fox,and Sky are going to drive hard bargains - they will be happy to allow FFA to provide content to FTA but the price will be a slashing of the tabled offer. Would you the fans be prepared to accept a major drop in income for access to FTA ?

2012-03-26T10:20:21+00:00

Fussball ist unser leben

Roar Guru


TWG has announced on Twitter that, in addition to the English FA Cup, which is always broadcast live on SBS, this year SBS will also be broadcasting LIVE: * DFB Pokal (German Cup Final) Borussia Dortmund v Bayern Munich, 3:45 a.m. Sunday, 13 May 2012 * Coppa Italia (Italian Cup Final) Juventus v Napoli, Sunday 25 may 2012 And, last year SBS also broadcast the Cop Del Rey (Spanish Cup Final), so I presume they'll do it again. Exciting times for football fans.

2012-03-26T10:04:04+00:00

Fussball ist unser leben

Roar Guru


Tizzo The FFA is responsible for a lot more than organising the domestic league. The FFA has responsibility for at least 10 National Football Teams: Men: u17, u20, u23, Senior, Futsal, Beach, Para-Olympics Women: u17, u20, Senior These National Team responsibilities accounted for approximately $40m in the Year 1 July 2008-30 June 2009.

2012-03-26T09:49:44+00:00

Tizzo

Guest


Considering at the moment, the salary cap is $2.35 million. A minimum of $23.5 million to cover the salaries plus a little extra for administration costs. Should be what the FFA ask for the A-league.

2012-03-26T08:26:26+00:00

Titus

Guest


Gorman has stated that TV ratings are up by 46% The most important thing in PayTV land is the potential for growth. Given more resources, to hold on to players and attract players, and Football has a huge potential to grow.

2012-03-26T08:17:48+00:00

Nathan of Perth

Guest


Perth Heat ABL team has a partnership going with iiNet to livestream all of their home games. And then the Championship Series was plonked on Foxtel. Seemed to work pretty well, definitely a concept they could work with.

2012-03-26T08:13:36+00:00

Tizzo

Guest


Internet TV is how the FFA should establish the "A2-league". With the lower costs, it may just work, hopefully. With the playoffs shown on Fox or FTA.

2012-03-25T05:59:52+00:00

asanchez

Roar Guru


The upcoming TV deal has as much riding on it as John Aloisi's spot kick did in that crazy night at ANZ stadium in 2005. We all know what happened that night against Uruguay, and what it did for the sport in this country. Well here comes another huge moment in our game's history. It has the power to really lift the sport forward domestically or stall it even further. Rightly or wrongly, the FFA have put all their eggs in the TV rights basket. I'm hoping this tactic pays off, and hopefully we now see what Ben Buckley can really do at the negotiating table. The amount of money we get is obviously very important, as is the reach that the product will get across Australia. The exact figures are really anyone's guess, but IMO I reckon that the A-league alone could command $40-$50m per year. But for that to be possible, the A-league needs 5 games a week next season, and not go back to 9 teams as many are predicting. Let's hope these negotiations happen soon, so the game knows where it sits and can start planning accordingly for the future.

2012-03-23T08:56:46+00:00

King Robbo

Guest


I wouldnt live and die by these stats, while foxsports may not be the most watched show - I doubt foxtel ratings give a good indication of actual viewers for the majority of their programs. I work in stats, to me if the 20th program is only getting 40,000 viewers, the sampling error must be quite high (for anything outside of the 20th ranked program), unless of course they are using a huge sample. I do not believe they do however and the fact their is such a spread of shows at one time make figures even more dubious. I assume the methodology would be sound enough for the top 10 programs to be ranked but anything outside of that I would be cautious in quoting. I assume they stratify their sample using age, which also may bias the rating figures a little to the elderly and young (hence dora and MASH).

2012-03-23T03:41:00+00:00

The Cattery

Roar Guru


KR I too am a regular viewer of Foxsports FC, but we have to be realistic about demanding more such shows. I was just checking Tuesday night's ratings, Foxsports FC does not appear in the Top 20 Fox shows, with Dora the Explorer equal 20th with 39k (so Foxsports FC was below that). I checked the previous Tuesday, and it doesn't show up there either, with MASH in 20th sport on 41k (yes, MASH, the sitcom from 35 years ago). I did one last check, and went to the Tuesday before that, and Kourtney and Kim came in at 20th spot on 42k. All these shows cost Fox next to nothing, whereas to produce an extra half hour of Foxsports FC, or an additinal talk show on top of that would cost some real money, and for the time being, the demand for it is just not there.

2012-03-23T03:25:53+00:00

King Robbo

Guest


I thoroughly enjoy foxsports fc, but use to like it better when it went for 90 minutes. With 60 minutes for A-league and 30 minutes of overseas stuff. They need to incorporate talk about the spanish, german and italian leagues too rather than just epl - might get some of the euro snobs interested in the local game.

2012-03-23T03:23:26+00:00

Griffo

Roar Guru


I'd say that A-League and Australian football coverage is not long enough on TWG either. More focus on the local scene and players abroad would be great. Surely there is enough content for an hour show on HAL/Aussies in it's own right by now?

2012-03-23T03:20:18+00:00

George

Guest


Well done guys , great discussion. The Fox Sports FC issue has bugged me for long enough,in not long enough to discuss the A-League issues. I pestered them for weeks to no avail

2012-03-23T02:23:22+00:00

King Robbo

Guest


I would be happy to see the match of the round live on FTA and highlights program. Foxtel will also be happy with this as it promotes the A-league, which equals more subscribers for supporters who want to watch more than one a-league game a week. I know the socceroo games are a big component of the current television deal but the socceroos really need to be on free to air, even if its just the home games (if you are not a fottball fan, will would you get up at 1am to watch australia v oman). Most general sports fans and even euro snobs I know dont even realise the world cup qualifiers are on.

2012-03-23T02:20:16+00:00

Axelv

Guest


Just something that has never been taken into account when discussing FTA vs Fox. If the crowds were to rise by 2000 at the stadium because it is now getting exposure across the nation, that would be $500,000 per club, the TV rights equivalent of $5m-$6m per year. More on that, if the club shirts were to be viewed by 3 times more pairs of eyes, a $500,000 per year sponsorship deal would then be worth above to $1,000,000 a year, again the equivalent of $5-$6m more per year of TV money. This is not even taking into account the increased money received from the A-League and FFA sponsors, sponsor boards at the stadium, other shirt sponsors, popup ad's (e.g SportsBet/DHL) and television ad's! So a $30m per year Fox TV deal with FTA benefits, would actually be raising more revenue for the clubs than we think! The 3 biggest income generators for football is: Gate revenue, TV rights and Sponsorship revenue. The value of all 3 are by determined by the amount of fans, TV money is nice but let's not forget the other two ;)

More Comments on The Roar

Read more at The Roar