Seven and Foxtel sign massive, seven-year AFL broadcast rights deal

[bornadog]

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The AFL has landed a staggering $4.5 billion, seven-year broadcast deal, easily the largest in Australian history, after sticking with incumbents Seven and Foxtel to show AFL and AFLW matches until 2031.


Foxtel and Seven were forced to pay significantly more than anyone imagined due to Channel Ten and Paramount’s eye-watering bid of $6 billion over 10 years.

The new seven-year deal will bring in $642 million in cash and contra per year including the digital rights, far more than the $600 million per year the AFL was aiming for. The previous two deals had yielded $3.5 billion over eight years.


Although AFL boss Gillon McLachlan said the same number of matches would be shown on free to air TV as were in the previous deal, Foxtel will have exclusive rights to Saturday games for the first eight rounds in Melbourne.


Earlier a senior media industry source confirmed to The Age and The Sydney Morning Herald that the deal would run for seven years and was a significant increase on the previous deal, which was worth $946 million over two years.


Seven and Foxtel were considered the front-runners despite Nine Entertainment Co making an offer on Monday worth roughly $500 million a year.


At Tuesday’s announcement, AFL chairman Richard Goyder said it was a historic day for the supporters of the AFL and for the future of the sport.


“It’s a historic day for our code and the future of the code,” he said.


“It’s a proud day that we announce the biggest broadcasting deal in Australian sport and deliver on our purpose to progress the game so everyone can share in its heritage and possibilities,” Goyder told reporters from Perth.


He said the latest deal balances the best possible outcomes for viewership.


This new deal ensures there would be even more investment in grassroots football, Goyder said.


McLachlan said the investment will go back into the best game into the world to continue to make it accessible, to keep ticket prices down and invest in facilities.


He said the game managed to bounce back from COVID-19.


“When we thought it couldn’t be any better we experienced the greatest open finals round of all time,” he said.


There would be at least the same amount of free air to games as part of the new deal, he said.


“I want to say that again - we will have the same number of free free-to-air games,” McLachlan said.

Seven West chief executive officer, James Warburton emphasised that the broadcaster had secured “a comprehensive package of digital rights to the AFL” which was its “absolute focus” meaning fans can watch games “anywhere, on any device for free”.


“For the first time, fans will be able to access the best AFL games and video content, live and free, in a way that suits them,” Warburton said.


Seven chairman Kerry Stokes said he was excited to continue the partnership which would ensure the AFL could grow over the next decade.


“We can think in terms of a decade, and over that decade with the support of the AFL and our other partners,” Stokes said.


“I am sure we’re going to take the AFL to whole new levels.”


Ten was disappointed to lose out it, but its streaming arm Paramount wished the other broadcasters the best.


“Paramount Australia and New Zealand congratulates the consortium that won the streaming and broadcast rights to AFL and AFLW,” a spokesperson said.


“We would like to sincerely thank the AFL for its invitation to participate in the bidding process.


“While we are disappointed not to be awarded the rights, we believed strongly in our ability to continue to grow the sport across multiple platforms particularly free-to-air in the northern markets and the AFLW, and provide coverage that sports fans would have revelled in, we retain confidence in the integrity of the process and the sincerity of those involved.


“We wish the AFL and the successful consortium all the best for the game.”


Goyder and McLachlan were spotted next to Seven West Media’s billionaire chairman Kerry Stokes at the elimination final between the Fremantle Dockers and the Western Bulldogs on Saturday night, which made some industry executives believe the deal was effectively done.


The deal is one of the key tasks outgoing AFL boss Gillon McLachlan wanted to tick off before leaving the job later this year.


He and the league will now focus on the issue of a Tasmanian team entering the competition as a 19th team, a new pay deal for the AFL’s male players and funding for clubs.


All deals are expected to be finalised before McLachlan exits.


In 2015, Rupert Murdoch intervened directly in media rights negotiations to ensure News Corp’s Foxtel, Seven and Telstra secured a record $2.508 billion six-year deal that ran between 2012 and 2016.

A two-year $946 million extension was secured in 2020, which ensured the rights stayed with Seven and Foxtel until the end of 2024 at a cost of $473 million a year.


The AFL had hoped that the competition from Network Ten and streaming partner Paramount Plus, as well as Nine Entertainment and its streaming service Stan, would help push the deal closer to the $600 million a year mark.


The prospect of streaming services gaining access to broadcast rights drew the attention of the federal government.


Last month, Communications Minister Michelle Rowland publicly warned the sporting code against reducing the number of live matches that were available for free before speaking to key executives at the sporting body. Rowland is reviewing the laws, which only prevent Foxtel – not other streaming services – from putting major sporting events behind a paywall.

A new deal with Seven West Media and Foxtel would not breach the anti-siphoning laws, which determine which key sports and cultural events should be available for free and have been a major focus in this round of broadcast negotiations.


Seven and Foxtel were at loggerheads for months over key elements of a future arrangement, including the number of live matches on free-to-air. The AFL was considering delaying two free-to-air matches each week by up to two hours in interstate markets to give Foxtel more exclusivity for its streaming service Kayo Sports.

[EasternWest]

So the AFL is going to start paying tax now, right?

[Sedat]

Screw you Gill. A nice little f*** you to the fans on the way out.

[MrMahatma]

Soft cap.

[bornadog]

Story updated above with dollars and more detail

[angelopetraglia]

+54% higher than the last long term deal that was signed in 2017. MASSIVE increase and the game is in incredible shape. The players I'm sure will have their hand out (as they should) and surely the get some relief in the coaching soft cap too.

[Sedat]

Most of the extra money will go to the AFEL office of the executive. Hearing a career corporatist like Goyder talk excrement about "grass roots getting more funding" is insulting to anybody with half a functioning brain.

Only slight saving grace is that Foxtel will finally get their own commentators for all games, so we don't have to ever listen to a ch 7 commentator again (except for the GF).

Of course the extra money doled out by ch 7 means they willcontinue to cut costs on the actual delivery of the product. Classic Lewis Martin Sydney-centric attitude. The host broadcaster doesn't even bother to have any footy preview and review shows - that's how little they regard the fans and the game.

[BornInDroopSt'54]

L Neale 3 votes v us, surely there is a role for tagging in our arsenal.