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Prydzopolis

Australian Football TV Rights & Death Of Foxtel Thread

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Thought I'd start up a new thread as this starts to ramp up in the next 12 months.

 

New deal set to be in place for the 2017/2018 season I believe (correct me if I'm wrong)

 

Quote

Football Federation Australia has kicked off negotiations on the richest television deal in its 11-year history by targeting a doubling in the price of its media rights with more free-to-air coverage.

 

David Gallop, chief executive of the FFA, has hired London-based strategic adviser Oliver & Ohlbaum to help obliterate soccer’s previous four-year $160 million broadcast deal with Fox Sports Australia and SBS.

 

O&O’s clients include Europe’s top-tier football competitions — the English Premier League and Germany’s Bundesliga.

 

Administrators are said to be confident of achieving a big rise in the value, potentially up to $80m annually — a massive 100 per cent rise in the value of the rights.

 

Speaking to The Australian, Mr Gallop confirmed he had started a tender process, saying: “There’s no set timetable but with a year to go on the current deal we recognise it’s a good time to be out and about talking to the potential partnersâ€.

 

Amid concern about soft ratings for Friday night A-League matches on SBS, football authorities have decided to end this arrangement once the current deal lapses. They also believe they can extract more value from a deal with FTA commercial networks because SBS relies on some funding from the federal government for its share of the rights.

 

Asked if he was seeking a bigger free-to-air deal, Mr Gallop said: “While recognising the investment of Fox Sports we think commercial free-to-air coverage of our bigger A-League games will help us both grow the sport.â€

 

It is understood the Seven, Nine and Ten networks have all indicated to the FFA they will ­participate in talks, confident football can attain significantly higher ratings that it does now on public broadcaster SBS.

 

Incumbent rights holder Fox Sports is keen to retain its rights, according to chief executive ­Patrick Delany.

 

“It’s a sleeping giant in an ­incredibly competitive sports landscape here in Australia. This is a very important one for us; it falls into the live and local bucket,†Mr Delany said. “We need to work out how we can continue to grow football and make sure it has the right amount of money to do that.â€

 

The deal, which includes A-league matches, Socceroo games and the Asian Cup tournament, is in its third year.

 

The three main commercial networks believe strong public ­interest in new A-League franchises like the Western Sydney Wanderers and last year’s International Champions Cup is evidence that football has plenty of room for growth in Australia.

 

ICC broadcaster Nine attracted more than 1 million viewers for matches involving Real Madrid, Manchester City FC and AS Roma. “Over the summer despite the intense competition from Big Bash and more recently the Australian Open, our crowds and TV ratings have held up well. Australian football is a unique product given that the A-League is only 11 years old; it’s sport content where the quality is very much linked to the level of rights fees that we are able to generate,†Mr Gallop said.

 

“As opposed to the other big football codes we can lift the skill level of our competition and the overall quality by attracting overseas talent and retaining the best domestic talent if our rights fees are set at the appropriate level.

 

Asked about the prospect of a price rise in line with recent gains secured by the AFL and NRL, Gallop said: “We’re confident about our sport and very hopeful the broadcasters will recognise that an investment in Australian football will help us grow the game.â€

 

It comes after the AFL signed a $2.508 billion agreement with Seven, Foxtel and Telstra for six years, and the NRL clinched a $1.8bn five-year TV agreement with Nine, Fox Sports and Telstra.

 

The boom in sports rights reflects shifts in the TV industry as viewers watch more programs on demand, skipping ads. The FFA’s move could put pressure on Cricket Australia’s the Big Bash League to bring forward negotiations.

http://www.theaustralian.com.au/business/media/broadcast/tv-rights-aleague-takes-shot-at-tv-windfall/news-story/a528f7233ce49528954cd3ff8f4ab53f

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THE A-League TV rights will be sold independently for the first time, with FFA blocked from bundling Socceroos rights into one package.

 

The unprecedented step leaves uncertainty around the A-League’s broadcast value, with the current $40m-a-year TV deal inclusive of the first phase of 2018 World Cup qualifiers and the 2015 Asian Cup.

A

FFA declined to comment on Monday but hoped that Fox Sports and the free-to-air networks recognise growth since the last deal was agreed, in September 2012 just before marquee trio Alessandro Del Piero, Emile Heskey and Shinji Ono signed.

 

 

The TV rights to the Socceroos’ World Cup qualifiers will be sold separately.

A-League owners are watching intently, as negotiations move into overdrive with the current deal expiring in 2017 though there is a push to cut a deal for next season.

 

The Socceroos’ rights for the decisive third phase of qualifying will be sold by Lagardere Sports and Entertainment, which owns Asian qualifiers.

 

Lagardere (previously World Sports Group) is believed to have onsold the recent World Cup qualifiers and the Asian Cup for over $15m, but they’ve opted to hold onto the rights and exclusively negotiate with Australian networks.

 

Optus, which paid $63m-a-year for the English Premier League rights, and Bein Sports have become players in the A-League rights though clubs have made it clear that FTA exposure is vital.

 

FFA and the team appointed to take charge of the A-League rights will appoint an evaluation adviser soon, where a potential figure will become clearer.

 

Lows has been at pains to play down FFA’s previous confidence in securing $80m-a-year in the next deal.

 

Speaking last week, FFA chief executive David Gallop hinted that the Socceroos rights were set to be sold separately.

 

“We do have some challenges around AFC rights and Socceroos games. We dealt with the last time and we have to deal with them again this negotiation,’’ Gallop said.

 

Channel 7 and 9 are understood to have expressed strongest FTA interest in early talks with Lagardere, with Fox Sports determined to retain rights having covered Socceroos games since 2006.

 

SBS has been the FTA partner until now, showing games on delay.

 

The Socceroos deal must be done soon, with the World Cup qualifiers starting on September 1 at home to Iraq.

 

Lagardere believes there is value in the Socceroos’ 10-game bundle package, headlined by the heavyweight clashes with Japan, five home qualifiers and the away games in Thailand and Japan on at viewer-friendly times.

 

The only Socceroos rights FFA retain are the friendlies, and the value of those is negligible.

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Interesting.

 

Wonder why they've had to split them up?

 

Could be good to be honest.

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Interesting.

 

Wonder why they've had to split them up?

 

Could be good to be honest.

It appears that the FFA never had control over the Socceroos matches as we initially thought, perhaps Mr Carr could elaborate? Or do some digging?

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The HAL brand much stronger now than last time round (and self sufficient imo).

 

In the past the FFA had to rely on the Socceroos brand to hold it all together but hopefully, there can be 2 spectacular deals signed in the coming months.

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People are basing the TV value of the A-League on its current rate and environment... if you invested more it's worth more... but we'll see what happens. Could be very interesting. 7 to bid for the national team matches I'd say.

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Not sure that anything has changed guys.

My understanding is that the Asian WC qualifiers and Asian Cup matches plus club ACL games have always been owned by the Asian Football Federation. They then sell these using a media rights partner (in this case Lagardere).

The FFA has always only owned the rights to friendlies etc and it is these where they need to maximize revenue. ie the Greece games etc.

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Have negotiations started yet?

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So, what does that mean to us dumb dumbs?

It means that the FFA bought the rights off Largardare as part of the previous deal. Essentially the FFA paid $40m in total & paid them $15m for these rights meaning the A League rights were valued at $25m!

Have negotiations started yet?

Negotiations started in April

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They seem like pretty genuine comments from the Fox CEO which is good. Hopefully they increase their offer but let's be honest, the FFA really owe it to them because the aleague may not be here if it wasn't for Fox. I'm quietly confident that they'll throw more money our way, they know very well just how much potential the aleague has.

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They seem like pretty genuine comments from the Fox CEO which is good. Hopefully they increase their offer but let's be honest, the FFA really owe it to them because the aleague may not be here if it wasn't for Fox. I'm quietly confident that they'll throw more money our way, they know very well just how much potential the aleague has.

Spoke with Murray Shaw at our football ball, he;s said a few interesting points. 

 

this one stood out channel 7 where using the matilda's do promote their Olympic coverage and he states they don't have much of interest. 

 

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Buckley did the last deal at least he did something right.

The FFA I suspect will be pushing marquees hard to maximise the value of the deal during negotiations

 

How real the interest is of the FTA channels will determine the value of the contract - they really need 2 of them to show genuine interest.

 

as much as a business I know it is I'd hope there is some loyalty to fox sports - they were there when no one else was

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Im hearing Optus are interested in becoming a digital broadcaster for the FFA.

 

Probably be the same deal NRL and AFL has with telestra

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Buckley did the last deal at least he did something right.

The FFA I suspect will be pushing marquees hard to maximise the value of the deal during negotiations

How real the interest is of the FTA channels will determine the value of the contract - they really need 2 of them to show genuine interest.

as much as a business I know it is I'd hope there is some loyalty to fox sports - they were there when no one else was

He did something right? I refuse to believe it!

Im hearing Optus are interested in becoming a digital broadcaster for the FFA.

Probably be the same deal NRL and AFL has with telestra

Does that mean no more Foxtel go?

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Buckley did the last deal at least he did something right.

The FFA I suspect will be pushing marquees hard to maximise the value of the deal during negotiations

How real the interest is of the FTA channels will determine the value of the contract - they really need 2 of them to show genuine interest.

as much as a business I know it is I'd hope there is some loyalty to fox sports - they were there when no one else was

He did something right? I refuse to believe it!

Im hearing Optus are interested in becoming a digital broadcaster for the FFA.

Probably be the same deal NRL and AFL has with telestra

Does that mean no more Foxtel go?

 

 

Can you watch the NRL/AFL broadcasts on Go? I don't know, don't really watch either sport - especially away from home.

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Buckley did the last deal at least he did something right.

The FFA I suspect will be pushing marquees hard to maximise the value of the deal during negotiations

How real the interest is of the FTA channels will determine the value of the contract - they really need 2 of them to show genuine interest.

as much as a business I know it is I'd hope there is some loyalty to fox sports - they were there when no one else was

 

He did something right? I refuse to believe it!

Im hearing Optus are interested in becoming a digital broadcaster for the FFA.

Probably be the same deal NRL and AFL has with telestra

 

Does that mean no more Foxtel go?

 

Can you watch the NRL/AFL broadcasts on Go? I don't know, don't really watch either sport - especially away from home.

We would still watch on foxtel go, Telstra has an nrl and afl app where you pay subscription to watch games online live so if optus are keen to be our broadcaster, they have to provide the same deal telstra offer for nrl and afl.

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Yes please, then I could get rid of Foxtel and just sign up for aleague - which is the only reason I have Foxtel

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Football

 

Socceroos to guide Football Federation Australia in pricing potential deal for A-League TV rights

David Davutovic Herald Sun

 

http://www.heraldsun.com.au/sport/football/socceroos-to-guide-football-federation-australia-in-pricing-potential-deal-for-aleague-tv-rights/news-story/99183f41001ceb1609c4b6740524729a

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Football

Socceroos to guide Football Federation Australia in pricing potential deal for A-League TV rights

David Davutovic Herald Sun

http://www.heraldsun.com.au/sport/football/socceroos-to-guide-football-federation-australia-in-pricing-potential-deal-for-aleague-tv-rights/news-story/99183f41001ceb1609c4b6740524729a

Interesting article, in summary:

- Everybody is holding there breathe unsure of how selling the Aleague seperately to the Socceroos will affect the Aleague deal. Mentions that FFA surprised that the rights were withheld

- The knives will be out on Lowy/Gallop with lots of pressure to deliver a decent deal otherwise....

- Mention of the back-pedalling over the initial statements that we could double the current deal

- Lagadere sports group looking at $5-10m for the Socceroos WC qualifying (equates to $750,000 per game paid by 7/9 for other marquee international friendlies). Games will be sold to FTA even if FoxSports buy the initial rights

- Previous deal was $15m but don't forget that included Asian Cup + qualifiers

- Ch10 appears to be interested in Aleague not Socceroos (15% stake held by Foxtel obviously counts) where as Ch 7/9 not so interested

- It appears the 8 week big bash league will go for $50m with nine looking to wrestle the rights off Ten which would be incredible

- Article mentions that clubs want a greater say in negotiations as they are affected by the deal but it won't necessarily mean a bigger deal

Edited by Prydzopolis

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How the **** do you lose the rights to your own national football team?

They didn't "lose" the rights because they never owned them outright. Sounds like they were surprised that Lagadere went straight to Fox/FTA instead of going through the FFA.

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How the **** do you lose the rights to your own national football team?

thats what I want to know... this is perplexing.

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Based on other posts I think the AFC own the rights to World Cup qualifiers (and lagadere act on their behalf?)

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How the **** do you lose the rights to your own national football team?

 

thats what I want to know... this is perplexing.
I would have thought it is pretty simple:

1. We are competing in an Asian tournament (World Cup qualifiers) run by AFC. AFC own the rights.

2. AFC sell the TV rights across Asia to the highest bidder (assume they buy the rights not just for Australia but the whole of Asia both East & West)

3. FFA are already money poor, so no way to complete against a big company for the rights

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How the **** do you lose the rights to your own national football team?

thats what I want to know... this is perplexing.

 

 

As other have said the Football federations own the rights for all games played within their tournaments. ie AFC own Asian Cup and ACL rights, FIFA own the rights to the actual World Cup tournament. These can be sold to whoever and the FFA bought them last time and onsold them.

As for any other games, friendlies (eg Greece coming up) then the FFA own the rights to those games and can sell to whoever for whatever...

Of course this makes no difference to major football powers where their domestic leagues garner millions from TV deals and the sport is number one but it is a massive shame for us because International games are one area that gives football an advantage over AFL and NRL and it stops us leveraging that potential income to benefit the game in this country overall,

Edited by beatsurrender

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Fair enough...

 

But in terms of tv rights negotiation... I have no faith in Gallop negotiating it for us, he stuffed up the NRL rights 10 years ago and I do believe he will under sell our game.

 

going from $160m to $200m for 4 years isnt really a significant increase, in fact that will hold our league back from being competitive.

Edited by SBW

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