It’ll be Moet & Chandon all round at AFL House tonight. In a deal which consolidates its position as Australia’s premier winter sporting code, the AFL has just announced a $1.253 billion dollar TV rights deal from 2012 to 2016. It’s far and away the largest sport rights deal in Australian history.
The five year deal will see Channel Seven televise four games per week. Seven will also retain exclusive rights to the AFL grand final, and pre-season Cup grand final, while Fox Sports will screen all eight weekly games live, including the games shown on Seven.
This is a major return to AFL for the pay TV broadcaster, which has also grabbed the high-rating Brownlow medal night coverage from Seven. Fox will also revive a dedicated AFL channel. Its last such channel, the Fox Footy Channel, turned its toes up after the 2006 grand final.
For all the latest news, videos, players’ reactions and full details of the AFL’s TV deal, go to foxsports.com.au.
The new $1.253 billion deal represents a whopping 61 per cent increase on the existing $780 million deal. Even over five years, that’s a fair whack more than the CPI. The question is, what’s the AFL going to do with all this cash?
The AFL more or less pays for itself anyway, even before these helpful billion dollar windfalls. It enjoyed record revenue of $335.8 million in 2010, well up on the previous year’s $303.5 million.
Its operating surplus, before grants and distributions, was $230 million. Total grants and distributions were $226 million, which means the AFL redistributes the bulk of its enormous revenue, as it should, to its 17 clubs and the community.
Other big projects recently completed or in the works include the Gold Coast Suns’ new home ground, the development of the RAS showgrounds for the Western Sydney Giants, and funding for the conversion of Adelaide Oval to make it Adelaide’s premier football venue.
Then of course there’s Andrew Demetriou’s $1.35 million annual package.
So what else should the AFL do with its money? Fund a Tasmanian team from the ground up? Move the Kangaroos or one of the perennially struggling Melbourne teams to Tassie, or further field?
I’ve always thought a Murray River team, sharing games between Mildura, Albury/Wodonga and Wagga Wagga (the Murrumbidgee, I know) would work. Am I mad?
And what about overseas? Should the AFL continue to pump money into development camps in South Africa and beyond? Or should it give up and consolidate its home base, focusing on junior development and “fan engagement”?
Whatever the AFL does, rival codes will be quaking. Rugby league currently reaps in the vicinity of $100 million a year from its rights deal with Fox and Nine. That’s about half the new AFL figure.
NRL CEO David Gallop was talking tough about securing his own billion dollar deal yesterday, but there’s little doubt they won’t come close to the AFL when rights are finalised in a year or so.
For now, the AFL is on top. How it spends its money to stay there will be well worth watching over the next five years, especially if the Greater Western Sydney experiment tanks.
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