Seven Network to save $87 million with new AFL broadcast deal

June 12, 2020

Finance / Sport /

The AFL has announced a revised broadcast rights deal with both the Seven Network and Foxtel, covering the current agreement to 2022, plus an extension of two years for season 2023 and 2024 with Seven Network.

The revised deal with the AFLfrom Seven West Media Ltd, the Seven Network's owner, will save the media group $87 million, after the company told the ASX it expects to derive $87 million in net benefits over the existing contract period to 2022 in media rights reduction, production savings, and other benefits.

The AFL said the revised five-year deal with Seven for 2020-2024 was for $730 million or an average of $146 million per year, after the AFL was originally collecting $416 million a year in broadcast rights from Seven, Foxtel, and Telstra combined.

Advising that the revised five-year deal provides certainty to both parties, Seven West Chief Executive, James Warburton advised "the AFL and Seven are a core part of each other’s DNA, and we are delighted to have not only reaches a revised agreement for the current contract term, but to have extended our relationship for a further two seasons, taking the agreement through until the end of 2024."

Ahead of the 2020 AFL season’s return last night, AFL Chief Executive Gillon McLachlan said the sport is pleased to have reached an agreement, adding "we are really pleased we have reached an agreement with both broadcasters over the remaining three years of the agreement and extended our partnership with Seven Network for two years.

“It has been a challenging period for the game and will continue to be but, we are incredibly fortunate to have long-term broadcast partners who share our commitment to expanding our game and our reach to an ever-wider audience.

“This deal only adds to our confidence in the ability of the industry and is a key pillar in the industry working its way through this challenge.

“Our partners understand the challenges we face and we certainly understand the challenges they are facing at the moment and that’s why we are really pleased to agree a solution that balances the needs of the football community and the needs of our broadcast partners.

“We must remain vigilant on balancing investment in the next generation of participants and players while maintaining discipline on costs.”

Foxtel Chief Executive, Patrick Delany, went on to say that he is excited to have the AFL back on Foxtel with the renewed Pay-TV broadcast deal.

Delany stated "it’s been a long road back for footy and working through the impact of COVID-19 on the game has been tough for everyone involved, fans, players, clubs, and the AFL and its broadcast partners.

“We have a great long-term partnership with the AFL, and we are incredibly pleased to be in a position to have footy back on Foxtel."

Image: The 2020 AFL season returned at the MCG last night.

9th June 2020 - AFL season restart to see 2,000 fans at Adelaide Oval on Saturday

9th June 2020 - Quayclean to ensure health of venue attendees when AFL season re-starts

2nd June 2020 - Gemba designs new AFL sponsorship campaign for Toyota

29th May 2020 - NRL secures new broadcast partnerships with Nine and Foxtel

28th May 2020 - MCG ready to offer transformed turf for AFL return

20th May 2020 - Global sports sponsorship market predicted to fall by 37% this year

18th May 2020 - AFL to proceed with upgrade plan for Melbourne’s Marvel Stadium

15th May 2020 - AFL announces that season will restart from 11th June

13th May 2020 - AFL announces protocols for return to training and play

11th May 2020 - Victorian Government clears AFL clubs to train in groups of 10 from Wednesday

2nd May 2020 - AFL Chief Executive suggests 2020 season could resume in June

1st May 2020 - Coronavirus has multi-billion dollar negative impact on global sport

30th April 2020 - Adelaide City Council looks for government funding for aquatic centre revamp as AFL’s Crows dump headquarters plans

15th April 2020 - Funding support secures development of Brisbane Lions new Springfield base

9th April 2020 - Broadcaster accuses NRL of ‘mismanagement’ as league announces plans to recommence on 28th May

18th March 2020 - Brisbane Lions warn of $5 million loss if forced to play home matches with no crowds

16th August 2019 - AFL looks to extend Seven Network broadcast deal

14th July 2019 - West Coast Eagles lets fans inspect their new training facility

8th March 2019 - AFL growth initiatives result in profit increase

13th April 2018 - Cricket Australia secures $1.2 billion broadcast deal

18th August 2015 - AFL announces record-breaking $2.5 billion television deal

14th September 2011 - Footy finals forecast to provide $2 billion boost to local industries

Support our industry news service
We hope that you value the news that we publish so while you're here can we ask for your support?

As an independent publisher, we need reader support for our industry news gathering so ask that - if you don't already do so - you back us by subscribing to the printed Australasian Leisure Management magazine and/or our online news.