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Seven to save $87 million with new AFL broadcast deal

Seven to save $87 million with new AFL broadcast deal
June 12, 2020

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

Seven West Media’s revised deal with the AFL 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.

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