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AFL signs $2.5 billion broadcast deal

In the deal, the Seven Network will hold the free-to-air rights, Fox Sports will hold the Pay TV rights, and Telstra will hold the digital rights.

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$300 million from Telstra to broadcast over its planned Telstra TV service and to handsets and digital devices.

Seven will broadcast three games live weekly, with Foxtel able to onsell a game.

$840 million in cash and $60 million in contra from Seven for an average of 3.5 matches per round free-to-air.

It was also pointed out that News Corp still own a majority stake in the Brisbane Broncos and Murdoch’s son Lachlan is a passionate and influential supporter of the club.

While the AFL will continue to have full control over the production of the fixture and the scheduling of the big decider, Stokes said Seven had “made suggestions” without demanding conditions about its timing. We have always believed this is the premium code in Australia.

“We are very happy to be doing this”.

“It will ensure clubs are strong with the financial security and capacity to enhance core operations as well as work with the AFL to grow the game through balanced investment in key strategic areas, including junior pathways, player development and women’s football to name but a few”.

Foxtel CEO, Richard Freudenstein today welcomed the agreement between the AFL and News Corp Australia that will see Fox Footy remain the home of AFL until at least the end of 2022.

“Twilight games happen to get more ratings than day games do”, he said.

The agreement dwarfs Channel Nine’s 5 million four-year deal with the NRL to broadcast four free-to-air games a week from 2018, although the NRL is hoping to add an extra $700 million to the bottom line with a Pay TV deal to come.

It is highly unlikely that Fox Sports could afford not to reach an agreement with the NRL as the pay-TV company would risk losing a significant per centage of its subscriber base but Murdoch’s comments and his presence at the AFL press conference indicate that negotiations won’t be easy.

The billionaire-businessman also denied the deal was a form of payback, after Channel Nine signed a new deal with the NRL last week.

The current deal, which expires at the end of next season, is worth $1.25 billion over the five years between 2012 and 2016.

Kerry Stokes said the 2017 season would be broadcast in high definition on Seven and he’s looking to overcome the technological hurdles to introduce it in the 2016 season.

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Though the AFL could also move, as the NRL did, to strike a free-to-air deal before dealing with the remaining broadcast rights, it is considered likely the league will have to negotiate the complete package at the same time, given News Corp will want some involvement after being shut out of the NRL rights bid.

Nine could trade some NRL games for AFL games