{"id":1569,"date":"2012-03-12T17:41:54","date_gmt":"2012-03-12T07:41:54","guid":{"rendered":"http:\/\/www.frostglobal.com\/?p=1569"},"modified":"2013-06-02T17:36:50","modified_gmt":"2013-06-02T07:36:50","slug":"sports-rights-up-for-grabs","status":"publish","type":"post","link":"https:\/\/www.frostglobal.com\/?p=1569","title":{"rendered":"Sports rights up for grabs"},"content":{"rendered":"<p style=\"text-align: center;\"><img loading=\"lazy\" class=\"aligncenter  wp-image-361\" title=\"AFL on FTA\" alt=\"\" src=\"http:\/\/www.frostglobal.com\/wp-content\/uploads\/\/2010\/07\/aflbroadcast-1024x576.jpg\" width=\"491\" height=\"277\" srcset=\"https:\/\/www.frostglobal.com\/wp-content\/uploads\/2010\/07\/aflbroadcast-1024x576.jpg 1024w, https:\/\/www.frostglobal.com\/wp-content\/uploads\/2010\/07\/aflbroadcast-300x168.jpg 300w, https:\/\/www.frostglobal.com\/wp-content\/uploads\/2010\/07\/aflbroadcast.jpg 1920w\" sizes=\"(max-width: 491px) 100vw, 491px\" \/><\/p>\n<p>Two stories caught my interest in last week&#8217;s national papers, <strong><a href=\"http:\/\/www.theaustralian.com.au\/media\/broadcast\/network-ten-gears-up-to-wrest-sevens-v8-grid-spot\/story-fna045gd-1226296429950\">The Australian<\/a><\/strong> and <strong><a href=\"http:\/\/afr.com\/p\/business\/marketing_media\/google_puts_pedal_to_the_metal_for_q3xyihAgiHt9yCTutHd5AM\">The Australian Financial Review<\/a><\/strong>. The stories both concerned the ongoing negotiations for <strong>V8 Supercars&#8217;<\/strong> new media rights deal, which will commence next year.<\/p>\n<p style=\"text-align: justify;\"><strong>The Australian&#8217;s<\/strong> article focused on <strong>Ten&#8217;s<\/strong> play for the rights, which if successful would see the network return to being the &#8216;home of motorsport&#8217;.<\/p>\n<p style=\"text-align: justify;\">In the<strong> Fairfax<\/strong> press discussion centered on <strong>Google&#8217;s<\/strong> play for international streaming rights to <strong>V8 Supercars<\/strong>. <strong>Telstra<\/strong>, the sport&#8217;s platform sponsor is the current holder of international streaming rights for the growing sport.<\/p>\n<p style=\"text-align: justify;\">The news of continuing negotiations over <strong>V8 Supercars <\/strong>rights emphasises the current battle between Australia&#8217;s major sporting codes to sign new media deals. These deals are crucial to securing each sports&#8217; immediate future.<\/p>\n<p style=\"text-align: justify;\">Following the A$1.2 billion that <strong>Foxtel, Seven <\/strong>and<strong> Telstra<\/strong> agreed to pay the <strong>AFL<\/strong> over five years for media rights, current deals up for renewal include the <strong>NRL<\/strong> and<strong> V8 Supercars<\/strong> rights. Deals that will no doubt be negotiated within the next 18 months also include the <strong>A-League (FFA)<\/strong> and <strong>Cricket Australia<\/strong> broadcast rights.<\/p>\n<p style=\"text-align: center;\"><iframe loading=\"lazy\" src=\"http:\/\/www.youtube.com\/embed\/atNN2XRsbf8\" height=\"315\" width=\"560\" frameborder=\"0\"><\/iframe><\/p>\n<p style=\"text-align: justify;\">There has been speculation that the <strong>NRL<\/strong> will seek around $1 billion for its next rights deal, whilst the <strong>V8s<\/strong> will look for around a $300 million contract. The problem is the pot of money that media organisations can pay for sporting rights is not bottomless. This is especially the case given the tight advertising market.<\/p>\n<p style=\"text-align: justify;\">The key as noted in a variety of media reports concerning the NRL broadcast rights is to split the rights into packages in order to maximise value, whether this be in terms of games or the platform. Each sporting body can split its rights into domestic FTA partners, subscription partners, online partners and mobile partners.<\/p>\n<p style=\"text-align: justify;\">Clearly most money per broadcast can still be extracted from FTA TV given its reach, but we have seen slowly FTA broadcasts being simulcast across pay-TV and mobile. This potentially devalues the FTA rights money available, unless the simulcast takes a direct FTA feed, which includes that FTA station&#8217;s commercials. An example would be <strong>Telstra Bigpond&#8217;s<\/strong> simulcast of <strong>Seven&#8217;s V8 Supercars<\/strong> coverage.<\/p>\n<p style=\"text-align: justify;\">The difficulty for the <strong>NRL<\/strong>, <strong>V8s<\/strong> and <strong>A-league<\/strong> will be finding the right broadcast partner(s) who can provide maximum coverage at the right price. There is no doubt that the <strong>NRL<\/strong> and <strong>V8s<\/strong> will find an FTA broadcast partner, it just depends in what form and which network.<\/p>\n<p style=\"text-align: justify;\">The <strong>NRL<\/strong>?has long suffered from a lack of FTA coverage in southern markets. If <strong>Nine<\/strong> are to purchase the rights, would it be willing to show games on <strong>GEM<\/strong> in southern markets in much the same way<strong> Seven?<\/strong>will show its <strong>AFL<\/strong> games on <strong>7mate<\/strong> in northern markets. If <strong>Seven<\/strong> were to purchase some <strong>NRL<\/strong> rights, would the <strong>NRL<\/strong> receive enough air on a network that broadcasts 4 weekly <strong>AFL<\/strong> games. Does <strong>Ten<\/strong> have the base audience numbers to grow the game nationally the same way it did with a reinvigorated <strong>V8s<\/strong> in the late-90s and early 2000s. If <strong>Fox Sports<\/strong> was able to extend its coverage from 5 LIVE games per week to all games LIVE, would <strong>Foxtel<\/strong> create a separate &#8216;Fox League&#8217; channel as it has done following the its <strong>AFL<\/strong> rights purchase. How much are the <strong>State of Origin<\/strong> rights on their own worth? There are many factors to consider.<\/p>\n<p style=\"text-align: justify;\">Taking a moment to look at the <strong>V8s<\/strong>, the sport is clearly booming both locally and internationally. Under any new rights deal, should they include more rights for pay-TV, apart from just replay rights? <strong>V8s<\/strong> is one of the few Aussie sports where all coverage premieres on a FTA channel. If a new deal was signed with <strong>Seven<\/strong>, would this mean too many clashes with <strong>AFL<\/strong> broadcasts causing a lot of content to live on <strong>7mate<\/strong>? Would this devalue the brand? Over recent years we have seen how swimming fell from the national conscience as coverage was only on <strong>One<\/strong>. This week is the first time in a while that Swimming coverage has been on <strong>Ten<\/strong>. If <strong>V8s<\/strong> sold broadcast rights to <strong>Ten<\/strong>, whilst this may create a &#8216;home of Motorsport&#8217; branding for the network, would <strong>V8s<\/strong> take second fiddle to the world&#8217;s premier racing category <strong>F1<\/strong>, which now has a prime time broadcast slot on Ten for every European based GP. Also if Australia lose the rights to host an <strong>F1<\/strong>?Grand Prix, how will this effect Ten&#8217;s commitment to broadcast motorsport?<\/p>\n<p style=\"text-align: justify;\">The advantage that<strong> V8s<\/strong> has over other sports is its international appeal. <strong>V8s<\/strong> have a FTA agreement with<strong> TV3<\/strong> in NZ, along with <strong>ESPN Star<\/strong> across Asia and through <strong>Speed<\/strong> in the US. In fact <strong>Speed<\/strong> brought its own commentary team last year to cover rounds at Bathurst and on the Gold Coast. Whilst Australia remains its most important broadcast territory, it can rely more heavily on international broadcast contracts compared with Australian-centric sports such as the <strong>AFL<\/strong> or <strong>NRL<\/strong> . <strong>Cricket Australia<\/strong> is in a similar position as the V8s due to the sports popularity in Central Asia and the UK. <strong>ESPN Star<\/strong> covered the recent summer of cricket in Australia with its own commentary team and graphics packages.<\/p>\n<p style=\"text-align: justify;\">The <strong>A-league<\/strong> also faces a difficult problem. After signing <strong>Foxtel<\/strong> for a $125 million broadcast contract a number of years ago to cover all soccer (except the World Cup), the next rights deal will be more difficult to negotiate. Whilst the sport has reportedly grown, does the <strong>A-league<\/strong> seek to have some games broadcast on FTA? Would any network other than <strong>SBS<\/strong> be interested? Would <strong>Foxtel<\/strong>?be willing not to have exclusive rights to all games. Also with Socceroo qualifiers now on the Anti-siphoning list how will this impact rights negotiations and finals rights values?<\/p>\n<p style=\"text-align: justify;\">The key for professional sporting bodies will be to find that balance between coverage, cost and brand development. Because now more than ever media rights are the life blood of sports in Australia, and as shown with the AFL media rights agreement a well-balanced contract can guarantee a professional sport&#8217;s future success in the crowded Australian market.<\/p>\n<p style=\"text-align: justify;\"><strong>Sources<\/strong><\/p>\n<p><a href=\"http:\/\/www.theaustralian.com.au\/media\/broadcast\/network-ten-gears-up-to-wrest-sevens-v8-grid-spot\/story-fna045gd-1226296429950\">Network Ten gears up to wrest Seven&#8217;s V8 grid spot<\/a>?[subscription required]<\/p>\n<p><a href=\"http:\/\/afr.com\/p\/business\/marketing_media\/google_puts_pedal_to_the_metal_for_q3xyihAgiHt9yCTutHd5AM\">Google puts pedal to the metal for V8s<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Two stories caught my interest in last week&#8217;s national papers, The Australian and The Australian Financial Review. The stories both concerned the ongoing negotiations for V8 Supercars&#8217; new media rights deal, which will commence next year. The Australian&#8217;s article focused on Ten&#8217;s play for the rights, which if successful would see the network return to&hellip; <a class=\"more-link\" href=\"https:\/\/www.frostglobal.com\/?p=1569\">Continue reading <span class=\"screen-reader-text\">Sports rights up for grabs<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":430,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false},"categories":[39,7,3],"tags":[204,169,168,319,693,814,817,42,92,816,680,1297,1296,296,115,8,101,237,699,1302,18,815,307,560,782,49,15,229,813,44],"jetpack_featured_media_url":"https:\/\/www.frostglobal.com\/wp-content\/uploads\/\/2010\/09\/IMG_0078-e1377085748141.jpg","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p25SQa-pj","jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.frostglobal.com\/index.php?rest_route=\/wp\/v2\/posts\/1569"}],"collection":[{"href":"https:\/\/www.frostglobal.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.frostglobal.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.frostglobal.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.frostglobal.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1569"}],"version-history":[{"count":21,"href":"https:\/\/www.frostglobal.com\/index.php?rest_route=\/wp\/v2\/posts\/1569\/revisions"}],"predecessor-version":[{"id":2037,"href":"https:\/\/www.frostglobal.com\/index.php?rest_route=\/wp\/v2\/posts\/1569\/revisions\/2037"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.frostglobal.com\/index.php?rest_route=\/wp\/v2\/media\/430"}],"wp:attachment":[{"href":"https:\/\/www.frostglobal.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1569"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.frostglobal.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1569"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.frostglobal.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1569"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}