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AFL 'Well Positioned' For Negotiations Over Record-Breaking Broadcast Rights

Healthy year-on-year viewership figures and a spike in grand final TV and digital media ratings have the Australian Football League "well positioned for the start of official negotiations over what is shaping as a record broadcast rights contract," according to Jon Pierik of the SYDNEY MORNING HERALD. The current five-year, A$1.25B ($1B) agreement does not expire until the end of the '16 season, but the AFL "has repeatedly stated it is keen to complete a new agreement by the end of 2015." Current rights holders Seven West Media, through Channel Seven, Foxtel and Telstra, "will again be part of discussions, although there may yet be a twist with Foxtel should the pay TV network become a part-owner of Channel Ten." The Australian Financial Review reported that private-equity firm Providence Equity Partners and Foxtel have "kicked the tyres" of Ten. Ten CEO Hamish McLennan said that "his network would be interested in regaining a slice of the AFL rights it lost in 2011 depending on what was on offer." Ten believes that "it needs a major winter sport to compete with Nine, which has the NRL, and Seven." It is believed that "the AFL would prefer two free-to-air rights holders and Foxtel share the broadcast rights," for this would help push the overall deal closer to A$3B in what AFL CEO McLachlan has already flagged "could be a 10-year deal" (SMH, 9/29).

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