The Australian Football League "is set to negotiate the richest sports deal in Australian television history," with an opening bid of A$1.5B-A$1.6B ($1.3B-$1.4B), according to Darren Davidson of the THE AUSTRALIAN. The "extraordinary figure is being privately discussed" as attainable by AFL CEO Gillon McLachlan "and the powerful AFL Commission ahead of the upcoming broadcast rights negotiations." That figure "is unlikely to close the deal," yet it will see the AFL "obliterate the code’s previous record" A$1.258B deal, the nation’s most lucrative TV rights payment. Sources close to the discussions have revealed that the AFL Commission "discussed valuations in recent weeks." A starting figure of A$1.5B- A$1.6B -- which would surpass the AFL’s current deal by A$300M -- "was put forward by commissioners as an achievable target for a five-year deal." Under an "even more ambitious scenario," commissioners including former News Corp. Australia boss Kim Williams and Wesfarmers Managing Dir Richard Goyder "have discussed" a A$1.7B or A$1.8B deal. In a "potential twist that could hurt pay-TV operator Foxtel," the commissioners "have discussed signing a five-year deal with a free-to-air network, and a shorter contract with Foxtel and Fox Sports." Current rights holders Seven Network and Fox Sports "will again be frontrunners, determined to secure matches." They will face competition from National Rugby League rights holder the Nine Network, "if only to bid up the price Seven could pay to renew its contract." Ten "has a genuine interest in securing some games, and will explore a partnership with one of the other networks to defer the cost" (THE AUSTRALIAN, 10/27).
