CCZ Stratton Equities research analyst Roger Colman predicts the next Australian Football League broadcast rights contract will be worth up to A$1.6B ($1.4B), as the league "moved to beef up its intricate knowledge of the media by appointing former News Corp chief Kim Williams to its board," according to Jon Pierik of THE AGE. Williams, a Port Adelaide supporter, has "replaced Rio Tinto boss Chris Lynch, who is based in London, on the nine-member board." The current A$1.25B, five-year broadcast rights deal with Seven West Media (Channel Seven), Foxtel and Telstra does not expire until after the '16 season, but talks are "likely to accelerate later this year." Williams was "in charge at News Corp when Foxtel brokered its most recent deal" with the AFL. He had previously been CEO of Foxtel for a decade. Colman did not "rule out a new broadcasting deal" reaching A$2B but said that it was "more likely to fall short." Colman: "I gave five percent per annum on A$1.25 billion, I got to between A$1.5 billion and A$1.6 billion. That's what I think it's worth even at a premium inflation rate compared with expected TV advertising growth." What could inflate the contract is "if networks Nine and Ten join the bidding." Nine was not involved in discussions in '11, while Ten initially "wanted to retain the rights" it had held since '02 -- initially with Nine and Foxtel -- but pulled out because of financial problems (THE AGE, 2/18).
