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Australian Football League Broadcast Rights Talks To Begin Before Start Of '15 Season

Negotiations for the Australian Football League's next broadcast rights deal is "set to begin before the start of the 2015 football season, with the league appearing unwilling to wait until the future ownership of Ten Network Holdings is decided," according to Lynch & White of the AUSTRALIAN FINANCIAL REVIEW. Sources close to the deal said that "talks are imminent and will start before round one kicks off on April 2." Nine Entertainment Co., which has the rights to screen rival code the National Rugby League, "will not participate in the auction." It "dropped out early in the previous AFL process." The AFL has told the market that "it values its next broadcast rights deal" at A$1.75B ($1.33B) over five years, "and held informal talks with television networks late last year." The league hoped that "the price could be pushed up further" if Ten -- perhaps in combination with Foxtel -- joined the bidding. But the AFL "is hoping to finalise its next broadcast rights deal before the end of this season." The existing A$1.25B ($951M) five-year agreement "expires at the end of 2016." Ten, which is in need of a major sporting code in its schedule, "is preparing to participate in the process, having enjoyed much-needed ratings success with the Big Bash cricket league." But its financial capacity "is limited when compared with rivals." The incumbent rights holders, Seven West Media, Foxtel, Fox Sports and Telstra, "have indicated they want to retain them" (AUSTRALIAN FINANCIAL REVIEW, 3/16).

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