midfielder
Well-Known Member
Says
A- league 35 million per season
Socceroo matches 1 million per game
A- league 35 million per season
Socceroo matches 1 million per game
http://sportbizinsider.com.au/opinion/the-rights-stuff-how-lowy-tinkler-deal-put-ffa-back-on-course-for-a-league-broadcast-bonanza/
Ever since Frank Lowy and John O’Neill signed on the dotted line for the historic television rights deal with Fox Sports in 2006, the overriding strategic aim of FFA has been to position itself for the next deal.
Even the World Cup bid, which of itself was a strategy to fast track the sport into the stratosphere in Australia, had the complementary aim of pushing along the television rights deal. The 2006 deal was for a minimum of $17 million per annum over seven years which, with bonuses, can be as high as $21 million annually.
It is the key reason Ben Buckley was selected as CEO of FFA to replace John O’Neill in November 2006.
It is why the 23 percent increase in crowds from 2010-11 to 2011-12, along with television viewers and memberships, is so encouraging – notwithstanding the loss of one of the regional teams whose introduction tended to have the effect of reducing average crowd sizes.
By way of further comparison, 2011-12 average crowds are a four percent increase from 2009-10 when Gold Coast and North Queensland Fury were introduced, but a 20 percent decline from 2008-09 when the A-League still had eight teams. Overall,
It is why John Singleton’s pronouncement that he is happy to help out Central Coast Mariners if the Scarlett Pimpernel-like Russians don’t stump up the cash, is encouraging – especially as a co-investor in the Mariners, Michael Charlesworth, is today making it plain that he does not want to continue to lose $100,000 per month.
And it is also why Tuesday’s announcement of the Frank Lowy-brokered peace deal reached between Hunter Sports Group and FFA is very good news – with Nathan Tinkler once again demonstrating how important he is to the game.
Regardless of the merits or otherwise of the legal issues between the two parties, FFA needed HSG because it needs a 10-team competition for the next broadcast deal. FFA cannot afford to fund the new Western Sydney team, potentially have to support Central Coast Mariners in part or in full, as well as support Newcastle Jets. Frank Lowy, ever outcome-oriented, knew it was time to act.
Having done so, FFA insiders are confident that the new broadcast deal will deliver. Lyall Gorman said as much on SBS-TV on Monday night and FFA pledged to the clubs on Tuesday that they will receive at least $2.5 million each annually from the next deal, which FFA is hoping to bring forward by a year.
The confidence is because FFA has engaged the Singapore headquartered sports media, marketing and events company, World Sports Group, to sell the rights to the A-League in return for a sum believed to be in the vicinity of $35 million per annum. This is for the A-League only. Socceroos games are not included.
The rights to Socceroos games are already owned by World Sports Group and will continue to be until at least 2020 as set out in this announcement.
The fact that FFA has been able to package the Socceroos rights with the A-League to Fox Sports up until now is because World Sports Group allowed this to happen. Under the new arrangement, World Sports Group will retain the rights to Socceroos games as part of their long term AFC deal, but FFA will no longer be able to on-sell them.
Instead, they will receive around $1 million for each Socceroos game directly from the AFC – as do all member associations – which may well be a very good deal in light of the proposed anti-siphoning legislation that requires Socceroos qualifiers to be on free-to-air in a relatively small Australian television industry.
Although the TV rights have been presented as one of the impediments to more independence for the A-League and its owners – on the basis that the Socceroos rights accounted for around 70 percent of the total rights – the arrangement with World Sports Group for A-League rights shows this is not relevant.
All-up, when FFA announces the new deal for broadcast rights (TV plus digital), probably to come into effect one year early, it is likely be in the vicinity of $60 million per year made up of:
$35 million for the A-League, although World Sports Group could well retain a commission of around 20% for their work on behalf of FFA, which leaves a net payment of about $28 million per year.
the value of the Socceroos rights of between $15 million – $20 million, but which World Sports Group retains as they own the rights.
around $6 million for an average of six Socceroos matches per year from the AFC.
rights to any friendly matches which are FFA’s to sell if played at home, or if a host nation cedes rights to Australian audiences for an away match, and
a minimum of $4 million for the digital rights that are currently with Optus.
Announcing a package of $60 million would be a very good number. It would be a tremendous fillip for the game and would help restore confidence in FFA management and the sport overall.
On the face of it, not only will it meet the A-League’s salary cap, but it allows for some growth in negotiation of the next Collective Bargaining Agreement and gives FFA some much-needed funds for other areas of the game.
However, the celebratory sparkling wine must also be tempered by the fact that the net number that flows back to the game will be closer to $38 million per year: $13-$17 million more per annum than the current deal when digital rights are included, but less than what was reportedly on offer in 2009.
Back then, News Limited reported that FFA had turned down an offer of $60 million annually for an updated TV deal from 2010-11 to 2014-15 which was a combined Fox Sports/free-to-air component, but not including the digital component. It has been reported since that the actual amount offered was closer to $42 million per annum. Assuming the $42 million is in the right ballpark, it would have put an additional $63 million into the game over three years (up to 2012-13) and added $84 million to take it up to what was proposed in that offer as the new end date (to 2014-15).
At the time, Buckley would have considered Australia was riding high in the World Cup bid stakes (rated in the top two by influential international football opinion site World Football Insider); the Socceroos had qualified for the 2010 World Cup; and, the beginning of a downward trend in A-League crowds was explained statistically by the inclusion of two regional teams – with smaller average crowds – in the 2009-10 season.
Others might have termed it a courageous gamble – and notwithstanding the possible $60 million announcement which is now likely to come, it would have resulted in between $48-$62 million more over the five years from 2010-11 to 2014-15 (excluding digital rights) than continuing the existing deal for a further two years and hanging out for a better deal.
But it explains why the ever-pragmatic and financially astute chairman of FFA made the trip to a Brisbane Airport hangar to cut a deal with Nathan Tinkler when Buckley and HSG CEO, Troy Palmer, couldn’t.
More importantly, it demonstrates the value of the A-League, not as a drain on the resources of the FFA, but as a strong contributor to the growth and development of the game, and its long term sustainability.
In that respect, it’s very good news indeed.
