Foxtel who recently delivered record subscriber growth has reduced their borrowings by over $170M as they look to regain the rights at an increased cost to AFL games.
The business that has borrowings of $1.9 billion has also managed to snare lower interest on their existing debt, is now on a mission to cut costs and debt while growing revenue with new services tipped for 2023.
Foxtel wants more exclusive AFL content as part of a new deal that will see them pay increased fees for the rights.
News Corp is already contributing most of the $946 million that the AFL receives in broadcast fees.
The streaming business that is now housed in Alesia Holdings a parent company of News Corp Australia is believed to have stitched up a deal to retain in partnership with Seven West the rights to AFL games from 2025, with Foxtel management believed to have secured more exclusive games outside of Victoria.
ChannelNews has been told that Channel Ten owners Paramount who initially expressed an interest in AFL rights, are now keen to get the rights to cricket over AFL games with one insider claiming that all they wanted to do in their expression of interest for AFL, was to push existing cricket rights holders Seven and Foxtel to spend more on AFL with less likely to be spent on cricket.
The network has not commented on the claims.
According to sources the AFL is considering delaying two free-to-air matches each week by up to two hours in interstate markets to give Foxtel more exclusivity for its streaming service Kayo Sports.
Apparently Seven is fiercely opposing the suggestion on the grounds it would hurt fans and significantly reduce the value of its own rights.
ChannelNews understands that Foxtel CEO Patrick Delany and Seven West Media CEO James Warburton recently met to discuss what games the networks will share, and which games will be exclusive as part of the deal if both networks are successful in getting the rights from 2025.
According to Nine Media under plans being considered by the AFL, more matches would air on free-to-air each week (four) – but two of these games would be delayed by up to two hours in markets outside Victoria.
This means NSW, Queensland, South Australia, and Western Australia could face a 30 per cent to 40 per cent reduction in live matches on free-to-air television, a move that would be fiercely opposed by clubs and state governments who want local games to be broadcast exclusively and free-to-air.
The Age last week reported that Foxtel had agreed to let Channel Seven stream key AFL matches online, in a final attempt to knock rival bidders out of negotiations.
Seven, controlled by West Australian billionaire Kerry Stokes, lacks the right to show the games it broadcasts on free-to-air on its streaming app 7Plus (the games are available on Foxtel’s online streaming service, Kayo Sports).
Senior executives at Foxtel were frustrated by the AFL’s decision to grant Seven its wish, even though it is expected to receive a “Super Saturday” in exchange.
A Super Saturday would give Foxtel the exclusive rights to home-and-away rounds broadcast on that day.