Seven To Save $87 Million Under New Broadcast Deal With AFL
Seven West Media has signed a new broadcast contract with the AFL for all seasons through to 2024, revising the deal pre-existing deal for 2020-2022.
“The AFL and Seven are a core part of each other’s DNA, and we are delighted to have not only reached a revised agreement for the current contract term, but to have extended our relationship for a further two seasons taking the agreement through until the end of 2024,” said James Warburton, Managing Director and CEO of Seven West Media. “I’d like to thank AFL CEO Gillon McLachlan and the AFL Commission for their commitment, which gives certainty to both parties over the next five years.”
Seven expects to receive 1 19% saving and derive $87 million in benefits from the deal over the years to 2022 in media rights reduction, production savings and other benefits.
Despite the savings, Seven Group Holdings has refrained from giving FY20 guidance, citing ongoing uncertainty surrounding the COVID-19 pandemic. Channel 7’s ad revenues fell 30.7% in April.
Today, Seven West Media announced its removal from the S&P/ASX 300 Index.
The 2020 AFL season recommenced last night. This year the season will consist of 23 games, with the Grand Final to be held on 24th October.