Ten clinches new $200m broadcast deal for A-League soccer
Network 10 is set to use live soccer to launch its new Paramount+ streaming service in Australia.
Network 10 will use live soccer to launch its new Paramount+ streaming service in Australia, with the US-owned television business clinching a five-year $200m deal for A-League and W-League rights.
While the $40m per season deal is considered above some expectations given the A-League’s slumping ratings on current telecaster Fox Sports and the state of the television industry, the annual cash component of about $32m is below the projections the league is using to pitch for more than $100m in potential investment from private equity sources.
The Australian has seen an information memorandum the A-League has been circulating to prospective investors, comprising revenue projections and plans for a lengthened season beginning in October and ending with an expanded finals series in June.
Included in the projections is about $51m in media revenue for 2022, rising to almost $59m within five years, including about $4.3m in international broadcast income.
The new Ten deal falls short of the projection, though A-League officials said they were happy to clinch the new contract that brings an end to a 16-year association between Fox Sports and the league.
But Ten’s owners ViacomCBS are set to take a minority stake in the A-League in addition to the broadcast deal, in a move club owners hope will help clinch a private equity deal for a larger slice of the competition’s commercial assets.
The A-League in turn are still intending to use some of the private equity proceeds, which they are seeking by about June 30, to establish their own direct to consumer streaming service that would also have a full range of A-League and W-League broadcast content.
Terms of the $200m cash and contra deal broadcast deal with Ten were first revealed by The Australian on Thursday morning, and later confirmed by the Australian Professional Leagues organisation comprising A-League and W-League club owners.
Ten will broadcast a Saturday night game live on its main free-to-air channel from the next A-League season, while the secondary 10 Bold channel will show a W-League game live each Sunday.
All matches across both leagues will be available on the new Paramount+ streaming service, which will cost $8.99 per month and launch in August. Ten is owned by US business ViacomCBS.
“This agreement with one of the world’s biggest content providers, is exactly the kind of significant and vital milestone we have always believed was possible – and that we intend to continue achieving,” APL chairman and Western Sydney Wanderers chairman Paul Lederer said.
Ten is also understood to be keen on Socceroos and Matildas matches currently being sold separately in the market by governing body Football Australia. SBS and global giant Amazon may in turn bid for World Cup soccer rights, including the 2023 Women’s event in Australia.
The A-League meanwhile has been meeting with potential investors as it, like rugby union and other sports, seeks a private equity investment to bring in much needed cash to put it on a firmer financial footing.
The information memorandum says the A-League would generate about $72m revenue in 2022, including almost $10m in sponsorship, another $10m in gate receipts from hosting the grand final and other important games and almost $2m in merchandise sales. Income would rise to $98m within five years.
International friendlies with big clubs touring Australia would also be an important strategy, bringing in about $3.3 revenue from next year. A “street football” pre-season tournament is also planned.
The A-League is seeking at least $100m from investors and may be offering a 25% stake in return, with contenders such as Silver Lake – currently bidding for a slice of New Zealand Rugby – understood to have at least expressed preliminary interest.
Foxtel chief executive Patrick Delany said he “would have preferred to retain the A-League and W-League [but] we chose early on in the process to maintain our cost and valuation discipline in relation to these rights.
“As the [APL] look toward a new future, we thank them for their partnership. We have been incredibly pleased to bring the A-League and the W-League to the many fans of football in Australia. We wish the APL well and for football fans, we remain the go-to destination for those who love the best in European football league action including Italy’s Serie A, Germany’s Bundesliga and Spain’s La Liga.”
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