Supercars 2021 Media Rights

[chavez]

Originally Posted by Casper

Fox have laid off about 200 staff with perhaps more to follow. You would seriously have to wonder how they will survive in the long term.

Only at Rupert's pleasure.

The should change their name to "The Australian" and Rupert will prop them up for life.

[Casper]

Originally Posted by chavez

Only at Rupert's pleasure.

The should change their name to "The Australian" and Rupert will prop them up for life.

Ain't that the truth, I was apprenticed in the printing industry when The Oz came screaming into life and it was going to be the future for the newspaper world in Oz because it was the first national newspaper done at one desk. It has to my knowledge never made a profit but I don't follow these things so it may have.

[mayhem]

No massive surprise, but: Goodbye Channel Ten

[Sandgroper]

Originally Posted by mayhem

No massive surprise, but: Goodbye Channel Ten

Game over

[275 GTB-4]

Originally Posted by blaarg

If supercars want the sport to be a household name again, they need to get it back on free to air.

If they are happy to go the niche sport route, they shouldn't waste their time with free to air, focus on foxtel/kayo and let another motorsport category fill the free to air void.

The lack of program and schedule consistency with their current free to air arrangement is not helping their fan base or their sponsors.

Right on...for the limited life left in the V8 Supercar series...

[Casper]

Originally Posted by 275 GTB-4

Right on...for the limited life left in the V8 Supercar series...

How long is the biggest question, if the present health issues continue to disrupt the return of a normal calender I fear what may happen is that fans will not return, Rugby League has already seen this happen and their spin factory is already coming up with excuses and explanations to explain the loss of viewers. I guess at this stage SC does not even have a series sponsor except in name only.

[Mixer]

Whoa, Seven bailing out of their broadcast deal with Cricket Australia because CA wouldn't offer a discount for the BBL being unable to have international stars playing.

Apparently a $25m payment CA are expecting next week that isn't coming... Allegedly

[blaarg]

Originally Posted by Mixer

Whoa, Seven bailing out of their broadcast deal with Cricket Australia because CA wouldn't offer a discount for the BBL being unable to have international stars playing.

Apparently a $25m payment CA are expecting next week that isn't coming... Allegedly

Did channel 7 just find the money to take on the whole shebang?

[Mixer]

Originally Posted by blaarg

Did channel 7 just find the money to take on the whole shebang?

No I don't think so but cricket Australia is crazy not discounting given what all the other sports have done. They really have jumped The Shark with the BBL recently.

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[mayhem]

Fox + Seven = Supercars 2021

Network 10 began its broadcast tenure paying $10 million but that was later reduced to less than $8 million per annum.
Speedcafe.com understands Network 10 was asked to pay $8 million to continue as the free-to-air broadcaster beyond 2020, but ultimately pulled out of discussions.

Two things: Ten's new bosses seem to be almost anti-sport which is surprising in 2020.
And given Seven will have both TCR and Supercars on their bill, I wonder if we will see meetings with both classes?

[rich07]

No way is the new deal worth 40m a year. Either Fox and 7 are extremely stupid (doubt it) or Supercars used the hypnotoad during negotiations (somewhat doubtful). I’d be surprised if in reality they got half of that.


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[chavez]

Originally Posted by rich07

No way is the new deal worth 40m a year. Either Fox and 7 are extremely stupid (doubt it) or Supercars used the hypnotoad during negotiations (somewhat doubtful). I’d be surprised if in reality they got half of that.


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Don't forget, unlike the rights for other sports, Supercars Media must produce x amount of hours of content.

This reduces the value somewhat.

Some indicative costs can be found here.

https://www.empirevideolive.com/empi...ost-calculator

For comparison with other sports the calculation is $40m - $X per year. $X would be several million dollars.

[banksie]

Originally Posted by mayhem

Two things: Ten's new bosses seem to be almost anti-sport which is surprising in 2020.
And given Seven will have both TCR and Supercars on their bill, I wonder if we will see meetings with both classes?

Ten's new owners, Viacom (who took over CBS), have no interest in sport.

Will Supercars race at the AGP and be shown on Seven? (Will there be an AGP?)

[one five five]

Originally Posted by rich07

No way is the new deal worth 40m a year. Either Fox and 7 are extremely stupid (doubt it) or Supercars used the hypnotoad during negotiations (somewhat doubtful). I’d be surprised if in reality they got half of that.


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How much money does Supercars Media spend on making the TV coverage each year?

That probably gives the ultimate worth of the TV deal once those costs are taken into account

[Mixer]

At the end of the day Supercars has a huge investment in its production and this is a BIG win in the current climate. Even if "x" amount includes the production, that keeps that business going and those people employed. Meanwhile the AFL has slashed hundreds of positions and Cricket Australia is in denial about how much deep **** it in, with both of its broadcast partners using out clauses last week....

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[Tourer]

Originally Posted by one five five

How much money does Supercars Media spend on making the TV coverage each year?

That probably gives the ultimate worth of the TV deal once those costs are taken into account

True. It's not uncommon for other sports to contribute to production costs as well but everyone trumpets the "gross" revenue rather than the "net" revenue and Supercars is no different.

From the reports so far it sounds as if the new deal will only be slightly less than the previous deal (in terms of gross revenue in any case) - not sure if that means they've done a good job in a time of such revenues falling or at least under pressure of falling or whether the previous deal was about as low as it could go.

[one five five]

Originally Posted by Tourer

True. It's not uncommon for other sports to contribute to production costs as well but everyone trumpets the "gross" revenue rather than the "net" revenue and Supercars is no different.

Supercars don’t just contribute to production costs, they provide the whole coverage, as I’m sure you know.

Presumably the money paid by Foxtel and Seven is used to pay for Supercars Media to produce the product.

[Tourer]

Originally Posted by one five five

Supercars don’t just contribute to production costs, they provide the whole coverage, as I’m sure you know.

Of course - but you were suggesting that the real worth of the rights deal should be the net return after costs deducted & simply pointed out that whilst a fair point, no sports list their rights fees that way.

Presumably the money paid by Foxtel and Seven is used to pay for Supercars Media to produce the product.

Don't know how Supercars specifically does the accounting but I'd suggest that all revenue in total goes into the pot, costs come out and then dividends are paid to shareholders.

In the case of broadcast production, there'd be the Foxtel/7 revenue, the ARG revenue for producing TCR once it gets going again, 12 Hour revenue, online streaming revenue, overseas rights fees as examples of revenue generated directly from the production.

[Sandgroper]

No No Noooooo Mark Baretta and 7

Thank gawd I have Fox

[mayhem]

Originally Posted by banksie

Ten's new owners, Viacom (who took over CBS), have no interest in sport.

Which is weird, surely? Reality TV and sport are about the best bets for ratings.

Anyway, bring back Mark Oastler.

[one five five]

Originally Posted by Tourer

Of course - but you were suggesting that the real worth of the rights deal should be the net return after costs deducted & simply pointed out that whilst a fair point, no sports list their rights fees that way.

Don't know how Supercars specifically does the accounting but I'd suggest that all revenue in total goes into the pot, costs come out and then dividends are paid to shareholders.

In the case of broadcast production, there'd be the Foxtel/7 revenue, the ARG revenue for producing TCR once it gets going again, 12 Hour revenue, online streaming revenue, overseas rights fees as examples of revenue generated directly from the production.

If it costs Supercars Media $10 million to produce the Supercars Series broadcast a year, that would make the deal only worth $150 million would it not?

Part of the deal would be Foxtel and Seven paying for production costs they would otherwise have had to pay (and do) themselves if Supercars didn’t commission their own broadcasts.

It ain’t $200million straight in the back pocket as some want to suggest

[Denosaur]

Originally Posted by Sandgroper

No No Noooooo Mark Baretta and 7

Thank gawd I have Fox

With you on that one....

[Mixer]

Originally Posted by one five five

If it costs Supercars Media $10 million to produce the Supercars Series broadcast a year, that would make the deal only worth $150 million would it not?

if that number is right, it is still a remarkable result given how stuffed the sports rights market is. $241m at the all time high, and $200m now, really doesn't sound that bad at all, when the sportsball codes have at least lost 50%, and Cricket I think you might find has had the next 4 years of their rights handed back to them....

Also, this still means Fox and Seven are paying Supercars Media to make content, that Supercars media can still also sell that to overseas markets.

[Tourer]

Originally Posted by one five five

If it costs Supercars Media $10 million to produce the Supercars Series broadcast a year, that would make the deal only worth $150 million would it not?

Part of the deal would be Foxtel and Seven paying for production costs they would otherwise have had to pay (and do) themselves if Supercars didn’t commission their own broadcasts.

It ain’t $200million straight in the back pocket as some want to suggest

That's correct - same as every other sport's announcements on the value of broadcast rights. There are costs deducted from the gross figure quoted.

In the case of Supercars, that's a figure settled on for production - which may not bear any relationship to actual production costs but that's all part of the negotiation.

For other sports, the costs would come in different ways - for example building facilities into venues of the right spec to house production, commentary, meeting areas etc specifically for broadcast use only.

[Jack65]

Originally Posted by Mixer

$241m at the all time high, and $200m now

$241m was over 6 years, new deal is $200m over 5 years, so basically it has held station at $40m a year. Good news for those with Fox, as for the 70% of the population who don't their opportunities remain limited, as will the ability of teams to attract much needed sponsorship.