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AFL extends Telstra (ASX:TLS) and Foxtel broadcast rights to 2024

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ASX:TLS      MCAP $46.44B
24 December 2020 11:15 (AEDT)
Telstra Corporation (ASX:TLS) — CEO, Andy Penn

Source: CNBC

The AFL has extended its broadcast relationship with Telstra (TLS) and Foxtel for another two years, continuing into 2024.

Brokered on Wednesday, the AFL will be making 20 per cent more from Foxtel — continuing business with shareholders Telstra and the News Corporation.

Reeling in business for the 2023 and 2024 seasons, the AFL collected roughly $946 million in combined contracts from Foxtel, Telstra, and Seven.

Reportedly, Seven paid about $300 million of that total alone.

“This extension with Foxtel and Telstra, along with the extension we signed with the Seven Network earlier this year, ensures that we are able to not only re-build our game but take it to more and more people,” AFL CEO Gillon McLachlan said.

“After a challenging year, this is a great way to finish off 2020 and is a massive vote of confidence in the AFL, our players and our code at all levels,” he added.

In June, Foxtel and Seven reduced their existing contracts by 13 per cent due to the COVID-19 lockdowns.

“It provides greater financial certainty in the years ahead, ensures our fans continue to have the ability to watch men’s and women’s footy wherever they are,” he said.

Telstra has increased its presence throughout the sporting competition further. The telecommunications company will be the official technology partner in Melbourne’s Marvel Stadium.

Specifically, Telstra’s 5G tech will be on display, already having earned air time throughout the 2020 AFL season — showcasing augmented reality graphics and data analytics onscreen.

“We have made a commitment to make Marvel Stadium one of the best sports and entertainment destinations in the world and our partnership with Telstra only enhances our ability to deliver this by providing fans a digitally-connected and technologically innovative fan-friendly experience,” McLachlan added.

Marvel Stadium is the home ground to Essendon, Carlton, the Bulldogs, St Kilda, and North Melbourne.

“Every business, every sport, every community has felt the fallout of this global Covid-19 pandemic and our partnerships announced today help provide us with the security and confidence to continue to diligently and strategically re-build the football community,” McLachlan added.

Shares in Telstra are trading a slight 0.5 per cent higher at $3.03 at 10:54 am AEDT.

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