News Corp Pays Whopping $3.1B For This Popular Sports Broadcast Rights

News Corp NWSA and Seven West Media Ltd WANHY extended a seven-year contract worth a whopping A$4.5 billion ($3.1 billion) to retain the television broadcast rights for Australian Rules Football, Bloomberg reports.
The contract will run from 2025 until 2031, covering Australia's most watched sport with its grand final, the highest-rated broadcast in the past two years.
More than A$640 million a year dwarfs the recent deal for National Rugby League matches. Nine Entertainment Co. Holdings Ltd NNMTF won those rights in December for A$115 million yearly from 2023 to 2027.
The News Corp.-led bid beat out separate proposals from rival U.S. broadcaster Paramount Global PARA and local network Nine.
News Corp will hold the subscription television rights via Foxtel, which it owns with Australian telecom firm Telstra Corporation Ltd TLSYY. Seven will retain the free-to-air broadcast rights. The two companies have been the exclusive broadcasters of AFL since 2011.
SWM will pay a 14% increase on the 2024 rights in 2025.
Leading streaming companies ranging from Netflix, Inc NFLX to Walt Disney Co DIS focused on winning rights to broadcast popular sports to grow subscribers.
Price Action: NWSA shares traded lower by 2.13% at $16.10 in the premarket on the last check Wednesday.