AFL pushing for billion-dollar TV deal

The AFL is aiming for its next TV rights deal to yield a billion dollars.

AFL Chief Operating Officer Gillon McLachlan, who has responsibility for the AFL's broadcasting and new media activities, this week told www.afl.com.au "I'd like to think we could get a billion dollars. There's no doubt that the value of our content continues to get stronger, and despite the tough economic conditions for media companies, weâre very confident in our product.

"Our balance sheet is very strong, weâve got cash in the bank, and weâre forecasting to increase revenues this year, and thereâs not many businesses doing that."

The AFL's current deal with the Seven and Ten Network from 2007 to 2011 is worth around A$780 million dollars over five years â a figure inflated by an enormous bid from Channel Nine and pay-television broadcaster Foxtel, which Seven and Ten were forced to trump to gain the rights.

McLachlan explained that the continued expansion of the league was a requirement, not an option, for all levels of football and the community as a whole, adding "we're confident in our financial position, but we need to expand to hold our position in the Australian market and for the prosperity of our existing 16 clubs.

"Our expansion, our growth and our success ultimately benefits a whole cross-section of the community. We're a not-for-profit organisation, so all of our profits are distributed back through our clubs, through states, through community development, building stadia, so ultimately, the community benefits through our success. Governments see that, and that's why we've had some success partnering with them."

McLachlan added that two more teams are needed to provide the extra broadcast opportunity each weekend, and that Queensland (were a 17th AFL licence is set to be announced) and New South Wales are the states in which the AFL would expand.

"As we've expanded from 12 to 14 teams, then 15, then 16, the competition's continued to grow.

"Expansion brings growth for us, and particularly expansion in Queensland and New South Wales, where there's 54% of the Australian population, and weâve probably got 15 to 20% market share.

"So we need to continue to hold our ground in those markets, and they'll be incredibly important for us in our growth going forward."

Last week McLachlan affirmed Queensland and New South Wales as "priority" markets, dashing Tasmania's hopes for an AFL licence, McLachlan stating "we never said we didn't want a team in Tasmania, but it's not a priority."