The Australian Financial Review reports (Nine CEO Mike) Sneesby saying that the network will bank $135 million in advertising revenue for the upcoming Paris Olympics, and insists it will turn a profit.
Sneesby assures Nine have filled its “torch” and “flame” sponsorship packages, which were valued at $12.5 million and $10.5 million respectively.
Just over 200 people from Nine will be in Paris, Sneesby said, which includes 18 from Nine News, 18 from radio, 18 from the mastheads, and 20 to 25 from the executive team and Stan.
Nine have a fiduciary duty to report accurately figures on profits and losses given they are a publicly listed company. $305m for the rights to 5 games is a bargain given inflation out to 2032. To be making a profit is an outstanding success . News Corp will obviously be running interference on this given they don’t have the rights and seem to have it out for nine.
In financial accounts and mandated reporting requirements, absolutely. Not necessarily when it comes to Sneesby discussing rights belonging to the TV arm of the same company that publishes the newspaper he’s doing an interview with.
If Nine when everything is said and done ends up making a profit out of broadcasting the Paris Olympics, fair play to them. Until then though, I remain highly sceptical of their ability to.
yeah ive got the press kit. the hype for the games is not where its been in the past for games like London and Rio, and i blame 9 for it. as the broadcaster they need to treally push it and build hype
There are several ways you can amortise it (depending on what the contract says), there is likely to be some trigger as well that will hedge forex rates too. I’m not sure that simply dividing the amount by 3 or 5 is reflective of the situation as it’s highly likely that the deal was in effect back-ended in order to secure the rights for Brisbane.
I suspect they’ve realistically paid very little for the Winter rights too.
There had been similar reporting with Seven too - you can almost circle a date in the calendar to run the article in the lead up to the next games.
