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TV broadcasts will have to sell live events for $1 if not shown

Under new anti-siphoning legislation anticipated to be introduced into federal parliament later this month, commercial broadcasters unwilling to air certain iconic sporting events live may face the requirement to sell the rights to a competitor for just $1.

For the first time, the exposure draft of the legislation outlines the so-called “use it or lose it” provisions that networks Seven, Ten, and Nine might encounter if they fail to showcase significant sporting events from the anti-siphoning list, which is designated for free-to-air broadcasters.

Last week, the exposure draft was shared among free-to-air networks and leading broadcasting entities by the office of Communications Minister Stephen Conroy.

It was announced by Senator Conroy’s office that the government aims to introduce the highly anticipated Anti-Siphoning Bill during the winter parliamentary sessions.

Furthermore, the exposure draft indicates that free-to-air networks along with pay-TV operator Foxtel will be mandated to submit in writing the details of all sports broadcast rights agreements to the Australian Communications and Media Authority or risk penalties up to $55,000. This new requirement has not been well-received by most broadcasters, who find the regulator’s involvement excessive.

According to the exposure draft, certain “Tier A” events, such as the AFL and NRL grand finals, must be broadcast live. Meanwhile, the more extensive “Tier B” events category, which includes regular season AFL and NRL matches as well as non-finals Australian Open tennis games, must be aired no later than four hours after their commencement.

Those free-to-air broadcasters that fail to follow these regulations must sell the rights to another network for just $1 or potentially face “civil penalty provisions,” presumably enforced by ACMA.

In practice, the chance of a free-to-air network violating these regulations appears minimal. They can broadcast “Tier B” games on digital multi-channels, while showing delayed AFL game coverage could be financially detrimental, especially since every regular season match is available live on Fox Sports due to the new AFL TV agreement.

The Bill also grants the minister the authority to create special “anti-siphoning groups” for events like the Australian Open or the Commonwealth Games, where it may not be feasible to air every event live on free-to-air channels. The minister is empowered to determine a minimum number of hours during which group events must be shown live. Notably, the Anti-Siphoning Bill does not address the distribution mechanisms of AFL games between free-to-air and pay-television, although that matter is believed to be resolved.

Senator Conroy is likely to announce a co-signed deed by the government and the AFL, ensuring that free-to-air networks receive the “best quality” game on Friday nights and the second-best on Saturday nights.

by Buford Balony

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