Seven West Media (ASX: SWM) has re-signed V8 Supercars for another two years. Under the deal, V8 Supercars will receive about $32 million a year in media rights from Seven. In return, Seven gets exclusive free-to-air broadcast rights.
V8 Supercars will also get additional revenues from Fox Sports – owned by News Corporation (ASX: NWS) for the rights to replays, Telstra Corporation (ASXL TLS), which owns the online and mobile rights and international broadcasters.
Related: Last throw of the dice for Ten?
According to the Australian Financial Review, Nine Entertainment wasn’t interested in broadcasting the lower-rating V8 motor racing, after outlaying around $500 million for 2013-17 rugby league broadcasts, and to reserve funds for the up-for-grabs cricket rights. Nine’s exclusivity period with Cricket Australia ended on 31 December. Ten Network Holdings (ASX: TEN) is struggling and limited to what it could pay for any sports, and is believed to have not made a bid for the V8s.
V8 Supercars is 60% owned by private equity firm Archer Capital and the remainder by the V8 teams.
From the 2013 season, Mercedes-Benz and Nissan will join Ford and Holden in racing V8s. Stone Brothers Racing is expected to ditch Ford and build 3 E-class V8 Supercars, each with special AMG engines. The Mercedes V8s are tipped to make their race debut at Adelaide’s Clipsal 500 in March.
Kelly Racing will unveil their Nissan V8 Altimas at the same race, and retired champion, Mark Skaife believes there will be at least another two manufacturers on the grid within the next few years.
At a time when free-to-air networks are struggling, with some experts suggesting Australia can’t support three commercial stations, Seven may be onto a winner. The entry of Mercedes-Benz and Nissan, and opening up of V8 regulations could bring in more fans and see V8 Supercars generate high ratings – a plus for attracting additional advertising – which is key for the free-to-air networks.
If you only invest in one company this year, make it our “Top Stock for 2012-13.” Operating in two hot markets — one set to double by 2012, the other predicted to grow 5x over the next five years — this stock is a solid growth play that also boasts strong recurring revenue, zero debt, and lots of cash. Get its name and full research case in this brand-new FREE report.
- The Claytons mining tax
- China eyes Australia’s dairy sector
- Green shoots in the housing market?
- Falling in love with Telstra
- Ignore the expert’s predictions
Motley Fool writer/analyst Mike King doesn’t own shares in any companies mentioned. The Motley Fool’s purpose is to help the world invest, better. Take Stock is The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it’s still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
- Why PWR Holdings Ltd could see its share price rise from here – July 21, 2017 12:11pm
- Fortescue Metals Group Limited share price sinks on native title decision – July 20, 2017 4:23pm
- 5 overlooked finance shares to add to your watchlist – July 20, 2017 2:33pm