The Seven West Media Ltd (ASX: SWM) share price closed higher on Tuesday following the company's announcement of a new record AFL deal.
At market close, the media company's shares finished up 3.16% to 49 cents apiece after touching an intraday high of 51 cents a share.
Let's take a look in more detail at the company's latest announcement.
Seven West Media shares jump on bonanza AFL deal
Investors rallied up the Seven West Media share price today after the company announced a record AFL television rights deal.
According to The Australian, Seven advised it has signed Australia's biggest broadcast rights deal with the AFL.
This will see the Seven network, alongside Foxtel, retain television broadcast rights under a seven-year $3.85 billion contract.
In contrast, the AFL secured an extension of two seasons with Seven and Foxtel for $946 million during COVID-19.
However, one key detail that isn't clear is how much free-to-air televised footy will be shown.
The Seven network provides free access to a number of games over the week, while Foxtel is a pay-to-air service.
Seven West Media managing director and CEO James Warburton said:
We are delighted to extend our partnership with the AFL until 2031. Securing a comprehensive package of digital rights to the AFL for 7plus was our absolute focus. For the first time, fans will be able to access the best AFL games and video content, live and free, in a way that suits them.
More importantly, this new combination of broadcast and digital means SWM will be ideally positioned to drive and capture a significant share of the growing total television market.
Together, the AFL and Seven have made the code the #1 winter sport across the country and we look forward to working with the AFL Commission to extend the sport's leadership.
Seven West Media share price summary
After tumbling to a 52-week low of 33.5 cents during mid-May, the Seven West Media share price is staging a comeback.
The share fell almost 50% between May and June but has not looked back since. In that time, the company's shares are up 48%.
Seven West Media presides a market capitalisation of approximately $803 million.
