Positives for SWM during Covid, page-9

I think AFL commencing and re-negotiations of broadcasting deals are the two catalyst that will trigger jumps in the short term, and from there items (1) and (2) on that list seem more reasonable/likely to occur in the next couple of months.

In respect of the Olympic Games it seems unclear what will occur in terms of the re-negotiations. There were rumors in the market if I remember in Jan/Feb that the Olympic Games would be a loss maker for Channel 7 as advertisements did not pay the cost of the agreement and production. Remember this agreement was signed in 2016 to cover the Rio Olympics (2016), Seoul Winter Games (2018) and then Tokyo Olympics (2020). The IOC set up a $US900M fund to cover the suspension, and this could be used to pay out some broadcasters in the interim.

In respect of a query to the Tokyo organisers in relation to broadcasting refunds, all that was said was that they were "working with their broadcasters" to determine whether their engagement will continue to 2021.

As such, I think Channel 7 will do something similar to the AFL negotiations, and get a lump sum returned to them, but will continue to host the games for 2021 but at a much reduced rate, and hopefully, not at a lost.

If things go to plan, then hopefully the timing of the AFL and Olympic Games refunds can come after this week and also be separated out for maximum impact.