Nine agrees to buy Optus Sport assets, EPL rights
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The news: Nine Entertainment subsidiary Stan has reached an agreement with Optus to acquire selected Optus Sport assets, for an upfront fee of $20 million.
Capital Brief reported earlier this month that the two companies were closing in on a deal, that will see streaming rights to the English Premier League change hands in Australia for the first time in nearly a decade. The agreement is poised to bring to an end the Optus Sport streaming platform.
The context: On top of the upfront fee, Stan will pay Optus Sport a contribution towards the first payment for the Premier League rights cycle. Optus will make periodic contributions to Nine through to 2028.
Nine said it expects the acquisition to be earnings and cash positive to Stan over the remaining terms of the media rights agreement.
The Optus Sport assets include media rights agreements for the Premier League and the Emirates FA Cup, both through to the conclusion of their 2027/2028 seasons.
Stan — which already has an existing sports portfolio across rugby, tennis, motorsport and combat sports — said that more than half of Optus Sport's subscribers are currently not Stan subscribers.
What they said: “This marks a step change in Nine’s digital growth strategy,” said Nine chief executive Matt Stanton.
“The Premier League is the most-watched football league on the planet, and alongside the Emirates FA Cup, this acquisition reinforces Nine’s position as the home of sport in Australia. We are proud to deliver these iconic competitions to Australian audiences through Stan Sport.”
Optus CEO Stephen Rue commented: “One of our key priorities was to find a home for Optus Sport content which would take the game forward and enable all Optus Sport subscribers to continue to receive uninterrupted access to all their favourite football actions.
“Optus Sport customers and the game of football will be in great hands at Stan, and we know the game will receive the broadcasting priority it deserves from an organisation whose speciality is delivering quality sports programming to its customers.”
The source: ASX
