Nine Entertainment has confirmed speculation it will buy the rights to broadcast the English Premier League (EPL) football competition from telecommunications company Singtel Optus.
Nine said its Stan streaming service subsidiary had reached an agreement with Optus to acquire selected Optus Sport assets, including Optus’ media rights agreements, subscriber agreements and social media assets from 1 August.
It said Stan would pay Optus Sport an upfront fee of A$20 million and a contribution towards the first payment for the next EPL rights cycle with Optus making periodic contributions to Nine until 2028.
After allowing for these payments, Nine expects the acquisition to be earnings before interest, tax, depreciation and amortisation (EVITDA) and cash positive for Stan over the remaining terms of the media rights agreement.
“The addition of the Premier League and Emirates FA Cup to Stan Sport’s existing UEFA club competition offering delivers compelling content for Australia’s 6 million football fans,” Nine said in an ASX announcement.
“These additional rights build on Stan Sport’s existing portfolio of premium sports across Rugby, Tennis, Motorsport and Combat Sports.”
Optus Sport was launched in 2016 after Optus won the rights to broadcast the EPL from a subscription television service from Foxtel, in a three-year deal that has subsequently been extended to 2028 and is estimated to be worth $100 million per year.
Stan began investing in sports after securing a $100 million deal with Rugby Australia in 2020 to broadcast Super Rugby, Wallabies and Wallaroos matches.
Foxtel was sold by global media group News Corporation and Australian telecom Telstra to global sports streaming giant DAZN for an enterprise value of A$3.4 billion in April.
Nine Entertainment (ASX: NEC) shares closed one cent higher at $1.60 on Friday, capitalising the company at $2.55 billion.
Optus is owned by Singapore Telecommunications (SGX: Z7).
