India's tour of Australia in jeopardy if Seven terminates $450m cricket deal [Post#38]

[hoshiarpurexpress]

Seven West Media has put Cricket Australia on notice that it may consider terminating its portion of the game's $1.2 billion television deal in a dramatic escalation of tension between the sport and its free-to-air broadcast partner.

Seven chief executive James Warburton fired a shot at CA this week in a call with investors, expressing frustration at delays in the delivery of the domestic and international schedule for the upcoming season.

CA chief executive Nick Hockley said on Thursday he could see no reason why Seven and Foxtel would not have to pay in full if they produced the same volume of content as originally planned.

However, Warburton has declared quality to be just as important as quantity and the potential talent drain in the Big Bash League due to more players having to be quarantined for international matches looms as a major issue.

"The quality obligations are paramount," Warburton said. "Should that not be delivered we are forced to consider all our options including terminating the contract and we have put them on notice accordingly."

There are plans for the four-Test series against India to run well into January in a revamping of the calendar, which would have further ramifications on the number of players who could be unavailable during the BBL.

Sources say there is also concern at Foxtel at the impact on quality in the BBL in particular this summer and the subscription television provider has on multiple occasions proposed a discount on the rights fees for this summer.

Responding to Seven's latest comments, CA said in a statement on Friday: “Cricket Australia greatly values the relationship with our broadcast partners. While disappointed by comments made in the media today, CA remains committed to delivering a full and compelling summer of cricket.

"With the Australian men’s team having already landed safely in England for their return to international cricket, we want to reassure fans here in Australia and around the world that we are well advanced in delivering our home summer of cricket.

"We continue to navigate our way through the challenges presented by COVID-19 with the support of all our partners, including governments, sponsors, biosecurity experts, state and territories Associations and the Australian Cricketers’ Association."

Both Foxtel and Seven's next round of broadcast payments is due to be made on September 16.

Seven's deal with CA, signed in 2018, is worth $450 million over six years.

Warburton said on Tuesday that talks with CA over this summer had been "frustrating".

"Ultimately ... they need to look at what is possible to deliver, stop talking about international borders being closed, or borders being closed, and start to look at what really is the season we are going to deliver," he said.

"Like we have done with the AFL, our obligation then is to really deliver something for the fans and the players and to put our best foot forward for all of our commercial partners as well. But, at the moment, you pick up the paper every day and you read four or five different things.

"You have got the Australian T20 and one-day captain saying one thing, you have got the coach saying another, you have got BBL franchises talking about no international players – or [having more] grade cricketers. We could send the cameras down for free to telecast grade cricket."

CA is still finalising its summer schedule, which is increasingly likely to include the staging of the Boxing Day Test at a new venue because of the impact of the pandemic in Melbourne. The next round of schedule announcements due next week is expected to cover plans for the domestic game as well as the Australian women's internationals against New Zealand starting next month. All six matches in that series are set to be hosted by Brisbane's Allan Border Field.

Players were on Friday also being told that the first four rounds of the Sheffield Shield will be staged over five weeks in a hub in Adelaide starting in October, with NSW and Victoria players having to be in the city by September 23 to enter quarantine.

Source : https://www.smh.com.au/sport/cricke...al-over-quality-concerns-20200828-p55q8y.html

 

[Giannis]

Corporations shouldn't be blackmailing cricket boards.

 

[Junaids]

This is complex.

TV sports rights in Australia have become rather inflated in price recently, and the networks appear to have paid beyond their means and certainly beyond their capacity to recoup revenue.

This, in particular, has led to Rugby Union and Football struggling to sell their rights at all, as the major terrestrial networks seek to reduce their expenditure. It's even worse with subscription TV - Fox Sports is the dominant provider (and only broadcast provider, with Optus Sport being a streaming-only service).

Channel 7 is now in all sorts of trouble. Its sharing of coverage with Fox Sports means that Fox Sports share every ball of red ball coverage and has a monopoly on white ball broadcasting.

In effect, Channel 7 bought all the rights itself and did so as part of a consortium with a failing subscription service which itself cannibalises Channel 7's own coverage.

Cricket Australia will deliver Channel 7 and Fox a full program this summer. It's just that Channel 7 and Fox Sports have Buyers Remorse for overpaying and they are trying to extract themselves from their contractual commitments.

 

[MenInG]

Covid the culprit!

 

[U$ofA]

Corporations shouldn't be blackmailing cricket boards.

If the boards want $$$ then they have to abide by the rules/contract set forth by corporations. The boards can always take lot less money if they do not want to be dictated to. But that will not happen as they want to get as much $$$ as possible.

 

[U$ofA]

This is complex.

TV sports rights in Australia have become rather inflated in price recently, and the networks appear to have paid beyond their means and certainly beyond their capacity to recoup revenue.

This, in particular, has led to Rugby Union and Football struggling to sell their rights at all, as the major terrestrial networks seek to reduce their expenditure. It's even worse with subscription TV - Fox Sports is the dominant provider (and only broadcast provider, with Optus Sport being a streaming-only service).

Channel 7 is now in all sorts of trouble. Its sharing of coverage with Fox Sports means that Fox Sports share every ball of red ball coverage and has a monopoly on white ball broadcasting.

In effect, Channel 7 bought all the rights itself and did so as part of a consortium with a failing subscription service which itself cannibalises Channel 7's own coverage.

Cricket Australia will deliver Channel 7 and Fox a full program this summer. It's just that Channel 7 and Fox Sports have Buyers Remorse for overpaying and they are trying to extract themselves from their contractual commitments.

Interesting. The article has Channel 7 and Fox trying to wiggle out of the contract written all over it. I am sure their contracts have some clause that enables them to do this. Otherwise they would not have gone public with this.

 

[MenInG]

Cricket Australia has expressed disappointment at public comments from free-to-air broadcast partner Seven West Media's Chief Executive James Warburton but reaffirmed their commitment to "delivering a full and compelling summer of cricket".

The ever-changing raft of travel restrictions and national and state government coronavirus protocols means CA has already been forced to amend the men's and women's international schedules released last May, and is yet to confirm the full list of domestic fixtures.

As the strict quarantine requirements to be faced by players and event staff travelling to and from a variety of global and national destinations becomes clearer, CA is juggling myriad scheduling scenarios to maximise availability of the game's stars and deliver a complete summer.

The delay in releasing a revised schedule for a season due to begin in a month with women's white-ball matches between Australia and New Zealand prompted Warburton to raise the prospect of "terminating" the six-year broadcast contract Seven West signed with CA in 2018.

He also highlighted the prospect of players being unable to transfer freely between international teams and their KFC Big Bash League franchises due to COVID19 restrictions as carrying implications for broadcasters given "the quality obligations are paramount".

"Cricket Australia greatly values the relationship with our broadcast partners," a CA spokesperson said today.

"While disappointed by comments made in the media today, CA remains committed to delivering a full and compelling summer of cricket.

"With the Australian men’s team having already landed safely in England for their return to international cricket (from next week), we want to reassure fans here in Australia and around the world that we are well advanced in delivering our home summer of cricket.

"We continue to navigate our way through the challenges presented by COVID-19 with the support of all our partners, including governments, sponsors, bio-security experts, State and Territories Associations and the Australian Cricketers’ Association."

Warburton told an investor call earlier this week that discussions about the final shape of the summer's schedule, which has already seen the proposed ICC T20 World Cup postponed due to the ongoing pandemic and planned men's series against Zimbabwe and West Indies shelved, as "frustrating".

But he went further today, claiming Seven's contract under the $1.18 billion broadcast rights deal that also included Fox Sports (majority owned by News Corp) was in jeopardy because of the continued uncertainty surrounding cricket scheduling.

"We are forced to consider all our options including terminating the contract and we have put them on notice," Warburton told News Corp.

"This is not an acceptable product and we will not support the season.

"Cricket Australia have an obligation to deliver a competition of no lesser standard than the past."

Warburton had earlier drawn comparisons to dealings with the Australian Football League, with whom Seven West Media is also free-to-air broadcast partner.

"Like we have done with the AFL, our obligation then is to really deliver something for the fans and the players and to put our best foot forward for all of our commercial partners as well," he said.

When the COVID19 outbreak forced the AFL to suspend its season after the opening round last March, and subsequently announce a reduced fixture of 17 rounds (down from the usual 22) plus finals, broadcasters successfully sought a revised deal.

The AFL's new deal reportedly delivered Seven a saving of $87 million and included a two-year extension to the existing five-year agreement through until the end of 2024.

In addition to the 23 per cent reduction in the number of games played in 2020, the playing time of matches was also trimmed by 20 per cent as a concession to the coronavirus restrictions that have impacted global sport worldwide.

The national football competition has also been forced to announce its 2020 fixture a few weeks at a time (with venues for next month's final round of matches still yet to be confirmed) as evolving state border closures dictate where games can be played.

That constant fluidity of the playing schedule has seen multiple matches played during the course of a single day at Gold Coast's Metricon Stadium several times in recent weeks.

While the AFL competition caters for 18 clubs from five Australian states, CA's initial men's and women's international schedules featured seven touring teams playing across three formats (Test, ODI and T20I) at a dozen venues nationwide.

Adding to the complexity of the cricket schedule is the complementary need to deliver a full season of domestic fixtures including Marsh Sheffield Shield, Marsh One-Day Cup, Women's National Cricket League and the men's and women's Big Bash tournaments.

Not only do these competitions traditionally require free flow of players across state borders, the nature of cricket means traffic and turnaround times must be carefully managed at venues to ensure the quality of pitch preparation required for matches at elite levels.

CA's interim Chief Executive Nick Hockley expressed confidence in being able to deliver a full schedule of international and domestic men's and women's matches despite the unprecedented challenges posed by the ongoing pandemic.

"Bio-security and health and safety of the players throughout the summer is absolutely the number one priority," Hockley said this week.

"And creating hubs and concentrating content as the other sporting codes have done during the winter is something we’re likely to have to do, certainly in the early stages of the season.

"We are hoping the situation improves and clearly it’s going to be a busy and full summer, for both the international playing group and also the domestic group and the W/BBL.

"Everyone's working around the clock and we're getting amazing support from our partners, from governments, and the pieces are now really starting to fall into place.

"Our partners, and particularly our broadcast partners are across the latest information and as soon as we've got a bit more certainty around the approvals for quarantine arrangements and the like then we'll be making some announcements on what the particular dates of the summer are."

https://www.cricket.com.au/news/cri...icket-big-bash-league-bbl-covid-19/2020-08-28

 

[MenInG]

Cricket Australia has expressed disappointment at public comments from free-to-air broadcast partner Seven West Media's Chief Executive James Warburton but reaffirmed their commitment to "delivering a full and compelling summer of cricket".

The ever-changing raft of travel restrictions and national and state government coronavirus protocols means CA has already been forced to amend the men's and women's international schedules released last May, and is yet to confirm the full list of domestic fixtures.

As the strict quarantine requirements to be faced by players and event staff travelling to and from a variety of global and national destinations becomes clearer, CA is juggling myriad scheduling scenarios to maximise availability of the game's stars and deliver a complete summer.

The delay in releasing a revised schedule for a season due to begin in a month with women's white-ball matches between Australia and New Zealand prompted Warburton to raise the prospect of "terminating" the six-year broadcast contract Seven West signed with CA in 2018.

He also highlighted the prospect of players being unable to transfer freely between international teams and their KFC Big Bash League franchises due to COVID19 restrictions as carrying implications for broadcasters given "the quality obligations are paramount".

"Cricket Australia greatly values the relationship with our broadcast partners," a CA spokesperson said today.

"While disappointed by comments made in the media today, CA remains committed to delivering a full and compelling summer of cricket.

"With the Australian men’s team having already landed safely in England for their return to international cricket (from next week), we want to reassure fans here in Australia and around the world that we are well advanced in delivering our home summer of cricket.

"We continue to navigate our way through the challenges presented by COVID-19 with the support of all our partners, including governments, sponsors, bio-security experts, State and Territories Associations and the Australian Cricketers’ Association."

Warburton told an investor call earlier this week that discussions about the final shape of the summer's schedule, which has already seen the proposed ICC T20 World Cup postponed due to the ongoing pandemic and planned men's series against Zimbabwe and West Indies shelved, as "frustrating".

But he went further today, claiming Seven's contract under the $1.18 billion broadcast rights deal that also included Fox Sports (majority owned by News Corp) was in jeopardy because of the continued uncertainty surrounding cricket scheduling.

"We are forced to consider all our options including terminating the contract and we have put them on notice," Warburton told News Corp.

"This is not an acceptable product and we will not support the season.

"Cricket Australia have an obligation to deliver a competition of no lesser standard than the past."

Warburton had earlier drawn comparisons to dealings with the Australian Football League, with whom Seven West Media is also free-to-air broadcast partner.

"Like we have done with the AFL, our obligation then is to really deliver something for the fans and the players and to put our best foot forward for all of our commercial partners as well," he said.

When the COVID19 outbreak forced the AFL to suspend its season after the opening round last March, and subsequently announce a reduced fixture of 17 rounds (down from the usual 22) plus finals, broadcasters successfully sought a revised deal.

The AFL's new deal reportedly delivered Seven a saving of $87 million and included a two-year extension to the existing five-year agreement through until the end of 2024.

In addition to the 23 per cent reduction in the number of games played in 2020, the playing time of matches was also trimmed by 20 per cent as a concession to the coronavirus restrictions that have impacted global sport worldwide.

The national football competition has also been forced to announce its 2020 fixture a few weeks at a time (with venues for next month's final round of matches still yet to be confirmed) as evolving state border closures dictate where games can be played.

That constant fluidity of the playing schedule has seen multiple matches played during the course of a single day at Gold Coast's Metricon Stadium several times in recent weeks.

While the AFL competition caters for 18 clubs from five Australian states, CA's initial men's and women's international schedules featured seven touring teams playing across three formats (Test, ODI and T20I) at a dozen venues nationwide.

Adding to the complexity of the cricket schedule is the complementary need to deliver a full season of domestic fixtures including Marsh Sheffield Shield, Marsh One-Day Cup, Women's National Cricket League and the men's and women's Big Bash tournaments.

Not only do these competitions traditionally require free flow of players across state borders, the nature of cricket means traffic and turnaround times must be carefully managed at venues to ensure the quality of pitch preparation required for matches at elite levels.

CA's interim Chief Executive Nick Hockley expressed confidence in being able to deliver a full schedule of international and domestic men's and women's matches despite the unprecedented challenges posed by the ongoing pandemic.

"Bio-security and health and safety of the players throughout the summer is absolutely the number one priority," Hockley said this week.

"And creating hubs and concentrating content as the other sporting codes have done during the winter is something we’re likely to have to do, certainly in the early stages of the season.

"We are hoping the situation improves and clearly it’s going to be a busy and full summer, for both the international playing group and also the domestic group and the W/BBL.

"Everyone's working around the clock and we're getting amazing support from our partners, from governments, and the pieces are now really starting to fall into place.

"Our partners, and particularly our broadcast partners are across the latest information and as soon as we've got a bit more certainty around the approvals for quarantine arrangements and the like then we'll be making some announcements on what the particular dates of the summer are."

https://www.cricket.com.au/news/cri...icket-big-bash-league-bbl-covid-19/2020-08-28

 

[Gilly]

Cricket in Australia is going to be the biggest loser coming out of the pandemic, passion for the sport is dying and this summer will see audiences shrinking. I think cricket will take at least 10 years to get back to what it was if it does at all. Fox have lost thousands of subscribers due to the pandemic and most of those will not return. The golden era has come to an end.

 

[Savak]

Lol, Wasn't Cricket Australia dependent on this money to stay afloat? Where else will they get this kind of money from if the broadcasters refuse to pay up?

 

[hoshiarpurexpress]

Cricket Australia has completely hedged its bet on Indian tour and Indian money. BCCI will become more strong in post COVID world as I think every country will desperately want them to tour once at least.

 

[Junaids]

Cricket Australia has completely hedged its bet on Indian tour and Indian money. BCCI will become more strong in post COVID world as I think every country will desperately want them to tour once at least.

Actually it is the complete opposite.

Cricket Australia sold the 5 year rights to Channel 7 (free to air) with Fox Sports (subscription) at a vastly inflated price.

The inflated price has become obvious as Rugby League and AFL rights have themselves come under scrutiny, and Rugby Union and Soccer rights have become unsellable.

And now Channel 7 understands that it has overpaid for the rights, and is trying to wriggle out of the contract.

There is exactly the same thing going on in India - the Indian TV rights prices make no commercial sense, and sooner or later the bottom will fall out of them.

 

[hoshiarpurexpress]

Actually it is the complete opposite.

Cricket Australia sold the 5 year rights to Channel 7 (free to air) with Fox Sports (subscription) at a vastly inflated price.

The inflated price has become obvious as Rugby League and AFL rights have themselves come under scrutiny, and Rugby Union and Soccer rights have become unsellable.

And now Channel 7 understands that it has overpaid for the rights, and is trying to wriggle out of the contract.

There is exactly the same thing going on in India - the Indian TV rights prices make no commercial sense, and sooner or later the bottom will fall out of them.

Lets see. these predictions have been made in the past and Indian cricket has still been able to thrive and make money. The sole reason being strong consumption and appetite for cricket back home.
I disagree, respectfully to your point of commerical TV rights being overpriced. Its right as per the market size and will continue to grow.

 

[Junaids]

Lets see. these predictions have been made in the past and Indian cricket has still been able to thrive and make money. The sole reason being strong consumption and appetite for cricket back home.
I disagree, respectfully to your point of commerical TV rights being overpriced. Its right as per the market size and will continue to grow.

I'm not criticizing India!

Here in Australia a Sports Channel monthly subscription costs $50. $50 per month!

In New Zealand, a Sky Sports subscription costs $31.99 per month.

In the UK, a Sky Sports Pack costs GBP39 per month. A streaming Day Pass costs GBP9.99 per DAY.

These subscription costs - plus advertising, which is limited - have to recoup the cost of purchasing the broadcast rights.

Currently the rights in India are being purchased for huge sums, yet the actual revenue per viewer for the broadcasters is a fraction of what it is in the richer countries.

 

[Oxfordchamp]

I'm not criticizing India!

Here in Australia a Sports Channel monthly subscription costs $50. $50 per month!

In New Zealand, a Sky Sports subscription costs $31.99 per month.

In the UK, a Sky Sports Pack costs GBP39 per month. A streaming Day Pass costs GBP9.99 per DAY.

These subscription costs - plus advertising, which is limited - have to recoup the cost of purchasing the broadcast rights.

Currently the rights in India are being purchased for huge sums, yet the actual revenue per viewer for the broadcasters is a fraction of what it is in the richer countries.

Star sports bid $2.5 billion for ipl for 5 years and it is going to recoup majority of that through advertising revenues from both television and digital mediums. Subscription revenue is low compared to advertising revenue.

 

[Junaids]

Star sports bid $2.5 billion for ipl for 5 years and it is going to recoup majority of that through advertising revenues from both television and digital mediums. Subscription revenue is low compared to advertising revenue.

I have my doubts that the hunger for cricket will deliver anything like as much advertising revenue for a red ball series in Australia which takes place from 06.00 to 13.00 Indian time, and which will probably see India very soundly beaten.

Australian broadcasters are finding that they are over-spending on sporting rights, and I fear that the same thing could happen in India.

 

[Oxfordchamp]

Indian public loves to see India Australia series and thats what matters to the broadcasters and advertisers..and that is what makes BCCI powerful and Cricket Australia going out of their way to make the series happen..quality makes quantity here..

 

[Junaids]

Indian public loves to see India Australia series and thats what matters to the broadcasters and advertisers..and that is what makes BCCI powerful and Cricket Australia going out of their way to make the series happen..quality makes quantity here..

A typical Australia v India Test will be broadcast into India at the following times:

Morning session: 0600-0800
Afternoon session: 0840-1040
Evening session: 1100-1300

Who is going to be watching?

 

[Oxfordchamp]

There would be many in India who would watch it after setting alarms to wake up early...But more than a test match the ODIs and T20s happen at a more suitable time for viewers and advertisers and all 3 are lumped together as a package.

 

[angrypathan]

I'm not criticizing India!

Here in Australia a Sports Channel monthly subscription costs $50. $50 per month!

In New Zealand, a Sky Sports subscription costs $31.99 per month.

In the UK, a Sky Sports Pack costs GBP39 per month. A streaming Day Pass costs GBP9.99 per DAY.

These subscription costs - plus advertising, which is limited - have to recoup the cost of purchasing the broadcast rights.

Currently the rights in India are being purchased for huge sums, yet the actual revenue per viewer for the broadcasters is a fraction of what it is in the richer countries.

To be fair, the likes of Fox Sports show cricket without ads during play. The Indian sports channels show about 2 ads between every over, and often a banner ad or two during the over as well I'm sure they charge through the roof for these ads as well due to the sheer size of the potential audience.

I do agree that the rights are likely still overpriced though.

 

[hoshiarpurexpress]

I have my doubts that the hunger for cricket will deliver anything like as much advertising revenue for a red ball series in Australia which takes place from 06.00 to 13.00 Indian time, and which will probably see India very soundly beaten.

Australian broadcasters are finding that they are over-spending on sporting rights, and I fear that the same thing could happen in India.

Plenty of interest in watching test cricket in India on TV.
6 to 13 is like perfect time to catch at least two sessions. Usual office timings in India are 10:30 am onwards. With people working from home mostly, it will be widely followed.
In fact for test matches happening in India, its hard to follow all the sessions.
Soundly beaten, well lets see about that. Last tour must have been well watched then because India were winning matches.

 

[hoshiarpurexpress]

A typical Australia v India Test will be broadcast into India at the following times:

Morning session: 0600-0800
Afternoon session: 0840-1040
Evening session: 1100-1300

Who is going to be watching?

Plenty of kids, all the shopkeepers who open their business by 9 AM.. and even then have Television on when cricket is being played live on TV.
All most all the Office going staff now.. Usually working hours in India are like 10:30 AM to 5:30 PM...
So you can easily catch 2 sessions.. watch cricket during your morning breakfast as you don't need to hurry for office now.
In fact 8:40 to 10:00 AM will be prime time and generate most advertisement revenue.

 

[Cryin Out Loud]

Plenty of kids, all the shopkeepers who open their business by 9 AM.. and even then have Television on when cricket is being played live on TV.
All most all the Office going staff now.. Usually working hours in India are like 10:30 AM to 5:30 PM...
So you can easily catch 2 sessions.. watch cricket during your morning breakfast as you don't need to hurry for office now.
In fact 8:40 to 10:00 AM will be prime time and generate most advertisement revenue.

You've got it exactly right. In fact except for the 6AM to 7AM period (and that only if it's a bog boring passage of play) I'll be watching the rest. As will most cricket fans I know.

 

[Kroll]

A typical Australia v India Test will be broadcast into India at the following times:

Morning session: 0600-0800
Afternoon session: 0840-1040
Evening session: 1100-1300

Who is going to be watching?

I'd actually be happy with that as for me, a typical test match in Australia would be from 11pm/12am to 6/7am and I can't watch during those hours!

 

[Junaids]

Channel 7 has just informed Cricket Australia that it will not make the next scheduled payment of $25 million next Tuesday 15 September.

Channel 7 argues that Cricket Australia has broken their broadcast contract by changing the proposed schedule for this summer, rendering the contract null and void.

In reality, everyone in Australia knows that Channel 7 cannibalised their own market by entering a joint venture with Fox Sports and letting Fox Sports have exclusive coverage of all white ball international cricket. The consequence has been that Channel 7's terrestrial free-to-air viewing figures have collapsed across the two summers (India and the Pakistan/NZ) and Channel 7 wants out.

 

[Junaids]

This is going to be a repeat of what happened with Kerry Packer and Alan Bond.

In 1987, Packer sold Nine Network TV to Alan Bond for $1.05 billion. He bought it back three years later for $250 million, and made the comment "You only get one Alan Bond in your lifetime, and I've had mine".

After 38 years of exclusive coverage in Australia, Nine Network two years ago pulled out of a bidding war with Channel 7 for the cricket rights. Channel 7 ended up not just over-paying, but having to give Fox Sports (satellite/cable subscription channel) exclusive rights to all ODI and T20 matches.

Channel 7 is Nine Network's new Alan Bond.

As always, Kerry Packer wins - even from beyond the grave. He created modern cricket, and we should all thank him every day.

Now Channel 7 is pulling out, and Nine Network will get the rights back for a fraction of the price!

 

[Titan24]

This is going to be a repeat of what happened with Kerry Packer and Alan Bond.

In 1987, Packer sold Nine Network TV to Alan Bond for $1.05 billion. He bought it back three years later for $250 million, and made the comment "You only get one Alan Bond in your lifetime, and I've had mine".

After 38 years of exclusive coverage in Australia, Nine Network two years ago pulled out of a bidding war with Channel 7 for the cricket rights. Channel 7 ended up not just over-paying, but having to give Fox Sports (satellite/cable subscription channel) exclusive rights to all ODI and T20 matches.

Channel 7 is Nine Network's new Alan Bond.

As always, Kerry Packer wins - even from beyond the grave. He created modern cricket, and we should all thank him every day.

Now Channel 7 is pulling out, and Nine Network will get the rights back for a fraction of the price!

Interesting.

Sports/cricket broadcasting is a world of its own and any enterprise needs to understand it well or atleast have some experienced personnel on their side to enter it. Pretty surprising that a reasonably big network like channel 7 couldnt analyze it well enough. With Covid 19 there problems probably would have increased further, pushing them on the edge.

 

[Last Monetarist]

The whole deal with Fox and 7 was rancid. CA has been run by absolute muppets for a long while now.

The BBL will now be left without a FTA partner, causing the competition to become a bigger irrelevance in the eyes of the general public. Whereas, expect 9 to come in with a lowball offer and pick up the terrestrial rights for the test matches at a fraction of the price 7 was paying.

 

[Napa]

Currently the rights in India are being purchased for huge sums, yet the actual revenue per viewer for the broadcasters is a fraction of what it is in the richer countries.

I guess economics or even mathematics is not your strong suit. What matters in not revenue per viewer, but total revenues - total costs, with total revenues equalling revenue per viewer multiplied by number of viewers.

 

[MenInG]

Cricket Australia suffered a huge financial blow after this year's T20 World Cup was cancelled in the wake of the COVID-19 pandemic and now the board is staring at another huge monetary setback. Reports in the Australian media have emerged stating Channel Seven is set to terminate its AUD 450 million (INR 2400 crore) deal with the board.

The free-to-air broadcaster has reportedly sent a letter to Cricket Australia alleging that the board has breached the contract and the broadcaster is now looking to withdraw from the final four years of its $450m broadcast deal.

Seven maintains that the Big Bash League (BBL) 2020-21 season will not be as fruitful this year considering a number of Australian national team players will either be on international duty or unavailable due to quarantine restrictions. The CA, however, feels that as long as they are providing the broadcaster with a full summer of cricketing action, they are fulfilling the conditions of the contract.

“Cricket Australia remains in ongoing discussions with the Seven Network about delivering a compelling summer of cricket,” CA said in a statement. “CA is committed to fulfilling its contractual obligations to all its partners this season.”

The next instalment of the payment from Channel Seven to CA of AUD 25 million is due next week but as per Sydney Morning Herald, the broadcaster isn't willing to make that payment. As per the paper, Channel 7 is also miffed with the revised international schedule for the India tour of Australia that allegedly saw the CA 'bow down' to the more-powerful Board of Control for Cricket in India (BCCI).

The developments come only a week after the talks between Seven chief executive James Warburton and CA boss Nick Hockley took place in Sydney. The network expressed its dissatisfaction over the cricketing schedule of the summer as well as the depleted star cast for the BBL.

“We are forced to consider all our options including terminating the contract, and we have put them on notice,” Warburton had told The Daily Telegraph in August. “This is not an acceptable product, and we will not support the season. Cricket Australia have an obligation to deliver a competition of no lesser standard than the past.”

The network is said to be looking to move the matter to the dispute resolution and has given CA 14 days to respond.

https://www.timesnownews.com/sports...o-terminate-inr-2400-crore-deal-report/650862

 

[SpiritOf1903]

Sadly Australia has followed UK with FTA seriously under threat from Fox Sports ?

 

[cricketjoshila]

So you walk out of a contract just like that?

I wonder if BCCI's arrangement for terrestrial broadcasting could be copied here.

 

[Kenpachi]

English premier league club are having to repay money for tv rights as a result of postponed games due to Covid.

The tv rights deals are reliant on cricket taking place. If there is no cricket then there should be rebate.

 

[Last Monetarist]

English premier league club are having to repay money for tv rights as a result of postponed games due to Covid.

The tv rights deals are reliant on cricket taking place. If there is no cricket then there should be rebate.

7's argument is a bit specious as it has less to do with the lack of cricket taking place and more based on the unverifiable principle that the quality of the BBL will be compromised due to the scheduling of the Indian tour as the best players will not be available. That is a pretty difficult argument to prove in court as CA will point to the fact that the BBL has seldom had the best Australian cricketers available due to international commitments over the past couple of years and that quality of cricket is a subjective factor which might be difficult to quantify.

7 know that the deal to pay CA $75 million annually makes little commercial sense and are trying a spot of brinkmanship to see who blinks first. Most businesses that are fundamentally unsound have used the pandemic as an excuse to write off their failures and gloss over inept strategic decision-making in the preceding years.

7 is no different, their share price has fallen off a cliff recently due to being over-leveraged, and they have had to bring in a new CEO to replace the fella who signed off on the broadcast deal with CA. The new guy is obviously under stress due to the vultures demanding their pound of flesh and he sees the cricket deal as an easy scapegoat for cutting costs.

CA are in a pickle due to Fox's involvement as they can't offer 7 a rebate without slashing the payout from Fox as well, which will lead to a drastic shortfall in revenues for an organization that has squandered a lot of cash reserves in recent times. The only winners in this squabble are terrestrial networks such as 9 or 10 that can potentially swoop in and pick up the rights at a discounted value.

 

[Junaids]

English premier league club are having to repay money for tv rights as a result of postponed games due to Covid.

The tv rights deals are reliant on cricket taking place. If there is no cricket then there should be rebate.

That’s not the problem.

Every match will happen on time.

Channel 7 paid $450 million for six years of Tests and BBL. They have been trying to sell the BBL rights back to Network 10 for months, but 10 isn’t interested.

As the Sydney Morning Herald has made clear, the BBL rights are almost worthless. BBL viewing figures have been going down for the last 4 seasons, and what viewers there are are in the weakest demographics for advertising revenue.

 

[Junaids]

A decade ago, one Channel 7 share had a price of $7.00.

Now it is worth $0.12.

That’s the fundamental problem. The company has a market cap 1/9 of what it was when it bought the cricket rights.

 

[Convict]

The tv networks made the same arguments to the AFL, to the NRL, to the rugby and to the Australian soccer.
It is just a negotiating tactic.
[MENTION=132916]Junaids[/MENTION] you also have to consider that Channel 7 also was banking on having the Olympics this year.

 

[MenInG]

India's tour of Australia immediately after the Indian Premier League (IPL) 2020 is looking bleak after broadcasters Seven West Media has reportedly started cancelling its contract with Cricket Australia (CA). It's like Star India deserting the Board of Control for Cricket in India (BCCI) as its global broadcast partners just weeks ahead of a lucrative home series. (More Cricket News)

Well-placed sources in India say the series is in serious jeopardy because CA, already reeling from the COVID-19 pandemic, will not have enough money to produce the series that will feature at least four Test matches and half-a-dozen white-ball games to be played over November 2020 and January 2021.

In 2018, CA awarded the broadcast rights to Seven West Media and Foxtel ahead of its long-standing partner, Channel Nine. The deal with Seven West Media and Foxtel was worth a whopping $1.182 billion over six years.

It is learnt that Seven West Media has asked for a discount of $137 million over the next two seasons. If that happens, CA will go bankrupt.

Reports suggest that Seven West Media wants to walk away from the remainder of its $450 million deal with the cricket board, saying that the quality of teams were an issue since several stars would stay away due to the coronavirus pandemic and quarantine regulations. This includes the Big Bash League too where CA has just extended its sponsorship with KFC.

Any series with the Indian cricket team is considered as a blockbuster and if Seven West Media either walks away or agrees to heavily discounted terms, CA, already in financial doldrums, will find it hard to produce the series.

The fact that all matches may be behind a paywall has not amused Seven West Media. Foxtel has already asked for a discount because this will be a first when viewers will be denied the luxury of watching live cricket on free-to-air TV.

CA has so far not been able to announce the fixtures for the India series. There is a strong possibility that the limited-overs matches may be played ahead of the Tests.

With just over two weeks left to find a solution with its broadcasters, CA will be hit with a financial tsunami if the India tour falls through.

Meanwhile, the first ball of the summer will be bowled at Allan Border Field in Brisbane on September 26, when Australian women play New Zealand in the opening match of their T20 series.

https://www.outlookindia.com/websit...-to-cancel-deal-with-cricket-australia/360173

 

[Last Monetarist]

That's a fairly hysterical article even by Indian journalistic standards. There is absolutely no chance that the Indian tour falls through as a consequence of this spat between 7 and CA. Worst case outcome, the series will be broadcast behind a paywall on fox, but even that is not probable.

 

[Bhaijaan]

There is way too much money in some sports.

 

[MenInG]

Seven West Media wants Cricket Australia to abort the Big Bash League this summer and is surprised CA chairman Earl Eddings has not intervened in a bid to help ease the multimillion dollar fight that has overshadowed the start of the new season.

Sources with direct knowledge of discussions at Seven said the network had repeatedly called for the 10th edition of the BBL to be scrapped amid a raft of demands, including changes to the Test schedule to protect its advertising dollar. Seven maintains this stance for the BBL but CA has laughed this off during negotiations.

Seven does not want the four Tests against India to finish in Brisbane in mid to late January, arguing it will lose even more money under this extended schedule, for the advertising rates are not as lucrative at this time as they are when the Test series traditionally finishes in Sydney, with the New Year's Test during the key holiday period.

Foxtel and Seven are due to make their next payment instalments of $25 million and $33 million, respectively, on Tuesday but Seven is unlikely to do so. One option under consideration is to pay an instalment.


Sources at the network said the BBL is in need of a reboot with a fixture that is less impacted by the international schedule. An independent report by broadcasting guru David Barham had urged CA to give the BBL a three-week window in January leading into the finals - a point CA ignored. If the BBL had been cancelled, Seven would have been due a refund.

It has also emerged the network fears losing more Australian talent to an Australia A series against India, with three red-ball matches over three or four days proposed.

The debt-laden, free-to-air network already loses $70 million a year in broadcasting the sport and sources at Seven remained defiant on Saturday that CA cannot deliver the quality of schedule the network had signed on for, and thereby deserves a reduction in its $82 million-a-year fee. It also has $25 million of production costs per year in the six-year deal.

Seven's concerns are not only about the quality of content this summer, over fears it will be a diluted product because of a need to play in hubs with weakened line-ups as there will be an extended Test squad, but they also are related to falling ratings and attendances in recent years.

However, CA has pointed out overall attendance last summer was more than one million for the third time and its average broadcast ratings were 185,000 more per match than what the AFL and the NRL enjoyed last year. CA also plans to turn this year's tournament into a travelling "carnival" and said the success of the tournament has been reinforced by naming rights sponsor KFC extending its contract.

"We couldn't be more excited to be scheduling a full Big Bash tournament. The BBL is a much loved feature of the Australian summer and will continue to play its role in bringing families together over the school holidays. That's more important this year than ever before after such a tough winter," CA chief executive Nick Hockley said on Saturday.

Seven is desperate for CA to inform it on how many players will be needed in an extended Test squad this summer where players will remain in a travelling bio-security bubble. The network believes this could be up to 10 players, meaning a squad of more than 20, robbing the BBL of local talent.

Hockley reached out to Seven chief James Warburton on Friday but no progress was made. Sources at Seven remain surprised Eddings has not done more to ease the issue, pointing to the efforts of AFL chairman Richard Goyder and NRL chairman Peter V'landys in their sports. CA has refused to be goaded into a verbal war with Seven and maintains it is on strong legal ground.

The push by India's Board of Control for Cricket to have the white-ball series shifted to the start of the summer has given Foxtel an advantage for these matches are exclusive to the pay television provider, allowing it to promote its coverage of the BBL. Foxtel is also seeking a reduction in its rights but has yet to make a public statement.

This comes as CA and the BCCI were in discussions over the weekend to finalise the schedule for Virat Kohli's men, who appear set to quarantine in Adelaide. CA is also awaiting state government approvals.

https://www.smh.com.au/sport/cricke...r-big-bash-to-be-slashed-20200912-p55uz9.html

 

[cricketjoshila]

Channel 7 is being ridiculous here. The excuses are pathetic.

 

[Bhaag Viru Bhaag]

So you walk out of a contract just like that?

I wonder if BCCI's arrangement for terrestrial broadcasting could be copied here.

You should be the last one to complain here. Just like BCCI has a right to think about themselves first, others also have the right to think about themselves first. Don't forget these are not normal times. BCCI is organising IPL during this time of the year that too in UAE, Aus have already postponed the WT20 and some players who are on the verge of retirement have pulled out of Indian Paisa League.

 

[MMHS]

No worries people - if required, Aussie cabinet will pass a new bill, for this series to go ahead.

Couple of days back, I read a stats that ENG-PAK was one of the top hits in Google ...... imagine what’ll be the impact then with AUS-IND.

 

[Last Monetarist]

No worries people - if required, Aussie cabinet will pass a new bill, for this series to go ahead.

Couple of days back, I read a stats that ENG-PAK was one of the top hits in Google ...... imagine what’ll be the impact then with AUS-IND.

There's no chance that the series will be impacted by this unsavoury tussle between two incompetent management boards. The thread title is laughable clickbait.

 

[hoshiarpurexpress]

There's no chance that the series will be impacted by this unsavoury tussle between two incompetent management boards. The thread title is laughable clickbait.

Words of Sydney Morning Herald bhai..

 

[Last Monetarist]

Words of Sydney Morning Herald bhai..

Please point out where the SMH implies that the Indian tour is under threat.

 

[hoshiarpurexpress]

No worries people - if required, Aussie cabinet will pass a new bill, for this series to go ahead.

Couple of days back, I read a stats that ENG-PAK was one of the top hits in Google ...... imagine what’ll be the impact then with AUS-IND.

lol.. can happen.
As per few posters here India tour to Australia is of no worth so there is no point in doing that i guess.
After all.. that tour will have no daleri and badmashi shown by the players as we saw in England by the greatest subcontinental touring side.

 

[MenInG]

There's no chance that the series will be impacted by this unsavoury tussle between two incompetent management boards. The thread title is laughable clickbait.

See the title and note the post# in it - then come back.

 

[Last Monetarist]

See the title and note the post# in it - then come back.

Post 38 is sensationalist nonsense from the Indian media. There is no one credible from the Australian media that is reporting anything of the sort.

 

[MenInG]

Post 38 is sensationalist nonsense from the Indian media. There is no one credible from the Australian media that is reporting anything of the sort.

Post 38 is from a media source - not our problem. You can make what you like of it or take it up with Outlook India.

 

[Last Monetarist]

Post 38 is from a media source - not our problem. You can make what you like of it or take it up with Outlook India.

True, it's not your problem. However, I'm perfectly entitled to call it out as rubbish on here.

 

[MenInG]

True, it's not your problem. However, I'm perfectly entitled to call it out as rubbish on here.

Yes and if you can argue your case, you will have done a great service also.

Please provide some facts as a rebuttal to the article.

 

[Last Monetarist]

Yes and if you can argue your case, you will have done a great service also.

Please provide some facts as a rebuttal to the article.

Here are a couple of more credible articles that provide an excellent background to the issue without creating any hysteria about potentially cancelling the tour:

https://www.theguardian.com/sport/2020/sep/12/how-cricket-australias-1bn-mirage-has-cost-the-game-dear

I and others have already addressed this above, but at risk of repeating myself:

The facts of the case are that Channel 7 are struggling with a huge debt pile and are making losses on the cricket contract. Given that they were successful in lobbying the AFL to get rebates on the current season, they don't think there's any harm in trying the same strategy with CA. CA believe that they have an ironclad contract with 7 and that there's no case to answer.

At the end of the day, it's not such an insurmountable issue to cancel a lucrative tour as the Indian media has implied.

 

[Hasan123]

I'm sure they will find a way for the series to take place.

 

[CanadianG00se]

A typical Australia v India Test will be broadcast into India at the following times:

Morning session: 0600-0800
Afternoon session: 0840-1040
Evening session: 1100-1300

Who is going to be watching?

Even if it was played during regular 9-5, hardly anyone watches. People in India don’t really watch ball by ball Test matches, just follow casual score on their mobile or catch a glimpse here and there.

There is a reason why broadcasters pay same amount of money to BCCI for playing a 3 hour T20I and a 5 day test match. Dinosaur era cricket is on ventilator....

 

[Titan24]

BBL is probably the only league in the world for which even contracted national players are not available. In every other league atleast the national players of the country of league’s origin are almost 100% available as they have separate window in the schedule for the league but, CA had possibly some other ideas in mind for BBL.

Dont remember Starc, Cummins, Warner, Smith, Maxwell etc being available together for handful matches in BBL let alone all the matches in last few years or so. When you dont even have Australian cricket starts playing then obviously it can be said that the product wasnt being run at an optimal level by CA.

 

[Junaids]

Two takeaway messages here.

Firstly, Channel 7 are just being opportunists, trying to use the pandemic as a pretext to haggle for a discount.

Secondly, the whispers about the BBL are clearly true, and bode badly for The Hundred in England. The TV coverage costs a fortune to produce but the ratings and advertising revenue aren’t enough to balance the budget.

Channel 7 have had the BBL rights for 2 years, with 4 years to go, and they just want to get rid of it.

 

[Last Monetarist]

An article in The Australian seems to suggest that 7 are budgeting a loss in excess of $60 million if they broadcast the cricket this summer. Their market cap at the moment is roughly $177 million, so a loss of that order can have a huge dent on valuation.

https://www.theaustralian.com.au/sport/cricket/seven-network-stumped-by-its-summer-cricket-crisis/news-story/96a09a725619f7f82afb34bf6a0a98c8

Mark Nicholas on twitter seems to suggest 9 are open to the possibility of bidding on the contract again, however, he personally thinks 7 and CA will come to a compromise.

 

[Savak]

Lol at Cricket Australia being an example of an elite board managing finances well. Let them go out there with a tin cup

 

[Last Monetarist]

The SMH reports today that Channel 7 will continue to broadcast the cricket till the contract with CA is officially terminated, with preparations to produce the women's series between Australia and New Zealand proceeding as per usual.

https://www.smh.com.au/sport/cricket/seven-to-continue-coverage-during-feud-with-cricket-australia-20200913-p55v6j.html

This bit stuck out about the Indian media's hilarious twisting of narratives:

A media report out of India on Sunday claimed the T20 and ODI games between Australia and India preceding the four-match Test series could be staged in the UAE, where most of the players on each side will be for the IPL, and not in Australia.

Based on CA’s reaction to the report, however, there is more chance of Kohli playing for Australia than those matches being played in Abu Dhabi and Dubai.

 

[Junaids]

Two takeaway messages here.

Firstly, Channel 7 are just being opportunists, trying to use the pandemic as a pretext to haggle for a discount.

Secondly, the whispers about the BBL are clearly true, and bode badly for The Hundred in England. The TV coverage costs a fortune to produce but the ratings and advertising revenue aren’t enough to balance the budget.

Channel 7 have had the BBL rights for 2 years, with 4 years to go, and they just want to get rid of it.

The $75 million Channel 7 payment will be missed today, and Channel 7 will be in breach of contract.

THIS IS WHAT WE KNOW SO FAR

1. Nine Network used to hold the rights for Australian home international cricket, and Ten held the rights to the Big Bash. Pay-TV (Foxtel) held no rights.

2. For the period 2018-24, Channel 7 formed a consortium with Foxtel and acquired the rights for the following amounts:

Channel 7 to pay $450 million over 6 years and broadcast:
- Home Tests
- Big Bash
- No home ODI or T20 internationals.

Fox Sports to pay $730 million over 6 years and broadcast:
- Home Tests, ODIs and T20s
- Big Bash

This was actually illegal from the start. The Australian parliament has passed an "anti-siphoning list" of events whose rights can only be sold to Pay-tv if no free-to-air broadcaster wants them - and the Home ODI and T20i matches are on that list.

It was therefore unlawful for Fox Sports to acquire monopoly rights to broadcast home ODI and T20i matches - and they got around that by forming an anti-competitive cartel with Channel 7 where nominally Channel 7 bought those rights, then decided that they didn't want to broadcast the home ODI and T20i matches so Fox Sports could.

It was an unlawful sham from the start, but both broadcasters and Cricket Australia were parties to that unlawful sham.

3. Channel 7 is now disappointed in its investment. When they bought the rights in 2017, the home Tests could only be viewed on Fox Sports if you were at home in front of your TV. But now anyone can stream them at work or play to their devices. It means that Channel 7's share of the audience has tumbled, and advertising revenue is disappointing. But they have also discovered that the Big Bash costs a fortune to produce coverage of - it is now bloated with far too many games - and the viewers are generally in poor advertising demographics.

4. Channel 7 is trying to haggle down the price. But they don't really want the BBL rights at all - it's a burden to have to produce and broadcast the matches. They have spent the last 6 months trying to sell the BBL rights back to Channel Ten.

5. Channel 7 think they have leverage with Cricket Australia that will give them a discount. They have extensive paperwork which could be argued to show that Cricket Australia was part of a conspiracy to get around the anti-siphoning laws and transfer the white ball rights straight to Fox Sports, and Channel 7 is betting that Cricket Australia would rather settle for a lower price rather than have the anti-siphoning conspiracy played out in court.

6. Meanwhile the Nine Network is poised, wanting to regain the rights for a far lower price. they are playing their cards close to their chest - their options are:

1. Channel 7 defaults on their payment - Cricket Australia re-sell the rights and Nine Network acquires the rights for a much lower amount (but they want the white ball internationals too).

2. Channel 7 defaults, Cricket Australia attempt to negotiate a discount for Channel 7 - and Nine Network takes legal action for a breach of anti-siphoning laws. (This is a high-risk strategy because Nine Network has a similarly dubious deal with Fox Sports for rugby league coverage.

 

[Giannis]

The BCCI is to blame for all this.

 

[Hitman]

The BCCI is to blame for all this.

How?

 

[Last Monetarist]

The $75 million Channel 7 payment will be missed today, and Channel 7 will be in breach of contract.

THIS IS WHAT WE KNOW SO FAR

1. Nine Network used to hold the rights for Australian home international cricket, and Ten held the rights to the Big Bash. Pay-TV (Foxtel) held no rights.

2. For the period 2018-24, Channel 7 formed a consortium with Foxtel and acquired the rights for the following amounts:

Channel 7 to pay $450 million over 6 years and broadcast:
- Home Tests
- Big Bash
- No home ODI or T20 internationals.

Fox Sports to pay $730 million over 6 years and broadcast:
- Home Tests, ODIs and T20s
- Big Bash

This was actually illegal from the start. The Australian parliament has passed an "anti-siphoning list" of events whose rights can only be sold to Pay-tv if no free-to-air broadcaster wants them - and the Home ODI and T20i matches are on that list.

It was therefore unlawful for Fox Sports to acquire monopoly rights to broadcast home ODI and T20i matches - and they got around that by forming an anti-competitive cartel with Channel 7 where nominally Channel 7 bought those rights, then decided that they didn't want to broadcast the home ODI and T20i matches so Fox Sports could.

It was an unlawful sham from the start, but both broadcasters and Cricket Australia were parties to that unlawful sham.

3. Channel 7 is now disappointed in its investment. When they bought the rights in 2017, the home Tests could only be viewed on Fox Sports if you were at home in front of your TV. But now anyone can stream them at work or play to their devices. It means that Channel 7's share of the audience has tumbled, and advertising revenue is disappointing. But they have also discovered that the Big Bash costs a fortune to produce coverage of - it is now bloated with far too many games - and the viewers are generally in poor advertising demographics.

4. Channel 7 is trying to haggle down the price. But they don't really want the BBL rights at all - it's a burden to have to produce and broadcast the matches. They have spent the last 6 months trying to sell the BBL rights back to Channel Ten.

5. Channel 7 think they have leverage with Cricket Australia that will give them a discount. They have extensive paperwork which could be argued to show that Cricket Australia was part of a conspiracy to get around the anti-siphoning laws and transfer the white ball rights straight to Fox Sports, and Channel 7 is betting that Cricket Australia would rather settle for a lower price rather than have the anti-siphoning conspiracy played out in court.

6. Meanwhile the Nine Network is poised, wanting to regain the rights for a far lower price. they are playing their cards close to their chest - their options are:

1. Channel 7 defaults on their payment - Cricket Australia re-sell the rights and Nine Network acquires the rights for a much lower amount (but they want the white ball internationals too).

2. Channel 7 defaults, Cricket Australia attempt to negotiate a discount for Channel 7 - and Nine Network takes legal action for a breach of anti-siphoning laws. (This is a high-risk strategy because Nine Network has a similarly dubious deal with Fox Sports for rugby league coverage.

Two additional updates according to the Australian media:

1. Hugh Marks (9 CEO) reiterated at the weekend that they are interested to take over the contract if it's out for tender again, however, word is they will not touch the BBL with a barge pole

2. There's an element of collusion going on between fox and 7 with respect to the payments due to CA. Apparently, both parties only paid out a partial amount on the instalment due this week, while calling for an independent evaluator to determine the value of the rights for the cricket to be shown this summer

My guess is that CA will be forced into a corner and reach a settlement with fox and 7.

 

[Junaids]

Two additional updates according to the Australian media:

1. Hugh Marks (9 CEO) reiterated at the weekend that they are interested to take over the contract if it's out for tender again, however, word is they will not touch the BBL with a barge pole

2. There's an element of collusion going on between fox and 7 with respect to the payments due to CA. Apparently, both parties only paid out a partial amount on the instalment due this week, while calling for an independent evaluator to determine the value of the rights for the cricket to be shown this summer

My guess is that CA will be forced into a corner and reach a settlement with fox and 7.

The BBL is worthless in terms of TV rights - it’s a loss leader to get kids interested in cricket.

But worse, selling all white ball international rights to Pay-TV has destroyed the place of white ball cricket in Australia.

I think Cricket Australia should look to sell all international rights to Nine Network for around $800 million for 6 years, and offer the BBL rights to SBS for around $50,000 per year.

It would be a 30% reduction, but it would keep all cricket on Free To Air TV.

 

[Last Monetarist]

The BBL is worthless in terms of TV rights - it’s a loss leader to get kids interested in cricket.

But worse, selling all white ball international rights to Pay-TV has destroyed the place of white ball cricket in Australia.

I think Cricket Australia should look to sell all international rights to Nine Network for around $800 million for 6 years, and offer the BBL rights to SBS for around $50,000 per year.

It would be a 30% reduction, but it would keep all cricket on Free To Air TV.

I doubt the international rights are worth that much to a terrestrial network, probably closer to the $600 million that 9 offered in 2018 as part of the joint $900 million bid with 10. BBL is still worth, at a minimum, $20 million per annum i.e. the amount 10 were paying between 2014-18.

 

[hoshiarpurexpress]

How?

By not playing with Pakistan and diverting that money to England and Australian tours..

 

[Junaids]

I doubt the international rights are worth that much to a terrestrial network, probably closer to the $600 million that 9 offered in 2018 as part of the joint $900 million bid with 10. BBL is still worth, at a minimum, $20 million per annum i.e. the amount 10 were paying between 2014-18.

It's interesting isn't it.....

THE CURRENT DEAL:
Cricket Australia received a total of $1,180,000 for all rights for 6 years.

Channel 7 paid $450 million for Free To Air rights, but lost ODI and T20i rights, and have to broadcast the BBL which they don't want.
Fox Sports paid $730 million for Pay-TV rights, and got the rights to everything, but a large portion of the Test viewership is lost to Channel 7.

THE OTHER OFFER:
Cricket Australia would have received $900 million, with all cricket broadcast on Free-To-Air TV.
Nine Network would have paid $600 million for exclusive Free-To-Air rights for all international cricket, with no Pay-TV competitor.
Channel 7 would have (over)paid $300 million for exclusive Free-To-Air rights for all international cricket, with no Pay-TV competitor.

We have seen in the UK that when cricket rights go to Pay-TV, kids grow up following football instead of cricket. Cricket Australia would have been better taking the $150 million per year Nine Network / Channel 10 Free-To-Air offer rather than the $197 million per year offer that they accepted, which broke anti-siphoning laws and ended free access to white ball international cricket.

 

[Junaids]

THE OTHER OFFER:
Cricket Australia would have received $900 million, with all cricket broadcast on Free-To-Air TV.
Nine Network would have paid $600 million for exclusive Free-To-Air rights for all international cricket, with no Pay-TV competitor.
Channel 10 would have (over)paid $300 million for exclusive Free-To-Air rights for all international cricket, with no Pay-TV competitor.

I wrote Channel 7 in "The other offer" when I meant Channel 10.

It's all gone wrong for Cricket Australia.

They would have got $900 million from the Nine/10 offer, with all cricket on Free-To-Air TV.

Now both their options are worse.

OPTION 1: If Cricket Australia give Channel 7 and Fox Sports a 25% discount, they will get less revenue than the Nine/10 offer would have delivered, but with all white ball international cricket still languishing unwatched on Pay-TV.

OPTION 2: If Cricket Australia use the 7/Fox non-payment as a pretext to cancel and re-sell the rights, there is no way that Channel 10 will offer $50 million per year again for Big Bash rights. They know that nobody else wants them - Nine Network would probably take them as part of an exclusive rights package - and Channel 10 would probably not offer more than the old $10 million per year. Meanwhile Nine Network would probably go it alone and offer around $800 million for exclusive rights to everything.

 

[hoshiarpurexpress]

https://www.abc.net.au/news/2020-09...-australia-in-full-summer-of-cricket/12668040

Looks like Seven is not giving up. They want to reduce the payment they made and re-negotiate the contract.

 

[Last Monetarist]

I wrote Channel 7 in "The other offer" when I meant Channel 10.

It's all gone wrong for Cricket Australia.

They would have got $900 million from the Nine/10 offer, with all cricket on Free-To-Air TV.

Now both their options are worse.

OPTION 1: If Cricket Australia give Channel 7 and Fox Sports a 25% discount, they will get less revenue than the Nine/10 offer would have delivered, but with all white ball international cricket still languishing unwatched on Pay-TV.

OPTION 2: If Cricket Australia use the 7/Fox non-payment as a pretext to cancel and re-sell the rights, there is no way that Channel 10 will offer $50 million per year again for Big Bash rights. They know that nobody else wants them - Nine Network would probably take them as part of an exclusive rights package - and Channel 10 would probably not offer more than the old $10 million per year. Meanwhile Nine Network would probably go it alone and offer around $800 million for exclusive rights to everything.

I agree, there's no way CA are going to get an offer close to the $900 million offered by 9 and 10 in 2018. At the time, I was surprised at that offer too especially once 9 had already secured exclusive rights to the tennis. 9 had been struggling to make money on the old contract (worth $600 million over 5 years between 2013-18) that the network only secured reluctantly due to a clause in the last contract that Kerry Packer negotiated in 2005 which gave 9 matching rights to the highest competing bid.

Another problem I see right now is that it's unlikely Channel 10 will be interested in the cricket anymore as their new owners Viacom have been positioning away from live sport and cut the size of the sports department since they took over. They are currently trying to offload their contract for the Melbourne Cup much like 7 with the cricket.

CA are in a complete pickle due to the hubris of the previous executive team, they are going to cave here to Fox and 7's demands.

 

[MenInG]

While Virat Kohli-led India are all set to leave for Australia after the Indian Premier League (IPL) 2020, the tour currently hangs in balance after the recent conflict – where Channel 7, CA’s official broadcaster - recently threatened to terminate its contract with Cricket Australia. The two parties have not been able to reach an agreement yet.

India are scheduled to leave for Australia after IPL 2020.

As reported by The Times of India, while reports hint at a legal arbitration being pursued by the broadcaster as a result of a 'breach of contract' on part of CA for "delivering a product not equal in quality to what was delivered the previous year", CA has said it isn’t aware of any such development.

Cricket Australia currently finds itself in hot soup as while the conflict with Channel 7 is yet to be resolved, they have already suffered huge losses as a result of COVID-19.

The TOI report added that CA internally issued a schedule with plans of hosting the One-Day Internationals and T20 Internationals in Brisbane; the first two Tests in Adelaide; and the last two Test matches in Sydney.

As reported by The Daily Telegraph, Australia’s Channel Seven had said in August this year that the broadcaster may terminate its lucrative contract with Cricket Australia (CA) over the handling of the summer schedule.

“It’s a train wreck,” James Warburton was quoted as saying, while expressing concerns the popular Big Bash League (BBL) might be a diluted competition in the absence of international players due to COVID-19-related restrictions.

“We are forced to consider all our options including terminating the contract and we have put them on notice.

“This is not an acceptable product and we will not support the season.

“Cricket Australia have an obligation to deliver a competition of no lesser standard than the past.”

India's tour of Australia was supposed to kick off on December 3 with a three-match Test series followed by three ODIs.

If at all India's tour of Australia is to happen, Cricket Australia have plenty of things to put in place.

https://www.timesnownews.com/sports...oming-tour-down-under-hangs-in-balance/662961

 

[AMSS]

So a question to those who have been following this dispute. Many a months ago cricketers in australia were on warpath themselves demanding a fair share, that is to say, a share from the revenue. Did that materialize? If yes, then would they suffer in case Fox/Seven junk the contract?

 

[Last Monetarist]

So a question to those who have been following this dispute. Many a months ago cricketers in australia were on warpath themselves demanding a fair share, that is to say, a share from the revenue. Did that materialize? If yes, then would they suffer in case Fox/Seven junk the contract?

Yes, the players' bonuses related to tv revenue would be reduced commensurate with the reduction in the contract value.

As far as I can infer, the contract won't be terminated. All the public wrangling notwithstanding, CA are going to give the two parties a hefty discount to broadcast the upcoming season. They already offered 7 a 20% cut, but 7 have insisted on appointing an independent expert to determine the rights value.

 

[AMSS]

I see. The players clearly placed their full faith on the gravy train running.

OTOH, CA inch ever so close to living off ICC handouts.

 

[Savak]

How does a Cricket Board which resides in a first world country, which has enjoyed millions and billions of dollars for the last 20-30 years find itself in such a desperate situation? Serious questions should have been asked from the current and prior Cricket Australia's CEO's.

 

[MenInG]

How does a Cricket Board which resides in a first world country, which has enjoyed millions and billions of dollars for the last 20-30 years find itself in such a desperate situation? Serious questions should have been asked from the current and prior Cricket Australia's CEO's.

Seems very little in terms of reserves and huge dependency on cashflows which are supposed to happen but not happening due to Covid-19

 

[Savak]

Seems very little in terms of reserves and huge dependency on cashflows which are supposed to happen but not happening due to Covid-19

There is something known as savings and investments. No excuse to have zero amounts of cash. The PCB in contrast has been without any international cricket at home in the last 10 years but does not find itself in a desperately dire situation where they are hoping for a bail out from someone.

 

[MenInG]

Cricket Australia’s broadcast partner Seven West Media has sought official arbitration in its bid to secure a cut in its annual fees, reportedly dissatisfied with the planned schedule for the eagerly-awaited year-end Test tour by India.

‘Seven’ has lodged paperwork with the Australian Chamber for International and Commercial Arbitration (ACICA), a report in the ‘Sydney Morning Herald’ newspaper said.

The report also said that CA “could call the network’s bluff and head directly to court“.

The network has sought an independent expert to determine the rights value of this summer’s schedule, including a four-match Test series against India and the Big Bash League.

The report said the network’s claims included CA’s decision to “change of dates for the matches, with only one Test before Christmas and the final Test finishing in mid January when many people are back at work.”

“Cricket Australia this morning received a letter from Seven and is awaiting a response from ACICA. CA looks forward to working with all its valued partners to deliver a safe and successful summer of women’s and men’s international and domestic cricket,” a CA spokesman was quoted as saying in the SMH report.

If CA accepts arbitration, the decision by ACICA will be binding and potentially cost the body millions of dollars if Seven is successful, the newspaper report said.

That is why, CA is considering a case of breach-of-contract against Seven in the Melbourne Supreme Court where it would have the right to appeal in case of a loss, it added.

Seven’s managing director James Warburton had earlier talked about heading to the courts to terminate the USD 450 million, six-year deal.

The network has, however, paid the first of four financial instalments to CA for the season ahead, according to the report.

https://sportstar.thehindu.com/cric...artners-arbitration-clash/article32790128.ece