Cricket’s plans to move the T20 World Cup could cost them a free-to-air broadcaster
A change from the T20 World Cup’s scheduled slot late in 2020 may see the competition’s free-to-air broadcaster explore options to get out of its deal and save $15-20m under the force majeure clause.
Cricket
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Australia’s Twenty20 World Cup could risk being stranded without a free-to-air-broadcaster, as Channel 9 waits to see when the tournament will be moved to.
There are fears Australia may be forced to wait until 2022 to host the T20 showpiece due to COVID-19, but any change at all from the scheduled slot this October opens up the possibility Channel 9 could explore its options to get out of its deal and save $15-20 million under the force majeure clause.
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Channel 9 told shareholders earlier this year it would save $130 million if the NRL season was cancelled, and although the World Cup rights are only worth a fraction of the price, TV networks across the board are drastically trying to save costs in the wake of the financial havoc wreaked by the global pandemic.
In the event that the World Cup rights did get put out to market again, the International Cricket Council would struggle to find another taker, given the uncertain current climate which may be best defined by Channel 7 reportedly trying to sell off the Big Bash earlier this year only to be knocked back by an equally cash-strapped Channel 10.
It’s understood doubt over global broadcasting rights arrangements is one of the main reasons why the International Cricket Council is yet to confirm that the Australian tournament will be moved to either October 2021 or 22, and an announcement may not come until the middle of July.
Channel 9 did not return multiple calls, and it’s uncertain what their attitude would be to holding onto a deal that may not be fulfilled for two years, particularly when it is no longer the summer cricket rights holder in Australia.
Fox Sports are also World Cup rights holders and have a partnership with the ICC. It’s understood Channel 9’s free to air component is a separate arrangement they have bought off Fox.
Australian World Cup boss and Cricket Australia interim chief executive Nick Hockley said broadcasting deals were the realm of the ICC when asked if he had fears over the potential impact of moving the tournament on TV partners.
“Broadcast is something that goes through the ICC. I’m not aware of any of those concerns,” Hockley told The Daily Telegraph last week.
“There’s another few weeks to go on (a decision on the tournament dates).
“We are working with the ICC, and trying to give ourselves the absolute best shot, with the (COVID-19) situation improving, to make sure we’re making the right decision.
“There’s a whole range of scenarios being played out … But I know that people are really hanging out to know what’s happening.”
Whispers over whether Channel 9 might be having second thoughts about a shifted World Cup is only one part of a complicated Australian broadcasting landscape.
Cricket Australia are rightly not counting their chickens on broadcast partners Channel 7 and Fox meeting their next TV rights payment in September in full, and it’s partly why they have projected such a pessimistic financial outlook.
It’s been reported Channel 7 have been in contact with Cricket Australia in recent weeks over arrangements this summer, although the network’s share market position has improved.
It was felt CA Chairman Earl Eddings’ recent public comments declaring the game would be delivering broadcasters a full summer schedule despite the impacts of COVID-19, may have been intended as a shot across the bow of 7 in particular that discounts won’t be readily forthcoming.
“Obviously the media industry is going through a whole range of disruption. It’s a very difficult situation. It’s good that the spots are back. We have lost no content,” Eddings said last week.
“I don’t see any reason – we have got really strong commercial partners, we get on really well, we are in constant communication, we will hold up our end of the bargain – I am sure Channel 7 and Foxtel will as well.”
Originally published as Cricket’s plans to move the T20 World Cup could cost them a free-to-air broadcaster