Channel 7, Foxtel call for reduced cricket broadcast deal
Foxtel has joined Seven West Media in calling on Cricket Australia to negotiate a new broadcast deal ahead of a ‘tough summer’, with both parties calling in lawyers.
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Foxtel chief executive Patrick Delany says cricket is in for a tough summer and while the organisation is willing to work with Cricket Australia, it is clear the co-operation will come at a cost.
CA is reeling following a savage attack from Seven West Media boss James Warburton, who has threatened to walk away from the network’s contract if it does not get a rights discount.
Sources close to Fox Cricket confirmed yesterday it would also be seeking a reduction in what it pays for cricket broadcast rights.
And in a clear indication that the dispute is escalating, Foxtel delivered a legal letter to Cricket Australia on Monday and Seven has hired a high-profile contract lawyer to fight its corner.
Both broadcasters believe a summer that includes the possibility of a Boxing Day Test at Adelaide – not the MCG – a Big Bash League without access to the biggest local stars and other likely changes is not what they signed up for.
Fox and Seven contribute about $200m a year as part of a record $1.18b contract signed in 2018.
Both share the frustration of dealing with a body they believe was moving with too much haste under former chief executive Kevin Roberts and is indecisive since his departure.
The impending legal battle will be a test of acting chief executive Nick Hockley and the board.
Cricket Australia insists it will deliver a full summer of cricket and is working to attract international stars to enhance the BBL. CA says it has worked to identify savings for broadcasters who are struggling because of the pandemic, but it will not cut a cheaper deal on the broadcast rights.
Speaking at a sports conference on Tuesday, Delany signalled tough times for all sports but conceded tier-one sports such as cricket were in a slightly better position than the less popular rivals.
“We can see quite clearly the sports that are working, and those sports know who they are,” he said.
“We did a great deal with the NRL to renew our relationship. I want more of the NRL. Our relationship with the AFL is really fabulous. I want more AFL. The motorsports are going well for us, and we like cricket.
“I think cricket is going to have a tough season ahead and we will work through it with them.”
The football codes both renegotiated their deals with broadcasters when the pandemic hit, but cricket argues it does not need to as it will be delivering a full schedule where the football season has been truncated. But the broadcasters are adamant that what is being delivered does not meet the letter of the contracts.
Ironically the fight with the broadcasters has aligned state associations and the players association with head office.
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The states and the Australian Cricketers Association had been at logger heads with then boss Roberts over his demands that they take pre-emptive cuts to grants and player payments ahead of the summer.
Delany’s praise for the AFL and NRL echoes Warburton’s words from last week but exclude the scathing attack on cricket administrators.
“What I’d like to know is what is the season ahead,” he said.
“The AFL and I would assume the NRL they displayed leadership in working out what was the best outcome they could deliver,” Warburton said.
Hockley spoke on Tuesday about the game signing a new sponsor but was not keen to answer questions about the most pressing issue the game faces.
The organisation put out a statement last week defending its negotiations.
“We are confident we will provide them with fantastic content this summer,” Hockley said.
“Scheduling during a pandemic has no doubt been challenging, particularly when factoring in the added complexities associated with international travel, but solid progress is being made.”
— Additional reporting John Stensholt
Why broadcasters are worried about the cricket summer
The prospect of handing over almost $60m in a little over a fortnight for a summer of cricket that is vague in concept and scheduling goes a long way towards explaining the angst of the game’s broadcasters.
News Corp Australia understands that the Seven Network ($25m) and Fox Cricket ($33.3m) are due to deliver the first of three significant payments on September 15.
Neither of the broadcasters nor Cricket Australia would comment on the matter on Monday, but the payments, which are part of the $1.2bn broadcast contract, come at a difficult time for media companies feeling the effects of the pandemic.
Seven West Media boss James Warburton has made it clear that he believes cricket is not delivering its side of the bargain and the network is willing to walk away from its contract.
Cricket Australia is refusing to concede and offer a discounted rate, arguing it intends to deliver a full summer of cricket as scheduled and that the terms of the contract will be met.
The relationship turned toxic over the last month, with Seven taking on the services of a high-profile contract lawyer.
Cricket is promising to deliver a schedule soon, but argues it cannot until it receives government approvals to bring in sides (Afghanistan and India) from overseas and then move teams around the states during the summer.
The behaviour of AFL players who breached quarantine restrictions in Western Australia has allegedly made cricket’s job more difficult.
The broadcasters argue that what they know about the schedule — likely to keep several national team players in quarantine rather than playing in the Big Bash — does not meet contractual requirements.
Angst about the quality of the BBL from both broadcasters saw Cricket Australia commission a review that came up with a number of recommendations earlier in the year.
The broadcasters are dismayed that the need to create white and red-ball quarantine hubs will diminish BBL franchises’ access to the best players further.
Cricket Australia is hoping the addition of an extra international player to teams — there are plans to increase the number from two to three — will go some way to improving this year’s tournament.
There are also plans for the central body to top up payments of marquee players under a special arrangement that is yet to be revealed.
The biggest Australian stars are rarely available to the competition. David Warner and Tim Paine, for example, do not have contracts.
Locking in a schedule has proved difficult for cricket and a source of endless frustration for the broadcasters who need to know the who, when and where in order to attract advertisers and begin promoting their coverage.
A schedule was delivered earlier in the year but has since been abandoned.
Warburton launched a wave of attacks on cricket administrators last week describing them as the most “incompetent” he had ever dealt with and threatening to walk away from the six year deal which was signed in April 2018.
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“What a bumbling, stumbling administration,” he said. “‘Don’t worry’, they say, ‘we will deliver a full BBL season. We’ve got good news, we can 100 per cent tell you who can’t play because we know they are in a hub we’ve created for our international white ball games.’ The only problem is we actually have no idea who will play the BBL. How stupid to schedule international cricket against the BBL and drain the resources of a competition already under pressure.”
Both Nine and Ten have walked away from cricket, the former abandoning its rights to host the postponed T20 World Cup and the latter locked out when their offer of $950m for exclusive access was snubbed in the last negotiations.
Fox Cricket swooped on the rights for the ODI and T20 series between Australia and England which begins September 4.
“After a break of almost six months, it will be great to see Australia’s cricket team back in action on Fox Sports against the old foe,” Fox Sports executive director Steve Crawley said.
“Anytime Australia and England face-off, the series comes with a special mix of history and anticipation. The T20 and ODI series will see Australian stars like David Warner, Steve Smith and Pat Cummins come up against World Cup hero Ben Stokes, Eoin Morgan and Tom Banton, one of the rising stars of English cricket. It’s going to be an action-packed fortnight of the very best international cricket.”
Originally published as Channel 7, Foxtel call for reduced cricket broadcast deal