Cricket Australia and Channel 7 forced into shotgun marriage despite all signs pointing to divorce
It might appear untenable for Cricket Australia and Channel 7 to continue working together, but the truth is CA has never needed the network more.
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Cricket Australia has been forced into a tortured double life, where a shattered relationship with Channel 7 is one they can’t afford to live without.
The real nightmare for CA is not the fact Seven wants to blow up the current TV rights contract in the Federal Court.
It’s the threat of losing a major player in the free-to-air bidding process which is so critical in forcing the price up for the next broadcast deal.
Although CA may loathe Seven and feel trust is broken, they still need them to maintain competitive tension between bidding rivals.
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It’s cricket’s version of a shotgun marriage because it’s also in Seven’s interests to go in for the next TV deal despite their grievances over Big Bash broken promises - if only to stop a rival like Nine or Ten stealing the cricket rights for a bargain.
However, Seven’s explosive bid to try and terminate the current rights deal and exit the game has left CA with a billion dollar ticking time bomb due to the fact there is no straight-forward free-to-air alternative to pick up the slack.
Nine has flagged an interest in taking Test cricket back - which is flying as a product - but made a tactical decision four years ago to stop losing $40 million a year on cricket and instead partner with tennis which is cheaper to produce and still gives them the platform to launch new shows for the TV year.
If Nine keeps the tennis and takes on the Test rights, they certainly won’t be touching the under-siege Big Bash League, and CA can’t afford to be left with Channel 10 bidding by themselves, particularly given the BBL is estimated to be worth 60 per cent of the overall deal.
Cricket Australia is acutely aware of the importance in continuing to work with Seven and is focused on delivering a revamped Test and Big Bash package that sells itself.
“Cricket Australia is working with our broadcast partners to ensure we deliver what will be another comprehensive and exciting summer of cricket,” said a CA statement.
“We are in daily discussion with both Seven and Fox Sports about scheduling and production.”
Channel 10 – beefed up by US owners CBS/Paramount are reportedly interested in bidding on the cricket, but major sports have traditionally hesitated to partner with Ten because the network’s lower ratings have made it a difficult platform to promote off.
However, industry insiders say the key element of the looming cricket broadcast negotiations won’t be the TV component, but the digital rights.
No free-to-air network is going to want to take cricket on without having a digital rights element as part of the deal, because it’s on streaming platforms that audiences are now largely consuming their content.
In the recently signed Indian Premier League broadcast rights deal which were sold for an eye-watering $5.1 billion, the digital rights went for almost the same amount as the TV rights.
Over five years, the IPL digital rights yielded $2.37 billion and Cricket Australia’s next negotiation will have to focus on what the viewing habits of audiences might be in five years’ time.
The AFL is only a couple of months away from settling on its TV rights deal, and after that there might be greater clarity on what the future cricket landscape might look like.
Paramount last week denied reports CBS was poised to sell off Ten, who are fighting Seven for the AFL rights.
Nine and Stan are also attempting to buy their own slice of AFL with Thursday night football, a move which if actioned, could make the AFL like US sports, where each night of the round is owned by different networks as its own separate franchise.
Industry insiders believe the AFL will ultimately stick with current partners Fox Sports and Seven, due to the benefits of continuity and familiarity and the risk of alienating fans by asking them to pay multiple subscriptions to watch the sport.
This should put Fox Sports in a strong position for retaining its cricket rights as well, given what a dedicated Fox Cricket channel has invested in the sport and the growth of its digital platform Kayo.
Cricket Australia has already begun preliminary negotiations with prospective broadcasters, and it’s understood the governing body is determined to continue working with Seven.
They have no choice.
It’s a small pool of free-to-air networks as it is, and no one is going to queue up to lose money if they’re bidding against themselves.
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