Cricket TV rights: Indian influence set to be tested in court
As Australian cricket reaches a crisis point in its broadcast battle, India’s power and influence over the game could very well be tested in court, writes BEN HORNE.
Cricket
Don't miss out on the headlines from Cricket. Followed categories will be added to My News.
The theory of whether India runs world cricket could well be put to the test in court.
Virat Kohli’s team has been dragged into the war between Channel 7 and Cricket Australia because the broadcaster believes the power of the BCCI is set to ruin the summer schedule.
The network argues that Australia’s biggest stars will be overseas on somebody else’s coin at a time when the season should have been launching, all because the timing of an IPL that runs right through until mid-November.
Cricket Australia is adamant it will deliver a summer which satisfies its six-year $1.2 billion dollar deal with Seven and Fox Cricket, of which it’s only four years through.
Watch every ball of Australia’s Tour of England Live & On-Demand on Kayo. New to Kayo? Get your free trial now & start streaming instantly >
Channel 7 is used to dealing with the AFL, one body, one competition, and masters of their own domain.
But this is cricket, a minefield of competing interests, where one team holds more power than Eddie McGuire could ever dream of.
India are so influential, they forced Australia to leave home in the heart of their own summer to play three one-day matches in the sub-continent back in January.
Australia were left to play their home ODI’s in footy season in March.
That said, it’s not always one-way traffic with India. If they hadn’t agreed to brave COVID-19 and tour this summer, the game would have been about to plummet down a $300 million black hole.
Cricket Australia have been pleased with how smoothly talks over the summer schedule have gone with the BCCI, and are just awaiting final sign-off from Delhi before the fixtures are released.
India has saved the summer, but the game is still facing financial uncertainty – as Cricket Australia braces for Channel 7’s $25 million TV rights payment due Tuesday not to arrive, because the network is claiming the governing body has breached its contract.
Channel 7’s chief argument is that the Big Bash League is not going to provide the value required this summer due to the impact of the virus on crowds and star power.
But they point to the IPL playing a part in clogging and compromising CA’s ability to launch the summer on time, with the one-off Test against Afghanistan now threatened by the quarantine squeeze caused by the timing of the IPL.
In a perfect world Australia would also have preferred to have their stars at home playing Sheffield Shield cricket.
MORE CRICKET NEWS
Neroli Meadows lands new gig covering IPL cricket in Dubai
Cricket Australia puts Andrew Symonds’ reconciliation process at the top of the batting order
But they know that withholding David Warner and Pat Cummins from the billion-dollar business that is the IPL would have been an even worse idea, and one which could have risked costing them the entire summer.
Cricket Australia has 14 days to respond to Friday’s bombshell revelation that Channel 7 has commenced terminating its $75 million-a-year deal – a stunning escalation that has the potential to change the face of sports broadcasting.
The day after that window expires on September 25, Australia’s women will launch the summer with a Twenty20 international against New Zealand and the game is now anxiously waiting to see whether the game will be broadcast on free-to-air as per the contract.
Seven begins process of dumping cricket
Channel 7 has commenced the process to terminate its contract with Cricket Australia.
In a dramatic escalation of the TV rights drama, News Corp understands that the network sent a legal letter to CA bosses earlier this week informing them that it would begin the process to cancel the remainder of the $450 million deal, citing a belief that Cricket Australia is in breach of the contract.
It’s understood that the wording of the letter related more to a fee reduction and the dispute resolution process.
However, industry sources say Seven is resolute on terminating.
Cricket Australia has 14 days to respond or remedy, before the explosive fight could then go into a lengthy mediation and arbitration process.
Seven and CA executives have been in talks since last Friday but the issue now appears headed for an ugly legal battle.
If Seven was ultimately successful in its legal challenge, the game could be left without a free-to-air broadcast partner on the eve of the summer.
CA has maintained all along it’s confident in its legal position that as long as it provides a full schedule, it will be upholding its end of the bargain in the mega TV rights deal.
CRASH CRADDOCK: Broadcast bail shows glory days are over
“Cricket Australia remains in ongoing discussions with the Seven Network about delivering a compelling summer of cricket,” said CA in a statement.
“CA is committed to fulfilling its contractual obligations to all its partners this season.”
It’s understood that by indicating they’re starting the proceedings to terminate, Seven will not make their next multimillion-dollar broadcast payment due next week.
At the crux of Seven’s frustration is a belief that the value of this year’s Big Bash League product will be diminished due to player unavailability and reduced crowds, a concern also held by the game’s other broadcast partner, Fox Sports.
Cricket Australia is adamant it will produce a high quality BBL despite the complications of COVID-19 and executive Anthony Everard on Thursday denied that the T20 competition was all about star players.
“The BBL is unique. In that the success of the league and the teams is not reliant on any one particular group of players,” said Everard.
“Of course we would love to have the highest profile, best players in the world, but we haven’t had them since day one. The success has been based on the diversity of the squad and the mix of a team squad.
“We only need to look over to the UK now and the likes of Josh Phillipe and Riley Meredith in the Australian squad who wouldn’t be there if it wasn’t for their performances in the Big Bash last summer.”
Cricket Australia sources believe that Seven’s pursuit to terminate their contract with cricket is due to the company’s debt and share price position after signing an inflated deal it no longer likes.
Seven sources say their motivation is that they don’t feel they will get value for the $75 million a year they’re outlaying to broadcast cricket.
They point to the fact CA commissioned its own review into the BBL after last season, and that those findings may struggle to be enacted this season due to the virus drama.
The season is only just around the corner and Cricket Australia is working around the clock to release a schedule in the coming days.
Seven are frustrated that they haven’t been able to go to market and start selling advertising for the summer and Fox Sports are also after certainty.
Cricket is battling issues with Government border restrictions and has been hurt badly by the all-powerful BCCI, who has compromised the start of the Australian summer.
By playing an IPL in October-November it’s directly affected Australia’s ability to launch its own season.