Revealed: Channel 7’s dramatic declaration in TV rights war
In yet another flashpoint in Channel 7’s relationship with Cricket Australia, the network made a partial payment for its cricket TV rights fees – then dramatically declared it would be their final one of the year.
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Channel 7 has dramatically closed its coffers on cricket for the rest of the year in a move which has put instant pressure on the game.
The network is contracted to pay $75 million a year for the rights, yet on Tuesday paid considerably less than its first $25 million instalment before declaring Cricket Australia won’t see another cent from them this summer.
Cricket Australia had the option to flip the tables on Seven and make their own escalation in the TV rights war, but on Tuesday night maintained a dignified stance of refusing to condemn its broadcast partners, even after Fox Sports also put the squeeze on its part of the $1.2 billion six-year deal by only partially paying the $33 million they owed.
The part payment is based on a belief by Seven and Fox that the value of the Big Bash League will be diminished this summer, with the situation now at crisis point heading into urgent negotiations this week.
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Seven chief executive James Warburton called on an independent expert to assess the new value of the rights, which the network has essentially asserted is only worth in the vicinity of $15-20 million for the entire summer.
Cricket Australia’s position is poles apart, with interim chief executive Nick Hockley on Tuesday night reinforcing the governing body’s position that the quality of the summer will not be compromised.
“… We are more confident than ever about staging a successful BBL, which is by far and away the most watched sporting league in Australia on a per-match basis,” Hockley said.
“Clubs have embarked on ambitious recruitment drives, both in Australia and around the world, which will be complemented by exciting innovations to playing conditions to be announced shortly.
“The BBL brings millions of Australian families together through the school holidays and, after such a tough winter, will be more important than ever this year.
“Scheduling during a pandemic is challenging however despite these challenges we have been the first sport to bring an international representative team into Australia and we greatly appreciate the support of governments and overseas cricket boards to make this happen.
“… Together we are confident of delivering a compelling summer schedule that will meet our commitments to our broadcast partners and the high expectations of our fans.”
Warburton has triggered a dispute resolution clause in the contract by calling on Cricket Australia to agree to an independent expert to come in and value the rights against the expected schedule for the COVID-19 season.
“Putting aside the questions of breach, in accordance with the contract Seven has invoked the right to appoint an independent expert to determine the fair value of the media rights against the expected schedule for the season compared to the originally published schedule,” said Warburton.
“Seven has paid the first instalment reflecting our assessment of fair value.”
Channel 7 are set to meet with Cricket Australia bosses on Thursday.
CA would have been within its rights to initiate its own termination proceedings on Seven on Tuesday, but are eager to keep working through the feud face-to-face.
Cricket Australia have until September 23 to respond to Channel 7’s notification last week that they were commencing the termination of its contract, citing alleged contract breaches by CA.
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It‘s understood Fox’s part payment was designed to show it values its partnership with cricket, but wants to send a clear message that value is not there.
Both networks are desperate for a schedule to provide clarity. CA is working around the clock to deliver that, but maintains the summer is not under threat.
“The 2020-21 season is shaping up as a massive summer of cricket,” said Hockley.
“The Australian men’s team achieved No. 1 ranking in Tests and T20Is over the past 12 months and will go head-to-head with India, the world’s largest cricketing nation and a formidable opponent on the field. It is one of the great sporting rivalries and this summer’s series across all formats is already generating enormous interest.
“… We can’t wait to launch the summer with the (Australian women’s team’s) six match series against great rivals, New Zealand, in a little over a week’s time.”
Originally published as Revealed: Channel 7’s dramatic declaration in TV rights war