Karl Stefanovic is Nine’s $9m man, WIN-lose situation

Karl Stefanovic’s salary soars, WIN to lose out on premium sport and Nova reports strong growth.

Claire Campbell and Ryan Stokes are tying the knot. Picture: Justin Benson-Cooper

Today breakfast host Karl Stefanovic is “The Nine Million Dollar Man”. As Nine’s legal bills ­continue to mount from the 60 Minutes Beirut disaster, Diary ­understands that the network forked out more money to re-sign ­Stefanovic in December than initially reported. Estimates about his salary ranged from $1.5 million to $2m a year. But Diary understands Stefanovic is actually taking home about $2.5m annually, with the ability to earn up to $3m if ratings hurdles are met across a three-year deal.

With Today enjoying momentum in its weekly ratings battle with Seven’s Sunrise, the pres­enter is likely to earn his bonus. Stefanovic gained leverage in talks amid strong interest from Seven. To put it in perspective, chief executive Hugh Marks signed on for a base salary of just $1.4m, and the chances of him earning any bonuses this year look slim with Nine’s revenue and share price in the toilet. Sources said Stefanovic’s co-presenter on Today, Lisa Wilkinson, re-signed for about $1m a year a month later in January 2016. Under his contract Stefanovic agreed to remain with Today for the rest of the year, so speculation will soon start mounting about his next move.

It comes as Nine management continues to defend its controversial decision to single out 60 ­Minutes producer Stephen Rice as the main person responsible for the Beirut disaster, despite the ­review explicitly recommending against anyone losing their jobs. While some insiders argue that the child kidnapping in Lebanon was unprecedented, canny observers have pointed out that more than one person was fired when Nine became embroiled in the “Choppergate” scandal, in which Nine broadcast two fake live news crosses to the Daniel Morcombe search site. It’s interesting to note in light of Rice being made the fall guy, that five years ago Nine’s Brisbane director of news Lee Anderson fell on his sword. Anderson, who now works at Seven News in Melbourne, claimed full responsibility for the decision to fake two crosses to the search site. Journalists Melissa Mallet and Cameron Price and producer Aaron Wakely were also sacked over the affair.

WIN-lose situation

Nine Network’s record four million national audience for State of Origin game one showed why brands are willing to fork out millions of dollars to be associated with the event. A mass audience watching Queensland battle NSW live makes Origin an ideal place to build brands and sell products. And Nine’s regional ­affiliate WIN Corporation wasn’t going to miss out on the opportunity. WIN will switch its signal to Network Ten from July 1 and it used Nine’s biggest event to ­promote its new partner.

Viewers were informed about all their “favourite programs”, such as MasterChef and The Project coming soon to WIN. The network also ran a teaser for Ten’s and “your favourite” sport, including Big Bash League cricket, international rugby union and V8 supercars. This promotion was slightly questionable, given these are largely second-tier events and WIN will give up the rights to ­premium sport including rugby league and international cricket, which rate strongly in the regions.

Nova posts solid growth

Lachlan Murdoch’s Nova Entertainment Company closed off another strong year of growth in 2015, posting a 39.5 per cent jump in adjusted operating profits on the back of a 13.1 per cent rise in ad revenues. The improved ad take beat the market trend — the metropolitan ad market was up by 5 per cent. Adjusted earnings before interest tax and depreciation — a key measure of profitability — soared by 39.5 per cent to $62m. The operator of the Nova and Smooth FM networks is benefiting from bumper ratings with Smooth in Sydney and Melbourne, according to radio analyst Bob Peters. But Diary understands gross revenue and ­EBITDA were much ­higher in management accounts for 2015 due to the accounting treatment of stations in Perth and Brisbane owned under joint ventures. It was another impressive year for Nova boss Cathy O’Connor and her team, but the low-key CEO is unlikely to be seen trumpeting the result, not least because it fuels unwarranted M&A speculation.

Mayne event bumped

Pro-Turnbull independent candidate in Menzies Stephen Mayne has lamented the decline of local journalism at Fairfax Media. Mayne has maintained a $20,000 advertising spend with News Corp Australia’s The Manningham Leader, even though editor-in-chief John Trevorrow bumped his ad to page 20 late on Thursday due to provocative content. The ad features the slogan “Kevin ­Andrews = Fake Liberal”. Despite the decision to move the ad, Mayne said the News Corp title was well read by the locals and, unlike Fairfax Melbourne’s The Weekly Review Eastern, continued to cover local politics. “I’ve had a few stoushes with News Corp down the years but have been happy to commit $20,000, the majority of the ­campaign advertising budget, to Leader and accept the decision to place the controversial ad further back in the book,” Mayne told Diary. “Leader’s sales team has provided an agile and supportive approach to this political advertiser, whereas the Fairfax local paper still hasn’t even replied to the initial email ­inquiring about advertising and is not even bothering to cover the election.”

Weekly Review editor Jane Hutchinson explained the shift away from local politics in an email to Diary. “As a lifestyle magazine, with a focus on food, arts and entertainment, travel, prop­erty, design and fashion, TheWeekly Review wouldn’t cover the election. It’s just not in our brief,” she wrote. The title scrapped local news coverage a year ago. Mayne said: “When I was a Manningham councillor from 2008-12, ­Weekly Review Eastern was a strong competitor to The Manningham Leader,with journalists covering local politics. Now they’ve given up as part of Fairfax’s sad de-funding of public interest journalism — and they don’t even seem to reply to advertising inquiries either.”

Quietly tying the knot

Seven Group chief executive Ryan Stokes got down on one knee and proposed to fiancee Claire Campbell on a beach north of Perth, Diary understands. The genuine, down-to-earth couple have already begun planning their big day. They haven’t ruled out tying the knot at an intimate ­wedding overseas ahead of a slightly bigger, more formal ­occasion back home for extended family and friends.

The relationship was first ­revealed by The Australian in ­December. News of the engagement has “delighted” Ryan’s ­father, Kerry Stokes. Seven confirmed the engagement in a statement sent to Diary. “It’s wonderful news. Family and friends are thrilled. The couple themselves are over the moon and looking forward to the future with lots of joy,” a Seven spokeswoman said.

Claire, 31, is a director of ­Maryon’s Shoes, the family-owned shoe emporium. Ryan, who recently turned 40, met Claire’s parents for the first time at Easter. The couple are said to enjoy an ­active outdoor lifestyle together. It comes six months after the pair made their first public appearance at the Prime Minister’s Christmas drinks in Kirribilli in December, and just over a year since Ryan took the top job at media and mining conglomerate Seven Group.

Push for Senate inquiry

The Christian Democratic Party has weighed in on the debate about public broadcaster funding and the political leanings of the ABC and SBS. The CDP, led by the reverend Fred Nile, is fielding 47 candidates in the July 2 federal election across the Senate and House of Representatives.

Nella Hall, who edged out Nile’s wife Silvana Nero to secure the party’s top spot on its NSW Senate ticket, will push for an inquiry into ABC and SBS funding as well as the perception of a left-leaning bias if elected. It would follow a private member’s bill introduced by Nationals senator Bridget McKenzie in a bid to amend the ABC’s charter to include a commitment to regional Australia. “The ABC and SBS both have persistent and systemic left- wing coverage of contemporary Australian political issues, such as climate change, marriage and multiculturalism,” Ms Hall said.