Network Ten gears up to wrest Seven's V8 grid spot

NETWORK Ten is preparing an ambitious pitch in an attempt to wrest the V8 rights from Seven.

NETWORK Ten is preparing an ambitious pitch in an attempt to wrest the V8 rights from Seven by offering the motorsport greater prime-time scheduling.

And the Seven Network's failure to on-sell two of its AFL matches to Ten for more than $45 million a year may prove the trigger to the network losing its hold on the rights to V8 Supercars.

Ten is believed to be well advanced in plans to bring Formula One and Moto GP broadcasts forward to 9.30pm on Sundays on its main channel while continuing with a live HD feed on One.

Winning the V8 Supercars would complete Ten's motorsport offering and allow the channel to once again market itself as the home of motorsport.

Hosting V8 broadcasts would bring an immediate influx of cash to the network from V8 sponsors such as Supercheap Auto and Telstra. But Ten could further sweeten its proposal by offering the sport access to a broader range of programming.

Later this week, at the Australian Grand Prix, Ten will for the first time set up its operations in the Qantas Paddock Club and will have The Circle host Liz Ellis broadcasting from the specially built set, as well as crosses for news, sport and The Project. It is understood Ten may be entertaining similar crosses from major V8 events, which could open the sport up to a wider audience.

V8 Supercars chief executive David Malone said that the negotiation for rights remained in the very early stages but fans were at the centre of the discussions.

"My answer most probably is delivering the best level of coverage for fans and viewers," Mr Malone said. "We are obviously moving discussions forward."

Relations with Seven were strong, he added.

Seven's AFL commitments could prevent it from offering similar deals. Last year, when Seven secured the free-to-air rights for the AFL, chief executive David Leckie signalled that the network would seek to on-sell two games, most likely to Ten.

However, negotiations failed after Seven demanded more than $45m for the two games each year -- revenue it hoped could be used to sweeten the offer to the V8 Supercars, whose contract with Seven comes to an end this year.

But the need to meet even more AFL commitments has reignited V8 concerns over moving some rounds from the main channel to Seven's high-definition digital channel 7Mate.

Last year relations between the sport and the broadcaster were stretched when Seven shifted V8 broadcasts. This year it is understood V8 executives are happier with the arrangement as it stands, however, the lure of total free-to-air coverage on Ten could prove too much.

Seven, Nine and Ten are all bidding for the sport, but observers expect Nine to be successful in its bid to retain the NRL rights with an asking price of about $900m, which would leave little in the kitty for the V8s.

Seven plans to offer more than the $172m it paid for the last contract, but the failure to on-sell AFL could affect its final budget.

Steve Allen, head of Fusion Strategy, said if Ten screened motor sport on Sunday nights it would almost certainly boost Ten's Sunday evening revenue. "I think the advertising dollars would skyrocket," Mr Allen said of a move to an earlier slot for F1 and Moto GP.

Last year private equity firm Archer Capital took a 60 per cent stake in the sport and its influence may decide where the rights finish.

While the V8s are looking to write a profitable deal, several sources close to the sport said the desire by Archer for an immediate top-line return on rights could see it say yes to a big offer from Seven and accept the demotion to the digital channel over the longer term.

But team owners could put pressure on V8 management to choose Ten and better access to free-to-air audiences to maximise the value of their own team sponsorships.

Before the Archer deal, teams took a 75 per cent split of revenue, while they now get between 35 and 40 per cent, putting more pressure on team sponsorship for funds, which are driven by eyeballs.