Nine hoping to jump the gun on tennis to fill cricket void

Seven chief Tim Worner has refused to rule out selling the network’s last year of Australian Open broadcast rights to Nine.

Seven West Media CEO Tim Worner, Cricket Australia CEO James Sutherland and Fox Sports CEO Patrick Delaney. Picture: AAP

Seven chief Tim Worner has refused to rule out selling the network’s last year of Australian Open broadcast rights to rival Nine, which could splash out more than the $300 million already committed to elite tennis to fill a cricket-sized gap in its summer schedule.

Nine is expected to make a concerted effort to bring forward its record-breaking deal with Tennis Australia after losing international cricket matches to Seven, leaving the network without any top draw summer sport this year and into 2019.

If Nine can pull off a deal with Seven and Tennis Australia, it would mean the 2018 Open at Melbourne Park was the last season of Seven’s 40-year broadcast of the event.

Seven’s estimated annual payments of $75 million on cricket starts this October with a women’s international match, but Nine’s tennis coverage will not begin until 2020, leaving Seven with two big summers sports that clash and Nine with none.

Worner emphasised that he had no immediate plans to give up tennis a year sooner than ex­pected. But Worner opened the door to the possibility of lowering his costs in a move that would relieve pressure on a tantalising but crowded Seven summer schedule now loaded with international cricket and the top-rating Big Bash League.

“At the moment we’re well into our plans for cricket and tennis. No one has called me. Apparently the tennis is worth $60 million annually,” Worner quipped in comments to The Australian that referred to Seven’s belief that Nine has paid over the odds in a deal worth double the money forked out by Seven.

Nine admitted it would explore all avenues as it seeks to plug a big gap in its summer schedule. “We’re going to make decisions about our summer schedule in the coming weeks. We would be open to buying the tennis off Seven, but so far no discussions have been held,” said a spokesman for Nine.

“While cricket has been an integral part of Nine for the last 40 years, the television business is very different to what it was in the past and we were always realistic about not over-paying to retain the broadcast rights.

“It would have been nice to keep the Tests at Nine, but we now have a stronger balance sheet and the opportunity to make acquisitions and commission programming which is very exciting.”

Nine chief Hugh Marks is said to be sanguine about losing international cricket rights, telling his team that it represents a better outcome because the network was incurring an annual loss of $50m on cricket.

Nine now faces an annual shortfall of $20m to $30m on the tennis, which means it has effectively halved its loss on summer sport. The cricket deal has set off a chain of events in the wake of the mammoth deal including the appointment of News Corp head of broadcast Siobhan McKenna as chairman of Foxtel and Fox Sports.

McKenna, who worked closely with Cricket Australia as part of News Corp’s bid team, was a pivotal player in Foxtel’s recent merger with Fox Sports.

The transaction closed just nine months after shareholders News Corp and Telstra announced their intention to combine the two companies — a relatively short period for such a complex transaction.

“We know Australians love and respect cricket and so do we. No other sport has the special place in Australia’s heart like cricket does,” said McKenna. “We promise you reverence — and revolution. “

Despite the magnitude of the $1.18 billion six-year media broadcast deal, all the broadcast partners feel like winners.

Apart from, that is, Ten and new owners CBS, which has lost the Big Bash League just six months after acquiring Ten.

The move has come as a shock to Ten’s employees who were crucial in last year’s creditors vote to back the CBS bid. They believed CBS’s ownership would herald a period of investment in Ten, but the network now looks badly exposed without a top-tier summer or winter sport.

For Foxtel chief Patrick Delany, the deal is a “transformative moment” as he pursues plans to gain more subscribers, and retain existing ones.

“The cricket in and of itself is an extraordinary moment because we have always have had quite high churn (the rate at which customers opted out) when the NFL and AFL seasons finish, and we’ve never been able to sell into Christmas,” he said.

A new dedicated 24/7 Fox Cricket channel will launch this October. Foxtel has grabbed exclusive streaming rights and highlights clips, a stunning coup as it pursues plans to launch new a la carte streaming products.

For Foxtel, under pressure from streaming giant Netflix and Australian player Stan, half-owned by Fairfax Media and Nine, sports is a crucial differentiator in the battle for subscribers.

It is understood Foxtel will launch a sports streaming service later this year, potentially in time for the start of the cricket season at competitive price points.

“We’re a streaming company now, and as such, it’s about combining the cricket with other offerings, which is a really exciting for Foxtel both in terms of retaining subscribers and driving growth,” said Delany last night of the $105m a season or $630m over six years deal. The $1.182 billion deal includes contra advertising.

“It’s a big statement to everyone at Foxtel that the company is willing to reinvent itself, and in doing so, invest in the product and our people.

“Secondly, I am confident when you combine the cricket with other offerings it will give Foxtel a different image in the minds of the public and, importantly, our subscribers.

“It will spark reconsideration among consumers. The icing on the cake was to get exclusive streaming rights. We’ve paid a lot of money but we’ve got a lot for it.”

Seven has hit the ground running. Worner and his chairman Kerry Stokes held presentations with advertisers over the weekend on the Gold Coast, where the network is host broadcaster for the Commonwealth Games.

“There is some hidden value in the broadcast rights — cricket rates well in regional areas and the time zones are more favourable than overseas tennis,” said Worner, who like Delany, worked through the night on Thursday to seal the deal.

“In Perth, where we have a big presence, I’ve got some plans to really amp up cricket.”

While some have tipped Seven host Bruce McAvaney to succeed Richie Benaud as the face and voice of Australian cricket, Worner would not be drawn on his plans.

“There’s a big opportunity for the game to be refreshed in the way that is presented, particularly Tests. I’m admirer of what has been done with Big Bash but even that is probably due a tweak to make it more viewer-friendly.”

Seven has stumped up $450m over 6 years. Worner said cricket provided Seven with greater differentiation and bigger monetisation opportunities. “What I think some people have missed is that we won’t have Nine’s sales team selling against Ten’s sales team in the market any more. It’s one free-to-air network selling cricket. That’s a huge opportunity and one we will take advantage of.”

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