Nine, Ten discuss joint bid as battle for cricket rights hots up
Cricket Australia has a red-hot auction going with chances of striking a $1 billion deal, as Nine and Ten consider a joint bid.
Nine Network and the CBS- backed Network Ten are in talks about a joint bid to land Cricket Australia’s coveted broadcast rights before today’s 5pm deadline amid strong interest from all the networks.
Despite attempts by cost-constrained television executives to talk down the value of the rights, Cricket Australia now has a red hot auction on its hands with Seven West Media and News Corp’s Fox Sports also in contention, improving the organisation’s chances of striking a record-breaking $1 billion deal.
Fox Sports lodged a firm bid on Friday for Test matches, all men’s one-day and limited-over internationals as well as Big Bash matches, excluding the finals. Contrary to reports, Fox did not team up with Nine.
The proposal includes plans to launch a dedicated cricket channel on Foxtel to emulate the success of Fox Footy for the AFL and Fox League for the NRL.
While the anti-siphoning list prevents pay-TV having the first chance to buy some rights, Foxtel could share rights with a free-to-air broadcaster.
Currently, international Tests, one-day matches and Twenty20 games are on the anti-siphoning list, while the Big Bash is not.
Fox Sports is keen to win back rights to the Big Bash League, which it aired before losing the rights to Ten in 2013.
While the precise outcome of negotiations is difficult to predict as executives are prepared to talk only on condition of anonymity, some of the FTA networks are expected to lodge massive bids in the belief that they can onsell packages to Fox Sports and Foxtel.
Fox Sports could also simulcast some international matches and Big Bash matches with a FTA broadcaster.
“Nothing is black and white until the deal is done,” one TV executive said.
Cricket Australia is asking bidders including telcos such as Optus and, potentially, Google’s YouTube, Facebook and Amazon to bid for up to 11 different broadcast packages.
Cricket Australia is interested in gaining the widest possible exposure for the game while maximising the price of the rights, a spokesman told The Australian last night in comments that suggested a deal across both pay-TV and FTA platforms is on the cards.
“The allocation of Cricket Australia’s media rights is the subject of an ongoing confidential process. As part of this process, we are focused on achieving the best possible outcome for cricket, including fans, participants and the broader Australian cricket community,” the CA spokesman said.
“CA wants to ensure that cricket is accessible to the widest possible audience while also achieving an outcome that allows us to invest in the future growth of the game.”
Cricket Australia is aiming to complete the process ahead of the start of the next cricket season in October. However, one TV executive cautioned: “The idea that the deal will get done quickly is nonsense. It will drag out for a while yet.”
Cricket Australia receives $600 million, or $120m a year, from its current five-year deal from 2014 to 2018. Of this, $500m is generated by international rights held by Nine, with the rest coming from Ten for the Big Bash.
Big Bash rights could fetch $250m-$300m this time around, up from $100m over five years. International rights are expected to sell at a lower multiple.
Tennis Australia, meanwhile, is holding talks with commercial networks over a new $200m-plus TV rights deal following the expiry of an exclusive negotiating period with incumbent Seven.
Tennis bidders including Seven have until April 12 to lodge firm bids. However, TA will accept a knockout offer earlier.
Seven is paying TA $200m for FTA, pay-TV and digital rights as part of a five-year deal. The contract expires after the Australian Open in January 2019, a year before the current Cricket Australia deal.
Foxtel is jointly owned by News Corp (publisher of The Australian) and Telstra.
Tonagh quits ABC board early
Communications Minister Michelle Rowland and an independent panel will now need to find a replacement for the ABC’s deputy chairman just months out from a federal election.
The Australian’s 50 Best Photos of 2024
From the US election to the Paris Olympics, from natural disasters to wars, and from tragedies to triumphs, as well as the 60th Anniversary of The Australian, 2024 was the best of times and worst of times.