Seven fires new shot in war with Cricket Australia

Channel 7 has escalated its war with Cricket Australia, saying it won’t be paying the sport any more money this year.

Stars’ Glenn Maxwell after losing the BBL grand final to Sydney’s Sixers in February.

Channel 7 on Tuesday made a partial payment for its cricket TV rights fees – then dramatically declared it would be the final one of the year.

It’s yet another flashpoint in Seven’s relationship with Cricket Australia, and another escalation in the network’s threats to walk away from the sport with four years to run on its $450 million deal.

Seven West Media issued a statement on Tuesday calling for CA to agree to an independent expert to come in and assess what a fair recalibration of the rights would be, based on the expected schedule.

Network boss James Warburton also confirmed in a statement that Seven had made only a part payment of the $25 million instalment it was due to pay Cricket Australia, claiming it was reflective of the network’s view of what constituted fair value.

“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,” Mr Warburton said.

“Seven has paid the first instalment reflecting our assessment of fair value.”

But not only has Channel 7 paid considerably less than the $25 million owed for the first instalment, News Corp understands the network is saying privately that fractional payment would be it for the rest of the year.

There are another two instalments left on the annual $75 million payment, including the next on December 15, but Channel 7 is bullishly claiming that what it has paid is, in its view, the value of the entire summer.

Fellow broadcasters Fox Sports were also expected to only pay a partial amount on Tuesday.

Channel 7 bosses are set to meet with Cricket Australia counterparts on Thursday, and it’s unknown what CA’s response will be to the latest development.

CA could have the option to commence its own termination proceedings against Seven, or attempt to start negotiations for a recut deal.

Channel 7 and Fox Sports are claiming that this summer will not meet the value of what they’re paying for the rights, particularly in the case of the particularly the Big Bash League T20 competition.

Seven is also claiming CA has breached its contract in other ways. But Cricket Australia’s legal advice is that it is standing on solid ground.

A dispute resolution trigger in the contract allows the appointment of an independent expert, however, the two parties would have to jointly agree.

Cricket Australia is adamant it will produce a world class BBL series, which will uphold its end of the bargain.

Both networks are desperate for a schedule to provide clarity, and CA is working around the clock to deliver, but is being held up by government approvals.