Ten takes $5m hit from Australian Grand Prix loss

The cancellation of the Australian Grand Prix is likely to blow a $5m hole in the budget of Network 10.

Spectators react after it was announced that the Formula 1 Australian Grand Prix was cancelled at the Albert Park Circuit in Melbourne Picture: AAP

The cancellation of the Australian Grand Prix is likely to blow a $5m hole in the budget of Network 10, capping off a horror week for the broadcaster that has seen staff sent home because of coronavirus fears and the resignation of its CEO, Paul Anderson.

The cancellation of the grand prix in Melbourne comes as broadcasters struggle with a changing timetable of cancelled and postponed sporting rights ­affecting hundreds of millions of dollars in sports rights.

It is understood Ten had about $5m in advertising tied up in the grand prix with major broadcast partners such as Kia, and the broadcaster will now struggle to make revenue targets for the quarter in an already tough media environment.

Mr Anderson resigned on Wednesday, US owners ViacomCBS introducing a new “co-head” management structure that sees his role as CEO of Ten and ViacomCBS Australia removed.

The network said it would “run our regular programming schedule” instead of the grand prix and “our sales team is currently working through the implications of the decision with our broadcast partners”.

It said it supported the decision to cancel for the “wellbeing of our employees, partners, the racing teams and everyone who was planning to attend is our number one priority”,

On Friday afternoon staff around Australia were told that non-essential staff would be forced to work from home after a directive from ViacomCBS.

“As a precautionary measure, ViacomCBS has asked that all employees work from home until further notice,” staff were told.

“To ensure our broadcast and critical commercial activities remain unaffected, a minimal ­number of Network 10 employees will continue to come into the ­office.”

While NRL games will go ahead as planned this weekend, it is understood the AFL’s free-to-air broadcast partner Seven is preparing for the season to be delayed by several weeks.

Nine is still awaiting a decision from the NRL as to whether it cancels or postpones rounds or moves to games without crowds.

Foxtel, which broadcasts both the NRL and AFL, is still working through the implications for sports rights should the football seasons be delayed or ­cancelled.

For the time being Foxtel is ­experiencing an up-tick in ratings as a result of people staying home more in self-isolation, including ratings in sport.

“What’s not reflected in the rating numbers are the weekly increases in sport viewing from our streaming products — Foxtel Now, Go and Kayo,” a Foxtel spokesman said.