X Games: Seven West, ESPN to stage extreme sports

Seven West Media has struck a deal with global sports network ESPN to bring X Games to Australia for the first time.

Tony Hawk at the X Games in Barcelona in 2013

Seven West Media has struck a deal with global sports network ESPN to bring the X Games to Australia for the first time.

The X Games, owned by ESPN, has extreme sports athletes competing in fields including skateboarding, BMX bike riding, Moto X and electronic gaming.

It’s understood Seven pitched to the NSW, Queensland and Victorian governments in March for partial funding to help cover the logistical costs of holding the sports, music and lifestyle festival.

Whether the X Games is held in Sydney, Melbourne or Brisbane will be dictated by which one of the three state government tourism bodies — Tourism and Events Queensland, Destination NSW and Victorian Major Events Company — opts to invest in the event.

If Seven cannot attain funding in Australia it will look to take the X Games to Asia or Queenstown, New Zealand.

Sources said Seven’s deal with ESPN comprised a guaranteed payment and a profit-share agreement. Seven would broadcast 12 hours of the Games on its 7Mate multichannel during March 11-12 next year, while ESPN, majority owned by The Walt Disney Company, would distribute the coverage internationally.

The X Games would be broadcast for a minimum of four hours on US network ABC, also owned by Disney, and four hours on ESPN2, while the full event would be live-streamed on ESPN3.

The plan is to broadcast into other key markets including Britain, Canada, China, India, Germany and France.

The news comes as traditional media companies increasingly move to diversify their revenue streams into businesses that are more resistant to digital disruption.

Live events remain popular among consumers and have proven resilient in the music industry, which was one of the first business models to come under pressure from digital alternatives such as downloads and streaming.

Fairfax Media has moved to ramp up its events business under former Tourism Australia boss Andrew McEvoy, although Nine Entertainment sold its Nine Live business to Affinity Equity partners for $640 million last year.

The most recent X Games in Austin, Texas, attracted 160,000 people and contributed more than $100 million to the local economy. The X Games in Australia would be expected to attract up to 70,000 people.