CA returns serve to Channel 7 in legal stoush
Cricket Australia is set to flex its muscles for the first time in the broadcast war on Thursday, when it comes face-to-face with Channel 7.
Cricket Australia is set to flex its muscles for the first time in the broadcast war on Thursday, when it comes face-to-face with Channel 7.
The game’s top brass were locked in extensive war room discussions on Wednesday, sparked into crisis talks after Channel 7 and Fox Sports escalated the dispute by only delivering partial payments on their TV rights deal, leaving cricket’s coffers short on millions of dollars.
As of Wednesday night, neither Seven or Fox had received any legal response from CA, but the governing body will have to formulate a position to urgently protect the $1.2 billion media rights contract which could be on the verge of being tested in court.
Cricket Australia heavyweights are set to sit down with Channel 7 executives on Thursday, in a critical meeting which may shape the immediate direction of where the disconcerting drama is headed.
Channel 7 commenced terminating its contract with CA last week, citing breaches of the contract, and chief executive James Warburton has called for an independent expert to come in and determine “the fair value of the rights against the expected schedule.”
But Cricket Australia’s lawyers now have the chance to return serve at Seven with their own breach of contract notice, after the network declared a sub-$25 million payment was the last cheque they would pay for the rest of the summer on a deal worth $82 million a year.
Fox Sports has been far less aggressive in their approach, but also only made a partial payment on their $33 million allotment on Tuesday, citing similar concerns that the value of this summer’s Big Bash League will be greatly diminished under COVID-19 protocols.
Cricket Australia issued a statement on Tuesday which only reinforced its position that it will deliver a world-class summer that would uphold its end of the bargain with broadcasters.
Administrators are edging ever closer to being able to finally release a summer Test schedule, with Cricket Australia waiting on final sign-off from the South Australian and Queensland Governments on quarantine provisions for the Indian team and Australian stars returning from the IPL.
It’s a sign the summer is set to kick off with white ball matches in those two states against the Indians ahead of a first Test against Virat Kohli’s men in Adelaide.
The one-off Test against Afghanistan appears in grave danger of falling over, despite the best efforts of CA bosses – as a result of Western Australia’s hardline stance on quarantine.
International superstar Jofra Archer indicated he for one would not be travelling out to the Big Bash League, however CA interim boss Nick Hockley said the game was still confident about the “ambitious recruitment drive” of its clubs.
BBL clubs are privately worried that players and coaches might be spooked by the uncertainty of the virus and also the situation with broadcasters.
It’s understood the extensive discussions among Cricket Australia heavyweights on Wednesday focused on not only legal positioning, but also how the game would formulate its overall response to its broadcasters’ bold call to nominate what they feel is the new value of the deal under the impact of COVID-19.
CA has until September 23 to respond to Channel 7’s breach allegations, before the matter could be headed for a lengthy mediation and arbitration process.
Cricket Australia could decide to renegotiate the contract, as the NRL and AFL did with their respective broadcasters earlier this year, but at this stage there has been no suggestion out of head office that concessions will be made.
“Together we are confident of delivering a compelling summer schedule that will meet our commitments to our broadcast partners and the high expectations of our fans,” said Hockley on Tuesday.
The Daily Telegraph
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