Cricket TV rights: Seven out of Olympics race in move which could change bidding process

Channel 7 has delivered a bombshell game-shifter which involves its long-standing Olympics coverage and could have massive ramifications for cricket’s own broadcasting rights race.

Channel 7 has officially pulled out of bidding for the Olympic Games TV rights, in a further twist to cricket’s own broadcasting race.

News Corp understands Seven chief executive James Warburton sent an all-staff email on Friday informing employees of the company’s decision to withdraw from the Olympics rights, which the network has held almost every year dating back to 1956.

Nine are set to claim the Olympics rights with a colossal leading bid industry insiders say is in excess of $300 million, and estimated to be $100 million more than what Seven was willing to offer for the next cycle of Olympics and Winter Olympics up until the Brisbane 2032 Games.

Sevens decision to pull out of bidding for the Olympics Games TV rights could really stir up the latest round of cricket’s TV rights negogiations.

It’s understood Seven staff were told the decision to pull out of the process was a difficult one but necessary due to the economics of continuing, with Warburton writing that freeing the company of the Olympics would liberate Seven.

As Seven and Nine fight it out for cricket’s TV rights with negotiations now officially at “the pointy end”, industry insiders wonder what impact the major development in the sports broadcasting landscape might have on cricket.

Nine is already the rights holders of Australian Open Tennis at a cost of upwards of $100 million a year including production as well as the NRL, and now it seems to be Olympics as well.

Nine pays about $100 million for NRL rights.

To take on the cricket in addition would add around another $80 million a year to Nine’s outlay on sports broadcasting.

Australia’s Jess Fox wins gold in the women’s canoe final in Tokyo during Seven’s comprehensive coverage of the Olympics.

Production costs for the Olympics is substantial and Seven sources say the network still lost $50 million on the Tokyo Olympics despite it being in a good time zone for Australia and tuned into en masse by a nation that was in Covid lockdown at the time.

So far Seven has staunchly refused to up its bid on cricket’s TV rights, due to its interest being in Test cricket and not the Big Bash — although the BBL is set to be slashed to around 40 games a season.

Cricket Australia chairman Lachlan Henderson indicated on Friday a decision was looming, although time is running out to have the new TV deal announced by Christmas.

It’s understood Seven and Nine are duking it out for the free-to-air rights, with Fox Sports in the box seat to partner with either network.

Seven or Nine would appear better positioned at this point to score the free-to-air cricket rights.

US streaming giant Paramount, which owns Channel 10, set the pace with a top $1.5 billion offer for exclusive rights. Due to the scale of their offer they still can’t be discounted, but they could be left at the altar like they were by the AFL earlier this year.

Seven or Nine would appear better positioned at this point to score the free-to-air rights.

Sources say Nine is yet to lodge a formal offer, but their interest is genuine having already discussed production plans internally.

Leading cricket and tennis figures do believe it is possible for Nine to take on both major summer sports, although current rights holders Channel 7 remain very much in the frame.

Paramount, which owns Channel 10, set the pace with a top $1.5 billion offer for exclusive rights.

As revealed first by News Corp, Cricket Australia is set to slash the number of Big Bash League games from 60 to around 40 in the biggest revamp of the competition in years, regardless of whether it’s Seven or Nine who win the rights.

Cricket Australia is still remaining tight-lipped on the process.

“The negotiations are commercial in confidence … it is reaching the pointy-end as we speak,” Henderson said on Friday.

“There is a lot of interest in the cricket media rights and we are really pleased we have interest from all the major parties.”

Cricket Australia had hoped to have a resolution by Christmas Day but there has been no firm deadline put on an announcement.

The current arrangement with Channel 7 and Fox Sports still has another year to run.