Sacked Cricket Australia CEO flagged broadcasters’ complaints

Cricket Australia former CEO Kevin Roberts warned about reduction of broadcast rights — and it has come true.

Former Cricket Australia CEO Kevin Roberts warned of impact on broadcast deal. Picture: AFP

In June a leaked email from Cricket Australia to the players association warned about “reductions” to its broadcast revenues. In September it is in mortal combat with broadcasters over a prophecy that’s proved self-fulfilling.

Justin Langer called on all parties to work out a “win-win” solution this week, but with Seven West Media and Foxtel both engaging lawyers it is unlikely this is resolved without concessions.

Seven has said it wants out if it can’t get the deal written down but Cricket Australia is suggesting there is no need to head for the exits until the season is established.

The uncertainty is killing broadcasters who need to know what they will have and where they will have it so they can take the product to subscribers and advertisers.

When you’ve paid $1.18 billion for the rights it is understandable to feel a bit entitled even in such difficult circumstances.

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When you are labelled the “most incompetent administration” Seven boss James Warburton has ever dealt with there’s a steep hill for the counsellor to climb if the relationship is to get back on track.

Seven met with Cricket Australia on Friday but let on little about what occurred within.

“We had a constructive meeting,” Warburton said. “No decisions were made but we have agreed to keep talking”.

Few who inked the 2018 broadcast remain standing. Cricket has been through two chief executives and a chairman since, Warburton also inherited the situation from his predecessor.

Cricket Australia may have parted ways with chief executive Kevin Roberts and now is trying to unshackle the organisation from his pessimistic and unfortunately prescient observations about the summer and the broadcast deal.

Many scoffed at Roberts’ forecasts four months ago of a difficult season ahead. They rolled their eyes at a suggestion of a $10m biosecurity bill.

There are claims this week those costs may blow out to $30m. That’s a lot of face masks and hand sanitiser, but not many exclusive hotels for player bubbles or private jets for their transport.

It was, however, Roberts’ apparent attempts to justify his go-ugly-early approach — staff stood down, grants slashed and a players association back on war footing — which upset people.

Both the Australian Cricketers’ Association and the states complained he had talked the product down and predicted — correctly — that broadcasters would be emboldened by his pessimism to look for a discount.

Roberts’ commercial sidekick Scott Grant flagged the present situation in a June financial update to the ACA which was leaked to The Weekend Australian.

“The unprecedented impacts of the shutdown of society will continue to be felt over the coming months and years,” Grant wrote.

“In a scenario with minimal on-field interruptions and economic impact, ACR (Australian Cricket Revenue) may still fall by between 25-30 per cent.

“This indicative range would involve a reduction in match revenues of up to 80 per cent as bans on mass gatherings remain in place, the postponement of the T20 World Cup creating a cash outflow instead of a planned income, and reductions in the value of cricket’s commercial and broadcast assets.

“Expenses associated with implementing biosecurity measures are expected to be significant.”

Former Seven West Media CEO Tim Worner, Cricket Australia CEO James Sutherland and Fox Sports CEO Patrick Delaney i nhappier times after announcing a partnership in 2018

The projections were correct when many, emboldened by early achievements in combating the pandemic, thought them hyperbolic.

The summer fixture is still in a negotiation phase. On Friday it was announced that the entire Women’s Big Bash League would be restricted to NSW in order to avoid quarantine restrictions.

It was the line about “reductions in the value of cricket’s commercial and broadcast assets” that sent a shiver through the backrooms. No broadcaster was going to turn down the chance to get a few bucks back if it seemed such an obvious course of action.

When Roberts and then Grant left the building chairman Earl Eddings put a brave face on and dismissed the concerns.

“We’ve lost no content, we’ve got strong commercial partners, we get on very well with, we’ll hold up our end of the bargain, I’m sure Foxtel and Seven will as well,” Eddings said.

It is a line Eddings & co are sticking too, perhaps figuring that an ugly public spat might cost a little in terms of reputation but at least it doesn’t have an immediate effect on the balance sheet.

The ACA and the state associations, openly at war with head office in recent months, have rushed to support their former foe even while muttering I-told-you-sos. Any reduction in revenue to HQ has a knock-on effect, even if the players are somewhat protected by an MOU which limits damage. They also have a large amount of money owed to them that’s accrued since the broadcast deal proved more lucrative than projected — at least until this point.

Any end to this is sure to involve more give-give than win-win.