‘Madness’: Nine Entertainment’s Olympic Games plunge slammed

Senior media executives have questioned the financial wisdom of Nine’s decade-long, $315m investment in the Olympic Games, with one declaring it ‘madness’.

Nine won the rights to the global event when Seven – the longtime Olympic host broadcaster in Australia withdrew from negotiations, having lost $120m on the past two Summer Games in Tokyo and Rio. Picture: Getty Images

Senior media executives have questioned the financial wisdom of Nine’s decade-long, $315m ­investment in the Olympic Games, with one declaring it “madness”.

On Wednesday, Nine Entertainment formally announced that it had secured exclusive broadcast rights to the Summer and Winter Olympics for the next decade, including the 2032 Brisbane Games.

Nine won the rights to the global event when Seven – the longtime Olympic host broadcaster in Australia withdrew from negotiations, having lost $120m on the past two Summer Games in Tokyo and Rio.

Multiple senior media executives who spoke to The Australian about the deal, but declined to be named, argued that Nine had paid way too much for an event that no longer enjoys the broadcasting appeal that it once did.

“I just don’t get it. I think the whole Olympics thing is living in the past in terms of the value that the organisers are asking,” one media executive said.

“The fact of the matter that the Olympics as a live sport has been in decline for some time. As an anchor point for other programs … I don’t think the ‘halo’ effect works as well with the Olympics as it used to.”

Nine Entertainment chief executive officer Mike Sneesby.

Another senior media figure said the $315m “just doesn’t stack up financially”.

“It’s madness, in my view – particularly when you consider that many of the live events involving Australia’s gold medal hopes will be out of our time zone in Paris (2024) and Los Angeles (2028).”

Nine argues that the investment will pay huge dividends for the network when the Games hit our shores in 2032, a belief shared by Colin Smith, a sports media rights adviser.

“Nine’s purchase of the Olympics rights is consistent with its approach to tennis. The Australian tennis season as a whole is not worth diddly squat, but the two-week Australian Open is huge,” he said.

“Similarly, while $315m is a lot to pay for a two-week event, the payday for Nine has the potential to be massive. The Brisbane Games could break all viewership records.”

In announcing the deal last week, Nine chief executive Mike Sneesby said: “These rights complement our recently renewed partnerships with the NRL and Tennis Australia at a time when live sport continues to demonstrate its ability to drive strong growth in streaming audiences and strength in free-to-air TV consumption.”

Originally published as ‘Madness’: Nine Entertainment’s Olympic Games plunge slammed