Nine urged to consider ending cricket deal

By News / Wire

The Nine Network is being urged by bankers to end its long-time cricket coverage due to estimated $30-40 million yearly losses, placing Cricket Australia under a financial cloud.

The broadcaster has a five-year deal worth $500 million with CA which expires next year and is negotiating a new contract for 2018-2023.

But financial analysts UBS believe Nine should consider walking away from negotiations if a better deal isn’t tabled.

“The existing cricket deal costs Nine circa $100 million per annum,” UBS analyst in note to clients.

“We estimate the existing deal likely only generates gross revenues of $60-$70 million.”

“We think it would seem logical for Nine to enter negotiations with the following mindset: i) more cricket content at no additional cost, or ii) to step away from the cricket contract.”

The former option could include Network Ten relinquishing rights to the Big Bash League for CA to include the popular domestic Twenty20 competition under the new deal.

In terms of its international cricket product, CA is confident it’ll find a buyer.

“We are not concerned that there will be a lack of interest for our media rights,” the body’s broadcasting manager Ben Amarfio told Fairfax Media.

“Live sport, and cricket in particular, continues to be a premium asset.”

The Crowd Says:

2017-04-29T10:55:51+00:00

Bakkies

Guest


'I think 9’s plan is to get international + BBL for the current value of $600 million over 5 years (currently $100 million per year for international + $20 million for BBL.)' How are 9 going to afford that while paying overs for the NRL and if it's that true that they're losing money on their Cricket coverage.

2017-04-29T10:52:44+00:00

Bakkies

Guest


League and Aussie Rules are way over priced. Like others have said these sports may no longer get away with broadcasting their game to viewers who pay absolutely nothing but the electricity that their tv set consumes.

2017-04-29T10:50:12+00:00

Bakkies

Guest


and ABC and SBS (to some extent) are both funded by the tax payers. With the tv licence model that is common in Europe you know what you are contributing each year to the national broadcasters. I don't know how long the ABC can survive pretending to be something that it is not (the BBC) by having no ads and channels that will attract very few viewers.

2017-04-29T00:45:29+00:00

Don Freo

Guest


Cricket on TV is a wonderful springboard for kids into cricket. It has to remain FTA. Kids will not choose to watch cricket on on Pay TV unless already converted. They watch on the coat tails of the TV in the lounge on summer hols... The summer white noise becomes a family buzz, becomes a backyard game, becomes joining a club after hols. That's a simplistic stereotype but it is a time proven process that goes beyond profit and loss balance sheets. Channel 9 might not care about that but CA must.

2017-04-29T00:37:31+00:00

Don Freo

Guest


Or Brad McNamara? Please, no!

2017-04-29T00:33:06+00:00

Don Freo

Guest


Mel has left...Flem is fantastic and Howie brings joie de vivre...joie de cricket. Junior?...He is Channel 9 in style.

2017-04-27T08:32:44+00:00

Sydneysider

Guest


"Cricket’s model is broken because so many viewers watched it because it was there rather then due to loyalty to its brand. Unlike our footy clubs there are few tragics who will pay for BBL or even the Test team. As the market fragments this will hurt Cricket." Agreed, and it is why Cricket Australia wants to retain the status quo of FTA TV whilst other sports are more open to new media ie. digital streaming etc... I honestly can't wait for FTA tv to experience massive revenue drop offs because it will show which sports can adapt to the changing market place and survive and that means getting people to pay for the product via digital subscriptions. Interesting times ahead.

2017-04-27T01:52:52+00:00

Brian

Guest


The elephant in the room is the potential change to in game betting ads. Right now FTA are paying way too much to broadcast sport based on executive ego rather then shareholder value. Ten's Market Cap is down to $170m. Crazy for them to bid anything substantial for the cricket. Cricket's model is broken because so many viewers watched it because it was there rather then due to loyalty to its brand. Unlike our footy clubs there are few tragics who will pay for BBL or even the Test team. As the market fragments this will hurt Cricket.

2017-04-27T00:11:59+00:00

Bugaluggs

Guest


Up to Nine to make a decision here, but a little warning to them. For a lot of us, there would be even fewer reasons to tune into their network. What have they got? Scott Cam pretending to be everyone's best mate as the tradie next door. No dount some dating show, Tracy Grimshaw, and rugby league which has no viewers south or west of Canberra.

2017-04-26T22:14:20+00:00

AdrianK

Guest


Yep, sack Warne, hire Joe the Cameraman!

2017-04-26T17:01:51+00:00

Brendon

Guest


I doubt CA will be fooled by the timing. Was this report paid for by Ch.9? But I don't think CA would be expecting an increase in TV rights for tests, ODI's and international T20's. Sounds like Ch.9 trying to drive down the value of summer's international cricket to offset the inevitable increase of the tv rights for the Big Bash League. I think 9's plan is to get international + BBL for the current value of $600 million over 5 years (currently $100 million per year for international + $20 million for BBL.) If 9 were to get the TV rights for both international and BBL at the current price, or less if you read some reports, then I hope CA has some say on how 9 run things. I personally don't like the 10 commentary team for the BBL anymore than I like the 9 commentary team - they're just a different bunch of boofheads - but its vital 9 doesn't run BBL coverage into the ground but it would be impossible for the current 9 commentators to do international cricket and BBL. Hopefully 9 would try and preserve the current Ch.10 BBL setup as much as possible and keep BBL separate to current international cricket tv setup. I don't particularly like the BBL or the commentators but people do. Then theres the T20 World Cup in 2020 in Australia. I don't know if the TV rights include that or if tv networks have to negotiate directly with the ICC for the rights. Primetime T20 international cricket will be a ratings bonanza.

2017-04-26T14:15:11+00:00

Ross

Guest


Taylor has to be the worse, he is too biased towards his favourite players

2017-04-26T14:14:08+00:00

Ross

Guest


Sydneysider I agree with you

2017-04-26T09:52:13+00:00

Spud-053

Guest


I forgot about sleazeball Clarke ....I have a lot of friends from my former teammates....... I dont think so......Lets hop-e Channel Ten can do it....

2017-04-26T08:41:01+00:00

The real SC

Roar Rookie


If 10 gets the rights, no more of Channel 9 coverage. The Channel 9 coverage has became stale and boring without Benaud and Grieg. Michael clarke is a low quality bloke with an annoying whiny voice. Talks trash, destroying the whole cricket coverage. Even James 'Unbelievable' Brayshaw is the worst commentator in Channel 9 history - Brayshaw spouts too much Australian propaganda bias out of his mouth. Not just that but Michael Slater talks too much crap about the promotion of TV Shows during the start of ratings season. Time for a change - sick of the 100% garbage.

2017-04-26T08:05:02+00:00

Spud-053

Guest


If this came about would it not be wonderful no more we were better when we played commentators in Taylor, Healey and Slater.....Yippee! Channel tens former players are more interesting to hear whats going on.

2017-04-26T06:16:41+00:00

Joey Johns

Roar Guru


Hey Perry, regarding three day tests - they're history. Cricket Australia has made enough Roads over the past 3 years to cross the Nullarbor. D/N tests guarantee 3 test matches broadcast in prime time a year before the Big Bash has started. When you count the Boxing Day & New Years tests, the only "dud" games 9 would be paying for are the ODI's in January. Maybe some creative scheduling by Cricket Australia could revive Domestic 50 over cricket too? The Matador Cup could be played from October - Early December on the days that the Test cricket isn't. Perhaps CA are ruing the decision not to aggressively expand the Big Bash (Freo, Canberra, Gold Coast, Geelong) so that there's enough content for the networks to be in the position to share the rights.

2017-04-26T03:59:01+00:00

Johnno

Guest


Maybe the anti-siphoning rules should be reviewed so foxtel could compete for the rights to local test-match series and local ODI's and local T-20's. As of right now they can only bid for overseas Test series(I'm not even sure if they are allowed to bid for overseas Ashes test series).

2017-04-26T02:51:17+00:00

Sydneysider

Guest


"The success of FTA is and will remain the fact that it is free. " In Australia this is true but not in other parts of the world. Also if the next generation of kids keep using different technologies then FTA TV will have to adapt to that, which is already happening now with more content offered via streaming, including live sports.

2017-04-26T02:48:45+00:00

Perry Bridge

Guest


#Joey Johns The main issue though - around cricket - that really seems to irk the advertisers - - is the weather dependency and in the case of test cricket - 5 days but it may be over and done in less than 3. As it is - the BBL has gone where ODI's haven't - - and that's to provide prime time every night for over a month - even when there's been another game on during the day.....how good is Boxing Day test with a BBL game on each evening after stumps!! Love it!! But for Ch.9 - would they grow the pie if they got it all in one house - or - shrink the pie? Interesting times - given cricket just recently went very aggressively on female pay increases. More WBBL on tv? What if the purse strings have to be tightened?

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