It seemed impossible that the relationship between Cricket Australia and the Seven Network could become frostier than the wintery depths of 2020.
But a ruling on Friday has ensured exactly that.
Seven, the game’s sole free-to-air broadcaster, spent most of last year complaining that it deserved a substantial reduction on its TV rights deal with CA, worth $82 million annually, because of Covid’s impact on the game.
They wanted a whopping $70 million shaved off 2020/21 payments.
When Cricket Australia offered $16 million, it was immediately rejected.
Not done there, it hurled a series of pot shots at Cricket Australia who were, according to Seven chief executive James Warburton, a “train wreck”.
“What a bumbling, stumbling administration,” he said in August.
For their part, Cricket Australia kept quiet, knowing a public spat with a broadcast partner was both unedifying and would achieve little.
They were right, and on Friday an independent arbitrator ruled that Seven were entitled to just a $5.3 million one-off reduction.
It’s a telling and embarrassing blow for the network.
Had the cash-strapped Seven accepted CA’s offer during initial negotiations, they would have saved themselves over $10 million and a whole lot of ill-will.
Instead, its approach throughout the last 12 months has put many offside within Cricket Australia and perhaps even other sports administrators across the country.
What made the buff and bluster all the more embarrassing was that Seven actually enjoyed a four per cent year-on-year rise in its ratings, as a direct result of the compelling four-Test series between Australia and India.
In fact, such was the summer success that company emails spruiked it as a ratings triumph.
Who were the bumbling ones again?
Seven have vowed to continue fighting the matter, citing an unfair arbitration.
But simple buyer’s remorse won’t get them very far — they have to prove that Cricket Australia is not delivering on its side of the agreement, which it currently is.
It would also seem foolish of Seven to continue trashing the product ahead of what will be another successful summer ratings-wise, with England arriving on these shores for the Ashes later this year.
For CA, Friday’s announcement is certainly a win.
And a relief.
Almost a year ago, then-CEO Kevin Roberts had forecast financial devastation as a result of the pandemic.
Former Cricket Australia CEO Kevin Roberts. (Kelly Defina/Getty Images)
But the discount in rights payments (which is the game’s primary income source) from both Seven and Foxtel is minimal.
Other sporting bodies like the AFL and NRL, for example, received a far bigger hit.
Friday’s announcement certainly constitutes a short-term win, but what happens in the long-term is now interesting.
We can say almost certainly that Seven won’t look to extend its current rights deal, which expires in early 2024.
“We will never see Channel Seven in cricket again when their contract expires in three years time,” cricket writer Robert Craddock told SEN radio on Monday.
“And they would obviously, happily, end their association with the sport now.”
So where will it the broadcast rights go next?
Assuming Cricket Australia doesn’t follow England’s catastrophic lead and conspire to put the entire game behind a paywall, it’s free-to-air options are either Network Nine or Ten.
During the last negotiations in 2018, Cricket Australia knocked back a joint Nine/Ten bid worth around $900 million (compared with the $1.2 billion it received from Seven/Fox).
Then Cricket Australia chairman David Peever even called the CBS-owned Network Ten — who had played a huge role in the rise of the Big Bash — “bottom feeders” during tense negotiations.
So there may be some water to go under the bridge if they are to re-enter the fray.
Could it be Nine that is set for a return to cricket broadcasting?
And could it be sooner than later if Seven get their way?
Reports in December suggested Cricket Australia had even spoken with Nine about broadcasting the Australia versus India series if everything went pear-shaped with Seven.
For their part, now former Nine chief Hugh Marks said in September they could return to cricket for “the right price”.
That is, a discounted one.
RAdelaide
Roar Rookie
Oh CA should surely be better than BCCI and not clamp down on or lay down the diktat to commentators. That being said, I didn’t mind the commentary in India England series. No idea about build up shows etc as they don’t show that on Kayo.
Don Freo
Roar Rookie
It doesn't rate badly either. It has never been tried. That's the point. It is highly marketable. The only reasons folk don't go is that it is on during working hours and it is not marketed. Both easy fixes.
Micko
Roar Rookie
Yep, patting each other on the back over “diversity” quotas, “multiculturalism”, agreeing how “problematic” CA mentioning Australia Day is…etc,etc.
Rowdy
Roar Rookie
Head Office = Sheltered Workshops where "covefe & croissants" reign supreme
James
Guest
Test cricket indeed rates. The shield quite evidently doesn't, so it's hopeless to suggest it does. Doesn't rate on TV, doesn't rate live. No one goes. The market has spoken emphatically on that.
Micko
Roar Rookie
They need a clean out at head office: get rid of half the parasites and overpaid executives! :thumbup:
Republican
Guest
This country certainly excel in the tele rights contest and argy bargy. A nation of Plutocrats, to be sure. A shame this doesn't translate into spoils on the pitch et el. We are now ranked lower than NZ in all forms of the game and thats only in Cricket. Our sporting prowess is one of mediocrity today compared to a nation of a meagre 5million. It matters little how many punters are exposed to respective codes through the tele in this respect.
Tempo
Roar Rookie
I would have thought a CA feed would be less attractive to broadcasters, who wouldn't have as much control over the product they are selling. BCCI gets away with it because they are so powerful (and I believe only the English feed is done by BCCI, the Hindi commentary is done by the broadcaster). In any event, the BCCI English feed is widely derided both in India and overseas for its craven bias (e.g., ignoring the Ajinka Rahane DRS howler in the recent India England test series). Commentators are scared to say anything remotely critical of the home side, pitches, umpires or BCCI because they won't be invited back. I agree that the current situation with Channel 7 is not good for cricket. Hopefully they'll get an actual broadcast partner next time around, who wants to work together with CA to promote the game (much as Nine seems to be doing with Rugby at the moment). Think they'll have to accept a significant haircut for the next deal though.
Big Daddy
Guest
Sounds like a bit of Penny pinching by both sides. Makes you wonder why they pulled out of South Africa . It seems they don't want to travel anywhere at moment bar NZ.
RAdelaide
Roar Rookie
Thanks for the insightful article David. I can't see this ending well for Cricket Australia, after this years Ashes which should give a ratings boost for 7, channel 7 will be back on the complaining bandwagon from next year. I wonder if CA need to make their own feed for the actual broadcast, which I think from memory a few of the other boards like BCCI do and they can on-sell that to their free-to-air partner and Fox. This might be give them more control of finances
Tempo
Roar Rookie
To those saying Cricket Australia won the battle but not the war, I have to disagree. The current broadcast deal was overvalued from the start and was never going to be repeated in 2024. Channel 7 woke up to this and the new management is desperately scrambling for a way to reverse the decision - but they have no legal leg to stand on. Buyer's remorse is not a valid reason to break a contract. So, whilst I agree CA will take a hit when the next deal comes up, I don't think they really could have done anything different around this case - which is an unequivocal victory in my books. Channel 7's behaviour during all of this was appalling, and their strategy was a total mess, with constant changes to their story as to what they were aggrieved about. The ticking time bomb of future rights values is a separate question, and hopefully CA is making contingency plans so that they are prepared for a future with lower TV rights.
Tempo
Roar Rookie
ABC and SBS won't be able to field a competitive offer for the cricket. The combined Channel 7/Foxtel deal is around $200m a year. That's 20% of the ABC's annual budget and around 50% of SBS's annual budget. Given the ABC is already cutting staff to balance the books, and cricket will bring in no additional revenue since they can't advertise, even if the next deal halved they wouldn't be close to affording it. Same goes for SBS since, even though they can advertise, cricket is generally a loss leader for networks - and SBS does not have anywhere near enough buffer to take on such a large expense.
Don Freo
Roar Rookie
Test cricket always rates. Imagine 22 Aussies playing red ball cricket. Sheffield Shield cricket is a potential cash cow for a media admin that is not "bumbling". CA has plenty to market, especially with the current push for greater Australian content on Oz TV.
Rowdy
Roar Rookie
We can’t even get FTA Men’s ODIs so why would Women be getting on FTA. —– And no-one @ 7 has Chappelli’s insight, knowledge or acumen. Yes he could drone on a bit but so what. The hokey bonhomie dished up on 7 drives me around the twist. Give me the news and NOT the goss
Andrew
Guest
7 commentary and production is on the whole better than what 9 was dishing up. Unfortunately I don’t see the paywall ending especially if Fox stump up money that helps fill the shortfall of a cheaper deal Ideally (and assuming the above) big bash back to whoever (sole network or 9/10 split) and do it well like the earlier seasons. 90% or so of games on free to air with fox keeping enough to justify their own channel. Tests go back to 9. Commentate like they do in England with poise, knowledge and good wit. Take the Richie approach of only talk if needed and reduce the over analysis. Fox can do whatever they want with them and keep Shane Warne behind a paywall. Simulcast the ODI and international T20. I really think it’s a shame that this went behind a paywall. Find something to give Fox. Fox can broadcast overseas tours and e domestic competitions. (keep the English ashes tour on SBS or something like the old days with the English commentary). More women’s coverage on free to air
Jeff
Roar Rookie
Hi Gary. Yes, for all the negatives that the concept of pay-per-view raises amongst some, Fox Cricket (like Fox Footy) is a standout in terms of content and quality IMO; far beyond what was previously provided on FTA. A 24 hour cricket channel (sometimes two), with no ads, specialist cricket programs, extended coverage of matches outside of playing hours and most non-Australian series being broadcast (international and T20 domestic) – and even Sheffield Shield – is great for cricket followers. __ Obviously there needs to be a balance re pay-per-per-view vs market penetration to keep a broad(ish) base of exposure to cricket in the wider population in Australia, but really, the world has moved way on since the UK 2005 situation which is often cited as being detrimental to cricket interest/participation (i.e. moving to BSkyB), with most Australian households now consuming content of their choosing on-demand via pay-to-view.
Gary David
Roar Rookie
I've thought the same thing Jeff. I much prefer Fox's commentary, graphics and analysis. Would be a shame to lose Fox Cricket because the joint Fox/Seven deal ends. I know nobody wants all cricket behind a pay wall but the specialization that Pay TV offers brings benefits, like Fox Footy too. I think make Fox Cricket the main broadcaster and as per the anti-siphoning act ensure some cricket gets on free-to-air just duplicating the Fox coverage. It may not be ideal but it might even not be all tests, just Ashes and v India.
Gary David
Roar Rookie
Great, channel 7 deserve this loss for their pathetic, childish behaviour. All they lost was one test against Afghanistan.
Micko
Roar Rookie
Well…they’re government owned entities, and they’ll have to outbid the commercial networks. edit: plus the 2005 Ashes had no commercial broadcaster that was interested in it.
Doctordbx
Roar Rookie
Cricket Australia's victory here doesn't make them any less bumbling.