Big Bash brinkmanship: Seven sends Cricket Australia ultimatum
Seven tells Cricket Australia they will begin to cancel their $450m deal, as issue heats up.
Seven has reportedly sent a legal letter to Cricket Australia bosses in what is fast becoming a game of brinkmanship.
The Daily Telegraph is reporting that earlier this week Seven informed CA them that they would begin to cancel the remainder of their $450 million deal, claiming that Cricket Australia is in breach of their contract. This leaves CA them with 14 days to respond, before a lengthy mediation and arbitration process.
At the heart of the issue is Seven’s concern that this year’s Big Bash League will be diminished due to player unavailability and reduced crowds. Seven has been pushing for reduced broadcast rights of $75m, something it liaised similarly with the AFL.
But CA believes it will still deliver the same amount of content. It say the letter was not a termination letter.
“Cricket Australia remains in ongoing discussions with the Seven Network about delivering a compelling summer of cricket,” CA said in a statement.
“CA is committed to fulfilling its contractual obligations to all its partners this season.”
It has already secured KFC as naming rights partner and new commitments with the rebel Women’s Big Bash League and the Australian Women’s National Team.
Cricket Australia believes Seven’s push to terminate their contract is due to the company’s debt and share price position after signing an inflated deal it no longer likes.
Seven’s next payment of $25m is due on Tuesday.