Seven makes part payment to Cricket Australia.
Seven has paid what it believes to be "fair value" of its September instalment to Cricket Australia.
- Published by David Knox
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Seven West Media made a part payment of the $25m instalment due to Cricket Australia yesterday, claiming it is what it believed constituted a fair reflection.
Network boss James Warburton also called for Cricket Australia to agree to an independent review to assess what is a fair amount to pay for the right based on the expected schedule reshuffle as a result of COVID-19.
Seven West Media and Foxtel signed a deal worth $1.182 billion in 2018 under which they would share the broadcast of the game in Australia for six years.
Bothe broadcasters have claimed they are entitled to a discount on the rights fees as a result of the restrictions imposed by the global pandemic.
While the $58m shortfall in the broadcast rights instalment that was due from Seven West Media and Foxtel remains undisclosed, CA continues to reaffirm its commitment to delivering a full schedule of matches.
CEO James Warburton said the network had paid what it believed to be “fair value” of its September instalment and indicated they would seek an independent valuation of future instalments.
“Seven has invoked the right to appoint an independent expert to determine the fair value of the media rights against the expected schedule for the season compared to the originally published schedule,” Warburton told Nine owned newspapers.
Cricket Australia has reaffirmed its commitment to delivering a “compelling summer schedule” of men’s and women’s international and domestic fixtures.
CA’s Interim Chief Executive Officer Nick Hockley said that while the social and economic fall-out of the coronavirus outbreak has presented unprecedented challenges, cricket has shown a willingness and ability to get the game going at home and abroad.
“Scheduling during a pandemic is challenging however despite these challenges we have been the first sport to bring an international representative team into Australia and we greatly appreciate the support of governments and overseas cricket boards to make this happen,” he said.
“Countless people are working together to ensure this summer is a huge success, including the players through the Australian Cricketers’ Association, the State and Territory Associations, governments, sponsors and broadcast partners.
“Together we are confident of delivering a compelling summer schedule that will meet our commitments to our broadcast partners and the high expectations of our fans.”
Foxtel has declined to make public comment.
Source: Cricket Australia, Perth Now
9 Responses
it was interesting that one of the articles stated that networks were (previously?) prepared to make a loss on the cricket in order to cross-promote their upcoming line-up of shows.
I personally think many TV owners pay to much for sports events. Why didnt Seven get an independant report pre-covid?? Is the price to much?? Need lots of advertiser dollars to pay it off.
I might make a part payment on my phone bill as it seems like ‘fair value’ to me and see what happens… seems ok for big companies to do it why not the little guy … what could go wrong
Seven making a loss with the Tennis so it went to Nine. Nine making a loss on the cricket so it went to Seven and Foxtel . Now Seven loosing on the cricket and it goes to ??
I still don’t understand what this whole dispute is about? It seems to me like Seven are just having a tantrum and throwing all of the toys out of the cot?
Ok, earlier articles did have more on this. Seven feels that due to COVID restrictions events will not have same level of players / crowds they signed up for. Particularly relevant for international teams. They are seeking a discount. Some suggestion they are using it to drive down debt tied to bigger problems.
Isn’t FOX also seeking a discount?
As previously reported.
Yep and it was reported in May that Foxtel were carrying a 2 billion dollar plus debt and cutting 250 or so jobs, so probably in an even worse position now.