Long hot legal summer
Fox, Seven bring in lawyers over costs of TV rights
FOXTEL chief executive Patrick Delany says cricket is in for a tough summer and, while the organisation is willing to work with Cricket Australia, it is clear the co-operation will come at a cost.
CA is reeling following a savage attack from Seven West Media boss James Warburton, who has threatened to walk away from the network’s contract if it does not get a rights discount.
Sources close to Fox Cricket confirmed yesterday it would also be seeking a reduction in what it pays for cricket broadcast rights.
And in a clear indication the dispute is escalating, Foxtel delivered a legal letter to Cricket Australia on Monday and Seven has hired a high-profile contract lawyer to fight for it.
Both broadcasters believe a summer that includes the possibility of a Boxing Day Test in Adelaide, not the MCG, a Big Bash League without access to the biggest local stars and other likely changes is not what they signed up for.
Fox and Seven contribute about $200m a year as part of a record $1.18bn contract signed in 2018.
Both share the frustration of dealing with a body they believe was moving with too much haste under former chief executive Kevin Roberts and is indecisive since his departure.
The impending legal battle will be a test of acting CEO Nick Hockley and the board.
Cricket Australia insists it will deliver a full summer of cricket and is working to attract international stars to enhance the BBL. It says it has worked to identify savings for broadcasters, which are struggling because of the pandemic, but it will not cut a cheaper deal on the broadcast rights.
Speaking at a sports conference on Tuesday, Delany signalled tough times for all sports but conceded tier-one sports such as cricket were in a slightly better position than the less popular rivals. “We can see quite clearly the sports that are working, and those sports know who they are,” he said.
“We did a great deal with the NRL to renew our relationship. I want more of the NRL. Our relationship with the AFL is really fabulous. I want more AFL. The motorsports are going well for us, and we like cricket. Cricket is going to have a tough season ahead and we will work through it with them.”
The football codes renegotiated their deals with broadcasters when the pandemic hit, but cricket argues it does not need to as it will be delivering a full schedule whereas the football season has been truncated. But the broadcasters say what is being delivered does not meet the letter of the contracts.