It's a sticky wicket for broadcasters as cricket rows erupt
It might be telling that, 35 years later, cricket's relationship with the Nine network looks likely to be broken in favour of the television network now associated with James Packer - Ten. The straggler among Australia's commercial television networks has lobbed a massive $500 million bid for the broadcast rights to all forms of the game, while Fairfax Media revealed on Friday that Nine was entangled in legal action with Cricket Australia.
Nine, which as the incumbent broadcaster has the right to match the offer of any other bidder, has until early next month to decide whether it wants to match Ten's offer.
It is not known if Cricket Australia's action in the Victorian Supreme Court complicates matters.
"We have a 32-year relationship with Cricket Australia and I'm very confident that we will be able to resolve any issues between us sensibly and through direct discussion," Nine's managing director, Jeff Browne, said on Friday.
The court has set May 31 as the date to hear the matter, just six weeks before the first Ashes Test between Australia and England starts at Trent Bridge on July 10. The legal file has been sealed by order of a judge, because of commercially sensitive material it contains.
It is understood the action is designed to clarify the status of cricket's Big Bash league and whether it is subject to Nine's last right of refusal given this popular form of the game did not exist at the time of Nine's deal.
Another issue is whether Nine is deemed to have matched Ten's offer if it does not agree to broadcast the domestic competition - something it has no interest in.
Under the terms of the existing agreement, Cricket Australia cannot force a broadcaster to screen live coverage of its domestic one-day competition, the Ryobi Cup, or the Sheffield Shield final.
Nine sources labelled the legal clarification by Cricket Australia a "sideshow", saying it is disappointed with the games being played by Cricket Australia's lawyers, given the network has no interest in the Big Bash league. Cricket Australia is expected to focus on the domestic cricket issue, and will argue in court that Nine has not matched the offer made by Ten, due to its stance on domestic cricket.
Nine is looking to retain the current forms of cricket it broadcasts: Test matches, one-day internationals, and Twenty20 cricket.
Ten, which declined to comment on what it is offering for the cricket rights, is believed to have offered $400 million over the five years for the forms of cricket currently on Nine, plus a further $100 million for the Big Bash league.
Nine and Foxtel paid out $300 million under the previous five-year rights deal that did not include the Big Bash league. Nine will need to match the $400 million to retain its current line-up. Nine insiders said it was 5050 whether it would decide to match Ten's offer.
Frequently Asked Questions about this Article…
The dispute centres on Cricket Australia taking legal action to clarify whether the Big Bash league and other domestic competitions fall under Nine's last right of refusal. Ten has lodged a bid for cricket broadcast rights and Nine, as the incumbent, has the contractual right to match that offer. The matter is before the Victorian Supreme Court to settle those contractual questions.
Ten is reported to have made a $500 million bid in total — believed to be $400 million over five years for the forms of cricket currently broadcast by Nine (Tests, one-day internationals and Twenty20) plus a further $100 million specifically for the Big Bash league.
As the incumbent broadcaster, Nine has a contractual right to match another bidder's offer. To retain its current line-up of Tests, one-day internationals and Twenty20 cricket, Nine would need to match the $400 million component of Ten's offer that applies to those formats.
The Big Bash league did not exist when Nine's current deal was signed, so Cricket Australia is asking the court to clarify whether the league is covered by Nine's last right of refusal. The question is whether Nine can block a sale of Big Bash rights to another broadcaster or whether Nine must explicitly agree to broadcast that domestic competition.
The Victorian Supreme Court set May 31 as the hearing date. Timing matters because the decision comes just weeks before the Ashes series begins on July 10, and the outcome could affect who holds live broadcast rights and the commercial arrangements broadcasters use for that key series.
According to the terms noted in the article, Cricket Australia cannot force a broadcaster to screen live coverage of its domestic one-day competition (the Ryobi Cup) or the Sheffield Shield final under the existing agreement.
Nine and Foxtel paid $300 million under the previous five-year rights deal, which did not include the Big Bash league. The new bidding process involves offers of around $400 million for the current formats plus an extra $100 million for Big Bash in Ten's reported $500 million bid.
Investors should watch for the May 31 court decision, any public statements from Nine, Ten and Cricket Australia, and whether Nine formally matches Ten's offer. These developments could influence broadcasters' future content costs and revenue outlooks, which in turn may affect investor sentiment toward the networks involved.
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