Aussies frustrated with the state of Australian cricket now wield more power than ever over the sport’s administration where many have inadvertently been voting with their mice based on the new media rights deal signed between Cricket Australia and Seven West Media (ASX: SWM), Foxtel and Kayo.
The new seven-year agreement will see Seven, including its affiliated digital and online streaming channels, be the free-to-air broadcaster of cricket until 2031 for approximately $65 million a year. This is a decline by about 13% on the current media rights deal which is a result in declining audiences, most notably for Australia’s domestic T20 Big Bash League (BBL) which runs from December through to February.
These declining audiences were the subject of legal action instigated by Seven West Media based on Cricket Australia’s management. As part of the new media rights deal, this legal action has now been dropped while Cricket Australia has agreed to shorten the BBL to five or six weeks which would be in line with other global T20 tournaments.
The new media agreement also includes a joint commitment to improve the BBL which has struggled to attract audiences and star talent due to the timing of the tournament, and clash with others around the world at the same time. Should there be a material improvement on the BBL’s earnings each season, Seven will pay an increased media rights fee, an indication of rising broadcaster power in the management of the tournament.
“We are delighted to extend our partnership with Cricket Australia until 2030-31,” said Seven West Media CEO, James Warburton.
“A comprehensive package of digital rights to the cricket for 7plus will ensure that for the first time, our viewers will be able to access cricket, live and free, in a way that suits them.
“Our combined broadcast and digital rights for both cricket and the AFL means Seven and 7plus will be the home of sport all year round.”
Running through to 2031, the extension will include two Ashes series as well as two Indian tours of Australia, alongside the renewed BBL which faces increased competition in the year ahead.
Commencing on 10 January 2023 will be the inaugural SA20 competition – South Africa’s new T20 competitions which will run for five weeks with franchises owned by similar interests as the world’s richest league – the Indian Premier League.
Given the earning potential of playing in the league, the SA20 has attracted the best franchise players from around the world to leave the BBL reeling from the failure of its inaugural player draft this season which failed to ignite viewer interest in the BBL.
The combine Seven, Foxtel and Kayo offer valued around $1.2 billion beat out a higher offer from Paramount and Ten reported to be $1.5 billion over seven years, to win the extension to the current agreement which expires in 2024.
It is the second time in two years that Paramount and Ten have been knocked out by Seven, Foxtel and Kayo after losing in their bid last year to win the AFL broadcast rights.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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