With the Australian Open around the corner, Tennis Australia has confirmed that media company Nine Entertainment (ASX: NEC) will be retaining the exclusive rights to broadcast it and other such events for the next five years.
Both companies have extended their contract for five years, and Nine has gained rights to all premium tennis played in Australia for the 2025 to 2029 seasons. Consistent with Nine’s existing agreement with Tennis Australia, Nine has acquired exclusive live rights (including Free To Air, subscription television, SVOD, streaming, mobile and social media). Along with that, it also has the extensive catch-up right to the Australian Open and the lead-up tournaments around Australia, including the United Cup, the Adelaide International, and the Hobart International, and the Australian team matches in the Davis Cup and ongoing Billie Jean King Cup where Australia has entered into the semifinals after defeating Belgium.
Over the five-year period, Nine will be paying Tennis Australia $85 million to keep these rights, starting lower and indexing over the term of the deal. The Company will also support Tennis Australia with services and promotions over the course of its agreement.
CEO of Nine, Mike Sneesby, shared, “We are pleased to announce the extension of the partnership between Nine and Tennis Australia. Tennis attracts both a broad and very passionate following and is a perfect fit with Nine’s schedule, audiences and advertisers. The Australian Open has delivered some of Australia’s most iconic sporting moments and largest television audiences and together, we are committed to bringing these great moments to all Australians live and free.”
Nine and Tennis Australia first came together in 2019 to sign a broadcasting contract worth $48.5 million. Throughout Covid, the two stuck together, and the Australian Open brought in a lot of traction for Nine following a rather dry spell in the sports world.
Tennis Australia CEO, Craig Tiley, added, “Nine has shown its serious intent to a year-round commitment to continue to grow tennis. We want to show our sport at its best to continually excite tennis fans, whilst also appealing to a new generation of fans and players in this country. This new deal will certainly help us do that.”
The Company has had a profitable FY22, largely driven by the broadcasting segment. Nine’s EBITDA was up 24% to $701 million and the total television revenue was up 10%. In Q1 FY23, it experienced growth in both linear and streaming services.
Nine expects the cost growth for television in FY23 to emulate that of FY22. There will be a spotlight on some much-awaited sporting events, such as the ongoing Cricket World Cup and Billie Jean King Cup, and the upcoming United Cup. Bolstered by the success of the US Open and the like, Nine is geared up to bring tennis to Aussie televisions for the foreseeable future.
Alinda is a Business Reporter for The Sentiment
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