The war between Cricket Australia and its broadcast partner Seven has reached point of no return. According to a report by Sydney Morning Herald, Channel 7 has demanded that Big Bash League for the season should be scrapped. Other than this broadcaster has also demanded change in the schedule of India tour of Australia.
The report says that Cricket Australia is also standing by its ground and has dismissed the demands made by the broadcast partner.
The free-to-air broadcaster this week took the first step towards terminating its contract with CA with four years left on a $82 million-a-year deal once these demands were rejected.
According to the report Broadcaster has made following demands from Cricket Australia –
– Big Bash League season to be cancelled this year
– Rebate in the rights fees
– India tour of Australia schedule should be changed
– Broadcaster wants test series to be scheduled during the holiday period so that the monetization opportunity for the broadcaster increases.
Cricket Australia rejected these demands which led to broadcaster putting them on notice.
Tuesday is the D-Day for Australian cricket, India tour of Australia can also get derailed
The coming Tuesday will decide whether Australian cricket will be left with a broadcast partner or not.
The broadcast partners Seven West Media is contracted to pay $25m installment on the day. According to the local media in Australia, Seven has already shot a breach of contract notice with Cricket Australia and will not pay the contracted monies.
Cricket Australia is also sticking to its guns. The standoff between the two may lead the battle going in the courts as early as next Tuesday according to SMH.
Cricket Australia – Broadcaster dispute : What does this mean for India tour of Australia ?
The dispute is also threatening to derail the India tour of Australia. Indian cricket team is due to tour Australia right after the Indian Premier League (IPL 2020) for four match test series and also 3 to 6 white ball internationals.
The Australian cricket board has already announced that the tour will be nothing less than a life saver for the Australian cricket in these Covid-19 times.
The board is banking heavily on the tour as they are expected to generate almost $150 Mn from the commercial rights of the tour. The majority of those monies were suppose to be paid by the broadcast partner.
Now with the broadcast contract itself under threat, without any doubts the dark clouds will also set on the Indian cricket team tour to Australia.
CA has so far not announced the schedule of the tour.
The Australian cricket finances are already badly impacted due to the bad investments and Covid-19 related repercussions. This has already resulted in firing of the CA staff, dispute with the Australian cricketers, reduced payments to the state bodies.
Without a broadcast contract in place – it will be next to impossible for CA to organize India tour of Australia.
Cricket Australia – Broadcaster dispute : How Seven’s failure to pay will impact the Cricket Australia’s finances ?
According to report by SMH, CA had cash reserves of $60m at the end of June. Other than it is also trying for a $50m line of credit from the Commonwealth Bank.
But a termination by the broadcaster means CA will lose all revenues for the quarter and more. This will result in huge cash flow issues for the board and may result in further reduction of funding to the state, community cricket and, ultimately, the salaries of players, who at the top end are paid more than $1.5m a year.
The effect for Seven in discarding cricket is that it would be without a major summer sport to promote its programs and help it contend for top billing in revenue share. Cricket Australia still feels they can sort the issue with Seven.
“Cricket Australia remains in ongoing discussions with the Seven Network about delivering a compelling summer of cricket,” a spokesman said on Friday. “CA is committed to fulfilling its contractual obligations to all its partners this season.”