Seven could save $135m in Big Bash stoush with CA

Seven West Media could save more than $135 million if it successfully proves in the Federal Court that Cricket Australia breached its Big Bash League broadcast rights contract.

The future of cricket on free-to-air television was thrown into turmoil late last week when broadcast partner Seven lodged Federal Court action to try and blow up the $450 million deal, which expires in 2024. Seven is claiming CA breached its contract by reducing the quality and standards of the Big Bash League, which has struggled to generate high TV ratings since Seven acquired the rights in late 2018.

Media sources close to the court case, who spoke anonymously as the matter was before the court, said Seven would seek about $20 million in damages per annum for the alleged breaches in quality of the BBL over the past three years. The network is planning to save $75 million plus contra from the termination of the final year of the deal.

The broadcaster, which signed the deal with CA and Foxtel in 2019, is also hoping to save about $20 million in production costs. A Seven spokesperson declined to comment.

“Cricket Australia is working with our broadcast partners to ensure we deliver what will be another comprehensive and exciting summer of cricket,” a CA spokesperson said. “We are in daily discussion with both Seven and Fox Sports about scheduling and production.”

Successful court action would put the broadcaster in a more competitive position going into rights negotiations with other sports – such as tennis – and free up cash if an opportunity for a merger and acquisition appears. It could also allow Seven to reduce its multimillion-dollar debt pile (pro forma net debt was at $295 million in February). If the deal is terminated, CA would not receive the $75 million from Seven, but it could seek to strike another deal to ensure it has cash for the season.

“We are in daily discussion with both Seven and Fox Sports about scheduling and production.”

Cricket Australia spokesman

CA sources, who also declined to speak publicly for legal reasons, believe the $20 million per annum figure is grossly inflated, given Seven was awarded just $5.3 million by an independent arbitrator last year for cancelled matches caused by the COVID-19 pandemic.

Seven lodged the court case based on claims CA had damaged the quality of the BBL since it signed the rights contract. The claims are based on several factors, such as scheduling One Day International Matches and International Twenty20 Matches (both which run on Foxtel) in conflict with the BBL’s schedule, which allegedly affected the availability of high-profile players and hurt its chances of maximising audiences, and imposing salary caps that failed to attract players of the highest quality and standard in the world.