Foxtel-Seven still in race for cricket despite $1.5 billion Paramount offer

Global US giant Paramount has offered Australian cricket about $1.5 billion to secure the rights to Test matches and the Big Bash League for the next seven years, but the sporting body remains in talks with its incumbent partners Foxtel and Seven about an alternative arrangement.

Three separate industry sources, who spoke on the condition of anonymity, said Paramount has offered about $210 million per annum to Cricket Australia, in a deal that could be worth $1.5 billion over a seven-year period (the desired term of the agreement).

The two companies are in the process of finalising a long-form contract, but that hasn’t stopped discussions from continuing with broadcasters Seven and Foxtel. Cricket Australia is hoping to have a deal signed before Christmas.

Seven and Foxtel declined to comment. CA also declined to comment. Nine was also in advanced talks about a rights deal but is not as close to the dollar figure that CA desires.

A Network Ten spokesperson said the network had deep financial resources and access to new technology that could improve sports broadcasts. “We have a commitment to deliver a premium product with greater visibility, consistency and flexibility across all forms of cricket, the network would provide blanket domestic coverage and take the sport to a new and freshly engaged audience.”

“Network 10 and Paramount+ are keen to restore cricket to its former prominence, ignite the love affair between Australians and this great sport and provide the quality of coverage that television audiences and fans deserve.”

Any deal with Cricket Australia does not include production costs, which are roughly $40 million per year. That may be expensive, but for Paramount, securing the rights would solidify its position as a sports broadcaster in the Australian market. The global entertainment company, which locally runs Network Ten, has spent the past two years trying to secure the rights to major sporting codes. Buying the rights to sport is expensive, but they are typically big drivers of audiences and subscriptions. Paramount announced a five-year, $200 million deal for all A-League and W-League matches last May, before securing a deal to broadcast the Matildas and Socceroos matches in June.

In recent months, Paramount’s offered $6 billion over 10 years for the rights to the AFL. The offer significantly drove up the final offer to the AFL by incumbents, Seven and Foxtel. Paramount and Cricket Australia have spent the last few weeks building out a long-form contract. Seven and Foxtel do not need to do this, as their existing contracts can be amended. Paramount will want a deal to be sorted before the new year, to avoid the risk of becoming a stalking horse.

It wouldn’t be a broadcast rights negotiation without high-level executive meetings and strategic appearances. Foxtel boss Patrick Delany and one of his predecessors, Richard Freudenstein (who happens to be leading the broadcast rights negotiations for CA), met for lunch in the last week, despite a deal being publicly positioned as a sure thing for Paramount.