Channel 9 is now in the box seat to acquire Melbourne Cup broadcast rights following the withdrawal of Channel 7 from the negotiation process.
Wagering giant Tabcorp is currently the preferred bidder for the Melbourne Cup Carnival rights, but under Australian anti-siphoning laws and a proposed agreement with the event’s owner, the Victoria Racing Club (VRC), it must sublicense the rights to a free-to-air broadcaster.
Earlier this year in June, Tabcorp extended an invitation to networks, gauging interest in securing domestic free-to-air rights under a deal that would likely see coverage simulcast on the Tabcorp-owned Sky Racing channels and exclusively on its mobile betting app platforms.
After months of challenging discussions, TV Blackbox can confirm Channel 7 formally withdrew from the negotiation process on Thursday after the network grew impatient in trying to negotiate through the unrealistic terms being imposed by Tabcorp and the VRC.
It’s understood that while Seven was willing to offer significantly increased exposure for Victorian racing, it was unwilling to commit to a request from the VRC to end it commitment to NSW racing coverage during the Melbourne Carnival week.
Seven’s rival coverage of NSW events during Cup week has regularly outrated Melbourne festivities during the five years it has been broadcast on Channel 10. A fact that proved to be significantly embarrassing for the VRC.
The move by Seven to walk away from this new deal leaves Channel 9 as the only network still involved in the negotiation process. However we are likely still a long way from a deal being signed between the two parties with the AFR reporting Nine’s proposal is believed to hover around the ballpark of $5 million annually, culminating in 2029.
Currently, no formal agreement has been inked between Tabcorp and the VRC and negotiations over free-to-air rights have proved to be additionally challenging due to the Federal Government proposing potential new restrictions on Betting Advertising.
Current rights holder Channel 10 was the first to withdraw from the negotiation process with TV Blackbox reporting in late June that 10’s owners Paramount ANZ had rejected a proposal that would have seen Tabcorp receive a 50 per cent share of all wagering advertisements during the four-day carnival, from any potential free-to-air partner.
A spokesperson for 10 also expressed frustration at the expectation Tabcorp would seek to take editorial control of the free-to-air coverage stating,
“Throughout the course of the current negotiations, it became clear that the nature of the agreement between Tabcorp and the VRC would require a move towards a core racing and wagering-focused broadcast product.
“Given this likely change in focus combined with commercial constraints of the future agreement, Network 10 considered the preferences of its viewers and advertisers, and politely declined to move forward with the process.
Speaking this week, Victoria Race Club CEO Steve Rosich told News Corp he remained confident of securing a good deal for the VRC despite Seven and 10 walking away from the process.
“While this remains commercial in confidence and negotiations continue, we can’t provide further comment, however we are excited about the future of the Melbourne Cup Carnival and it’s continued positioning as a major international event,” he said.
“We look forward to announcing the outcome of this process in the near term.”
