The network is launching action that potentially could see the termination of a $450 million broadcasting rights deal.
The Seven Network is launching a Federal Court action suit against Cricket Australia (CA) in an attempt to terminate its TV rights deal.
The free-to-air broadcaster has filed court proceedings that detail “multiple quality and standard breaches by CA” in relation to its six-year media rights contract.
It is understood Seven’s concerns relate specifically to the Big Bash League (BBL) and not to the Test Match component of the deal.
In a statement, Seven said it was seeking a court order that permits the network to forgo its current deal and no longer broadcast Test cricket and the Big Bash League with Cricket Australia.
TV Blackbox understands that Seven’s complaint relates to the breach of quality for the two COVID-effected BBL seasons played in 2020 and 2021.
Additionally, the network is raising concerns regarding the quality and standard of the upcoming BBL season which is expected to feature fewer primetime broadcast games, and potentially will see significantly fewer high-profile Australian players available to participate due to a scheduling conflict with an upcoming One Day International series against South Africa.
If its court action is successful, TV Blackbox understands Channel 7’s goal is to either cancel the rights deal completely, or receive damages from Cricket Australia that would effectively reduce its significant rights fee.
Channel 7 and Foxtel/Kayo have two years left to run on the existing broadcast deals with Cricket Australia.
The move follows preliminary Federal Court proceedings in 2020 on the same claims, which resulted in the Court directing Cricket Australia to hand over agreed documents.
The network said that recent attempts to resolve conflict between both parties through a dispute resolutions process have failed.
In a statement released to the Australian Stock Exchange on Thursday afternoon, the network stated:
“Seven West Media Limited through its subsidiary Seven Network Limited has filed court proceedings in the Federal Court of Australia against Cricket Australia in relation to multiple quality and standard breaches by CA of Seven’s Media Rights Agreement with CA.
“The SWM (Seven West Media) proceedings will seek both:
A court declaration that Seven is entitled to terminate the MRA (media rights agreement) on the basis of material contract breaches by CA which were not remedied.
“And damages arising out of past breaches.”
Seven previously obtained preliminary discovery proceedings in the Federal Court relating to the claims.
Seven’s intention is to terminate the MRA, conditional on the Federal Court granting a declaration that Seven is entitled to do so.
Seven has the right to waive this condition. The damages action is not conditional.
Seven will continue to perform its obligations under the MRA (in terms of telecasting Tests and BBL etc.) until terminated.
Seven has pursued the informal dispute resolution procedure under the MRA but the procedure failed to resolve the dispute.
In response, Cricket Australia issued a statement defending its commitment to Seven, and labelled the network’s action as “unwarranted”.
It read:
“Cricket Australia (CA) is aware of reports that our broadcast partner, the Seven Network, has commenced legal proceedings against CA in relation to recent COVID-impacted cricket seasons.
“CA delivered two very successful cricket seasons in 2020-21 and 2021-22, including every WBBL and BBL game (a total of 240 games over two seasons) and highly acclaimed international schedules, despite the enormous challenges presented by the global pandemic.
“In the circumstances, CA is astonished that Seven has brought this unwarranted action which will be strenuously defended.
“CA remains enormously proud of the efforts of the Australian Cricket family including players, match officials, sponsors, stadium operators, host governments, staff and volunteers whose hard work, dedication and expertise allowed us to deliver two exceptional cricket seasons in unprecedented circumstances.
“We look forward to another hugely entertaining summer, including hosting the ICC Men’s T20 World Cup as defending champions, welcoming a record six international touring teams to Australia, as well as the eighth and twelfth editions of WBBL and BBL respectively.”
