Network Ten has confirmed its withdrawal from the race to secure the broadcast rights for the Melbourne Cup Carnival.
The network, which is owned by Paramount, confirmed today it had elected not to proceed with negotiations with the Victoria Racing Club (VRC) and Tabcorp.
Wagering giant Tabcorp is currently the preferred bidder for the Melbourne Cup rights, but under Australian anti-siphoning laws and a proposed agreement with the event’s owner, the Victoria Racing Club, it must sublicense the rights to a free-to-air broadcaster.
Today’s decision by 10 to withdraw from the bidding process opens the field for Channel 9 and Channel 7 to vie for the coveted free-to-air broadcast rights from next year.
Ten, the current holder of the domestic rights, cited changes in the nature of the agreement between Tabcorp and the VRC as key to its decision. A 10 network spokesperson telling TV Blackbox,
“Network 10 has declined Tabcorp’s and the Victoria Racing Club’s (VRC) invitation to progress further in the process to secure broadcast rights for the Melbourne Cup Carnival after the current agreement finishes with this year’s Carnival.
“Network 10 would like to acknowledge the VRC for a successful partnership in broadcasting the Melbourne Cup Carnival to millions of Australians since 2019.
“When the landmark rights agreement was struck, we saw it as important to engage new, younger and growing audiences to the Carnival and the sport of racing. We achieved this even receiving a recent Logie nomination for the 2022 Melbourne Cup Carnival broadcast for Most Outstanding Sports Coverage.
“Throughout Network 10’s tenure, the Lexus Melbourne Cup has dominated its timeslot for people 16 to 39, with a commercial share ranging between 81.7% and 91.4%.
“Network 10 is proud to have brought the Melbourne Cup Carnival to Australians during two years of COVID-19 restrictions in 2020 and 2021.
“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.
“Network 10 remains the Melbourne Cup Carnival rightsholder for 2023 and looks forward to providing coverage of this year’s Carnival, bringing viewers all the exciting action on and off the track.
“Network 10 wishes Tabcorp and the VRC all the best with their current process over the coming weeks and their new partnership from 2024.”
TV Blackbox understands Tabcorp is requesting a 50 per cent share of all wagering advertisements during the four-day carnival, from any potential free-to-air partner under the new rights deal.
It is understood the VRC and Tabcorp is also insisted on controlling production and commentary of the raceday coverage in a move designed to showcase talent and branding from the Tabcorp-owned Sky Racing Channel.
Furthermore, TV Blackbox understands free-to-air broadcasters are nervous that the VRC/Tabcorp partnership will be seeking to produce a more “deep horse racing and wagering” focused coverage with considerably less focus on other race day aspects such as marques, celebrity guests and fashion in a move that could further alienate casual viewers and limit support from advertisers
With Ten bowing out, Seven and Nine remain in contention for the deal. Seven, which already broadcasts horse racing on other Melbourne tracks, has presented financial terms to Tabcorp, reportedly less than what Ten offered under the current deal. Nine, having previously invested heavily in broadcast rights for events like the Olympics and tennis, submitted an offer earlier this week. Both networks are expected to present to the VRC and Tabcorp in the coming week.
Current rights holder Network Ten spent $100 million in cash and contra on a five-year deal for the carnival. The network had seeked to attract younger audiences to the event. However, it faced significant competition from rival horse racing events being broadcast from NSW on Channel 7.
While the terms of Tabcorp’s deal with the VRC are still to be finalised, there is no certainty a deal will proceed, especially if it does not meet the financial expectations of the parties involved. The Melbourne Cup, the most watched race on the local thoroughbred calendar, is a significant source of revenue for Tabcorp and crucial to the financially strained VRC.
Additional Source: AFR
