Channel 10's bid to televise the V8 Supercars for the next five years has landed on the negotiating table with a thump. Now it's up to Channels 7 and 9.
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Although Ten has televised the V8s for 10 years — ever since the split — its initial proposal has been rejected by the board of V8 Supercars Australia, which has opened negotiations with "other interested parties".
James Erskine, whose SEL company looks after the V8 Supercars' commercial interests, refuses to name those parties, but the obvious assumption is Seven and Nine.
The five-year deal is expected to be done by the end of this month, or even sooner, but there is no deadline.
Once rival bids have lobbed, Ten has the chance to match the offer with a "last right of refusal" clause from the existing contract.
The accepted wisdom is that Ten paid about $5 million a year in cash and contra in the last five-year deal and the asking price is now close to double that.
One insider suggested yesterday that Nine was finding the asking price a bit rich but Seven was keen. It is not inconceivable that, given their sharing of the AFL, Ten and Seven could also share the V8s and the cost.
But, having won the TV battle a decade ago, Ten would surely be reluctant to share motor sport with a bitter rival.
David White, Ten's head of sport last year, acknowledged he would have a fight on his hands to keep the V8s, the centrepiece of Ten's motorsport coverage. But he was adamant his network wanted to do so.
"It's certainly our desire to renew. We have invested a lot of time and effort and we want to continue," he says.
The assumption is the V8s will stay with Ten, the network that supported them from the start, especially when things were rocky. But business is business.
But perhaps a more interesting aspect for motor sport fans involves programming. Just where would the V8s fit into the weekend TV sports programming from 2007?
If Ten wins, nothing much will change, with most rounds being covered on Sundays 1pm-5pm, the network being free of AFL commitments on that day. If Nine was to stay in negotiations, the expectation is the V8s will run an hour earlier, butting on to a Sunday rugby league game at 4pm.
Seven would have to work the V8s around its AFL coverage. Presumably it would allow Ten to have the Sunday AFL game while keeping the V8s.
A further scenario is that a Seven/Ten deal could involve Seven covering the major events, such as Bathurst, and Ten covering the bread and butter rounds, also deemed by most observers to be unpalatable to Ten.
The wild card is Fox Sports. Currently, it shows only replays. A separate deal might allow Fox to package up Friday practice and Saturday qualifying/racing, giving V8 fans a full three days coverage of each round instead of the current one or two days.
Source: The Daily Telegraph
Full Version: V8 Telecast Battle Is Heating Up
Network 10 has dropped the v8s totally.....
Network Ten - Ten Declines V8 Supercars Offer
Author: Network Ten | May 23, 2006, 14:06
Network Ten today announced it would not take up the offer of broadcast rights from V8 Supercars Australia for the 2007-12 seasons.
TEN informed V8 Supercars Australia of its decision earlier today.
TEN’s chief executive officer, Grant Blackley, said: “Having reviewed the offer extensively and taken into account the market value of V8 Supercars in the Australian and international sporting landscape, this deal makes no commercial sense.” Mr Blackley added that TEN was acutely aware of the popularity and commercial viability to date of the V8 Supercar series, having brought it to unprecedented prominence in ten years of committed coverage.
TEN’s Bathurst 1000 telecast has won four Logie awards, the last three in succession, a coverage recognised by the television industry in 2004 as superior to that of the Olympic Games.
“There has been a passion for this truly Australian brand of motor racing that still runs through every level of the Network, and TEN did have the last right to match any rival offers for the contract. But, we simply could not justify the asking price even given the most optimistic projections,” Mr Blackley concluded.
TEN’s general manager – network sport, David White, added: “I would like to thank the hundreds of dedicated staff who have produced TEN’s V8 telecasts over the years and assure motor sport fans that the TEN team will continue to deliver the telecasts to the same level of excellence that our viewers have come to expect for the remainder of the season and continue in future years to stamp their excellence on our Formula One, MotoGP and Rally telecasts.
“The entire TEN staff would also like to take this opportunity to thank the V8 Supercar teams and drivers who have been a pleasure to work with in the re-building of this sport.
We wish them every success in the future.” Network Ten has held the broadcast rights to V8 Supercars since 1997.
Network Ten - Ten Declines V8 Supercars Offer
Author: Network Ten | May 23, 2006, 14:06
Network Ten today announced it would not take up the offer of broadcast rights from V8 Supercars Australia for the 2007-12 seasons.
TEN informed V8 Supercars Australia of its decision earlier today.
TEN’s chief executive officer, Grant Blackley, said: “Having reviewed the offer extensively and taken into account the market value of V8 Supercars in the Australian and international sporting landscape, this deal makes no commercial sense.” Mr Blackley added that TEN was acutely aware of the popularity and commercial viability to date of the V8 Supercar series, having brought it to unprecedented prominence in ten years of committed coverage.
TEN’s Bathurst 1000 telecast has won four Logie awards, the last three in succession, a coverage recognised by the television industry in 2004 as superior to that of the Olympic Games.
“There has been a passion for this truly Australian brand of motor racing that still runs through every level of the Network, and TEN did have the last right to match any rival offers for the contract. But, we simply could not justify the asking price even given the most optimistic projections,” Mr Blackley concluded.
TEN’s general manager – network sport, David White, added: “I would like to thank the hundreds of dedicated staff who have produced TEN’s V8 telecasts over the years and assure motor sport fans that the TEN team will continue to deliver the telecasts to the same level of excellence that our viewers have come to expect for the remainder of the season and continue in future years to stamp their excellence on our Formula One, MotoGP and Rally telecasts.
“The entire TEN staff would also like to take this opportunity to thank the V8 Supercar teams and drivers who have been a pleasure to work with in the re-building of this sport.
We wish them every success in the future.” Network Ten has held the broadcast rights to V8 Supercars since 1997.
this is not good news for darwin viewers. We have abc, sbs, nine and southern cross - which takes mainly 7 but also some 10 stuff, such as neighbours and the v8s.
with the football also going to 7 next year, it is going to be messy. At the moment 9 takes the sunday games, which means that southern cross picks up 10's sunday coverage of the v8s.
who knows what will happen with it all on 7. i'm guessing football will win out over motorsport
with the football also going to 7 next year, it is going to be messy. At the moment 9 takes the sunday games, which means that southern cross picks up 10's sunday coverage of the v8s.
who knows what will happen with it all on 7. i'm guessing football will win out over motorsport
SEVEN Network chief executive David Leckie has downplayed fears of a cost blowout at the TV network after paying about $70 million for the V8 Supercars free-to-air broadcast rights for six years.
The cost adds to Seven's sports program budget, after it last year agreed with the Ten Network to pay $780 million over five years for the AFL's TV rights from 2007.
Confirming the new V8 Supercar deal yesterday, which Seven won from Channel Ten, Mr Leckie said it had been negotiated over 15 months.
"We are not going to be silly about our costs," he said.
"We are building our platform brick by brick and every year we are getting a bit better, it (V8) is a very important brick as far as programming is concerned and as far as revenue is concerned."
Ten declined to match Seven's V8 offer, with Ten chief Grant Blackley saying the deal "made no commercial sense".
Asked if Seven and Ten would still be able to work together on the AFL deal, Mr Leckie said: "I assume so, but we are fierce competitors".
Media analysts are concerned the AFL and V8 rights would substantially increase Seven's costs from next year, and whether they could be recouped through a higher revenue share.
"I think costs are coming under increasing pressure," UBS media analyst Nola Hodgson said.
Seven will also be paying an undisclosed annual fee to a new TV production company created by V8 Supercars to make the telecasts.
Also this week, Seven's long-term No2 shareholder, ITV of Britain, sold its 11 per cent holding.
ITV bought its stake in 2000 through its TV production arm, Granada.
Granada was then chaired in Australia by Steve Vizard after the TV group bought his local production business, Artist Services.
ITV, formed in 2004 through the merger of Granada and Carlton Communications, has since been selling non-core assets. It raised about $220 million from the sale of its Seven stake.
Seven yesterday told the stock exchange the sale might have reduced its foreign shareholding "to as low as five per cent".
Foreign ownership laws prevent overseas companies from owning more than 15 per cent of a TV group's voting stock.
Seven will broadcast nearly 100 hours of V8 Supercars coverage from next year, raising concerns the telecasts would clash with AFL games.
"We went into these discussions with our eyes wide open and with our new AFL agreement closely on our minds, but it's tremendous that we have got two great sports for our viewers and to sell to advertisers," Mr Leckie said. James Erskine, chief executive of Sports Entertainment which owns 25 per cent of V8 Supercars, said there would be "one or two" scheduling clashes that Seven, the AFL and V8 Supercars would work out. "V8 Supercars is very close to the AFL. (AFL commercial chief) Ben Buckley is a friend of mine and our audiences are the same," he said. "The problem will be easily solved."
V8 Supercars chairman Tony Cochrane said Seven had guaranteed the sport the same exposure that it gave to the AFL and Australian tennis.
Mr Leckie said Seven had yet to decide if AFL and V8 telecasts would be packaged together for advertisers.
"We have to work that out, but I would have to assume we have got a lot of new viewers ... capturing an audience like this is pretty smart," he said.
Jane Schulze appears on the Sky News Channel's Sky Business Report each weeknight at 8.30pm
The cost adds to Seven's sports program budget, after it last year agreed with the Ten Network to pay $780 million over five years for the AFL's TV rights from 2007.
Confirming the new V8 Supercar deal yesterday, which Seven won from Channel Ten, Mr Leckie said it had been negotiated over 15 months.
"We are not going to be silly about our costs," he said.
"We are building our platform brick by brick and every year we are getting a bit better, it (V8) is a very important brick as far as programming is concerned and as far as revenue is concerned."
Ten declined to match Seven's V8 offer, with Ten chief Grant Blackley saying the deal "made no commercial sense".
Asked if Seven and Ten would still be able to work together on the AFL deal, Mr Leckie said: "I assume so, but we are fierce competitors".
Media analysts are concerned the AFL and V8 rights would substantially increase Seven's costs from next year, and whether they could be recouped through a higher revenue share.
"I think costs are coming under increasing pressure," UBS media analyst Nola Hodgson said.
Seven will also be paying an undisclosed annual fee to a new TV production company created by V8 Supercars to make the telecasts.
Also this week, Seven's long-term No2 shareholder, ITV of Britain, sold its 11 per cent holding.
ITV bought its stake in 2000 through its TV production arm, Granada.
Granada was then chaired in Australia by Steve Vizard after the TV group bought his local production business, Artist Services.
ITV, formed in 2004 through the merger of Granada and Carlton Communications, has since been selling non-core assets. It raised about $220 million from the sale of its Seven stake.
Seven yesterday told the stock exchange the sale might have reduced its foreign shareholding "to as low as five per cent".
Foreign ownership laws prevent overseas companies from owning more than 15 per cent of a TV group's voting stock.
Seven will broadcast nearly 100 hours of V8 Supercars coverage from next year, raising concerns the telecasts would clash with AFL games.
"We went into these discussions with our eyes wide open and with our new AFL agreement closely on our minds, but it's tremendous that we have got two great sports for our viewers and to sell to advertisers," Mr Leckie said. James Erskine, chief executive of Sports Entertainment which owns 25 per cent of V8 Supercars, said there would be "one or two" scheduling clashes that Seven, the AFL and V8 Supercars would work out. "V8 Supercars is very close to the AFL. (AFL commercial chief) Ben Buckley is a friend of mine and our audiences are the same," he said. "The problem will be easily solved."
V8 Supercars chairman Tony Cochrane said Seven had guaranteed the sport the same exposure that it gave to the AFL and Australian tennis.
Mr Leckie said Seven had yet to decide if AFL and V8 telecasts would be packaged together for advertisers.
"We have to work that out, but I would have to assume we have got a lot of new viewers ... capturing an audience like this is pretty smart," he said.
Jane Schulze appears on the Sky News Channel's Sky Business Report each weeknight at 8.30pm
shall be very interesting to see where it all goes. I would hope after spending this amount of cash they will utilize digital TV during the races. Different cockpits, Broadcast of radio commentary, stuff like that!
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