Channel 7 starts process to pull out of cricket broadcast deal

Channel Seven has commenced the process to terminate its contract with Cricket Australia.

In a dramatic escalation of the TV rights drama, News Corp understands that the network sent a legal letter to CA bosses earlier this week informing them that it would begin the process to cancel the remainder of the $450 million deal, citing a belief that Cricket Australia is in breach of the contract.

Cricket Australia says the letter sent to them was not a termination letter.

Industry sources have told News Corp that Cricket Australia has 14 days to respond, before the dramatic escalation would then go into a lengthy mediation and arbitration process.

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Big Bash League executive Anthony Everard says the BBL will still be a high quality product. Picture: Hamish Blair

Seven and CA executives have been in talks since last Friday but the issue now appears headed for an ugly legal battle.

If Seven was ultimately successful in its legal challenge, the game could be left without a free-to-air broadcast partner on the eve of the summer.

CA has maintained all along it is confident in its legal position that as long as it provides a full schedule, it will be upholding its end of the bargain in the mega TV rights deal.

At the crux of Seven’s complaint is a belief that the value of this year’s Big Bash League product will be diminished due to player unavailability and reduced crowds, a concern also held by the game’s other broadcast partner, Fox Sports.

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“Cricket Australia remains in ongoing discussions with the Seven Network about delivering a compelling summer of cricket,” CA said in a statement.

“CA is committed to fulfilling its contractual obligations to all its partners this season.”

Cricket Australia is adamant it will produce a high quality BBL despite the complications of COVID-19 and executive Anthony Everard on Thursday denied that the T20 competition was all about star players.