We’re inching closer to the big one at Flemington. Some horses have booked their golden tickets, while 2022 winner Gold Trip is back to work, but which channels will we be watching the race on in future?
Tabcorp has now encouraged commercial TV networks to express any interest in purchasing domestic rights to broadcast the Melbourne Cup.
It is thought any deal may generate up to $100,000,000 over five years.
Domestic Sublicensing the Key Factor
Tabcorp currently owns the international TV rights for the Melbourne Cup. The major wagering group has now been handed permission by Victoria Racing Club to head up interest in sublicensing the domestic rights.
This means Tabcorp acting as a broker. The group would then have the chance to allow its own TV talent to be seen by more people. Via their Sky Racing channel, the team and Tabcorp’s branding could be viewed by free-to-air watchers.
Amid a changing racing world and direct competition from Sydney, Victoria Racing Club needs to secure its own financial future. Signing a deal with Tabcorp or another bidder is therefore vital for VRC.
Tabcorp is rumoured to be VRC’s preferred bidder, though they need to sublicense the Melbourne Cup itself owing to federal anti-siphoning rules. This leaves us in the position we’re in now.
The full terms of the latest deal have not been worked out yet.
Betting Brand Implications
Currently the TAB betting brand, owned by Tabcorp, is official Champion Stakes Day partner, part of the Melbourne Cup carnival. Tabcorp and VRC’s partnership therefore is longstanding. It seems both sides want that to continue in order for Flemington’s biggest event to continue to thrive.
Tabcorp may well be thinking that this timing is ideal for the TAB brand. In recent years, major competition has come forth from overseas betting companies online. Tabcorp already owns international rights. Owning domestic rights too is a chance for them to remain ahead of the online betting competition.
If the current potential deal gets beyond the due diligence stage, it would mean that it’s the first time a betting business would own all of the rights to the Melbourne Cup. For it to work, the deal needs to make financial sense for the wagering brand. They will of course be earning from free-to-air TV broadcasters for the sublicense.
Why Is the Cup Affected by Anti-Siphoning Laws?
The current anti-siphoning laws in Australia are under review. They are still key to this agreement however and the future of broadcasting the Melbourne Cup.
The laws require a racing regulator to offer Melbourne Cup rights to free-to-air networks. Networks must show the Melbourne Cup live, for free. There are however no rules currently which would stop the Cup from being shown behind a paywall if there were to be no interest from free-to-air TV networks.
Laws like may affect bids, something we’ll find out in the next couple of weeks.
