After recent events, it now seems that broadcaster Nine is a near certainty to claim a broadcasting rights deal to show the Melbourne Cup live.
Nine seems sure now to work with the Victoria Racing Club and Tabcorp. The organisations have begun more detailed negotiations in recent days.
Only One Left in the Race
As of now, Nine is the only broadcaster left in the race to sign Melbourne Cup rights. Fellow channels Seven and Ten both previously left the negotiations. Both corporations claimed that talks were too protracted, while certain stipulations placed on them also led to the pull-outs.
While we’ve been looking for patterns in past Cup winners, TV channels have been hammering out the terms of the next TV deal. VRC and Tabcorp had already shook hands on a $100 million, six-year agreement. To rubber stamp it however, Tabcorp needs to be in a position to unload the free-to-air TV rights.
Tabcorp appears to be asking for 50% of all betting advertising throughout the Carnival. This includes Melbourne Cup Day. They also want to produce the coverage, placing the emphasis on the racing. Previous coverage has taken aim at fashion and other non-racing matters.
One last sticking point is that Tabcorp wants its own personalities on the broadcast. They currently host the Sky Racing programming.
These stipulations it seems are what has held back Ten from keeping the rights. They have held them since 2019.
Seven then walked away from negotiations back in September. Again, it was made public that disagreements over Tabcorp’s demands were the reason with the brand’s CEO sending a very to-the-point email to his counterparts at the VRC and Tabcorp.
All this means only Nine are left in the running at all. Will they simply go along with the demands, or does this leave them in a strong position to negotiate better terms?
Money Troubles for VRC
Nine’s position may have already led to strength in negotiations. It was reported back in September that the channel had bid just $5 million for the free-to-air rights. Ten paid $20m for the rights over the last five years.
Though they are unlikely to get the rights for as little as $5m, they look certain to pay less than Ten.
VRC have reported losses of some $45 million across the last three years. Including a $15 million ANZ loan, their known debt now soars to $63 million.
Though this story is about broadcasting rights, it brings to mind once again VRC’s stubbornness over veterinary checks, essentially stopping a host of top European horses from coming to the Carnival. With big prize money pressure from Sydney, a rethink may be needed soon.VRC needs as much money as it can get. The way negotiations have been handled over broadcasting rights, it seems Nine have them right where they want them and a further revenue hit is incoming.
