BBL is the most popular non-news show on free-to-air TV for Ten Sports. It has been one of the mass catching on-air shows for Ten network and has gained an audience. A popularity of sorts over the years. But the league’s broadcasting authority and telecasting it on air is in trouble due to some financial problems of the stakeholders of Ten network.
Ahead of the final season, before the rights to the BBL are to go to market where it is expected to earn up to A$40 million (approx US$30.21 million) more per tournament for Cricket Australia, The Ten announced on Tuesday that it had requested a temporary trade halt on the Australian share market (ASX).
The request has been made after learning the fact that the network’s two major financial strengths, Lachlan Murdoch’s investment company Illyria and Bruce Gordon’s Birketu, don’t intend to renew their financing of the company after the December 23 expiry of the current A$200 million (approx US$151.12 million) loan from the Commonwealth Bank. This will affect the coverage of the game and also will stop the network from bidding its rights in future for broadcasting.
“Over the weekend, Ten received correspondence from financial advisers to Illyria Pty Limited and Birketu Pty Limited, two of the shareholders which guarantee the company’s current credit facility,” the company said in a statement to the ASX.
“That correspondence confirms that those guarantors do not intend to extend or increase their support for the company’s credit facilities beyond the term of the current facility, which expires on 23 December 2017.”
“Ten’s board is considering the position of the company in light of the position being taken by Illyria and Birketu and the range of restructuring and refinancing initiatives it has underway. Pending these determinations over the coming days, Ten considers that its shares will not be able to trade on an informed basis and, accordingly, requests the trading halt.” the company added.
Ten had warned back in April that uncertainty over its future financing “may cast significant doubt on the group’s ability to continue as a going concern” after the network posted an A$232 million (approx US$175.30 million) loss in the first half of the 2016-17 financial year.
Huge popularity for the BBL and WBBL have been one of the few positives for the network in recent times, following the signing of a deal with CA in 2013 that was worth A$100 million (approx US$151.12 million) over five years. Due in large part to the quality of Ten’s coverage, estimates for the next rights round have increased the BBL’s value to rise to as much as A$300 million (approx US$222.68 million) from 2018 to 2023.
Foxtel is also interested in returning to broadcast matches played in Australia via a simulcast arrangement where it could share the cost of broadcast rights with a free-to-air network as is the case in the AFL and NRL.
The ongoing rift between CA and ACA has been one of the main concerns now. CA has argued that it wants to break the fixed revenue-percentage model and provide fixed wages for the players. However, the Australian Cricketers’ Association has argued that shared risk is one of the principles of a partnership that has lasted for two decades. CA is currently on the lookout for a new head of the BBL after its overseer Anthony Everard was promoted to the board’s executive management team as the man in charge of events and leagues.
This year BBL title was won by the Perth Scorchers, who defeated the Sydney Sixers by nine wickets in final to claim their third title. Chris Lynn of the Brisbane Heat was named – player of the tournament for the second consecutive season, scoring 309 runs from just five matches.