Cricket Australia is facing a "major revenue crisis" after global investment bank UBS "urged broadcast partner Nine to axe cricket coverage" because the network is losing up to A$40M ($30.1M) every year televising the sport, according to Battersby & Hawthorne of the SYDNEY MORNING HERALD. Nine has broadcast cricket every summer since media tycoon Kerry Packer "famously bid for the sport" in the late '70s, and is renegotiating for '18-23 broadcast rights. UBS media analyst Eric Choi believes Nine Entertainment Co. "should walk away from negotiations if Cricket Australia's price is too high." Choi wrote, "The existing cricket deal costs Nine circa A$100 million ($75.4M) per annum. We estimate the existing deal likely only generates gross revenues of A$60-A$70 million ($45.2M-$52.8M)." A "lack of a competitive bidding process for the TV rights would be a disaster" for CA, and comes as the sport "attempts to re-sign all its major sponsorship contracts over the next 24 months." In addition, CA is in "tough pay negotiations with cricketers," with an existing pay deal expiring on June 30. CA Media, Communications & Marketing GM Ben Amarfio said that "very positive discussions" with Nine about the next cycle of media rights had begun (SMH, 4/26).
