Spending billions on short term sports broadcast deals in this rapidly changing media world is certainly a gamble. The ink had barely dried on 2018’s whopping cricket and tennis broadcast deals before analysts were questioning their wisdom.

As Citi’s media analyst David Kaynes said after pens had gone to paper, “Tennis was already loss-making for Seven with advertising revenues not covering the total costs, and we estimate that Nine will make an annual loss of $20-to-$30 million on the tennis. This is a much better outcome than the roughly $50 million annual loss it had on the cricket previously.”

Which begs the question: are these sports tactically shrewd loss-leaders that bring in mammoth value from other sources, or vastly overpriced assets that will soon become untenable for free to air networks? You can read more here.

Ekas Research
Ekas Research jaxon@ekas.com.au