TV deal about to fall over?

[shiretiger]

http://www.smh.com.au/business/channel-nine-on-brink-as-banks-circle-20120925-26jpx.html

IT WAS once the cornerstone of Kerry Packer's multibillion-dollar fortune, but after two full days of talks among creditors Channel Nine was last night still fighting to stave off bankruptcy.

That would certainly put a spanner in the works of the new TV deal.

 

[Tiger_Watto]

If it does, the ARLC need a kick in the arse for not looking further into Nine's financial position before signing any deal with them… Seven and Ten would come back with half what they offered and then we would be in the shit big time!

 

[Yossarian]

If it does, the ARLC need a kick in the arse for not looking further into Nine's financial position before signing any deal with them… Seven and Ten would come back with half what they offered and then we would be in the s*** big time!

They did look into nine's financial position - that's why they got some of the cash upfront.

http://news.smh.com.au/breaking-news-sport/nrl-tv-deal-dominates-day-of-drama-20120821-24kie.html

_Gyngell said league was part of Nine's "DNA" and despite the cash-strapped network and Foxtel having to fork out $90 million up-front between them, it was a race they had to win, beating off competition from the Seven and Ten Networks._

 

[Centaur]

I wouldn't worry too much. Worst case scenario is that someone else buys Nine at a garage sale price. Business will continue as normal.

 

[Bismark]

If Nine went belly up, one of the last things affected would be this rights deal. The network knows it's two biggest contracts are with the ARLC and Cricket Australia. It'll cut top rating shows from overseas + limit the bidgets of in-house projects before it thinks about changing it's sports deals.

 

[MacDougall]

I would suspect that nine would be legally incapable of breaking the contract with the NRL short of filing for bankruptcy, in which case Foxtel would still have half the deal and then Seven and Ten would go into a bidding war between themselves that would probably end up with the same amount anyway.

 

[Tiger_Watto]

I think you will find the directors at Seven & Ten are a little smarter than that… I can see them at the Star flipping a coin over it. :laughing: :laughing: :laughing:

If it did need to be re-tendered, I'd say the ARLC will be lucky to get 75% of what Nine paid.

 

[Yossarian]

Channel 10 aren't exactly flush with cash either. In any case Ch nine remains a going concern and if the current owners fall over someone else will take over and there will be no issues with league rights.

 

[Hit_or_Miss]

I think I heard this doesn't concern the station itself as it is profitable. It's the company that owned Ch9 that is in trouble. No issue in paying for the NRL rights.
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