Restrictive advertising requirements from new Melbourne Cup rights owner Tabcorp means the three free-to-air networks are likely to pay much less for the broadcast rights to the race from next year onwards.
Earlier this month, Tabcorp struck a $25 million-a-year deal with race host Victoria Racing Club for the free-to-air, digital, international, and pay-television rights to the Melbourne Cup.
The wagering company is now looking to broker a sub-licensing deal for the free-to-air rights in Australia to offset these costs.
Current rights holder Network 10, Nine Entertainment, and Seven West have all made bids for the free-to-air rights for the Melbourne Cup, alongside Racing.com.
Channel Ten is in the last year of a five-year, $100 million broadcasting deal for the rights, but it’s unlikely the networks will pay close to this.
Part of Tabcorp’s sub-license will require the free-to-air networks to feature Tabcorp’s TAB brand as half of all betting advertising, and to integrate the TAB’s betting odds into their broadcast.
Melbourne Cup falls outside current gambling advertising restrictions, making it valuable real estate for the networks. With TAB dominating this space, the rights are subsequently worth a lot less to the free-to-air networks.
Last Friday, all three networks either made offers, or indicated their intention to, so Tabcorp will, by now, know exactly how much the TV rights are worth.
