Ten Network might not continue with the telecast of BBL

The Big Bash League (BBL) organised by Cricket Australia is regarded as one of the top Twenty20 leagues in the world. The success of the BBL also spawned a sister concern, i.e WBBL – Women’s Big Bash League. Both of them have played a big part in bringing into the limelight, erstwhile unknown names onto the big stage.

Ten Network’s revenue woes

Ten Network announced on Tuesday that it has requested a temporary trade halt in the Australian share market.(ASX). The network’s relationship with the BBL was plunged into uncertainty following a notice from their main financial bankers, Lachlan Murdoch’s investment company Illyria and Bruce Gordon’s Birketu. The two companies decided not to renew their contracts with Ten Network after the expiry of the current of the current loan of US $151.12 million on December 23.

“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,” said the company in a release 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,” it stated further

The situation also comes as a big blow to Cricket Australia, who estimates that if Ten had continued with the rights, it stood to earn profits of up to nearly US $222.68 million. Channel Nine, which for long has been the broadcaster for cricket in Australia has expressed its interest to “bid for everything”next year. So is the pay television provider, Foxtel.

There has also been a cloud in Australian cricket regarding pay disputes between CA and the players and this situation would pile on top of it. Also, a concern for Cricket Australia is to find a new head for BBL after the former in-charge Anthony Everard was promoted to CA’s executive management team. They seem to have their hands full and if Ten Network’s deal doesn’t pull through their lot on the plate will only seem to get bigger.