MOTORSPORT: V8 Supercars move to pay TV and Ten

Free-to-air component of new deal not yet clear
V8 Supercars has done a mega new media deal with pay television and the Ten Network to start from 2015.

Today’s shock announcement puts the value of the six-year deal, which includes telecasts and all digitial rights, at $241 million -- $196 million in cash (almost $33 million a season) and $45 million in advertising.

Foxtel and Fox Sports are central to the new deal and it is not yet clear how much of the V8 Supercar Championship the Ten Network will show.

While Ten is boasting that it “is now truly the home of motorsport”, the Financial Review sports business correspondent John Stensholt has reported that “it is understood that Fox Sports will show at least some of the V8 races in the 2015 series on an exclusive basis”.

V8 Supercar fans already are expressing annoyance that they may not get to see all races free and live on television.

The Seven Network, whose existing two-year contract to telecast the championship will end next season, said it had “put forward an offer for a new television agreement that represented a substantial increase on the current rights agreement and one which made financial sense for Seven and V8s and would have ensured its presence on Australia’s leading television network for years to come”.

But V8 Supercars chief executive James Warburton said the Fox-Ten deal was “tremendous and significant for our sport”.

“It is a great boost to our amazing race teams and fans and will lead to unprecedented coverage on multiple platforms for our sport, never before seen on such a scale,” Warburton said.

He said Fox and Ten had committed “to grow this sport to unprecedented levels”.

Foxtel chief executive Richard Freudenstein said Foxtel and Fox Sports “will deliver a breadth and depth of coverage of V8 Supercars that they’ve never seen before”.

“Not only will the series be available in amazing high definition on the Foxtel cable and satellite service, fans will also be able to enjoy all the action on the move with Foxtel Go or with the convenience of Foxtel Play,” Freudenstein said.

Fox Sports’ Patrick Delany said: “We relish the opportunity to give the sport the Fox Sports treatment – every minute of practice, qualifying, support categories and the championship races – all live and in stunning HD.

“We will be there for the fans and we will make no compromises in delivering them the finest coverage. We will focus on innovating coverage to take fans closer to the action, the heroes, the stars and the insights.

“There will be weekly entertainment shows to complement the live race coverage and a massive promotional platform via not only our seven Fox Sports channels but the entire Foxtel platform.”

Ten chief Hamish McLennan said his network was “delighted to welcome V8 Supercars back home to Ten in 2015” and that they were “an iconic Australian sport”.

“Ten is now truly the home of motorsport. Formula One, MotoGP and V8 Supercars will make a powerful, exciting combination for all our viewers and advertisers,” McLennan said.

“I'm looking forward to seeing the Supercheap Auto Bathurst 1000 and other great V8 Supercars events on Ten.”

This year’s recently-completed V8 Supercar Championship with four car brands represented – Nissan and AMG Erebus (Mercedes) joined Holden and Ford in the debut season under the ‘Car of the Future’ rules – produced 17 different race winners.

Volvo will enter next season in association with Garry Rogers Motorsport running S60s.

A previous six-year deal between V8 Supercars and Seven reputedly was worth $28 million a season, but the late deal done for this year and next is believed to have been for only about $18 million a season.

Warburton’s predecessor David Malone did that deal and it was perceived to have cost him his job soon after.

Teams were irate that it did not provide enough revenue for them to receive dividends from V8 Supercars, which is majority-owned by private equity company Archer Capital.

While Seven has said it was prepared to pay a lot more beyond 2015, Warburton has pulled off a financial coup in the deal struck with Fox and Ten, although there could be repercussions from fans if they no longer get to see all races free.

Seven Network chief executive Tim Worner said V8 Supercars had “declined to build” on their relationship beyond 2014.

“However, we look forward to broadcasting V8s next year and leaving the sport in good shape,” Worner said.

“We will give the V8s in 2014 everything we’ve got in the way that only Seven can.”

Warburton has been wanting to move several races next season to twilight after the experiment at this month’s Sydney 500.

It will be interesting to see whether Seven co-operates with him on that now the V8 Supercars will be moving home the next year.

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