The Ashes hangover continues after Channel Seven partly blamed a $7m revenue shortfall on the pair of two-day Tests during the Australian summer, which were triggered by England’s capitulation in Perth and a pitch in Melbourne that proved too difficult for both sides to subdue.
The impact of the unusually brief series is still rippling through the game, leaving lower-than-expected returns for the cash-strapped sport and even Australia’s players, who have a revenue share agreement with the governing body.
Half-yearly results issued on Wednesday by Southern Cross Media Group, parent company of Seven West Media, reported revenue of $712m for Australia’s free-to-air broadcaster of the Ashes, down 2.1% on last year and down 1% on guidance provided at November’s AGM.
The turnaround between expected and realised revenue over such a short timeframe was put down to waning interest from those booking ads, and the cricket. Earnings were $67m, down 27% on the preceding period.
“The revenue shortfall to guidance is attributable to a weaker than expected advertising market in November and December, and the impact of shortened Perth and Melbourne Ashes Test match broadcasts,” the company said in a statement.
In Perth, a blistering Travis Head century ended the first Test in two days, leading to refunds for day three and four ticket-holders. The MCG Test finished the same way, after curator Matthew Page said the pitch went “too far”.
Seven and subscription TV provider Foxtel are midway through a $1.5bn, seven-year deal to broadcast international cricket over the Australian summer.
When advertisers have already booked slots during programs which do not end up being aired, networks typically offer other inventory as “make-goods”. But the results suggest there has also been an immediate financial impost.
Cricket Australia (CA) also suffered losses. The hit from the Perth Test was estimated at $4m, and on Boxing Day – at the 100,000-capacity MCG – the shortfall was reportedly as high as $10m.
In late January, the CA chief executive, Todd Greenberg, said the briefer-than-expected series “hurt”.
“I’m not in the business of giving money back, it doesn’t come naturally, so I would have much preferred those days to go on,” he told The Grade Cricketer podcast.
The impact extends beyond the governing body and its broadcast partners.
“There’s some irony for the players too, because when I sat on the side of the players [at the Australian Cricketers’ Association] we generated a revenue share agreement, so they take 27% of every dollar we earn,” Greenberg said.
“I went down to the sheds to see all the boys at the end of the Perth Test including Trav [Head] and he was like, ‘Sorry boss, we probably cost you some money.’ I said ‘Trav, you’ve probably cost yourself some money too.’”
Cricket Australia reported a $11.3m loss for 2024-25, but is anticipating returning a profit for the current summer.
