Channel 9 financial woes

[Porthoz]

Well I think league fans have cause to be concerned. If Channel 9 falls in a heap the TV deal is null and void basically. Taking them out of the picture leaves us with only channel 10/7 showing any interest. We'd be in the same boat as previous contract negotiations where there's only 1 party interested so they dictate terms.

Shut up Wally!

 

[Steve]

Well I think league fans have cause to be concerned. If Channel 9 falls in a heap the TV deal is null and void basically. Taking them out of the picture leaves us with only channel 10/7 showing any interest. We'd be in the same boat as previous contract negotiations where there's only 1 party interested so they dictate terms.

Like Wally? :p

 

[Kimlo]

I highly doubt they are hoping the NRL will some how dig them out of financial issues. I mean, they've had the game from a time when they were making tonnes of cash. Not to mention if they wanted NRL to save it's ass, it wouldn't **** with the fans and actually play more live games.

In saying that. Why the **** would Nine share the inner workings of their credit procedures with them. I reckon that sort of information is very much confidential for any company, small or large.

I reckon on 1 billion $ deals the rules are a bit different. Wouldn't surprise me at all and the NRL is not a competitor in any way.

 

[subsbligh]

I highly doubt they are hoping the NRL will some how dig them out of financial issues. I mean, they've had the game from a time when they were making tonnes of cash. Not to mention if they wanted NRL to save it's ass, it wouldn't **** with the fans and actually play more live games.

In saying that. Why the **** would Nine share the inner workings of their credit procedures with them. I reckon that sort of information is very much confidential for any company, small or large.

IIRC, a number of analysts predict that Channel 9 will barely break even on the TV rights for the NRL (i.e cost of investment versus direct advertising revenue).

If that is true, then 9 would have to put a lot of value on the indirect benefits ("the home of sport" branding for example) of securing the NRL deal.

Why would Channel 9 share their financial position? Well if the NRL had half a brain they'd demand to know if the party they are contracting with will make good on their $1BN over 5 years before they tell other suitors (Channel 7/10) to go jump on their marginally less profitable offers.

 

[Dexter]

CVC who own 9 are a massive private equity company with many investments world wide. Any deal worth that sort of money would have disclosure clauses on both sides.

You would have to satisfy the client of your capacity to hold up your end so full disclosure of relevant issues like debt would be part of the deal.

You can see just how big CVC are in their web page. Click on view our portfolio.

http://www.cvc.com/

 

[fredie]

tv station channel 9 has been saved by selling there soul today