A spokesman for Tennis Australia confirmed it had reached an in principle agreement.
The main reason Nine, owner of The Sydney Morning Herald and The Age, requested a discount is because a rescheduled tournament would fail to meet the broadcaster’s contracted dates. But the delays will also affect revenue for the broadcaster, which launches its most popular show MAFS immediately after the Australian Open.
Novak Djokovic on his way to winning the 2020 Australian Open title.Credit:Getty
Media companies buy the rights to sport as it helps attract large audiences and advertisers.
Any discount will put more financial pressure on Tennis Australia, as it is paying for charter flights, player quarantine costs, meals and accommodation. The bill to keep all players and staff in quarantine is expected to cost about $40 million, but this could be reduced slightly by rent relief the organisation will receive from The Melbourne and Olympic Parks Trust.
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The tennis rights are the second major sports deal to be renegotiated by Nine. Nine signed a $1.8 billion deal with Foxtel and Telstra for the NRL until 2022, but the delay of the 2020 season forced the parties back to the table. Nine said at the time it would save $27.5 million for 2021, the same amount for 2022 and a reduction this year because of the changes to the season.
Other sports to successfully renegotiate this year’s broadcast deals due to conditions caused by the coronavirus pandemic include the AFL and rugby union.
Seven West Media is still waiting on a verdict from independent expert Justin Jameson on how much its rights for the summer of cricket should be reduced. It has separately lodged federal court proceedings against Cricket Australia.
