The Ten network has decided to drop its bids for the Melbourne Cup, after saying that it would become more focused on gambling, and more specifically, on a potential Tabcorp deal.
The Ten network has been the broadcaster of the Melbourne Cup Carnival since 2019, after inking a 5-year deal valued at approximately $100 million. At the time, the company took over the broadcasting rights for the competition from Seven, which had been the Melbourne Cup Carnival since 2002.
On the other hand, the brick-and-mortar gambling giant Tabcorp managed to secure a deal with the Victoria Racing Club (VRC) earlier this month, to see a betting operator control the entire broadcasting rights (including digital, free-to-air television, and pay-television) for the first time ever.
According to people familiar with the matter who asked not to be named because the matter is still private, potential sponsors were uncertain they wanted to advertise during the Melbourne Cup Carnival in case the programs were dominated by gambling-related adverts. Ten Network, on the other hand, noted that it had declined the invitation of the Victoria Racing Club and Tabcorp to make further progress to secure the Melbourne Cup Carnival’s broadcasting rights following the current agreement finishes with this year’s event.
The Deal’s Broadcasting Product to Be Mostly Focused on Racing and Betting
Ten Network’s representatives have further revealed that throughout the course of the ongoing talks, it became clear that the nature of the Victoria Racing Club and Tabcorp’s deal would require a move towards a broadcasting product focused primarily on betting and racing. Such a move, however, is likely to change the company’s focus, along with the commercial restrictions that would apply to the future agreement, so Network 10 took into account its viewers’ and advertisers’ content preferences and decided to reject the opportunity to proceed further with the process.
Two other companies – Seven West Media and Nine Entertainment – remain in the bidding process for now, although the involvement of Tabcorp and the company’s commercial dominance in the broadcasting rights has raised some concerns about the future.
Network 10 has been proud of the provision of a great variety of content, rather than focusing primarily on racing and betting. According to reports in the Sydney Morning Herald, which is currently owned by Nine Entertainment, the two remaining broadcasting groups are set to place official offers next week at the earliest.
According to News Corp reports, Network 10 had been dropped as a bidder because the Australian gambling giant Tabcorp wanted to partner with a higher-rated network. Ten, however, has denied that was the case. As required by the existing anti-siphoning laws in Australia, Tabcorp is required to sub-licence the racing and betting rights to a free-to-air broadcasting group. The summer and winter Olympic Games, the Melbourne Cup, the National Rugby League, the Australian Football League, the Commonwealth Games, and the Australian F1 grand prix have been part of the events subject to these regulations.
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Olivia Cole
