There is speculation today that Nine will fall $10m – $15m short of its $140m revenue for the London Olympics.
The Australian reports today that Nine had failed to sell all its planned sponsorship packages and that it had been offering significant deductions off rate card rates.
Both Nine and Foxtel have paid $120m for the rights to both the Vancouver 2010 Winter Olympics and the London summer Olympics. Nine managing director Jeffrey Browne has previously said the net value of the Olympics would be in excess of $140m.
With production costs, the loss could be up to $30m.
Nine declined to comment to the newspaper yesterday.
But Foxtel, which was still selling sponsorship packages less than three weeks before the opening ceremony was less reliant on ad revenue.
“Our principal motivation is new subscribers, subscriber retention and getting subscribers to upgrade to sports packages,” a spokesman for Foxtel said.
Meanwhile there is further speculation that the rights to 2016 Rio may be won by Seven because Nine has greater financial problems to repay debt.