Network Ten appears to be in more financial pain than previously thought with the weight of its debt being revealed since administrators were appointed on June 14.
An investigation by Fairfax Media has revealed that the beleaguered network owes its US content provider CBS a staggering $843 million after the network submitted a claim for the outstanding monies to Ten’s new administrators.
Production company EndemolShine, that makes MasterChef, Shark Tank, Survivor and Offspring for Ten, is reportedly owed $12.4 million.
Working Dog Productions that makes Have You Been Paying Attention? submitted a claim for $4.9 million. Fremantle Media, creators of Neighbours, submitted a claim for $3.1 million. ITV Australia, which makes I’m a Celebrity … Get Me Out of Here! for is reportedly owed $3.5 million.
Adding to that, the ATO is apparently chasing Ten for $3.6 million and Cricket Australia is owed $21.6 million from its Big Bash arrangements with the network.
The Publicis’ owned Starcom Mediavest Group is also said to be owed $3.3 million from media buying.
Ten has two content sharing deals, one with CBS and another with 21st Century Fox, that have reportedly cost the company $600 million over the past six years.
Unfortunately for the network, it’s been able to get out of either of the deals that have not delivered programs that have resonated strongly with Aussie audiences and have been unable to pull eyeballs the likes of Netflix’s programming has.
It was believed by going into administration Ten may be able to extricate itself out of the expensive arrangements with both CBS and 21st Century Fox.
According to today’s Fairfax report the bulk of money owed by Ten is to its staff and shareholders.
Billionaire shareholders James Packer, Bruce Gordon and Lachlan Murdoch are all said to be owed $11 million each, being their respective fee for guaranteeing Ten’s credit line over the past three years. When the three decided not to continue to act as guarantor last month, it sent the broadcaster into the hands of administrators.