In this edition of On Background, Hugh Marks’ honeymoon is over at the ABC, familiar faces meet in Riyadh, another rights deal in the works for the NRL, and Lachlan Murdoch’s favourite media asset to stay put.
Hollywood Hugh, live from Bulgaria
Reality hit home for Hugh Marks this week, seven months into his not-so-new gig running the ABC.
It was anything but the high-flying life the former commercial media man nicknamed “Hollywood Hugh” became accustomed to in his time running Nine. On Wednesday, he checked into a virtual staff meeting to present the ABC’s meagre 3 per cent pay offer from his hotel room in the Bulgarian capital Sofia, where he was speaking on a panel at this year’s Public Broadcasters International conference.
In the good old days, Marks would travel to his namesake city in the eternally balmy state of California to buy and sell the hottest shows on TV. This year, he was sharing the stage with executives from Slovenia and Bulgaria’s public broadcasters to discuss the health of state-funded media, in an event hosted by Bulgarian National Radio. The BBC’s director general Tim Davie was the heavy hitter on this year’s lineup.
Let’s be clear, this is no slight on Marks. He has the top job in Australian media. The post-conference drinks crew are probably a more digestible crowd than those attending Hollywood parties each year, plus the conference includes a free guided tour of the city. How good’s that?
Hugh Marks has already noted the 30 per cent greater efficiency of commercial broadcaster Nine.Credit: Nathan Perri
But at 6am (Sofia time), having already been on stage the day before, Marks and Deena Amorelli, the ABC’s HR chief, presented the ABC’s official pay offer to staff. Nine per cent across three years, split evenly, fell well short of union-repped staff expectations to catch up on pay progression and better job security for those on short-term contracts. This was lower than the deals given to Nine Publishing, Crikey, Guardian Australia and News Corp staff in recent years.
Immediate talk of strike action in January and February suggests the offer did not go down well at Aunty.
An email from the union said the offer was below members’ expectations. It cited the offer of automatic pay progression for staff up to band four would cost “roughly ⅓ of what they spent damaging the ABC’s reputation fighting Antoinette Lattouf in court”.
“We wanted movement on progression and job security and they’ve f—ed us on both,” one staff member told On Background. “And they gave us a shit pay offer.”
Playground brawl
The broadcaster is also set to go to trial after mediation failed in a Federal Court case brought by the MEAA, initially using Tom Scott, a Play School staffer as a test case over the ABC’s use of fixed-term contracts. Since then, the ABC has converted 150 staff to permanent contracts, including Scott. Some staff members read this as an admission of mistakes and possibly legal breaches.
Marks appeared to say as much from Bulgaria on the call. “There are new rules about the ability to use fixed-term contracts. We accept we made some errors in terms of implementing that new legislation.”
There is also a suggestion the ABC wants to implement probation clauses on short-term contracts, so they can bring them to an end, whenever they please.
While protected strike action isn’t guaranteed, bargaining negotiations are a new type of minefield for Marks, particularly as he has inserted himself at the centre so early. ABC staff note that last time around former MD David Anderson kept his powder dry until the very end of the negotiating process, before coming in, taking control, and striking a deal directly to be viewed as a saviour, of sorts.
But Hugh’s approach reflects his style of being at the centre of everything, which has largely worked to this point. He charmed a room full of media writers in August, talking through his strategy and fielding questions without any notes. It’s also noteworthy that chair Kim Williams has been virtually invisible since Marks’ ascent, but for a drive-by from the ABC’s own Media Watch.
So with a strike in the winds, an investigation now launched into Four Corners’ Mahmood Fazal over an unauthorised podcast with an underworld figure, the ABC boss has plenty on his hands. For Marks, the honeymoon is over.
Riyadh, come on down!
Like the Sofia Forum, it is always nice to see familiar faces from across the global media fraternity mingling, this time in the world’s emerging entertainment hub of, ahem, Riyadh, Saudi Arabia.
Speaking at the country’s Joy Forum, Foxtel’s new boss, DAZN’s global CEO Shay Segev popped up on a state-sponsored panel – not entirely surprising considering the company’s part ownership by Saudi Arabia’s public investment fund (PIF).
Piers Morgan (left), DAZN’s Shay Segev (centre])and Mike Sneesby (second from right) in Riyadh last week.Credit: LinkedIn
He was joined on stage by a few familiar faces, including none other than former Nine CEO Mike Sneesby, who is now running the PIF-owned broadcaster MBC Group. The panel was hosted by Piers Morgan and it was nice to see them all in co-ordinated blue suits. On Background wonders which former Nine boss is winning the panel wars.
Cashed up partners
Alongside a new broadcasting deal, the NRL may soon have a new naming rights partner. Word has filtered though to On Background that Telstra may not be keen on renewing its naming rights deal when it expires in 2027.
Fresh off stealing Commonwealth Bank’s big Cricket Australia deal, Westpac is one of many players positioning itself as the new top dog with the NRL, which could cost it a pretty penny. Telstra’s current deal is worth $90 million across five years. Watch this space.
Strange bedfellows
The pressure is on for Sky News’ top brass, after a petition started by Australia’s most trusted (former) federal politician, George Christensen, to return the short-lived Freya Fires Up program reached 6596 signatures.
It is quite a feat for Christensen, who is a councillor in far north Queensland these days, to sign up a number equivalent to a sizable chunk of Sky’s Sunday night broadcast audience.
Though, almost a month old now, it appears as if it’s been flatly ignored by Sky boss Paul Whittaker and co.
Lachlan gets sentimental
Rumblings continue over Nine’s role in the looming merger between Seven and Southern Cross Media. Will Nine come in with a better deal? Or once its bankers at Jefferies flog off its talkback stations, will it make a play for Lachlan Murdoch’s Nova? Talk around town is there are four or five potential suitors for Nine Radio, most of which have already been publicly circulated. No one has come close to Nine’s asking price of $50 million, though, with some suggestions it hadn’t yet received an offer above $35 million.
If Nine was desperate to move on Southern Cross or Nova, it likely wouldn’t be quibbling over $15 million, if those offers are real.
But it all may be moot, as we hear Lachie is firmly attached to Nova (for sentimental reasons) and isn’t keen on a sale. After all, Nova is Lachlan’s personal success story and the company that proved he could do it alone.
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