The failure of FoxSports News is a case in point. The plan, cooked up in large part by Williams, and several months in the making, was to integrate the sports pages of the News Ltd tabloids with the pay TV broadcaster's content. But it necessitated having News' sports writers re-locate to Fox Studios in Melbourne and Sydney, something the tabloid editors weren't happy about. "Boris [Whittaker] and [Peter] Blunden [editor in chief of
The Herald Sun], went straight to Rupert and the plan died in the click of a finger," the former executive says.
By now, however, Williams had an even bigger problem - one Lachlan Murdoch. The young Murdoch had initially been his strong supporter, but the battle over NRL broadcasting rights would end all that. As negotiations over the rights drew to a head in mid-2012, two contenders remained: Ten, the ailing network chaired by Lachlan Murdoch, and Foxtel, which had teamed up with the free-to-air operator, Nine.
"Lachlan saw the NRL rights as part of his grand vision for rebuilding Ten," a senior News executive explains. "He also felt that he had the deal stitched up, through his News Ltd connections."
But he hadn't bargained on Williams, who, together with Nine, outbid Ten at the 11th hour. According to someone intimately involved with the negotiations, "Lachlan felt gazumped. Which he was."
To make matters, worse, Williams, in an effort to get his bid over the line, agreed to relinquish News Ltd's "first and last rights" over the NRL, options they held till 2027. These were uncommonly powerful rights, effectively allowing News the last say in bidding over broadcast rights on all manner of platforms - free-to-air, pay TV, online, even technology that had yet to be invented. William's willingness to surrender them was seen by Murdoch as a deep betrayal, as his one-time-friend doing anything he could to stymie Ten's bid.
"Lachlan burst a pipe over it," says the News executive. "He went to Rupert and tried to call for Kim's head. But Rupert told him to calm down … The thing about Lachlan is that he's a good hater. He totally froze Kim out. But then, Kim is a good hater, too."
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