Boo hoo, they didn't discuss it with Foxtel? Cry me a river. You make it out like Foxtel were a passive participant in negotiations and did nothing at all and it was "big bad David Smith" who stuffed them over and they were completely innocent babes in the woods
Sorry but considering what News Ltd help do to the game in 1995 to 1997, and then forced the ownership structure on which we had till Smith helped get the game out from under them, and helped (iirc) get rid of News Ltd and nine having first and last right bidding options for the TV rights, I'm not crying one cent for them.
You may not realise it, but your posts come across as "cheering" for Foxtel and News Ltd, which is why you are getting this reaction from me.
If you want to negotiate from a position of strength, you have to be tough. The reason it didn't work is John Grant went to water, sacked Smith, and then gave Foxtel what they wanted. News ltd and Fox treat it like they are defacto running/owning the game again as a result.