The reason FTA channels are happy to pay exorbitant amounts for...

The reason FTA channels are happy to pay exorbitant amounts for rights to AFL, cricket etc. is not because of potential revenue the channel expects from telecasting that sport, but its future potential. Seven will shamelessly promote its new shows during ad breaks, which will attract advertisers at a premium rate. Summer is the best time to promote future shows. So even though the exercise may very well be loss making on its own, the revenue it will generate from cross promotion of other shows is what's important.

SWM acknowledged with the Olympics they overpaid and not something they will repeat. Another reason they partnered with Foxtel on AFL and more recently with cricket. Given their track record, I am also positive seven will do a better job showing cricket in comparison to nine.