The free-to-air broadcast rights deal between Supercars and Seven West Media (Seven) has been renegotiated to avoid a potential legal battle.

Reports suggest the confidential contract was adjusted to remove a requirement for Seven to generate a minimum amount of money through sponsorship and advertising under a revenue sharing agreement.

This was adjusted after the launch of the 2021 Supercars championship over the weekend, which saw Foxtel’s Kayo Sports include popular races for free on Kayo Freebies, something Seven claimed was in breach of exclusivity provisions.

Seven CEO, James Warburton, said at the company’s annual results conference the two parties were renegotiating the broadcast deal after Foxtel confirmed it would put some Supercars events in front of its paywall.

“From a Supercars point of view, [Kayo Freebies] is not in the spirit of the deal we signed and so we’ve made that clear of Supercars and we’re negotiating appropriate compensation,” Warburton said.

“Supercars can see that, and we are negotiating a suitable outcome with them, which is not finalised but should be before or around the first event,” he said.

The Sydney Morning Herald reported Seven sent Supercars a legal letter threatening to terminate its rights agreement due to the exclusivity provisions included in the $200 million broadcast deal Supercars signed with Seven and Foxtel last year.

The opening weekend of the 2021 Supercars season however recorded a broadcast rating increase of 22.4% across both Seven and Foxtel compared to the 2020 season-opener in Adelaide.