Seven West Media offered to sell Network Ten the Big Bash League broadcasting rights as part of new chief executive James Warburton's efforts to reduce the company's debt pile and free up cash.

Sources familiar with the discussions who spoke on the condition of anonymity said the Kerry Stokes-controlled Seven had a discussion with the ViacomCBS-owned Ten, which held the BBL rights until 2018. Ten declined the offer.

Seven West Media offered Network Ten the rights to the BBL. Getty

The discussion came almost two years after Seven nabbed the broadcasting rights to the Big Bash League from Ten as part of a $1 billion deal landed with pay TV group Foxtel. Seven also obtained the rights to all home Test matches and 43 matches from the Twenty20 Big Bash League as part of the six-year deal.

Seven had already indicated it paid too much for the rights, writing down the value of the cricket at its half-year financial results as part of a $52 million carve-out for onerous contracts. Excluding the final, audiences for the BBL were down by 10 per cent year on year and fell by 41 per cent compared with the last time it was broadcast on Network Ten.

Sources familiar with Seven and Ten's discussions said tighter budgets at Ten meant the broadcaster could not agree, while others suggested it was not interested due to the success of reality show I'm A Celebrity, Get Me Out of Here.

Seven's portion of the rights costs about $70 million annually, according to those familiar with the arrangement.

Meanwhile, Morgan Stanley has kicked off a bidding process for Seven Studios, which has already piqued the interest of British media group ITV Studios, Disney and NBC Universal's Comcast. Seven Studios, which creates shows such as House Rules and Home and Away, was valued at about $400 million by UBS analyst Eric Choi.

The bidding process comes as Seven revealed that BBC One had commissioned new Seven Studios production, Pooch Perfect.

Seven's lucrative cricket deal is one of a number of challenges Mr Warburton inherited when joining the company last August. With tougher advertising market conditions caused by the spread of coronavirus and the threat of Tokyo 2020 Olympics being cancelled, Seven is looking at ways to reduce debt and to repay its bank loan.

Since his appointment Mr Warburton has been working to reduce a $541.5 million debt pile, but billionaire investors and media regulators have stalled some efforts. In his first few months Mr Warburton attempted to buy Prime Media Group, a deal rejected by shareholders including regional media proprietors Bruce Gordon and Antony Catalano, and sell Pacific Magazines to German-owned Bauer Media, a deal which is still subject to Australian Competition and Consumer Commission approval.

After downgrading Seven's full-year profit guidance last month, Mr Warburton said all assets were on the table.

Other efforts to reduce costs include a halt on children's programming and commissioning new drama series. Seven also axed a number of jobs and programs last year, including Sunday Night.

Seven Group chief executive Ryan Stokes had previously expressed confidence in Mr Warburton's leadership and has publicly backed his "expansion and consolidation" push. Seven Group has a 41 per cent stake in Seven West Media, but also owns mining and construction assets.

Seven's shares closed at 14¢ on Friday, dragged down by broader market conditions, while its market capitalisation is now at $223 million. The ASX fell by 2.8 per cent on Friday, closing at its lowest level since April 2019.

Network Ten and Seven West Media declined to comment.