$615M TV deal reached by SANZAR

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$615M TV deal reached by SANZAR

3News NZ

NZRU chief executive Steve Tew (Photosport)

NZRU chief executive Steve Tew (Photosport)

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By Steve McMorran

Southern hemisphere rugby conglomerate SANZAR announced a five-year broadcasting deal for professional matches in Australia, New Zealand and South Africa on Thursday worth NZ$ 615 millioon (US$437 million), a 35 percent increase on the previous agreement.

The existing five-year deal with South Africa's Supersport, Australia's Fox Sport and New Zealand's Sky Sports was worth US$323 million and expires in 2011.

The new deal runs to 2015 and encompasses test matches - including the Tri-Nations tournament - the expanded Super 15 and domestic professional competitions.

New Zealand Rugby Union chief executive Steve Tew said the agreement represented a vote of confidence in southern hemisphere rugby.

"We believe that rugby is in good health and that its appeal remains strong both in terms of participation and in terms of the interest of our fans across South Africa, New Zealand and Australia," Tew said.

The new agreement marks a departure from the two previous broadcast deals which have underpinned profession rugby in the southern hemisphere since 1996. Those deals, for 10 years from 1996 to 2005 and for five years from 2006 to 2010, were signed with media giant News Ltd. and Supersport, but the new deal is with individual broadcasters in Australia, South Africa and New Zealand.

"The agreements confirmed today reflect a significant growth in the value of core SANZAR competitions and deliver material increases for each of the South African, New Zealand and Australian Rugby Unions," SANZAR said in a statement.

The consortium said it had reached agreement for the British market and was awaiting finalisation of right for the British and Irish Lions tour to Australia in 2013.

"Together these represent a significant jump in value on the existing arrangements," it said.

"Agreements for additional territories such as France, North America and Asia are still under negotiation and will add to this total."

SANZAR said the expansion of the Super 15 in 2011, with the addition of the Melbourne Rebels, and negotiation to include Argentina in a Four-Nation competition from 2012 would add to interest in southern hemisphere tournaments.

 "Market research undertaken in the SANZAR territories indicates fans place increased importance on local derby contests - which will be enhanced in the new Super Rugby competition - and support the potential evolution of the Tri-Nations with the inclusion of Argentina, the third-placed nation at the 2007 Rugby World Cup," SANZAR said.

Australian Rugby Union chief executive John O'Neill said 2011 would be a transforming season for rugby in the southern hemisphere.

"This new broadcasting agreement, coupled with the exciting changes to take effect in Super rugby next year, presents an opportunity for SANZAR to further enhance the popularity, profile and public support for the code," he said.

South Africa's Andy Marinos also welcomed the deal.

"We've reached what is a very good long-term deal for SANZAR in what was a difficult economic climate when negotiations started," Marinos said.

AP

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Comments

22/04/2010 2:08:58 p.m.

Hayden wrote:

Milioon lol