https://www.stuff.co.nz/sport/rugby/...ralia-overhaul
Need to keep an eye on what is happening across the ditch.
There has been so much speculation in the media that Sky have agreed to pay NZ$100M per year for rugby from 2021.
I don't have any inside information so I can't be sure what they have paid...but when I read that Foxtel are currently paying NZ$59M per year for equivalent broadcast rights in a larger market, it does make me doubt the veracity of the '$100M' claim.
Sky clearly agreed to stump up more for rugby from 2021 than they are currently paying (and even gave some equity to NZ Rugby as a sweetner), but I just get the feeling that they haven't had to fork out nearly as much cash as people seem to think.
Given the relatively small market in NZ...I don't think it is realistic to think that a NZ broadcaster agreed to pay half a billion dollars + 5% equity in the company to show some rugby to a minority of their subscriber base. At that cost you would be better to let Spark shareholders have a crack if they are brave enough and focus on other sports and entertainment.
A more realistic scenario in my opinion is that Martin Stewart lifted the cash component by a more modest and affordable percentage and used the 5% equity to make the deal more compelling. NZ Rugby have taken the long-term view that they will be better served over the next 10,15,20 years taking less cash now than they may well have been able to get if they went with Spark... but now own a significant piece of a proven broadcaster that can help them grow and promote the game.
Brent Impey is a smart guy and it would make zero sense for him to take such a large equity stake in Sky...and then run the company into the ground by demanding half a billion dollars in cash over 5 years.
It would make more sense for the two organisations to have had frank and open discussions in an effort to find the Win-Win.