South African broadcasters have been caught unawares by=20 Rupert Murdoch’s purchase of southern hemisphere rugby=20 broadcasting rights, reports Justin Pearce
Rupert Murdoch’s purchase of the television rights to=20 southern hemisphere rugby has caught the South African=20 broadcasting world unawares, with the Independent=20 Broadcasting Authority and the SABC still searching for=20 an effective response to a deal which puts South=20 African rugby broadcasts into foreign hands.
With the IBA and the SABC currently discussing a=20 response, indications are there is little they can do=20 to reverse the deal, which has left South African rugby=20 fans at the mercy of the world’s most powerful media=20
Legal sources have hinted at the possibility of a=20 Constitutional Court challenge to the deal brokered by=20 South African Rugby Football Union (Sarfu) president=20 Louis Luyt on behalf of rugby unions in South Africa,=20 Australia and New Zealand.=20
A precedent exists in India, where a bid to put=20 national cricket coverage into private hands was=20 overturned on the grounds that the move constituted the=20 alienation of a national asset. It is, however,=20 doubtful that such an action could be brought in South=20 Africa, leaving viewers and broadcasters in a situation=20 where Murdoch dictates the terms on which South African=20 rugby is broadcast in South Africa.
The deal has severely compromised the SABC’s ability to=20 fulfil its function as a public broadcaster. Although=20 the SABC’s role has not yet been set in stone — this=20 will only happen after the conclusion of the IBA’s=20 Triple Enquiry later this year — there is general=20 consensus that a public broadcaster has a duty to=20 provide free national coverage of major sports events.
M-Net, meanwhile, has sent a lawyer’s letter to Sarfu=20 claiming that the Murdoch deal breaches an undertaking=20 that Sarfu would give M-Net an opportunity to bid for=20 the rugby broadcast rights.
It is doubtful that the SABC will be able to afford to=20 buy coverage of all the provincial and international=20 games from Murdoch, given that the corporation is=20 likely to have to shed part of its state subsidy and=20 advertising revenue to make room for new broadcasters.=20 Purchasing material from Newscorp will cost the SABC=20 roughly 10 times what it currently pays Sarfu for=20 broadcast rights.
Another possible scenario is that an independent South=20 African broadcaster — M-Net or one of the new pay=20 channels expected to enter the field after deregulation=20 — will buy the broadcast rights from Newscorp.
There has been speculation that Murdoch will use last=20 week’s deal to force the IBA into granting him a=20 licence to set up his own pay television channel in=20 South Africa. IBA councillor John Matisonn said the IBA=20 would not be swayed in this way and would consider each=20 licence application on its individual merits.
The IBA is believed to be considering the possibility=20 of calling for legislation to prevent other areas of=20 South African sport being sold off in similar deals.=20 But the international precedent is of legislators being=20 outpaced by developments in broadcast technology — and=20 by the shrewd manoeuvres of people like Murdoch.
Murdoch and Luyt picked their moment carefully to sign=20 their deal. It comes a year before the expiry if the=20 SABC’s existing contract with Sarfu, thus pre-empting=20 attempts by the SABC to renew the present agreement.=20 The deal also took the wind out of the sails of foreign=20 talent scouts who were looking to sign up Southern=20 Hemisphere players for British professional league=20 rugby. And it comes ahead of legislation to formalise=20 the duties of the SABC, which might have ensured that=20 local rugby coverage stayed in South African hands.