SABC3 boss Pearl Luthuli did not want to broadcast the International Cricket Council Twenty20 World Cup last month — and the channel looks set to incur losses of more than R76-million as a result of the decision to flight the tournament.
SABC3 is meant to be the corporation’s profit-making channel, but its managers were allegedly told by the corporation’s group executive of content enterprises, Mvuzo Mbebe, to drop its scheduled programming in June to broadcast the cricket.
In the process SABC3 lost R9,66-million in scheduled advertising revenue. The channel also had R66,4-million placed on its account for the rights to the Twenty20 programming.
The matter will be included in an investigation by Terence Nombembe, the auditor-general, after a grievance instituted by Luthuli against Mbebe was brought to Parliament’s attention in a report by the Broadcasting, Electronic, Media and Allied Workers’ Union, the Communication Workers’ Union and the Media Workers’ Association of South Africa.
A confidential memo written by Luthuli on June 2 this year to acting chief operations officer Charlotte Mampane, leaked to the Mail & Guardian, reveals that a week before the cricket was due to be flighted, Luthuli was still trying to confirm that SABC 3 had been instructed to broadcast it.
“This memorandum also seeks to confirm that the channel will not carry the R66Â 440Â 044 cost of the ICC Twenty20 World Cup and will not incur the projected revenue loss of R9Â 662Â 551,” she wrote.
As group executive of public commercial services (PCS), which includes SABC3, Luthuli wrote that the ICC agreement was reached without the necessary consultation with PCS management: “The division therefore finds itself in a difficult position whereby revenue generation and schedule stability are being threatened by decisions taken outside of the division. When the business evaluation process ensues, all parties involved will need to bear in mind that the strategy did not come from this division.”
The image of the channel was “grossly affected” and all its stakeholders would lose their trust in it and its management, Luthuli said.
“It is therefore recommended,” she wrote, “that the division responsible, or the organisation, and not SABC 3, take full responsibility for the losses associated with the ICC Twenty20 World Cup agreement.”
It is understood that Luthuli did not receive a response to her memo. Mbebe declined to comment.
SuperSport holds the main rights for the event and Mbebe signed a sub-licensing agreement for the rights with SuperSport on August 18 last year. But according to the memo from Luthuli to acting group chief executive Gab Mampone to record her grievance against Mbebe, SABC 3 managers learned of the contract only in January this year.
In April the channel’s management was told that SABC 3 would have to broadcast the tournament “without return on the investment”. “This leaves the channel in a Catch-22 situation, as huge costs will be incurred without returns,” Luthuli wrote to Mampone.
The SABC is believed to have paid more than R125-million for the broadcasting rights, according to the memo.
Industry sources told the M&G last month that the SABC owes SuperSport nearly R100-million, which relates to Premier Soccer League and cricket matches that the SABC sub-licenses from MultiChoice’s sports arm.
SuperSport and the SABC refused to divulge details about the sub-licensing arrangements. SABC spokesperson Kaizer Kganyago said he was unable to discuss the Twenty20 agreement, as it is now under investigation.
“What I will say is that one man could not have made these decisions by himself,” he said. “The SABC board has to authorise any amount over R15-million.