RU G BY Sponsorship beats TV rights

It would have been almost unthinkable a decade ago, but television executives are no longer the SA Rugby Union’s (Saru) biggest sources of revenue.

The sale of television rights has long been the life blood of the sport, but of late rugby has positioned itself in such a way that the income generated from sponsorship forms the biggest bulges in its coffers. Just how big will be revealed in Saru’s next annual report.

The windfall from broadcast rights, however, remains the steadiest source of income, hence the angst among rugby bosses when contract renewal is up for negotiation.

That, in turn, has perennially placed into sharp focus SA’s strategic partnerships. Rumours of the demise of SA, New Zealand & Australia Rugby (Sanzar) have again proved greatly exaggerated.

The organising body of intercontinental rugby among the southern hemisphere’s powerhouses last year agreed a new broadcast deal that will kick in next year. That also means their alliance will stay intact, for now.

But for a while SA had good reason to look north. Europe, with its heavy currencies, operates in our time zone, which has inherent benefits for television scheduling. Lest we forget, the taxing annual travel schedule Down Under has left SA’s players weary, if not wary.

Strategically, New Zealand and Australia need SA more than the Republic needs them. Australia is particularly vulnerable, given its relatively small rugby-playing population; rugby is a distant fourth in the way the winter sports broadcast pie is divvied up. Annually the sport gets about a 10th of what Aussie Rules rakes in.

But Saru couldn’t seriously entertain the idea of splitting Sanzar. Jumping into bed with the flaky French and the know-it-all English would have disturbed the equilibrium within the game’s governing body, World Rugby (until recently the International Rugby Board).

In the end SA’s spiritual connection with its long-time southern hemisphere partners carried the day. They did, after all, lock hands when taking the first few tentative steps at the advent of professionalism.

Back in 1996 the first broadcast deal, which was over 10 years, was worth US$555m, with Rupert Murdoch’s News Jurie Roux Building up financial reserves