THE OWNERSHIP OF SPORTS RIGHTS

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THE OWNERSHIP OF SPORTS RIGHTS

• Television rights to all sports events are
  ultimately owned by the governing body of that
  sport e.g.
• Olympic games - The International Olympic
  Committee
• South African National Team Soccer in South
  Africa - SAFA
• Rugby in South Africa - SARFU
• Cricket in South Africa - UCB
• Broadcasters purchase these rights for defined
  periods of time, but the rights always revert to
  the governing body

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INCOME TO SPORT BODIES

• Sport bodies have three major sources of income
• Television Revenue
• Ticket Sales
• Sponsorship

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OBLIGATIONS OF SPORTS BODIES

• Costs of hosting International sports teams e.g.
  International Rugby Teams into South Africa R5m
• Development programmes redressing past
  inequalities R20m
  
• Domestic competitions R40m (SA Rugby)
• Player Salaries R35m (SA Rugby)
• Facilities and stadiums

SIGNIFICANT FUNDING NEEDED TO CARRY OUT THESE
OBLIGATIONS
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LIST OF EVENTS OF NATIONAL INTEREST

• As a pay-TV broadcaster in a developing country,
  we recognise the need to have a community
  responsibility. Thus, together with the sports
  bodies we sought to find a way of ensuring that
  true Public Interest events would not be
  broadcast exclusively on pay-TV.
• The process started in 1996 and was initiated by
  the then Minister of Sport, Steve Tshwete and his
  Director General
• Many rounds of discussions were held with
  inter-alia the broadcasters, sports bodies, the
  IBA and the Minister of Communications
• A presentation was also made to this committee
  

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LIST OF EVENTS OF NATIONAL INTEREST cont.

• Factors considered in these discussions included
  
• Financial considerations for Sports Federations
  and Broadcasters
• Definition of Public Interest
• International trends
• Existing long-term contracts

• In early 1998 A self-regulatory code of conduct
  was adopted, and a List of Sports of National
  Interest was agreed upon and accepted
• The list was presented by us to the IBA during
  public hearings into M-Nets licence conditions.
  It was endorsed by the IBA and we were
  congratulated on our pro-active work.

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LIST OF EVENTS OF NATIONAL INTEREST cont.

• SuperSport therefore participated in a process to
  address the broadcasting of sports events in the
  public interest before we were statutorily
  compelled to do so.
• SuperSport has never exclusively broadcast an
  event on this list since its finalisation, thus
  strictly adhering to the agreement.
• This is despite the fact that some major sports
  bodies have been severely prejudiced in their
  ability to sell their rights to the highest
  bidder.
  

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LIST OF EVENTS OF NATIONAL INTEREST cont.

• The cost of TV rights for sports events has
  escalated dramatically over the past decade.
• The same escalation has occurred in South Africa
  with our introduction into the international
  fold. In many instances this escalation in TV
  rights has helped fund these major obligations of
  the federations.

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DEVELOPMENTS SINCE AGREEMENT

• In mid 1999 the Broadcasting Act came into
  operation.
• s30 (7) of the Broadcasting Act, 1999 states
• Subscription broadcasting services may not
  acquire exclusive rights for the broadcast of
  national sporting events, as identified in the
  public interest from time to time by the
  Authority in consultation with the Minister and
  the Minister of Sport and in accordance with the
  regulations determined by the Authority through a
  public process.

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DEVELOPMENTS SINCE AGREEMENT

• There are four issues concerning s30(7) that we
  thought it useful to comment on
• the meaning of national sporting events, as
  identified in the public interest from time to
  time
• the meaning to be given to the requirement that
  these events be identified by the Authority in
  consultation with the Minister and the Minister
  of Sport
• the intention of the legislature as regards the
  process, and the meaning to be given to the
  phrase as identified by the Authority
• Further discussions held with Minister and other
  broadcasters

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WAY FORWARD

• Matter to be resolved under auspices of ICASA,
  with the involvement of both Ministers.
• SuperSport will participate fully in this process.

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THANK YOU