PSL Chair Khoza Joins SARU In Court On eMedia Opportunistic Interest
PSL chairman Irvin Khoza has joined South African Rugby Union’s president Mark Alexander opinion that should eMedia be handed rights to broadcast at a low fee it can severely have an impact on clubs.
Khoza, in the affidavit written, states that he made eMedia aware that they could not match MultiChoice’s offer in 2007 when the tender for broadcast rights were open. MultiChoice, after they won the rights, later opened the PSL channel to show PSL matches exclusively, something Khoza claimed you can’t see in any other countries.
In July, when Ireland toured in South Africa for two matches series in Pretoria and Durban, the SABC confirmed that it will show both matches live.
However, at the 11th hour, the SABC released a statement that they would not show matches after recent litigation at the Competition Appeal Court over the broadcast rights for test matches because eMedia failed to agree terms with MultiChoice.
Then SARU president Alexander took aim at eMedia, saying it was looking for a free ride to piggyback on the sub-licensed rights the SABC paid without contributing anything itself.
According to MyBroadband, Khoza also took aim at the Tribunal for failing to consult the PSL first before issuing the interim order.
“The interim order immediately affects the PSL’s ability to generate sponsorship revenue,” Khoza stated.
“This is because the sponsorship revenue that is locked in for the next season is linked to the viewership required under the broadcasting rights packages that were licensed to MultiChoice.”
Khoza said there is a real risk that the SABC would not be able to pay the higher price MultiChoice must charge to allow matches to be broadcast on Openview.
Without the SABC’s audience on its other platforms, the viewership expected by the sponsorship deals may not be met.
“This will have a serious detrimental effect on the sponsorship revenue stream of the PSL,” said Khoza.
“In the medium-to longer-term, the dilution of exclusivity required by the Tribunal’s interim order will substantially devalue the PSL’s broadcasting rights and, with them, the revenue that the PSL can generate to fund soccer in South Africa,” he warned.
Khoza explained that the PSL adopted a competitive bidding process in 2007. Since then, MultiChoice has won exclusive broadcast rights on four separate occasions.
“It has paid large sums of money to do so. It has also been required to meet minimum content quality
requirements,” said Khoza.
“This has had remarkable benefits for the PSL and soccer in South Africa.”
Khoza said eMedia was invited to bid for the same packages of rights, including exclusive rights, on each of the four occasions.
“It only once submitted a bid in 2007. It did not succeed in that bid because its offer price was lower than MultiChoice’s, it did not yet hold the necessary subscription TV licence to broadcast the games, and it did not have the technical capabilities to produce the high-quality broadcasting that the PSL required.”
Khoza also explained that MultiChoice could not sub-licence its PSL broadcasting rights without written approval from the league.
Any restrictions on sub-licensed rights are, therefore, for the league itself to answer.
“MultiChoice, therefore, has nothing to sub-licence unless and until the PSL consents to the sub-licence,” said Khoza.
“Despite this, the proceedings that took place before the Tribunal did not involve the PSL,” he continued.
“The Tribunal granted an interdict that regulates the sub-licencing arrangements between MultiChoice and the SABC without even hearing from the one party whose approval of that sub-licencing arrangement must be obtained.”
Khoza said there was no excuse for the Tribunal not to have heard from the PSL first, as its ruling specifically mentions the PSL as an impacted party.
“And yet, despite this appreciation, and without even hearing from the PSL, the Tribunal granted an interim order that poses the single greatest threat to the sustainability of the PSL since its creation and, with it, soccer in this country,” Khoza said.