Sky TV tries to reassure investors after South Africa confirms it is considering Sanzaar’s departure

Sky TV has released a short statement to the market following a report this morning that confirmed that South Africa is considering a post-Sanzaar future.

The South African Rugby Union has voted to explore the possibility of moving the Bulls, Stormers, Sharks and Lions into an expanded Pro16 competition in Europe.

“Sky takes note of today’s media reports on the South African Rugby Union and Sanzaar,” the statement said.

“While the implications of the South Africa Rugby Union decisions have not yet been fully discussed with New Zealand Rugby and its Sanzaar partners, Sky still has the right to stream all premium rugby content, including those for the upcoming Cup. Bledisloe and The Rugby – Championship matches, in New Zealand under the ongoing arrangements of Sanzaar.

“In addition, Sky enjoys a separate association agreement with New Zealand Rugby that gives Sky exclusive rights to any non-Sanzaar matches and competitions played in this country until at least 2025.”

Sky has not disclosed the cost of his latest deal with Sanzaar, but the Herald understands that he paid $ 400 million for his last five-year contract or a 20 percent increase over his previous deal.

The deal was primarily cash, but it also involved NZ Rugby receiving a 5 percent stake in the pay TV network, which at the time was worth $ 20 million at the time with Sky shares at 92 cents.

Shares of Sky fell 2.74 percent to 14.2 cents shortly after its statement.

The stock is down 77 percent for the year.

Earlier today NZ Rugby said it was not surprised by South Africa’s plans to ditch Super Rugby.

NZR CEO Mark Robinson said South Africa’s position was not a surprise.

“SARU has signaled for some time that they were looking to align with the Northern Hemisphere season,” Robinson said in a statement. “All Sanzaar partners had agreed to consider more related competitions at the national level in 2020 and 2021. At times like these, change is inevitable and we must be willing to adapt quickly.

“We are delighted with the reception of Super Rugby Aotearoa this year and we are excited about what is shaping up for 2021.”