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PRESENTATION TO THE PORTFOLIO COMMITTEE ON SPORT AND RECREATION

PRESENTATION TO THE PORTFOLIO COMMITTEE ON SPORT AND RECREATION. BROADCASTING OF SPORTS EVENTS IN THE PUBLIC INTEREST. 12 June 2001. THE OWNERSHIP OF SPORTS RIGHTS.

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PRESENTATION TO THE PORTFOLIO COMMITTEE ON SPORT AND RECREATION

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  1. PRESENTATION TO THE PORTFOLIO COMMITTEE ON SPORT AND RECREATION BROADCASTING OF SPORTS EVENTS IN THE PUBLIC INTEREST 12 June 2001

  2. 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

  3. INCOME TO SPORT BODIES • Sport bodies have three major sources of income : • Television Revenue • Ticket Sales • Sponsorship

  4. 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

  5. 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

  6. 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 Aself-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-Net’s licence conditions. It was endorsed by the IBA and we were congratulated on our pro-active work.

  7. 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 it’s 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.

  8. 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.

  9. 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”.

  10. 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

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

  12. THANK YOU

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