Multiple sources told the Herald in mid-December that Sky was on the verge of extending its rugby contract for another five years with what was believed to be an $85m offer.
But this narrative now appears to be one that was more heavily promoted by Sky rather than NZR, as the latter, as has now become apparent, has never subscribed to the done deal philosophy for the simple reasons it doesn’t believe it has been offered fair value and nor does it consider that it has no other options.
This resistance to signing an agreement with Sky has grown exponentially in the last month because of ongoing talks with British broadcaster Dazn which, it is understood, have morphed into bipartisan negotiations with TVNZ.
While it is likely true that NZR began discussions with Dazn more as a tactical means to pressure Sky into lifting its offer, the possibility of striking a deal that sees the majority of rugby content go behind the British broadcaster’s paywall, with a small but significant component kept Free to Air on TVNZ and TVNZ+, is one that is now being touted by well-placed sources as entirely viable and under serious consideration.
The wider assumption, given NZR’s history of working exclusively with pay broadcasters, is that if TVNZ had any role to play in this negotiation, it would be around the margins, bidding for bits of the NPC and the Farah Palmer Cup, which by all accounts, Sky has categorically said it will not cover in any new deal.
But any deal between Dazn and TVNZ is unlikely to see the latter offered only crumbs, and the state broadcaster may be looking at picking up significant components of the NPC, a live Super Rugby game each week, and possibly even an All Blacks test or two under any agreement that is signed.
Dazn would put up most of the money in any offer, with TVNZ topping up the package to an amount that can compete with the $85m currently on the table with Sky.
And it’s the quality of the Dazn-TVNZ proposition that is believed to be the reason talks between NZR and Sky have stalled.
Last week, Sky’s chairman Philip Bowman, in an interview with the Herald’s Media Insider, said talks stalled because NZR had to embed a new board in February and had been sidetracked by that.
But the broadcast negotiation has never sat with NZR, but rather with its commercial subsidiary New Zealand Rugby Commercial, and since November last year, the offshoot, has had the authority to sign off on any deal without seeking approval from the national body’s board of directors.
DAZN, a streaming platform that is buying Australian broadcaster Foxtel, partnering with TVNZ, which last week posted a near $12m operating profit from revenue of $152m, may not seemingly make sense and the two, at first, don’t appear compatible.
But when the needs, budgets, aspirations and strategic aims of both companies, and in conjunction with NZR, are broken down and fully analysed, this could be the perfect arrangement.
Dazn is on a drive to acquire high-value sports content through any means it can — via purchasing established companies or competing for rights — and having the All Blacks in the broader content portfolio would meet the brief.
Partnering with TVNZ would offset some of the fears NZR may have about selling the rights to an unknown brand name in New Zealand, while it would also, presumably, give the national body reassurance that TVNZ’s infrastructure would be a reliable back-up in case of a streaming fail, or internet meltdown.
TVNZ has been battling extreme financial issues of its own, but may be able to allocate whatever budget it currently devotes to cricket now that it has lost the rights to the latter from the end of 2026.
It’s also probable a strong financial case could be made to invest in rugby rights to top up that number.
And while the number one priority for NZR is to secure overall broadcast income in 2026 that is at least as much as it currently earns, it is also, having seen the audience cricket has enjoyed with TVNZ, determined to have an FTA component in this next agreement.
Sky is now believed to be aware of the seriousness of the threat it faces and is thought to be open to similarly working with TVNZ to break the stalemate it is now in with NZR.
The current rights holder has long signalled that it is eager to retain the rugby rights it bought in 2021 for $111m a year, but not at any price, and has steadfastly refused to budge on the $85m it has tabled.
The Herald has been told that in recent internal communication with staff, Sky has tried to downplay the spate of stories this publication has written on the matter as speculation, but has signalled that should it win the next rights contract, the deal may not be exclusive.
That would suggest Sky may be willing to work now in partnership with TVNZ as a means to persuade NZR to agree a deal.
