Rugby secures $460m TV deal

UPDATE - The Sanzar rugby alliance has finalised a five-year US$323 million ($460 million) broadcasting rights deal with News Ltd, the New Zealand Rugby Union (NZRU) has confirmed.

The deal with Sanzar -- the alliance between the South Africa, New Zealand and Australia rugby unions -- is a 16 per cent increase on the previous agreement struck in 1996, the NZRU said at a media conference today.

This was calculated on an average per annum basis compared to the previous US$555 million 10-year rights.

The deal contradicts speculation expressed earlier this year that Sanzar could have faced a 30 per cent reduction in revenue.

The agreement allows Sanzar to move ahead with expanding the Super 12 competition into a Super 14 and to add a third round to the Tri Nations series.

NZRU chairman Jock Hobbs said the agreement was one of the most significant for the sport in New Zealand for years.

"It's a very significant announcement for New Zealand rugby and Sanzar. From our perspective we are extremely pleased, as the financial security of the game for the three unions has been secured for the next five years.

"It's an outstanding result in a tough global rights market."

NZRU chief executive Chris Moller added in a statement: "This is a superb result for rugby as it allows us to plan the future with certainty and confidence.

"The agreement also demonstrates that our broadcasting partners view Super Rugby and Tri Nations Rugby as high value television events.

"Crowd figures and television ratings for Super 12 and Tri Nations matches have grown every year since 1996, and this agreement allows us to continue that growth."

The new agreement covers broadcast rights for the three Sanzar countries and the United Kingdom. News Limited acquires the rights for New Zealand, Australia and Britain, with Supersport acquiring the rights for Africa, the NZRU said.

The new agreement does not include the broadcast markets in France, Asia, the Americas and the rest of Europe. Sanzar estimated it could negotiate further deals for these areas worth between US$20 million and US$30 million.

- NZPA