Rugby: Little joy for NZ in Super 15 deal

South Africa are US$70m up, Australia potentially about US$20m and New Zealand have been left trying to sell a provincial competition featuring B teams to improve their financial position under the proposed new Super 15.

That's because the Sanzar partners have agreed as of 2011 to split all broadcast revenue on an equal basis with each country taking 33.3 per cent.

While that may sound good for the economically challenged New Zealand to be on an equal footing with their financially heavyweight partners, it is, in fact, Australia and South Africa who are the big winners in this agreement.

Under the existing deal South Africa took slightly more than 38 per cent of the revenue, New Zealand about 33 per cent and Australia about 28 per cent. South Africa had a bigger share to reflect that they put into the total pot the money they raised for selling the rights to the Currie Cup.

South Africa have only agreed to drop their share as they have already sold the rights to the Currie Cup separately from 2011. They sold those for US$90m with some suggestion that the purchaser, Supersport, may have overpaid amid predictions the South African Government were set to introduce anti-siphoning laws that would have forced much of the Currie Cup to be broadcast on terrestrial TV.

Australia have picked up the five per cent share that South Africa have lost. That is to partly reflect the emotional desire of the three countries to be viewed as equals and because Australia are going to be running five teams, rather than four from 2011.

It's difficult to precisely assess what that extra five per cent share is worth but most experts believe Sanzar will do well to sell the Super 15 broadcast rights for the same US$323m they managed to sell Super 14 for in 2004. If they obtain a similar figure, then that five per cent will be worth about $20m, maybe more as extra revenue will also come from selling the rights to European markets.

So while South Africa have given up an estimated US$20m from cutting their share to 33.3 per cent, they have gained US$90m by selling the rights to the Springbok June tests and the Currie Cup.

New Zealand's position is unchanged under the new Sanzar deal, but they have negotiated the right to sell the provincial championship and All Black June tests separately.

The provincial championship is going to be revamped with the introduction of B teams from the major unions into a second division that will also feature at least four teams relegated from the current Premier league is the favoured option.

New Zealand Rugby Union chief executive Steve Tew said: "The South Africans have done a great deal [with the Currie Cup] and we are working through all the packing details to determine our options."

Tew said the All Black tests were likely to have considerable overseas value, while the revamped provincial competition would be only of real interest to the local market.

He confirmed that the option of using B teams to create a second division was the more likely option to be presented to broadcasters as the idea of a trans-Tasman provincial championship.

At this stage the NZRU has only a broad idea as to the potential value of the broadcast rights. A meeting with the provincial unions on June 20 will firm up the shape of the revamp and then an NZRU board meeting at the end of the month will determine whether Tew and his colleagues can present a vision to broadcasters on June 30 when Sanzar meets to discuss Super 15.