Gregor Paul: NZ Herald rugby writer on DAZN challenging Sky for NZ Rugby broadcasting rights

Saudi-backed service DAZN has reportedly entered the battle for New Zealand Rugby's broadcasting rights.

The national body are yet to come to a new agreement with incumbent rightsholders Sky - who are understood to have submitted a smaller bid than their current deal.

NZ Herald rugby writer Gregor Paul initially broke the story, and he says NZR felt the need to reach out to a potential bidder who could offer more.

He suspects DAZN could be looking to acquire Sky as well - as it's currently in the process of buying Australia's Foxtel.

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Episode Transcript

Speaker 1 (00:00):
Right.

Speaker 2 (00:00):
New Zealand's a new player, I should say, has entered
the market for the coveted rugby rights in New Zealand.
The Herald understands that ends it are currently in talks
with the Saudi backed streaming giants Dozone after talks broke
down with Sky Television. The New Zealand Herald rugby writer
Gregor Paul broke this story and he's with us this evening,

(00:22):
good evening, good evening. So is this when we say
talks broke down with Sky that what does that mean?

Speaker 1 (00:31):
Well, I don't think they've broken down. I think they've
they've reached a stalemate where they've gone round and roam
in circles that you know, these two know each other's businesses. Intimately,
they've been partners for the better part of thirty years.
Sky had the first right to make an offer, which
it has done. It has tabled an offer, It has
given detail why it has made the offer that it

(00:52):
has New Zealand rugby field. It does not reflect share
of value in relation to the content that it is
offering for the next period between twenty twenty six and
twenty thirty. So they haven't been able to agree a
price Sky won't badge on that, so as is New
Zealand Rugby's right, it has gone to talk to any

(01:14):
other potential bidders to see if they can put a
better price on the team.

Speaker 2 (01:18):
Is this posturing for me? In Zidan?

Speaker 1 (01:21):
I think Sky think it is. I don't know enough
to know whether it's a bluff. I suspect it probably is,
because I don't think that buying you know, the rugby
rights to New Zealand sits with the With the strategic
plan that Darzone clearly has for itself, it would be
difficult to see how it can make that work. And

(01:43):
I think you'll be aware of Many of the audience
might be aware that Darzone has been outed as a
potential buyer of Sky itself. It recently bought Foxtail in
Australia and that has led many to believe that, look,
Sky's undervalued at its current price, It's going to reasonably
good business going here. Would it be something that does

(02:04):
On might acquire, given that it's already bought Foxtelle, that's
probably a better question or a more likely strategy for
it to pursue than just buying rugby rights in New Zealand.

Speaker 2 (02:15):
If Sky were to lose the rights, that would be
a pretty big glow for them, wouldn't I mean that's
their bread and butter.

Speaker 1 (02:22):
I think it'd be catastrophic. And I mean we Sky
don't break their business down to tell you you know
how many of their subscribers are primarily in there to
get access to the rugby. But the market itself has
a view that it's a considerable number, it's the majority.
So perception is more dangerous in reality for Sky here

(02:42):
because the markets priced that in. And if they have
to turn around and say, look, we haven't been able
to resecure the rights to the old Lacks and to
Super Rugby, I think they will have a monumental impact
on its share price and I think consumers and subscribers
would leave it in their drives.

Speaker 2 (02:59):
Gregor, thanks so much for that, Gregor Paul, the New
Zealand herold Rugby writer who broke this story. For more
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