New Zealand Rugby has reported a $19.5 million dollar deficit in its latest financial result.
One of the areas of interest is NZR+, NZ Rugby's streaming service intended for international audiences.
Colin Smith is an expert in sports and media rights, he spoke to D'Arcy Waldegrave on Sportstalk about whether NZR+ will pay off in the long run.
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Speaker 1 (00:06):
You're listening to the Sports Talk podcast with Dancy Wildergrave
from News Talk ZEDB.
Speaker 2 (00:12):
We're talking now in ZA made some money, lost some money.
Where do they go now? This says three consecutive years
of losses think titles up to seventy six million odd barks.
But they are crowing the good side of this. I'm
interested in in z R plus. I'm interested in this platform,
(00:33):
this channel designed for overseas audiences, that's going to encourage
more eyeballs and dig in to the fan base, the
global fan base that is believed to exist, which is
part of the reason why Silverlight climbed on board. Not
that they've done too much to help us, but that's
another story. Before I go to Gregor Paul to talk
(00:54):
about that, we're joined by a broadcasting rights advisor globally.
His name is Colin Smurthy, joins us. Now, good evening
to you, Colin.
Speaker 3 (01:05):
Great cat chuck with you and look forward to our discussion.
Speaker 2 (01:09):
Always great to have you. On what's happened today? It's
been released that zt R have made the most money
they've ever made, not only five million dollars, but they've
also lost a nineteen point five million dollars, good, bad
and different. They'll leave that up to you. What I'm
interested in and this is your area expertise in sports
media rights. Where does nst R plus sit in all this,
(01:32):
not only with the amount of money they spend providing
that product, but how it also works with their upcoming
sky TV negotiations. So it's first up ins R plus.
On the face of it, has it been worthwhile currently
and will it be worthwhile in the future.
Speaker 4 (01:50):
That's a really good question and it's a fundamental question.
And if you look at they have been building their
position and inst are plus is not a.
Speaker 3 (02:05):
A New Zealand.
Speaker 4 (02:06):
Domestic broadcast per se. It's meant to and designed to
be the broadcast medium for New Zealand rugby in a
global sense where they don't have rights lay sold and
they are also now doing that with Sansa as well.
(02:28):
So in terms of their product, their product is outside
of New Zealand. The question is can that be monetized
and will that be a creeding for value for New
Zealand rugby.
Speaker 2 (02:45):
Do you think after all of your experience it will be?
And how long will this take? Because what do they
say Rome wasn't built in a day. This is not
going to be overnight. But there has to be a link,
doesn't There has to be a time, and they go enough,
so enough, this is not working for us.
Speaker 3 (03:01):
It's a really good question.
Speaker 4 (03:03):
So there are some examples we can see around the
world world of this, and we can look at what's
happening around the world and what decisions have you made.
Speaker 3 (03:12):
And the two best examples.
Speaker 4 (03:14):
World volleyball with a private equity fund set up Volleyball
World and then Volleyball TV and that is the broadcast
volleyball with subscribers around the world. Now their numbers have increased,
In other words, the number of subscribers have increased, but
(03:35):
it is still an investment and not delivering returns. The
other one, which is I think even more valid learnings
for the music ends that are plus, is the NFL.
The NFL has a product called in NFL Plus, which
(03:58):
is a streaming service for the global market. Now last
year it sold NFL Plus to Desione daz In and interestingly,
the Zone are the new owners of Foxtel in Australia
and they're probably one of the largest sports specific broadcasters
(04:22):
stream broadcasters in the world.
Speaker 3 (04:24):
And the reason why.
Speaker 4 (04:25):
The NFL sold that that this excludes the US and
Canada was because they thought, well, they banked a check
for a billion dollars, but more importantly, they believe to
get their content out it was better to be combined
with other sports products. So the question for inns that
(04:46):
are plus is how can they build and position that
and sell that global sense to make money and to
be a creedy for value for New Zealand Rugby, and
frankly that is an open question right now.
Speaker 2 (05:02):
How long do you think they should give themselves before
they count their losses and maybe sell to designe or
walk away completely. Is there amount of time is this?
How long is this piece of string?
Speaker 4 (05:13):
Goln Well, I think if you look at the financial
as you've or alluded to the financial performances of New
Zealand Rugby, it's got three years of losses so and
it's not strong. Its balance sheet is lots lots of assets,
but it's also got significant debts.
Speaker 3 (05:32):
So therefore you'd.
Speaker 4 (05:33):
Probably say a maximum of three years, maybe up to five.
But it's got to be seen to be building and
it's not, and it's not just got to be measured
in terms of the number of what we call click throughs.
In other words, people are visiting the site and accessing
(05:56):
the site. We've got to see that being monetized, So
you want to see significant increases in revenues over that horizon.
Speaker 3 (06:04):
And if not look at usrategic.
Speaker 2 (06:06):
Partner, where does the money come from simply people buying
access for this advertising sales throughout the platform that they've got.
Where's the bulk of this money supposed to be coming
from if you look at what's happening globally with these
other plus platforms.
Speaker 4 (06:26):
So it will be the combination of subscribers and the
other part of that is also commercialization and other words
advertising funding and sponsorship funding into the site. Now those
two have got to therefore be positives over the costs
(06:48):
of running the site, and that's where it's important.
Speaker 3 (06:52):
It is pushing the other side of this.
Speaker 4 (06:55):
It is actually promoting the All Blacks and New Zealand rugby,
but that's not an investment that it can continue in
you at the same level it was not providing commercial
return because otherwise it's just increasing the losses for New
(07:16):
Zealand Rugby.
Speaker 1 (07:17):
For more from Sports Talk, listen live to news Talks.
The'd be from seven pm weekdays or follow the podcast
on iHeartRadio,
You're listening to the Sports Talk podcast with Dancy Wildergrave
from News Talk ZEDB.
Speaker 2 (00:12):
We're talking now in ZA made some money, lost some money.
Where do they go now? This says three consecutive years
of losses think titles up to seventy six million odd barks.
But they are crowing the good side of this. I'm
interested in in z R plus. I'm interested in this platform,
(00:33):
this channel designed for overseas audiences, that's going to encourage
more eyeballs and dig in to the fan base, the
global fan base that is believed to exist, which is
part of the reason why Silverlight climbed on board. Not
that they've done too much to help us, but that's
another story. Before I go to Gregor Paul to talk
(00:54):
about that, we're joined by a broadcasting rights advisor globally.
His name is Colin Smurthy, joins us. Now, good evening
to you, Colin.
Speaker 3 (01:05):
Great cat chuck with you and look forward to our discussion.
Speaker 2 (01:09):
Always great to have you. On what's happened today? It's
been released that zt R have made the most money
they've ever made, not only five million dollars, but they've
also lost a nineteen point five million dollars, good, bad
and different. They'll leave that up to you. What I'm
interested in and this is your area expertise in sports
media rights. Where does nst R plus sit in all this,
(01:32):
not only with the amount of money they spend providing
that product, but how it also works with their upcoming
sky TV negotiations. So it's first up ins R plus.
On the face of it, has it been worthwhile currently
and will it be worthwhile in the future.
Speaker 4 (01:50):
That's a really good question and it's a fundamental question.
And if you look at they have been building their
position and inst are plus is not a.
Speaker 3 (02:05):
A New Zealand.
Speaker 4 (02:06):
Domestic broadcast per se. It's meant to and designed to
be the broadcast medium for New Zealand rugby in a
global sense where they don't have rights lay sold and
they are also now doing that with Sansa as well.
(02:28):
So in terms of their product, their product is outside
of New Zealand. The question is can that be monetized
and will that be a creeding for value for New
Zealand rugby.
Speaker 2 (02:45):
Do you think after all of your experience it will be?
And how long will this take? Because what do they
say Rome wasn't built in a day. This is not
going to be overnight. But there has to be a link,
doesn't There has to be a time, and they go enough,
so enough, this is not working for us.
Speaker 3 (03:01):
It's a really good question.
Speaker 4 (03:03):
So there are some examples we can see around the
world world of this, and we can look at what's
happening around the world and what decisions have you made.
Speaker 3 (03:12):
And the two best examples.
Speaker 4 (03:14):
World volleyball with a private equity fund set up Volleyball
World and then Volleyball TV and that is the broadcast
volleyball with subscribers around the world. Now their numbers have increased,
In other words, the number of subscribers have increased, but
(03:35):
it is still an investment and not delivering returns. The
other one, which is I think even more valid learnings
for the music ends that are plus, is the NFL.
The NFL has a product called in NFL Plus, which
(03:58):
is a streaming service for the global market. Now last
year it sold NFL Plus to Desione daz In and interestingly,
the Zone are the new owners of Foxtel in Australia
and they're probably one of the largest sports specific broadcasters
(04:22):
stream broadcasters in the world.
Speaker 3 (04:24):
And the reason why.
Speaker 4 (04:25):
The NFL sold that that this excludes the US and
Canada was because they thought, well, they banked a check
for a billion dollars, but more importantly, they believe to
get their content out it was better to be combined
with other sports products. So the question for inns that
(04:46):
are plus is how can they build and position that
and sell that global sense to make money and to
be a creedy for value for New Zealand Rugby, and
frankly that is an open question right now.
Speaker 2 (05:02):
How long do you think they should give themselves before
they count their losses and maybe sell to designe or
walk away completely. Is there amount of time is this?
How long is this piece of string?
Speaker 4 (05:13):
Goln Well, I think if you look at the financial
as you've or alluded to the financial performances of New
Zealand Rugby, it's got three years of losses so and
it's not strong. Its balance sheet is lots lots of assets,
but it's also got significant debts.
Speaker 3 (05:32):
So therefore you'd.
Speaker 4 (05:33):
Probably say a maximum of three years, maybe up to five.
But it's got to be seen to be building and
it's not, and it's not just got to be measured
in terms of the number of what we call click throughs.
In other words, people are visiting the site and accessing
(05:56):
the site. We've got to see that being monetized, So
you want to see significant increases in revenues over that horizon.
Speaker 3 (06:04):
And if not look at usrategic.
Speaker 2 (06:06):
Partner, where does the money come from simply people buying
access for this advertising sales throughout the platform that they've got.
Where's the bulk of this money supposed to be coming
from if you look at what's happening globally with these
other plus platforms.
Speaker 4 (06:26):
So it will be the combination of subscribers and the
other part of that is also commercialization and other words
advertising funding and sponsorship funding into the site. Now those
two have got to therefore be positives over the costs
(06:48):
of running the site, and that's where it's important.
Speaker 3 (06:52):
It is pushing the other side of this.
Speaker 4 (06:55):
It is actually promoting the All Blacks and New Zealand rugby,
but that's not an investment that it can continue in
you at the same level it was not providing commercial
return because otherwise it's just increasing the losses for New
(07:16):
Zealand Rugby.
Speaker 1 (07:17):
For more from Sports Talk, listen live to news Talks.
The'd be from seven pm weekdays or follow the podcast
on iHeartRadio,
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