'Secret deal' sees rugby go to TV3

By Keith Perry

The bitter tit-for-tat rugby war between Sky and TVNZ has seen TV3 winning the right to show free-to-air coverage next season.

Angry TVNZ bosses say Sky struck a secret deal with TV3 to encourage it to become part of the new Sky digital satellite service, and claim it will mean a huge reduction in the amount of rugby screened.

Previously, both TVNZ and TV3 had said they would not join Sky's satellite coverage because they believed the only beneficiary would be Sky.

The move means TVNZ has now lost the rights to screen delayed coverage of All Blacks, Super 12, Tri-Nations and NPC matches under a deal believed to be worth around $17 million to Sky.

TVNZ retains the Rugby World Cup, the America's Cup, Formula One motor racing and netball.

A television insider said last night that the deal was an "enormous coup" for TV3 and left TVNZ bosses with "egg all over their faces."

It largely resulted from a falling-out between Sky and TVNZ over coverage of this year's World Cup and could cost TVNZ heavily in lost advertising and sponsorship cash.

The development also raises questions over the future of presenters such as veteran rugby commentator Keith Quinn, who would now be ripe for poaching by TV3.

It could also spell a turnaround in the ailing fortunes of TV3 and its sister channel TV4.

Yesterday, Sky admitted that TVNZ had effectively ruled itself out of a deal by announcing it planned to move into pay TV.

"It would have been like selling guns to the enemy," said Sky chief executive Nate Smith.

All Black matches would continue to be shown an hour and a half after Sky's live coverage, he said.

NPC and Super 12 matches would be on a variable delay similar to the TVNZ deal, although there would be fewer of them available on free-to-air.

Last night, TV One general manager Shaun Brown said: "Up to today, Sky were promising us they would be putting cricket and rugby on the open market. The announcement of a deal with TV3 came as a complete surprise.

"This isn't about sport, it is about getting TV3 on a satellite.

"Sky have offered TV3 a closed-door deal on cricket and rugby, presumably at a price TV3 found hard to resist.

"We were clearly not in the running, even though Sky were telling us we were."

TVNZ chief executive Rick Ellis added that the deal was a response to poor financial performance by the other two broadcasters, and meant a huge reduction in screened rugby that his company would never have accepted.

"This an agreement between a couple of foreign-owned media companies and pays no heed to the interests of New Zealand viewers."

But TV3 said that from December 1 it would carry extensive free-to-air coverage of test-match and one-day international cricket, Super 12 and NPC rugby and All Black tests, including the Tri-Nations and Bledisloe Cup games.

Its existing coverage includes all Warriors, NRL finals, State of Origin and rugby league test matches.

A delighted managing director, Graeme Hunter, said TV3 benefited from the falling-out of TVNZ with Sky over the Rugby World Cup.

He declined to reveal what TV3 had paid Sky, but said it was part of a broader commercial arrangement, which included carriage on Sky's digital platform from January 1.

Around 100,000 viewers in TV3 blackspots will also lose out and will be forced to spend $385 on a Sky satellite dish and $60 a month to watch cricket and rugby.