MultiChoice's SuperSport Inks 5-Year PSL Deal With SABC In South Africa
After the South African government and Sports Minister Nathi Mthethwa forced an agreement between the two parties, a vague 5-year deal was signed on Friday by MultiChoice's SuperSport and the broke South African public broadcaster. It was announced that the SABC would sub-license free-to-air TV and radio broadcasting rights for some games from the Premier Soccer League's (PSL) Absa Premiership.
The news temporarily put an end to a growing crisis, even though the core-issue remains, of the out-of-cash South African public broadcaster being unable to afford the multi-million rand rights fees for the PSL's Absa Premiership on the public airwaves.
The SABC had demanded a 96% discount on the licencing price from SuperSport for Absa Premiership games from which the SABC then sub-license broadcasting rights.
The SABC said that a broadcasting licensing agreement with SuperSport was not financially viable for the broadcaster as the transaction would ultimately result in a massive financial loss for the national broadcaster as the revenue it would bring in is much less than the amount that Supersport is charging for the rights.
Commenting on the new 5-year agreement, Sports Minister Nathi Mthethwa said that he was thankful to the PSL, MultiChoice and the SABC for their positive approach which would ensure that ordinary South Africans are able to access football in the country.
The PSL in a statement issued by its Chairman, Dr Irvin Khoza, said it welcomes the sports ministry's intervention and its willingness to facilitate a fair agreement with the SABC.
MultiChoice's CEO, Calvo Mawela, gave a statement saying that it remains committed to partaking in more long-term investments in sports in South Africa and the rest of Africa.
The SABC's CEO Madoda Mxakwe said that the national broadcaster is pleased to have reached an agreement that would be welcomed by the South African public.