The deal will significantly increase their income from tournaments such as the expanded Tri-Nations and Super 14 from 2006.
According to media statements made in both Australia and New Zealand the agreement will "secure the financial future of the game" in the three countries, reports planet-rugby.com
The agreement covers broadcast rights for the three SANZAR countries and the UK, with News Limited acquiring the rights for New Zealand, Australia and the UK, and Supersport the rights for Africa.
It compares favourably with the $555million 10-year rights agreement struck in 1996, valuing the SANZAR properties at 16 per cent above the 1996 contract on an average per annum basis.
The new deal comes after Newscorp suggested they willnot be prepared to pay such a high price again, unless they have a better product into the table. Newscorp have clearly bought into the expansion deal (Tri-Nations and Super 14) that SANZAR put on the table.
The new Super 14 will see the see the number of matches increase from 69 (in the Super 12) to 94 from 2006 onwards. The Tri-Nations series will expand from six Test matches to nine Test matches.
The agreement does not include the valuable broadcast market of France, as well as other broadcast markets such as Asia, the Americas or the rest of Europe. SANZAR will be able to negotiate directly with broadcasters in those markets to further increase the total broadcast rights fee.
SANZAR estimates the rights in these additional markets could be worth an additional $20million to $30million, which would raise the value of the entire package to around $343-$353million.
