The SABC has lost R2.3 billion on buying sports rights over the past six years, reports the Sunday Times.
According to the report, the SABC failed to make money from broadcasting the sports matches.
The SABC’s board chair Bongumusa Makhathini told the paper that the sports rights bought by the broadcaster were “overpriced” and they were “not able to commercialise these sports rights”.
This follows after SABC were unable to negotiate a new Bafana Bafana and Banyana Banyana broadcast rights contract due to lack of funding available.
According to reports, SABC owes the South African Football Association over R50 million for its previous broadcast contract, which ended in April 2018 already.
The paper reports that between 2012 and 2018, the SABC spent R1.6 billion to broadcast Premier Soccer League matches, and R522 million on production.
Only to make R466 million in revenue.
The state broadcaster spent R462 million on national soccer match rights and R65 million on production, but only made R48 million in revenue.
R263 million on broadcast rights and R14 million on production was spent for the Confederation of African Football rights and only made R20 million in return.