A case brought against South African public broadcaster SABC by the agent for the Confederation of African Football (CAF), Sportsfive (Sportfive), has been dismissed by a French court. Sportfive was trying to force the SABC to pay close to R1bn in terms of a series of agreements purportedly entered into between the parties.
As per the judgement, Sportsfive is free to either appeal the decision or lodge an urgent application for a judgement on the merits of the case.
An SABC statement issued on 12 December reads: “Sportsfive had summonsed the SABC and requested the court to force the SABC to meet the terms of the aforesaid contracts which agreements were according to the Interim Board of the SABC, invalid as such contracts were not authorised in terms of the South African statutes governing the SABC. The Interim Board tried to initiate discussions with Sportfive to negotiate the terms of the agreements as the Interim Board holds the view that honouring such contracts will require it to perform an illegal act. Sportfive had applied for summary judgement against the SABC which if granted, would have forced the SABC to honour the contracts. The French refused to order summary judgement against the SABC stating that the matter could not be dealt with under the French Civil Code as SABC was contesting the validity of the contract and whether or not it had been properly authorised by the Board of the broadcaster.’
Interim Board member, Leslie Sedibe, said that the ruling in favour of the SABC allowed the Corporation to reopen negotiations. “This arrangement is one of several that the Interim Board has identified as critical to look at,’ Sedibe said. “It was purportedly signed towards the end of 2008 when the SABC was already facing dire financial crises, and committed the SABC to pay extraordinarily high premiums for rights. It is shocking that such huge sums were agreed to in the contract when, for example, it will be hard to recoup the costs involved given that Bafana Bafana will not be playing in the upcoming African Cup of Nations.’
Sedibe said the SABC will still be open to holding talks with Sportsfive with a view of entering into contracts properly authorised by the Board of the SABC in line with all legislations governing the SABC.
