So a company, due to having no competition, will spend more on content instead of giving the extra profit to shareholders???? Just how badly did you fail economics? and reality...
How will the other bidders react to a bid being accepted when one of the criteria, an adequate stadium, isn't met when they meet all of theirs?
I thought the Wellington problem was going to be solved when the Phoenix looked like going under. Unfortunately they are well set and funded now.
By your advanced economic knowledge. When there's a property for sale and there's only 1 bidding, the property ( every property with 1 bidding) sells for $1.
Genius! Thanks for enlightening me!
Back in reality now. They simply don't sell until fair value is achieved.
Rugby league has about 1 million fans across NZ . Maybe half of those have a subscription, so the value of the content lays in those subscriptions. Currently 30 million is deemed profitable on that content and subscribers.
If the content is increased and the relevant content is effectively doubled, those subscriptions attributed to that content are increased in both price and volume. The fair value and purchase price that is profitable is substantially increased. At which point the negotiation of said content is is worth more.
And just like any property at auction , there's an understanding of this value before the auction and before the sale.
Both the NRL and Sky will know exactly what the rights are worth and those negotiations will be based on that.
A new team in NZ makes it worth more to Sky and the NRL knows that.
Sky will pay up to 20 million more with the inclusion of a second NZ team.
That's exactly why they're looking at NZ.