TVNZ, a Government-owned corporation television network is looking to offload the rights after it was estimated that the state broadcaster faced a NZ$5 million (£2 million) loss on the event in New Delhi, which is due to take place between October 3 and 14, 2010.
 

The Government is refusing to get involved, saying the arrangement is a commercial contract between TVNZ and Sky, which is part of Rupert Murdoch's global empire.
 

Broadcasting Minister Jonathan Coleman said the days of live free-to-air sporting events on television were nearly over.
 

Sky has received a proposal from TVNZ, which has broadcast the event for the past 40 years, to buy the rights.
 

Sky, which has about 780,000 subscribers, said it would set up at least four extra sports channels for Games coverage if it got the rights.
 

The pay-TV provider has assured viewers free-to-air coverage will be available but it is unlikely to be live.
 

TVNZ spokeswoman Megan Richards said that, in previous years, it was possible to absorb a big loss on sports events in the interests of keeping such international events on free-to-air channels but that had now changed because of the current financial crisis.
 

She said: "In this economic climate that's not something that's manageable for us.

"We have no reserves and no buffer any more."
 

The move did not signal an end to TVNZ bidding on international events and it would still pursue the rights to the 2011 Rugby World Cup though its bid would reflect its financial position, Richards claimed.
 

Coleman said people could no longer expect major sporting events to be provided free on television.

He said: "Obviously we would love to have the Commonwealth Games available free to air, and there will always be debate on whether there are things that the public should have the right to see free to air.

"But if you look at the way things are set up at the moment, there is good choice across television screens.

"People can see whatever they want, but not all of it is going to be available free to air, and that is the commercial reality we are in now."
 

Any deal would require approval from the Commonwealth Games Federation (CGF).

New Zealand is one of only six countries to have competed at every Empire or Commonwealth Games since they were launched in 1930 and are the fourth most successful nation in the event's history having won a total of 529 medals, including 124 gold.

The decision not to broadcast the event live on free-to-air television could affect Auckland's bid to host the 2018 Commonwealth Games.

The Commonwealth Games is a "listed" event in both Britain and Australia, which means that it must be shown on free-to-air television.
 

New Zealand Progressive MP Jim Anderton, who has tried and failed to bring in a law to keep "iconic events" free to air, was disappointed TVNZ wanted to offload the broadcasting rights.

He said: "There are a lot of people the young, the old and those who can't afford it who are missing out on these iconic cultural events already."