Political Economy of Football
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TV Deal Leaves BSkyB In Top Spot

 

21/11/2005

The Premiership and the European Commission have finally settled their long battle over the sale of television rights which at one time threatened the top league with a hefty anti-trust fine. The Commission can feel satisfied that they have ended the BSkyB monopoly of live television and, while James Murdoch has made it clear that BSkyB would prefer an unfettered market, the deal has left them in pole position. Indeed, NTL, the cable group that has been lobbying for a 50 per cent limit, is so disappointed that it is unlikely to bid for the rights, complaining that the EU has failed to deliver a level playing field. Not surprising when it is reported that competition commissioner Kroes was leant on by Gordon Brown and Jack Straw to arrive at a settlement. For the season starting in 2007, the Premier League will sell its live television rights in six 'balanced' packages containing 23 similarly attractive matches, with no bidder allowed to win more than five packages. A trustee selected by the Commission will monitor the auction and ensure that each rights package goes to the highest bidder. Bids offering a premium for winning multiple packages will not be allowed. ITV, Sentana and the BBC are also expected to submit bids, but analysts think that BSkyB will win at least four and probably five of the six packages on offer. Fans will not see their subscription rates cut, as Sky will still be able to plausibly claim that it is the home of Premiership football with more than 80 per cent of the matches. Given that Sky will not know for sure which packages its rivals are targeting, the Premiership will probably be able to match or even improve on the £341m a season it receives at present.

 


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