BSkyB shares slipped nearly 3 per cent yesterday after HSBC and Oriel both advised selling them. There are concerns about how Sky might come out of a football rights war with BT.
HSBC told its clients that BT was ‘likely to win’ the next Premier League rughts auction. Either the rights would be split as they are now, but at a much higher price, or BT would take a greater share of the packages.
BSkyB shares slipped nearly 3 per cent yesterday after HSBC and Oriel both advised selling them. There are concerns about how Sky might come out of a football rights war with BT.
HSBC told its clients that BT was ‘likely to win’ the next Premier League rughts auction. Either the rights would be split as they are now, but at a much higher price, or BT would take a greater share of the packages.
Oriel saw BT as the strongest bidder given that its motivation was to attract broadband customers. Paying 50 per cent mopre for English football rights would cost BT less than 5 per cent of annual free cash flow, whereas the same inflation for Sky would use up about 38 per cent offree cash.
Whatever the outcome, it seems likely that Premiership clubs will receive even more income after the next auction, making clubs even desperate to reach the top flight and stay there.