The implications of BT winning Champions League football are still sinking in. Whether it is a good deal for BT shareholders is a matter for discussion. Most Champions League matches are only a big attraction to the fans of the club involved. Sky say that they account for only 3 per cent of their viewership compared with 18 per cent for the Premier League.
The implications of BT winning Champions League football are still sinking in. Whether it is a good deal for BT shareholders is a matter for discussion. Most Champions League matches are only a big attraction to the fans of the club involved. Sky say that they account for only 3 per cent of their viewership compared with 18 per cent for the Premier League.
BT is now spending £81 a year on football for each of its broadband customers. They face a price hike of over six per cent from January. Consumers generally will lose most of the free-to-air programming currently available through ITV. In many ways they are the real losers as they will sacrifice valuable advertising revenue.
For football clubs who can qualify for the Champions League it is good news. Manchester United made €35.5m from Champions League prize money and television income last year, but that increases by 50 per cent under the new deal. The majority of Champions League income for clubs derives from the ‘market pool’ in which TV revenue is split among teams from that nation.
The real prize will be the next domestic television deal with speculation that the current £5.5bn. revenue could triple. As well as the rivalry between BT and Sky, Al Jazeera and Google are expected to bid.
Sky has, of course, seen off ESPN and Setanta in the past, but BT are a much bigger company than Sky with plenty of cash at their disposal.