The rivalry between BT and Sky means that the Premier League looks set for a new cash bonanza when the live television rights are auctioned at the end of the year.
BT have set their sights high, having managed to outwit rivals with a shock swoop for games in the last round. It won’t have the element of surprise this time, but the telecoms group reckons that having secured the Champions League rights last November puts them in a stronger position in this round. However, they will not be satisfied with keeping what they have.
The rivalry between BT and Sky means that the Premier League looks set for a new cash bonanza when the live television rights are auctioned at the end of the year.
BT have set their sights high, having managed to outwit rivals with a shock swoop for games in the last round. It won’t have the element of surprise this time, but the telecoms group reckons that having secured the Champions League rights last November puts them in a stronger position in this round. However, they will not be satisfied with keeping what they have.
As a major company, BT have bigger pockets than Sky. They insist that they will be financially disciplined, but by bidding for all games they can push up the costs for rivals, principally Sky. No one can win all the games, but it is evident that the price is going to go up.
BT’s model is based on signing up more broadband customers rather than charging separate TV subscriptions as Sky does. Because BT has more internet subscribers, it can easily absorb the rising costs of sporting rights, although some BT consumers may think they are paying more even if they don’t use the TV service.
Whether or not there is cross subsidy, the strategy is working. BT has now won more broadbad net customer additions than Sky for the last four quarters since launching sport, reversing seven quarters in a row where Sky had won more.
Sky is trying to diversify its offer by providing other sports such as golf and cricket, as well as more entertainment shows, but football has always been its core attraction. The Premier League and Sky are almost synonymous with other providers coming and going before BT’s muscle offered more formidable competition.
Sky may also be boosted by the creation of Sky Europe which can bid on a continent wide basis. The acquisition of sister companies Sky Deutschland and Sky Italia for £7.4bn should be completed by October. It will the continent’s largest pay TV provider in terms of subscribers.
Sky still enjoys more viewers than BT because it has an established base of customers while BT’s games are in the less popular Saturday lunchtime slot when many fans are travelling to matches. The competitive nature of last season at both the top and the bottom of the Premier League boosted viewing figures.
It looks as if once again the Premier League is going to be laughing all the way to the bank. Clubs will have more money, increasing the gap between them and the Football League and also consolidating the super group at the top of the Premier League, even if this has now enlarged to seven clubs.
Some Football League clubs have even talked of severing the link with the Premier League altogether. However, that would deprive Football League clubs of the chance of a year hoovering up cash in the promised land.
A fan was saying to me on Saturday that he hoped all the top clubs would go off to a European super league, but they now have the best of both worlds, competing in Europe and at home. However, expect them to renew pressures for cutting the size of the Premier League and having a winter break.