Premier League strikes back on EC

The European Commission (EC), which is seeking to end satellite broadcaster BSkyB's exclusive hold on Premier League (PL) matches when the existing contract expires from 2007, is preparing a statement of objections that spells out details of its case.

In light of media speculation about these on-going discussions, and recent misleading comments by the EC, the PL has put out a statement in order to clarify its position. According to the statement, the PL confirms it will adhere the 2003 agreement and will create packages of live rights to the PL competition, balanced so as to create the conditions for competition. In addition, the PL specify that no single operator is able to acquire exclusively all these centrally marketed packages of live rights.

“We remain fully committed to this agreement and, as we always expected, are in the process of detailing how this is implemented. Due to the confidential nature of our ongoing discussions with the Commission we cannot go into the detail of our proposals. However, they categorically demonstrate that at least two broadcasters will own our right from the 2007/08 season onwards. We are prepared to continue discussions with the Commission on the basis of the December 2003 agreement,” PL Spokesman, Jonathan Todd commented to media.

The PL also urged legislators to oppose the EC latest plan to block any single broadcaster from airing more than 50% of football matches. "We believe that the solution they are trying to impose on us could seriously damage the game at all levels, harming fans and their communities," PL Chief Executive Richard Scudamore said in a letter sent to British MPs and European Parliament members, and which was obtained by news agency Reuters. Scudamore said the PL would oppose disproportionate attempts to fix the outcome in advance, and that the EC’s 50% rule is an intervention in the market that could lead to an artificial fall in revenues that would damage the quality of the game on the pitch, reduce the attractiveness of the game to stadium and TV fans, and hamper the ability of the game to invest in the community.

BSkyB has argued that its three-year deal, worth GBP1.024bn, includes a premium for exclusivity, and that splitting up the TV rights would result in less money for the clubs. Rival UK broadcasters such as ITV and NTL say that because of the money that BSkyB receives from pubs and sports clubs it is actually underpaying for the rights, and that splitting the rights would produce more revenue than the existing scheme. Cable companies NTL and Telewest, as well as Irish broadcaster Setanta, are among those expected to bid for premiership rights, depending on the remedy imposed by Brussels.