Premier League finalises broadcast deals

As the bids to broadcast have been accepted by the English Premier League, clubs likely will see a dramatic increase in television revenue in the following years.
 
The league sold its rights, divided into six packages of 23 matches, for varying price, totalling GBP 1.7 billion, up nearly 70 percent up on the last contract. That is an average of GBP 4.1 million a match each season for the 138 matches to be shown. All of the packages were won by pay-TV-funded broadcasters despite interest from terrestrial free-to-air companies. The deal is effective for the 2007-2008 season and will last for three years.
 
Quoted in The Daily Telegraph, Premier League chief executive commented on the new contracts: “I assume I have some very happy chairmen. They only just found out, but clearly they’ll now be very content. The Premier League is absolutely delighted and we can’t deny this is a good start to our sales process.”
 
BSkyB remained in control of the majority of the rights, successfully bidding on four packages, totalling 92 matches, paying an average GBP 4.7 million a match. Irish broadcaster Setanta paid GBP 392 million to take the final two packages, paying an average of GBP 2.8 million a match.
 
That ends the monopoly BSkyB has held over the rights since the Premier League’s debut season in 1992-1993. The European Commission assured BSkyB would not hold all the rights, in pressing the league to open its bidding process.
 
Six packages of 23 games each were sold with the stipulation that no broadcaster would hold all six. BSkyB won three packages outright last week, with a second round of bidding allowing BSkyB to pick up another package, and Setanta to pick up two.
 
BSkyB was forced to pay up to 89 percent more on average each match to offer to its subscribers a reduced supply of games.
 
BSkyB won packages A, B, E and F, with air times, respectively, at 4 p.m. Sundays; 1:30 p.m. Sundays BSkyB; five first choice, nine third choice and nine fourth choice all shown at 12:45 p.m. Saturday; 10 first choice, seven second choice and six third choice with seven to 13 to be aired midweek evenings/bank holidays, and 10 to 16 to be shown at 12:45 p.m. Saturday and 4 p.m. Sunday.
 
For Setanta, Package C features third choice, at least 12 matches to be shown at 8 p.m. Monday, with the remainder at 1:30 p.m. Sunday or 5:15 p.m. Saturday. Package D has eight second choice, plus 15 fourth choice, with at least 18 to be shown at 5:15 p.m. Saturday, and the remainder at 1:30 p.m. Sunday or 8 p.m.
Monday.
 
The sale of the league’s rights to two broadcasters may have had as much to do with the evolution of the television industry and sports broadcasting in Britain as with effort of Europe’s regulators. The profits from holding football content has been attracting entry into the market, and Setanta, now 40 percent owned by Benchmark Capital, has proved its ability to handle pay-TV by winning the rights to Scottish Premier League matches.
 
Setanta, named after the original name of Irish mythological hero Cúchulainn, was founded in 1990 by Irish businessmen Michael O’Rourke and Leonard Ryan, and began screening World Cup games to Irish expatriates in London public houses. Currently, Setanta has eight digital satellite-to-home channels broadcasting football, including the Scottish Premier League, Eircom football and NBA basketball.
 
Trevor East, Setanta’s director of sport, and a former executive of BSkyB, defended the price paid by the Irish broadcaster for Premier League rights.
 
“It’s not just about first picks,” East said. “Every package will have some gems … It’s not a question of taking on Sky. There’s enough room in this market for both us.”
 
Setanta will establish a new sports channel to broadcast their rights. The new deal will see a significant rise in revenues for Premier League clubs.

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.