Saturday, 9 November 2013

a little q & a on the BT Sport / Champions League deal

(Source BT)

What else have BT won?
Every Europa league game, live.

What did they pay?
£299m per year (for 3 years).

Isn't this a huge over payment?
Not really. In fact, compared to the UK Barclays Premier League rights (£3bn for 3 years), these rights have been seriously undervalued.  All matches are in prime time and feature the biggest teams.

Why did no one see this coming?
Analysts have got so used to Sky winning everything, they never bet against them.  This was always a possibility because BT had set aside at least another £1bn for the best Premier League rights that Sky ultimately won.

Will this be bad for the consumer?
When Sky has decent competition, prices can fall.  Since Netfix entered the UK market, the minimum price required to watch all the films on Sky movies has fallen from £37.50 (with a sky dish) to just £8.99 a month (with Sky's Now TV).  

Could that happen with Sports?
The bigger sums involved with sports rights make such dramatic falls harder - but without competition Sky's top tier HD package was heading ever closer to the £100 a month mark.

Did Sky not perceive BT as a real competitor?
Sky saw BT Sport as enough of a threat that they apparently set up a "Project Purple" group to "strangle BT Sport at birth".

How is that project going?
They apparently broke the group up because BT didn't have enough big games to compete.

Why didn't Sky bid more?
Because of the entry of BT to the sports market, Sky are already paying around £1bn more for Premier League rights (over 3 years) than they expected.  

How can BT succeed against Sky, when ESPN and Setanta failed?
BT is big - and unlike previous competitors , much more than just a sports channel.  Where as ESPN & Setanta could only charge a household about £10 per month - BT can bundle it's Sports with other services, and extract £50+ per month - a similar level to Sky.

How bad is this for Sky?
Contrary to popular belief Sky have been beaten before, most notably by ITV & Setanta for the FA cup/England deal in the late noughties.  However this is their biggest defeat to date.  

What did Sky Sports News have to say about it? 
Curiously it wasn't mentioned.  Sky did put out a fairly terse statement, implying that BT had overbid.

How much did Sky pay for Premier League rights?
£2.28bn. 

Wasn't that something of an overbid?
You may very well think that, I couldn't possibly comment.

What will Adrian Chiles do now?
ITV have recently lost the FA cup. This latest loss means they now have no club football of any kind.  They retain all live England friendlies and qualifiers. They also share next summers World Cup with the BBC.  ITV could still pick up the Champions league/Europa league highlights.

Could the BBC get those highlights?
Anything is possible, but UEFA sponsors will probably want them on a commercial network.  The BBC has (by default) emerged as the leading free-to-air broadcaster of football. 



What other TV deals are imminent?
The premier league auction is due in about 18 months. Sky recently extended their Football league & league cup deal.  They also have rights to every World Cup/euro qualifier that doesn't feature England.  Cricket and F1 is tied up until 2018. European club Rugby Union is kinda complicated...

Complicated?
Unbelievably complicated...

Will Sky try and get the Premier League exclusively?
No, at least 38 games must be shown by a second broadcaster.  

What's the next big battle ground?
Boxing is rumored to be next on BT's hit list.

Another knock out punch by BT?
Hmmm, quite possibly.


(Inspired by pass notes - the guardian)