Premier League Broadcast Agreements Referred To Court

Two agreements for the televising of Premier League football matches are to be referred to the Restrictive Practices Court, the Office of Fair Trading announced today.

The first relates to the rules and regulations of the FA Premier League Ltd which prevent member clubs from selling their television rights to broadcasters without first seeking permission from the Premier League. This has enabled the Premier League to negotiate the sale of all of the clubs’ rights collectively.

The second involves the Premier League selling the rights to BSkyB and the BBC for a period of five years up to and including the end of the 1996/97 season. The Premier League has agreed not to sell the rights to any other broadcaster and to award BSkyB and the BBC the rights for another term of five years if either matched any other broadcaster’s bid.

The OFT believe both deals contain significant restrictions on competition which are against the public interest. The onus will be on the parties to demonstrate that this is not the case.

John Bridgeman, Director General of Fair Trading, said: “By selling rights collectively and exclusively to the highest bidder on behalf of its members, ‘the Premier League’ is effectively acting as a cartel. And the net effect of cartels is to inflate costs and prices. Any other business acting in this way would be subject to competition law and I see no reason why the selling of sport should be treated differently.”

The OFT is also considering whether other arrangements for televising rugby, racing, cricket, tennis and athletics contain significantly anti-competitive restrictions.

OFT: 0171 269 8900