Broadcasters Need More Than Money To Win Premier League Rights
Broadcasters will have to make something of a shot in the dark when they submit bids to the Premier League for the 18 new rights packages on Wednesday this week. Unlike the recent sell-off of next generation mobile phone licences, in this high profile auction there will be no counter-bids, as candidates get only one chance to make an offer.
The decisions made by the chief executive and board of the Premier League will not just be about the size of the bids. “The Premier League is interested in getting the right amount of money” said a spokesperson for the League today, “but [bidders] must set out how they’re going to show the game.” With the packaging of footage being taken into consideration, it is possible that a package would not go to the highest bidder, but the best overall proposal. No comment was forthcoming from the Premier League as to what kind of proposals would find most favour with the board.
The Premier League announced a new way of selling its broadcasting rights earlier this year (see Premier League Bosses Agree More Televised Matches And Pay-Per-View), which means that rights will no longer be owned by a single broadcaster. BSkyB has held such rights since 1996. The new system is expected to raise the amount of revenue gained by the Premier League from the sell-off and has led to unconfirmed speculation that contenders such as BSkyB, ONdigital and NTL are making arrangements to team up for the submission of bids, or not bid against one another.
Director General of the BBC, Greg Dyke, has already stated that the corporation will not be bidding for the live games- which are expected to command the highest premium- but will probably attempt to retain rights to show highlights (see BBC Unlikely To Bid For Premier League Rights, Says Dyke). ITV is thought to be keeping its options open and may decide that the audience potential for live matches would justify its entering the fray.
Broadcasters are only limited by finances as to how many of the packages they can express an interest in, creating the dilemma for bidders of whether to go for one package and risk coming away with nothing, or whether to bid for several and risk winning them all, creating financial strain. Once submitted, the bidders will have to wait until an as-yet-unspecified date in July for the decision from the Premier League board.
Premier League: 020 7298 1600