Satellite broadcaster, BSkyB, has strengthened its position with Premier League football this morning by taking a 5.0% stake in Sunderland Football Club. Sky is paying £6.5 million to buy into the club and become its exclusive commercial and media agent for an initial period of five years. Under the contract, revenues made from the media alliance will be split 70% to Sunderland and 30% to BSkyB.
Commenting on the deal, managing director of Sky Sports, Vic Wakeling, said: “This strategic alliance will benefit shareholders, the club and the fans as BSkyB and Sunderland PLC combine their strengths to maximise the club’s returns from sponsorship, advertising and media rights.”
The deal with Sunderland follows similar tie-ins with Manchester City (see BSkyB Buys Into Manchester City) and Leeds United (see BSkyB Takes £13.8m Stake In Leeds United); Sky also has a 9.9% stake in Manchester United which it took after failing to complete a full merger with the club (see BSkyB Reduces Stake In Manchester United). These deals are significant for Sky as they give the broadcaster a stronger position from which to bid for the new Premier League TV rights contract (see BSkyB Denies Having Made £1bn Football Rights Bid). BSkyB holds the current contract for the live broadcast of Premiership games, but this expires in 2001.
BSkyB: 0171 705 3000Sunderland PLC: 0191 551 5007
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