Cable Giants Set To Make Premiership Bid
Britain’s newly consolidated cable firm, formed from ntl and Telewest, is reportedly preparing a bid to unsettle BSkyB’s dominance of Premiership football coverage.
The company, which announced its merger earlier this week (see Cable Giants Tie Up To Tackle Sky), will reportedly compete for the post-2007 broadcast rights when they are auctioned next year.
The European Commission recently confirmed its intention to investigate the FA Premier League over its allocation of broadcast rights, with the EC opening a formal antitrust inquiry into current practices. The regulator’s dispute centres around BSkyB’s exclusive holding of broadcast rights, which it claims is against European law.
The EC investigation should lead to a more open system of bidding for football rights, with at least two broadcasters guaranteed to split coverage of live Premier League matches.
The competition commissioner’s investigation is a serious event for the Premier League, as in the event of non-compliance, formal competition charges can lead to heavy antitrust fines.
However, ntl and Telewest stand to benefit from the investigation, with the companies reportedly considering a £200 million bid for the broadcast rights.
Sky’s current agreement sees the broadcaster hold rights to live matches until 2007, showing 138 matches this season. The broadcaster paid over £1 billion for the rights in 2003.
NTL: 01256 752000 www.ntl.com Telewest: 0845 142 0000 www.telewest.co.uk