NTL Announces Media Partnership With Aston Villa

Football club Aston Villa has formed a media partnership with NTL, which will allow the cable group exclusive sponsorship and marketing rights in return for a £26 million loan. The deal translates to a 9.99% stake in the football club for NTL.

For an initial five-year period NTL’s subsidiary Premium TV will act as exclusive agent for the football club, handling all its television, radio and e-commerce rights. It will become the team’s main sponsor for the 2000/2001 season and the deal could lead to the development of a television channel for the Premier League club.

NTL will provide Aston Villa with a £26 million loan repayable after five years by the issue of ordinary shares in the company.

Barclay Knapp, chief executive officer at NTL said: “This strategic alliance is good news for shareholders, the club and Villa fans. NTL and Aston Villa will combine their strengths to get the best return for the club from sponsorship, advertising and media rights. This is also about harnessing all media opportunities including e-commerce and the internet, which is going to be an increasingly important medium in football.”

The deal adds to the increasing number of media groups buying stakes in football clubs. NTL itself bought a similar stake in Newcastle United last year (see NTL Unveils Media Partnership With Newcastle United)

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