Premier League TV Rights Given All-Clear By Court

The Restrictive Practices Court has this afternoon ruled that the Premier League football clubs were not acting as a cartel in the sale of television broadcasting rights to BSkyB and the BBC. This ruling goes against the case presented by the Office of Fair Trading (OFT), which claimed that the League was acting illegally and anti-competitively in the sale of TV rights (see OFT Embarks On Case Which Could Change The Future Of Televised Football).

Had the OFT’s case been successful, Premier League clubs would have been free to negotiate TV deals on an individual club, or match, basis. This, says the League, could have led to a super-league of powerful clubs, with smaller, less high-profile teams being squeezed out. However, the High Court decided that whilst the OFT had some valid points, the current system is in the best interests of football in general.

BSkyB currently pays £670 million for the right to broadcast around 60 live Premiership football matches; the BBC has negotiated a deal for the exclusive rights to the highlights of these matches. For Sky, this monopoly of top-class football coverage is a crucial selling point for its multi-channel pay-TV packages. However, the OFT argued that because only around 60 of the 380 matches each year get shown live on British television, the fans are losing out. BSkyB argues that the money it spends on the TV rights, and further revenue earned through advertising, have allowed football to boost its profile in the UK and across the world.

The current contract between the Premier League, BSkyB and the BBC is due to expire in 2001. After this time, the League has committed itself to negotiating deals with as many broadcasters, across as many platforms as possible (see Premier League Pledges Live Football For All).

By 3:43pm today, shares in BSkyB had jumped 14p to 580p on the back of the Court’s ruling.

Office Of Fair Trading: 0171 211 8000 Premier League: 0171 262 4542