Value of premium sports broadcast rights to leap 14%

The value of premium sports broadcast rights worldwide will increase by 14% to £16 billion in 2014, according to new research from Deloitte.

The double digit growth, which compares to an average growth of 5% between 2009 and 2013 and exceeds the forecast 4% increase in global pay TV revenues for 2014, will be driven by new agreements with certain top tier European domestic football leagues and major North American sports leagues.

Deloitte predicts that European football’s top-tier domestic leagues and top club competitions will generate £6.5 billion of the total in 2014, of which the Premier League will contribute £1.9 billion.

Austin Houlihan, senior consultant in the Sports Business Group at Deloitte explained that developments in pay TV are transforming the broadcasting of premium sports leagues.

“Live content is a key subscription driver for those leagues and underpins pay TV business models,” he said. “As the pay TV subscriber base rises and revenue per user grows, operators are investing increasing sums to secure this key content.”

Houlihan added: “Television and premium sports are well matched for each other: at the highest level, sport is great unscripted live drama for television. Constant advances in technology are leading to ever more sophisticated, compelling ways in which sports can be portrayed.”

In November, in an £897 million three-year deal, BT Sport became the first broadcaster to secure the live Champions League and Europa League football matches exclusively. As a result, Sky’s shares dropped 10%.