TV or not TV

By Roonaldo
September 30 2003

TV or not TV
By Roonaldo

The feud over the TV rights for the European Cup reported in the Observer is the latest in a long line of scuffles over the right to cover sporting events.

The right to cover the Premiership is big business. More than 5m homes, out of a total BSkyB subscriber base of 6.6m, and a further 35,000-40,000 pubs cough up big sums for access to live Premier League games each month.

Similarly Sky is keen to establish control of the golfing market. Golf is the second-most televised sport on Sky, with over 3000 hours scheduled this year, and Sky has won the rights to the Ryder Cup for the rest of the decade despite the interest of the BBC.

But right to cover topflight sport now interests the European Union. I’m not sure how many of you are fascinated by the European Union policy on anti-competitive practices, but the Premiership’s TV deal with Sky has caught the eye of Commissioner Mario Monti, and his interest could have grave implications on British football. While the stranglehold that Rupert Murdoch has over the televising of English football may worry some, the prospect of a deal away from Sky is far more alarming.

Mr Monti recently stated that the Sky deal was “illegal and tantamount to price fixing”. In short the Commission frowns upon the exclusivity of the Sky deal; the deal prevents other broadcasters from covering those matches not shown by Sky. But the current deal ensures that 5 per cent of TV revenue (£20 million a year) is passed onto projects that improve local pitches and youth facilities throughout the country. The hope is that 10 per cent of the next TV deal will go to all levels of football, allowing the whole of football to benefit from the popularity at the top end.

The worst case scenario for football is that if Sky loses its exclusive rights they will make a lower bid, meaning less money for the lower levels of the game. The big clubs will meanwhile pocket the difference, leading to an increase in the already great authority of the English game.

While it may seem like a trivial matter whether you get to see John Inverdale’s wide array of sports-casual clothing on a Sunday, or Darth Barnesy’s smug look on a weeknight, the implications of television coverage run deep. While rugby will never command the interest that football does, the principles are the same. The TV contracts are a vital source of income for the clubs, without the TV coverage the clubs are unable to command the fees for sponsorship. The issue of sponsorship on international jerseys has caused friction in the build-up to the forthcoming world cup, and I’m sure that Bradstone would be keen for their brand to be shown to the viewers of Grandstand.

The other code is equally keen to establish a financial base through television revenue. The current TV deal for the Super League is worth £45m over 5 years, and they TV contact is key to the plans for the game. Rugby Football League's executive chairman Richard Lewis stated: “My starting point would be five years to give us security. We have a lot going for us and are value for money. There is a big potential for growth and we are not a sport that is stretched to its limit. The action is non-stop, the players are accessible and that is very attractive to a broadcaster."

But testament to the power held by the television companies is the role of Sky in the expansion of the Super League. The amount the deal is worth will depend on whether the Super League expands to include a French interest next season, with Sky keen to attract viewers from across the English Channel. Reappearance from our French friends would be a selling point in TV negotiations, coming after the thought that the original Super League contract of £87m dropped in value because of the feeling that the European element had not been tapped into.

The squabble over the BBC right to cover the European Cup maybe a comparatively small issue, but from small concerns major predicaments can grow. Both Spain and Italy’s football season faced delay until issues over TV rights were resolved. While there is no prospect of the BBC holding enough power to trigger a breakdown of European rugby, the whole rugby community would be poorer for the lack of Brian Moore’s wisdom….