Abstract
This intervention analyses the new arrangements for the sale of live television rights to FA Premier League (FAPL) games. The new procedures have been produced as a result of ongoing discussions between the FAPL and the European Commission. To ensure compliance with European Union competition legislation, the Premier League has accepted the Commission’s calls for an end to its exclusive distribution of live broadcast rights, bringing to an end BSkyB’s 15-year monopoly of its main subscription driver (Buck and Terazono, 2005). Here, we examine the aims of the European Commission in pursuing the FAPL’s exclusive deal with BSkyB (Sky) and consider whether the deal that has been brokered provides any tangible benefits to the consumer.
Highlights
Sky has signed deals with the FAPL for four years in 1996 and three years in 2000 without the need for the protection that it received during the first deal
Far from encouraging new entrants, the exclusivity conferred on Sky in 1993, and left unchallenged in the two deals, allowed Sky to become the dominant broadcaster in this market rather than enabling the same concessions to be exploited by other embryonic broadcasting companies
With exclusivity no longer operating as a bar to entry into the FAPL live rights market, speculation has been rife over which of the many current, and new, broadcasters may enter the fray in order to fight over what the Commission and others have long viewed as being perhaps the most effective subscription-driver and a major asset to, a pay-TV broadcaster’s portfolio
Summary
Since 1992, the FAPL and Sky have entered into four successive exclusive deals, running from 1992-97, 5 1997-2001, 2001-04 and 2004-07 (McAuley, 2004 and Geey. 2004). Its aim is to introduce more competition to Sky, not to create competition between the clubs, and to make more games more widely available (Cassy, 2003) It seemed inevitable, that the FAPL would be forced to realign its rights package auction process to conform to the reformed Champions League deal of 2002 (IP/03/1748). Sky won the live rights in an open auction by bidding the highest amount, the Commission were 16 still disappointed that Sky had been able to retain its status as the exclusive broadcaster of FAPL games. This in turn has resulted in the Commission forcing through the changes to the bidding process that has just been completed for the 2007-2010 rights
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
