Sunday, May 20, 2012

Al-Jazeera vs BSkyB: let the battle begin!

manufacturingtodaynigeria.com



In a league that generates over £2.7b, the premier league is said to be the highest earner when it comes to TV deals, although the German league is the most profitable. In 2010, BBC paid the premier league £173m over three years to secure the future of ‘Match of the Day’ by retaining the rights to domestic highlights. The figure was a modest increase on the amount it currently pays, but includes extra internet rights. Another two live games package, which is believed to amount to 46 games kicking off mainly on Saturday afternoon and Monday evening, is considered to be worth over £400m. BskyB, the main sponsors paid a figure believed to be in excess of £1.5bn to retain the live television rights to the majority of the biggest matches from 2010 until 2013.

The next broadcasting rights deal is seen as crucial in providing some certainty of income in a difficult climate, as clubs with heavy commitments to wages and debt repayments face up to pressure on season-ticket sales and sponsorship revenues.

It is now believed that Premier league clubs could be in for another huge television cash windfall with a serious challenge to Sky's domination of top-flight domestic TV coverage by al-Jazeera now a "realistic prospect", according to the European head of ESPN. Now Ross Hair, the head of ESPN for Europe, the Middle East and Africa, believes al-Jazeera is likely to challenge Sky – a move that if successful would pose a serious threat to the Rupert Murdoch-owned satellite broadcaster.

The possibility of the Qatar-owned broadcaster going head to head with Sky has been the subject of speculation since it beat Canal Plus to the French Ligue 1 and Champions League rights. A bidding war could result in an increased offer for the 2013-16 domestic rights – the current three-year deal is already worth an estimated £1.782bn.

Premier League football has been the driving force behind Sky's satellite TV success in the UK but it has not had a challenger of such potential before. It is also believed the apple might also make a bid but at the moment, it is still unlikely that would happen.

Qatar’s ruling elite, which can draw on the country’s vast oil revenues, is desperate to bolster support for last year’s successful, but highly controversial, bid to stage the 2022 World Cup.

A source said: ‘There is definitely a sense that Al Jazeera is looking at acquiring Premier League rights. Of course, they have the money to outbid Sky and billions is not a problem.

It’s expected that there is going to be another auction between April and May for the rights of 2013-2016 seasons, and clubs, fans and pundits alike would take a keen interest in the outcome, but no matter what happens, it must be said that the premier league clubs are set for huge financial hand-outs.

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