Sky pays less for matches

Geelong Advertiser - - BUSINESS BEAT -

THE Pre­mier League’s in­fla­tion­ary bub­ble burst this week when the $6 bil­lion sale of Bri­tish tele­vi­sion rights pro­duced a drop in the value of matches.

The past two do­mes­tic deals both pro­duced 70 per cent jumps in the value of rights, fu­el­ing spi­ralling wages and trans­fer fees and ce­ment­ing the com­pe­ti­tion’s sta­tus as the world’s rich­est league.

But the auc­tion of 20192022 rights left two of the seven pack­ages still up for sale as Sky emerged the big win­ner and ri­val broad­caster BT saw its po­si­tion weak­ened.

The sale of 160 games has raised 4.464 bil­lion pounds ($6.2 bil­lion), com­pared to 5.14 bil­lion pounds for 168 fix­tures from 2016 to 2019.

The league will be look­ing to the sale of over­seas rights to pro­vide an up­surge in rev­enue for its 20 teams, who split the for­eign in­come equally.

While re­main­ing the big­gest broad­caster of most games in Bri­tain with four pack­ages, Sky boasted how it was now pay­ing 16 per cent less per fix­ture in its 3.579 bil­lion pound, three-year deal to show 128 games per sea­son.

That equates to sav­ings of al­most 600 mil­lion pounds.

But, while Sky’s price per game drops from 11 mil­lion pounds to 9.3 mil­lion pounds, BT had to agree to pay 9.2 mil­lion pounds – up from 7.6 mil­lion pounds – for one pack­age of 32 games.

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