Ofcom has opened an investigation into how the Premier League sells its live broadcasting rights for televised matches in the UK.
The probe into the sale of the UK’s most lucrative and expensive sports rights asset will be carried out following a complaint from Virgin Media, submitted to the broadcasting regulator in September, which argued that more Premier League matches should be available for live broadcast.
As part of its investigation, Ofcom will consider whether there is a breach of UK or EU law on agreements and decisions which restrict or distort competition within the sports rights market.
Sky Sports and BT Sport currently share the live rights to televise Premier League games in the UK, with Sky covering 116 matches compared to BT’s 38.
Both broadcasters paid in the region of £3 billion between them for the three-year deal covering the 2013/14 to 2015/16, an eye-watering increase of 70% on the previous deal, reflecting the lucrative value of the rights to both companies as they battle for market share in the triple-play sector for phone, internet and TV.
The Premier League is expected to starting the bidding process for the next set of live rights shortly, covering the period beyond 2016, but it is unlikely to put the tender on hold because Ofcom investigations can take several years.
Ofcom said it is “mindful” of the “timing” of the next live rights auction and is “open to discussion with the Premier League about its plans”.
As part of the statement issued by Ofcom, Virgin Media says the proportion of matches made available for live broadcast under the current Premier League rights deals – which stands at 154 games, 41% of total matches played – is lower than other leading European leagues, where more live matches are available to broadcasters.
The cable-TV firm alleges that this results in customers paying much higher prices for pay TV packages that include premium sport channels, as well as for the pay TV channels themselves.
Virgin Media’s chief executive Tom Mockridge welcomed Ofcom’s forthcoming investigation, telling the BBC: “The fact remains that fans in the UK pay the highest prices in Europe to watch the least amount of football on TV.
“Now is the right time to look again at the way live rights are sold to make football even more accessible. We look forward to working constructively with the Premier League, the wider industry and Ofcom to ensure a better deal for football fans.”
In a statement, the Premier League said: “Ofcom has stated that this inquiry is at an early stage and it has not reached a view as to whether there is sufficient evidence of any infringement.
“The Premier League currently sells its audio-visual rights in a way that is compatible with UK and EU competition law and will continue to do so.”
Ofcom also added that it would look into the issue of how many games are moved from the 3.00pm kick-off time on Saturday afternoons, due to the demands of broadcasters, who themselves are unable to show live games in the traditional slot due to UK broadcasting regulations, set in the 1960s, which aim to protect spectator attendances.
As part of this process, the broadcasting regulator will approach supporters’ groups, including the Football Supporters’ Federation, to take on board their views on the matter, particularly with regards to the scheduling of live matches, with some groups opposed to live UK screenings of Saturday 3.00pm matches.
Malcolm Clarke, chair of the Football Supporters’ Federation, said in a statement: “We welcome Ofcom’s promise to consult the FSF. In turn we’ll be talking to our individual and affiliated members to gather their views.
“Premier League football might be a global phenomenon, but without fans in the stands, it wouldn’t have the same appeal. People want to see the world’s best players, but they also want to see stands packed to the rafters with fans. That vibrancy is a key part of the TV ‘product’.
“Ofcom also acknowledges the importance of Saturday 3pm kick-offs to fans,” added Clarke. “All-too-often TV’s needs come before match-going supporters as games are shunted around the calendar.
“This is especially difficult for away fans, and not just those in the top-flight. It’s a problem for supporters of clubs in the Football League, Conference, and beyond.”
The sale of Premier League TV rights in both the UK and overseas has made the 20-team English top flight division the most lucrative domestic league in the whole of world football, with Sky and BT paying more than £6 million for each game they broadcast.
Previous interventions from regulators demanded two or more broadcasters share the rights to live matches, which was implemented from the 2007/08 season when the now-defunct Setanta Sports won the rights to two live match packages.
The monthly cost of Sky Sports, which must be taken with a pay-TV package, has risen from £10 in 2005 to £24.50, following a £2.50 pound rise in September, while its new rival BT, which has live rights to fewer matches, has made available its premium sports channels for free for those with its broadband packages.
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