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Premier League 2016-2019 Rights

Sky win 5 packs 126 matches - BT 2 packs 42 matches p s. (January 2014)

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SE
Square Eyes Founding member
Trade off for BT I guess, improved slot fewer first picks. For viewers price hike all round.
DV
DVB Cornwall
This cements Ofcom's Wholesale Must Offer ruling though, should now be a shoe-in that it's renewed post review.
BR
Brekkie
Jake posted:
Cando posted:
10.2m a game. 71% increase Shocked

Sky - £4.18bn
BT - £960m

vs last time:
Sky +83%
BT +30%

Sky - £11m per game
BT - £7.6m per game

Lets have a look at what ratings such figures buy you:

Rank Channel Time Programme OOOs Share
1 SkSp1 04:45 PM Live Ford Saturday Night Football 1194 6.4%
3 BT Sport 1 12:00 PM Live tottenham v arsenal 791 8.9%

Rank Channel Time Programme OOOs Share
1 Sky Sports 1 04:00 PM Live ford super sunday 1711 10.2%
2 Sky Sports 1 02:00 PM Live ford super sunday 1140 10.4%
7 Sky Sports 1 11:30 AM Live ford super sunday 596 7.3%
VM
VMPhil
Do they really care about viewing figures though? Surely it's about driving subscriptions and keeping them.
BR
Brekkie
Do they really care about viewing figures though? Surely it's about driving subscriptions and keeping them.

True, but it's quicker to copy and paste from ITV Media than to work out those figures! Sky never release their separate sport subscription figures though the latest figures I find suggest 10.4m subscribers overall.

So Sky need to be making £1.6bn a year from subscribers just to cover the cost of this deal (before any production costs etc.), so based on 10m subscribers overall that is £160 from each of them a year. At a very rough guesstimate on the basis of nothing of half of Sky's subscribers subscribing to Sky Sports that is £320 each, or nearly £27 a month.

Guess the real figure though is the increase - to cover the deal they need to an extra £1.9bn from subscribers over three years, so around £650m a year, or £65 per subscriber. I can't see the Sky Sports subscription going up by over £5 a month so most of that will filter through.

BT paying just over £70m more a year so based on 7m broadband subscribers that'll be an increase of £10 a year to cover it, though of course there may be the switch to charging for BT Sport once the Champions League kicks in. I don't think they've got enough here though to back that up as worth it though.


Would be interesting to know what the losing bids were - I wouldn't be surprised at all if the second round is just greedy tricks by the Premier League to panic Sky into paying more.
DV
DVB Cornwall
So closing prices of the two companies respective ADRs traded in NY tonight sees

SKY down 5.5 pct and
BT up 4.2 pct.

Be interesting to see how London reacts tomorrow morning.
IS
Inspector Sands
Sky down 3%, BT up 2.5%:
http://www.bbc.co.uk/news/business-31410300

So they both got the same number of packages as they have now, both are paying more but Sky are paying a heck of a lot more?

As last time round it does make me wonder if rumours about other bidders were partly being created just to push up the price?
CA
Cando
According to Claire Enders on Sky last night.BT won package B on Friday (the 2nd best pack, Saturday 5.30 with 9 first picks). So I imagine Sky panicked and went all out to get Package D (Sunday at 4pm) in round 2. If they had lost that it would have been a massive blow as that has 18 first picks.
DV
DVB Cornwall
FAPL impact on Share Prices - Close
BT ...
Sell: 460.10p Buy: 460.20p +16.20p (3.65%)
Sky ...
Sell: 932.00p Buy: 933.00p -21.00p (-2.20%)
BR
Brekkie
I assume tax (presumably VAT) is applicable on these rights so do we know if the quoted prices include VAT or not (I'm assuming not).
DO
dosxuk
I assume tax (presumably VAT) is applicable on these rights so do we know if the quoted prices include VAT or not (I'm assuming not).


Doesn't really make any difference with VAT - all the organisations involved will be VAT registered, so won't be paying the VAT on their purchases. VAT is only really for sales to consumers rather than business to business.
BR
Brekkie
Good point. Guess the only windfall then for the Government is once it filters down to multi-million pound salaries. With amounts like this in play though a levy which went to the BBC wouldn't be a bad idea as an alternative revenue raising option.

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