Telecom and media regulator Ofcom "opened a formal investigation into the structure of the sale of Premier League broadcasting rights on the cusp of a new auction," according to Nic Fildes of the LONDON TIMES. The probe "follows a complaint by Virgin Media that football fans in this country are paying too much to watch live matches and that the cost is said to spiral further as BT and Sky, as well as other companies, jostle for the rights to the best matches." Ofcom "will use the Competition Act to consider whether the structure of rights auctions, which is done on a collective basis by the Premier League, breaches competition law." The relatively low number of games that are broadcast live "will also be scrutinised." Only 41% of matches are available to view on TV. The low level of live games "reflects an agreement not to show matches that kick off at 3pm to ensure that attendances at the majority of games was not damaged." Ofcom said that "it would consult with the Football Supporters’ Federation and other groups to gauge views on that factor" (LONDON TIMES, 11/18). The PA's Martyn Ziegler wrote the EPL "is due to hold its next auction of broadcast rights in the new year but this is unlikely to be affected too much by the Ofcom action as its investigations can take several years." The Ofcom statement said, "Ofcom is mindful of the likely timing of the next auction of live UK audio-visual media rights, and is open to discussion with the Premier League about its plans" (PA, 11/18).
EARLY STAGE: Also in London, Mark Sweney wrote the complaint contends that this “collective” selling of the live TV rights, which are due to come up for auction in the coming months, "contributes to higher priced pay-TV packages for the retailers of premium sports channels." Ofcom said the case is at an “early stage” and it has “not reached a view as to whether there is sufficient evidence of an infringement of competition law for it to issue a statement of objections” (GUARDIAN, 11/18). In London, Mance & Aglionby wrote research commissioned by Virgin Media revealed that English viewers must pay at least £51 ($80) per month "to watch all top-level domestic matches live," compared with £21 ($33) per month in Germany and £10 ($16) per month in France. Virgin CEO Tom Mockridge said, "The fact remains that fans in the U.K. pay the highest prices in Europe to watch the least amount of football on TV." The value of Premier League rights has spiraled to £1B ($1.6B) a year, "and is expected to increase in the next auction early in 2015, due to competition between rival broadcasters BT and Sky." Virgin "has found itself squeezed by BT’s arrival on the scene, having to pay more to offer its customers the same rights" (FINANCIAL TIMES, 11/18). In a statement, the Premier League said, "We note that Ofcom has launched an inquiry. Ofcom has stated that this 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" (BBC, 11/18).
AN ENGLISH TRADITION: The BBC's Mandeep Sanghera reported Football Supporters' Federation Chair Malcolm Clarke said that the FSF "is against televising more top-flight matches and especially any 3pm kick-offs." At present, live games cannot "be shown in England between 14:45 GMT and 17:15 GMT." Clarke: "It's very important to retain the 3pm window and we'd have major reservations about a further significant increase in televised football." The price for the current TV rights deal spanning '13-16 is worth £3B ($4.7B) "and is shared by BSkyB and BT." Clarke said, "A 3pm kick-off on Saturday is part of the tradition of English football. We've lost some of that with the number of games that are now being moved, which many fans are unhappy about. ... We've seen no evidence so far that increased media rights benefit the ordinary fan, either sitting at home watching a game on television or going to the matches" (BBC, 11/18).
