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Police Raid Italian Television Groups In Investigation Of Serie A Rights Deals

The offices of Italian broadcaster Mediaset and satellite TV group Sky Italia "have been raided by police" investigating last year’s €1B sale of Serie A football rights, according to Rachel Sanderson of the FINANCIAL TIMES. The inquiry was launched in parallel with the arrest of 50 people "on charges of rigging 28 matches, in a massive swoop by police across Italy." Italy’s antitrust authority said that it had opened an investigation into Mediaset -- owned by former PM Silvio Berlusconi and the Rupert Murdoch-owned Sky Italia, to investigate whether the parties violated competition laws through “sharing agreements” and excluded new entrants. The authority said that "it was also investigating the Italian football league and Infront, a Swiss-based agency that managed the process." Italy’s antitrust authority said that "its investigation would take a year to complete" (FT, 5/19). In London, Stephanie Kirchgaessner reported Italian financial authority Guardia di Finanza said that it had conducted "inspections" in six locations in regard to the sale of TV rights to the media groups. The competition authority, "which was also involved in the inspections," said that it was investigating possible "sharing agreements" between Sky and Mediaset and that it "appeared that the final agreement between the parties did not necessarily reflect the bids that had been made." Recent media reports have speculated that Sky had "approached Mediaset about a possible takeover of the company's unprofitable pay-TV business, Mediaset Premium, but the offer was rejected" (GUARDIAN, 5/19). REUTERS reported Sky Italia, part of Sky Plc, and Mediaset "were awarded rights last June to broadcast matches of the eight main teams" in the top tier of Italian football in the three seasons to '18 after an auction that was delayed by legal complaints from rivals. The official outcome of the auction "was tweaked in a deal that gave Sky Italia exclusive rights to broadcast matches of the other 12 teams in Serie A, a package initially awarded to Mediaset." The sale of Serie A rights is worth nearly €1B ($1.11B) a season (REUTERS, 5/20). REUTERS' Parodi, Cristoferi, Pollina & Masoni wrote Mediaset said in a statement on Tuesday that the final agreements relating to the allocation of the football rights "had received the green light from the communications regulator as well as from the competition watchdog." It said, "Mediaset is absolutely convinced that the allocation of the TV rights was done correctly." Sky Italia and Lega Calcio "declined to comment." Infront said in a statement that "it was cooperating with AGCM" (REUTERS, 5/20). GAZZETTA DEL SUD reported Italy's anti-trust authority said Wednesday that "it had never OK'd any alleged deal between Sky Italia and Mediaset to divvy up" Serie A TV football rights. The authority said in a statement, "The anti-trust authority never authorised any agreement distorting competition on TV rights for the 2015-2018 seasons" (GAZZETTA DEL SUD, 5/20).

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