BT CEO Gavin Patterson said that "rampant inflation in the prices paid for TV sports rights must come to an end," as the telecom "takes on rival Sky" in the £1B ($1.23B)-plus "battle for Champions League football," according to Mark Sweney of the London GUARDIAN. First-round bids for Champions League rights are "understood to have been submitted this week," with UEFA "aiming for an up to 30% increase from the new deal," to as much as £1.2B ($1.47B). BT paid £900M ($1.1B) to "poach the exclusive rights from Sky" under the existing deal. Ahead of a decision on the next three-year deal, Patterson said that "rampant inflation in sports rights" has to end. Patterson, who has been dealing with the "fallout from a huge accounting scandal" that has cost the company more than £500M ($613M) to date, said that a "limited period of inflation was expected" after BT drove a 70% rise in the value of the Premier League rights. Patterson said, "Naturally when we came in [to the market] there would [always be] be some inflation. At some point it will stabilize." The Champions League is considered to be a "critical litmus test as to whether price inflation will continue at such high rates." To date, Sky and BT have "attempted to play down expectations of a bidding war." Several observers said that Sky, which is the subject of an £11.7B ($14.4B) takeover by Rupert Murdoch’s 21st Century Fox, "does not appear to have the appetite to lodge a blockbuster bid" for Champions League football. They said that Sky "could be keeping its powder dry to make sure it can secure the lion's share of the crown jewel" Premier League rights when the next three-year deal is struck (GUARDIAN, 3/3).
