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Sky Tells League Championship Clubs They Paid Fair Market Price

Sky told rebel League Championship clubs that they secured a "fair market price" for TV rights that "will underpin the league for years ahead" as the row continues to escalate over the five-year broadcast contract, according to Matt Dickinson of the LONDON TIMES. A number of Championship clubs are "ready to launch a legal challenge" against the £595M ($763.1M) deal signed by the English Football League board, "insisting that it is undervalued." Despite paying an increase of 35% on the present contract, Sky has been "caught in the middle of the conflict between some of the biggest Championship clubs and the EFL hierarchy." The broadcaster has "kept quiet until now," but Sky Sports Managing Dir Barney Francis said that "no other competitor was willing to invest as much to show the 72 clubs." Francis: "Nobody has supported the EFL more than Sky. Over two decades, we have continually invested through every twist and turn for the benefit of the league. ... The fact that the price we paid is substantially higher, when sports rights are generally receding, reflects the sustained commitment we have made to the EFL" (LONDON TIMES, 11/24).

PENDING LITIGATION: In London, Matt Hughes reported the Championship clubs in conflict with the EFL board appointed law firm Slaughter and May "to build a case to challenge the validity" of the Sky TV deal. The "unhappy" clubs are refusing to accept the deal. They believe that the board's failure to share details of the final contract before it was signed and its refusal to show them legal advice are "sufficient grounds for challenging the deal in court." A working party of seven clubs -- Leeds United, Derby County, Aston Villa, Preston North End, Nottingham Forest, Stoke City and Middlesbrough -- called a meeting of all 24 Championship clubs this week to "discuss their options" and formalize their legal action (LONDON TIMES, 11/23).

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