BSkyB: Free-to-air events list is 'a tax on sport'
BSkyB pushes government review of sporting events that must go on free-to-air TV for an end to 'forced sales'
BSkyB has attacked the government's review of the so-called "crown jewels" sporting events reserved for free-to-air television, arguing the policy acts as a "tax on sport" that subsidises terrestrial broadcasters.
In its submission to the government's review of the A list of sporting events, such as the FA Cup final and Wimbledon, that must shown on free to air TV, the pay-TV broadcaster also argues that the policy reduces competition for media rights.
Sky believes sports governing bodies should be allowed to make their own decisions to maximise the value of their TV rights, free of political interference.
"Listing a sporting event against the wishes of the sports body responsible for it removes that freedom of choice and places a key decision in the running of the sport into the hands of government," BSkyB said in its submission to the Department of Culture, Media and Sport.
"Listing an event against the wishes of a sports body means that it becomes a forced seller of its rights and denies it the ability to get a fair deal from its chosen broadcast partners. This amounts to a tax on sport to subsidise terrestrial broadcasters, at a time when sports are in need of greater levels of funding in order to invest in facilities and in their grassroots, and face pressure from the Government to increase levels of participation."
David Davies, the former Football Association director who is leading the government's listed events review, has said that the issue of whether cricket should rejoin the "A-list" was bound to form a key part of his deliberations.
Last summer, the England and Wales Cricket Board agreed a controversial £300m contract with Sky that gave it exclusive rights to all international cricket played in the UK between 2010 and 2013.
The switch of England's home Tests from Channel 4 to Sky in 2006 sparked furious debate and criticism of the ECB for removing live coverage of domestic international cricket from terrestrial TV for the first time since 1938.
Jeremy Darroch, chief executive of BSkyB, today staunchly defended BSkyB's position in the debate, said that terrestrial broadcasters have no appetite for providing the extensive coverage that it offers and which is needed to build the profile of cricket.
"ITV and Channel 4 have made clear that they don't see cricket as part of their programming mix," Darroch said, speaking at a Sports Industry Group event today. "And the BBC has been ambivalent at best in its interest in cricket, preferring to invest elsewhere instead, most recently in Formula One. So when you hear people call for Test cricket to be put back on the list of sporting events reserved for free-to-air television, think hard about the potential consequences of restricting competition for rights."
He said that many sports bodies, such as the International Olympic Committee and Wimbledon, would choose free-to-air broadcasters regardless of whether pay-TV broadcasters such as Sky were allowed to bid for the rights.
"There is no need for a major sporting event to be listed in order for it to feature on free to air television – just look at Formula 1, Six Nations rugby or Premier League highlights for proof," he added.
Darroch argued that in some cases putting an event on the protected list is the equivalent of "turning the clock back 20 years" because the BBC is, in most cases, the only terrestrial broadcaster with the financial muscle to secure rights. That resulted in a situation "where lack of competition means rights get sold for a fraction of their true value, and where sport is marginalised in the schedules or constantly disrupted because it is something shown out of sense of duty, not desire".
The DCMS review closes on 3 July.
Mark Sweney
Tuesday 9 June 2009 10.14 BST
guardian.co.uk © Guardian News and Media Limited 2009
BSkyB pushes government review of sporting events that must go on free-to-air TV for an end to 'forced sales'
BSkyB has attacked the government's review of the so-called "crown jewels" sporting events reserved for free-to-air television, arguing the policy acts as a "tax on sport" that subsidises terrestrial broadcasters.
In its submission to the government's review of the A list of sporting events, such as the FA Cup final and Wimbledon, that must shown on free to air TV, the pay-TV broadcaster also argues that the policy reduces competition for media rights.
Sky believes sports governing bodies should be allowed to make their own decisions to maximise the value of their TV rights, free of political interference.
"Listing a sporting event against the wishes of the sports body responsible for it removes that freedom of choice and places a key decision in the running of the sport into the hands of government," BSkyB said in its submission to the Department of Culture, Media and Sport.
"Listing an event against the wishes of a sports body means that it becomes a forced seller of its rights and denies it the ability to get a fair deal from its chosen broadcast partners. This amounts to a tax on sport to subsidise terrestrial broadcasters, at a time when sports are in need of greater levels of funding in order to invest in facilities and in their grassroots, and face pressure from the Government to increase levels of participation."
David Davies, the former Football Association director who is leading the government's listed events review, has said that the issue of whether cricket should rejoin the "A-list" was bound to form a key part of his deliberations.
Last summer, the England and Wales Cricket Board agreed a controversial £300m contract with Sky that gave it exclusive rights to all international cricket played in the UK between 2010 and 2013.
The switch of England's home Tests from Channel 4 to Sky in 2006 sparked furious debate and criticism of the ECB for removing live coverage of domestic international cricket from terrestrial TV for the first time since 1938.
Jeremy Darroch, chief executive of BSkyB, today staunchly defended BSkyB's position in the debate, said that terrestrial broadcasters have no appetite for providing the extensive coverage that it offers and which is needed to build the profile of cricket.
"ITV and Channel 4 have made clear that they don't see cricket as part of their programming mix," Darroch said, speaking at a Sports Industry Group event today. "And the BBC has been ambivalent at best in its interest in cricket, preferring to invest elsewhere instead, most recently in Formula One. So when you hear people call for Test cricket to be put back on the list of sporting events reserved for free-to-air television, think hard about the potential consequences of restricting competition for rights."
He said that many sports bodies, such as the International Olympic Committee and Wimbledon, would choose free-to-air broadcasters regardless of whether pay-TV broadcasters such as Sky were allowed to bid for the rights.
"There is no need for a major sporting event to be listed in order for it to feature on free to air television – just look at Formula 1, Six Nations rugby or Premier League highlights for proof," he added.
Darroch argued that in some cases putting an event on the protected list is the equivalent of "turning the clock back 20 years" because the BBC is, in most cases, the only terrestrial broadcaster with the financial muscle to secure rights. That resulted in a situation "where lack of competition means rights get sold for a fraction of their true value, and where sport is marginalised in the schedules or constantly disrupted because it is something shown out of sense of duty, not desire".
The DCMS review closes on 3 July.
Mark Sweney
Tuesday 9 June 2009 10.14 BST
guardian.co.uk © Guardian News and Media Limited 2009
