Magazine article Marketing

BSkyB Boosts TV Bid with Chelsea Deal

Magazine article Marketing

BSkyB Boosts TV Bid with Chelsea Deal

Article excerpt

BSkyB has upped the stakes in the bidding for TV rights to the Premier League for the 2001 season by paying [pound]40m for a 9.9% stake in Chelsea.

The deal, which values the club at about [pounds]400m, gives BSkyB rights to act as the club's exclusive agent in all negotiations, except those conducted by the Premier League.

BSkyB now has minority stakes in four of the 20 Premier League clubs, including Manchester United (9.9%), Leeds (9.08%) and Sunderland (5%),meaning that it will be a force to be reckoned with once negotiations for the rights begin.

While the Premier League takes decisions on the basis of a two-thirds majority, BSkyB, which paid [pounds]670m for live broadcasting rights in 1996, will not now be easily excluded from any deal. Neither of the other broadcasters likely to compete for Premier League rights has stakes in as many clubs: NTL has a stake in Newcastle United and Aston Villa, while Granada has a stake in Liverpool.

BSkyB's Chelsea deal also acknowledges the importance of sports content in driving internet revenues. …

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