Rival UK pay-television operators BT and BSkyB announced exclusive UK rights deals for competing versions of Europe’s top club rugby union tournament today.
BT announced it had bought the rights for English Premiership teams’ matches in a “dazzling new European tournament” which would succeed the Heineken Cup, currently Europe’s top club competition, in 2014-15 to 2016-17. The deal was agreed with the English Premiership.
Sky later announced it had extended its rights for the Heineken Cup for four years, from 2014-15 to 2017-18. The deal was agreed with the European Rugby Cup (ERC), the organiser of the Heineken Cup.
The backdrop to the two apparently conflicting deals is a disagreement over the structure of the continental competition between the clubs of the English Premiership and the French Top 14, the top leagues in their respective countries, and the ERC. The English and French leagues say the qualification rules are weighted too heavily in favour of the Pro12, a league featuring the top teams from the ‘Celtic’ nations of Ireland, Scotland and Wales. The English and French sides have said they will quit the Heineken Cup after 2013-14, and have threatened that they could form their own Anglo-French competition.
Talks on the future structure of continental competitions are ongoing between the leagues and the ERC, which sells the Heineken Cup’s commercial rights and distributes the revenues to the participating clubs.
The ERC hit out at the deal today, saying: “While awaiting further information regarding Premiership Rugby’s proposed agreement with BT, the ERC Board, which met in Dublin today, believes that any such agreement would be in breach both of IRB regulations and of a mandate from the ERC Board itself.”
The leagues and the ERC are set to meet in Dublin next Tuesday, September 18, for further talks on the shape of the continental competitions from 2014-15 onwards.
BT’s deal, as well as covering European matches, covers the domestic rights for Premiership matches plus rights for a summer rugby sevens tournament, in the four seasons from 2013-14 to 2016-17. The Premiership rights are currently held jointly by Sky and ESPN, another pay-television broadcaster, in deals from 2010-11 to 2012-13.
BT said the deal was worth “up to” £152 million (€192 million/$242 million) over the four years. Premiership chief executive Paul McCafferty told UK newspaper the Guardian that the deal would mean a 50-per-cent increase in television revenue for the league’s clubs.
The portion of the £152 million that related to European matches is to be added to the central revenue pot for the new European competition which will be split amongst its participants.
Marc Watson, BT Vision’s chief executive, told sports industry magazine SportsPro: “We have the English Premiership; we think there’s lots of great potential there. And we are looking to set up, or at least help set up, a dazzling new European tournament, with a fantastic new format, with, we hope, all the best clubs.
“And we’ve secured, from the English Premiership, the rights to that for the UK. That tournament will be the successor to the Heineken Cup, which is a very successful tournament.”
Sky’s deal covers exclusive live rights in the UK and Ireland for the Heineken Cup, including matches from the first four rounds, all knock-out stages and the final. It also covers UK and Ireland rights for live matches from the ERC’s second-tier competition the Amlin Challenge Cup.
Barney Francis, managing director of Sky Sports said: “We have been pleased to be partners with the ERC for over a decade and see their tournaments grow. This is Rugby of the highest quality and these competitions give our viewers over 60 live games across eight months.”
Derek McGrath, chief executive of the ERC, said: “Over the past ten years Sky Sports has made a major contribution to the development of European club rugby and ERC is delighted to be able to extend our partnership for a further four seasons until 2018. Sky Sports innovative coverage and commitment has greatly enhanced the game in Europe and we look forward to working together over the next six seasons as the Heineken Cup and Amlin Challenge Cup reaches new heights.”