The fee is short of Uefa’s asking price of €75 million, the same fee paid by Prisa-owned pay-television operator Sogecable for the Euro 2008 rights. It is understood that Telecinco will also pay an additional €2 million for the U-21 Euro 2011 that takes place in June.
The reduced fee is due to a lack of competition in the Spanish market. Public-service broadcaster TVE was seen as Telecinco’s only real competitor, but restrictions on its rights budget and the recent acquisition of Uefa Champions League rights for the next three-year cycle, from 2012-13 to 2014-15, forced its withdrawal from the bidding process.
Telecinco’s merger with commercial broadcaster Cuatro could mean that coverage is split between the two free-to-air broadcasters. Telecinco could also sub-license a package of rights to Prisa-controlled pay-television operator Digital Plus, in which it has a stake.
For the Euro 2008 tournament, Digital Plus showed 31 matches and Cuatro showed 19, including all national team games as well as the opening match, the semi-finals and the final.
Analysts at Citi Bank said of the deal: “This event is likely to help the audience share of Telecinco and Cuatro during the tournament, but these large sporting events are rarely profitable, and therefore, if anything, we believe it could put downwards pressure on 2012 forecasts.”
The deal is only the second in Europe’s top five markets. In Germany, the only other big five market where a deal has been concluded, Uefa also had to accept a slight decrease in rights fee when renewing with state broadcasters ARD and ZDF. With just over a year to go until the beginning of the tournament, Uefa still has no deal in place in the UK, Italy or France. The governing body is selling the rights directly in Europe’s major markets.