Pay-television broadcaster Sky Deutschland is likely to retain the domestic pay-television rights for Bundesliga 1 and 2, Germany’s top two football divisions, according to financial services company UBS.
UBS made prediction in a report released today, the day that the Deutsche Fussball Liga, the German football league, began a second round of bidding for the next cycle of rights.
A total of 19 packages are available in the tender, which covers four seasons, from 2013-14 to 2016-17. Pay-television operator Sky Deutschland and IPTV operator Deutsche Telekom are reported to be bidding against each other for the key packages of live rights on cable, satellite and IPTV pay-television, as well as mobile rights. In the current cycle, from 2009-10 to 2012-13, Sky has the cable and satellite rights and Telekom the IPTV and mobile rights.
“Bundesliga rights are critical for Sky Deutschland,” analysts at UBS wrote in its report, according to the Bloomberg news agency. “Although a high risk call with notable downside should Sky lose the rights, we believe that on a balance of probabilities Sky will ultimately prevail.”
UBS also added Sky Deutschland to the bank’s “preferred” investment list in the media industry and reiterated its “buy” recommendation on the broadcaster’s shares.
Telekom and Sky were among 12 companies that reportedly submitted offers for the Bundesliga rights packages in the first round of bids, due April 2.
A spokesperson for Telekom told the Welt Online news website that the company had “presented a good offer” for the pay-television rights.
The league is expected to announce the result of the auction at a press conference next Tuesday, April 17.