Court ruling may change TV deals
Source: Agencies |
October 6, 2011, Thursday
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Print Edition
Print Edition
SOCCER fans should be allowed to pick the cheapest way to watch games on television regardless of exclusive national broadcasting agreements, the European Union's highest court has ruled.
The decision on Tuesday against England's Premier League - the world's richest football league - could have profound implications for how sports and other entertainment TV rights are sold in Europe.
Experts warn however it could be a short-lived Pyrrhic victory for European consumers, as the Premier League and other highly coveted leagues could push through pan-European packages at high rates, hurting fans in smaller markets.
They said it also could force a drastic revision in how TV programs are distributed throughout Europe's lucrative market of over 500 million people.
The European Court of Justice said it is "contrary to EU law" for rights holders to set up exclusive contracts for each EU nation and to seek to prohibit viewers from watching those games in another nation with a cheap decoder card.
Karen Murphy, landlady of The Red White & Blue pub in Portsmouth, England, started showing games to her patrons using a Greek decoder, which cost her about one-tenth of the price she would have had to pay the Sky broadcasting network, which holds the British rights.
After an initial conviction, a British high court sought EU advice and the Luxembourg-based tribunal said in a statement that "national legislation which prohibits the import, sale or use of foreign decoder cards is contrary to the freedom to provide services and cannot be justified."
The Premier League did not immediately react to the ruling.
The decision could force through pan-European contracts as the business model, a sea change compared with the compartmentalized, national way of contracting now.
"It could have a dramatic impact on the marketing of sports rights," said Munich sports law expert Peter Duvinage.
Major rights holders like the Premier League might now look at the future and weigh the limited added value of a contract in Greece with the threat it now poses to its core home market in the UK.
"If I am doing Premier League, then of course, why risk the prices in Greece becoming the prices in Britain. I will make sure that I do one deal," said Nick Bitel, the chairman of the Sports Rights Owners Coalition in London. "Consumers will find that they will have less choice."
Since the EU advice still has to go back to the British court, many warned it was still tough to assess the potential implications of the dense 32-page judgment on the lucrative European TV market.
For years, the 27-nation EU has been working to turn the territory of its member states into on open market unburdened by the commercial borders that hurt continent-wide trade in the past.
The court said the practice of selling rights on a country-by-country basis and keeping cheaper alternatives out of other member states is an infringement of that principle.
The decision on Tuesday against England's Premier League - the world's richest football league - could have profound implications for how sports and other entertainment TV rights are sold in Europe.
Experts warn however it could be a short-lived Pyrrhic victory for European consumers, as the Premier League and other highly coveted leagues could push through pan-European packages at high rates, hurting fans in smaller markets.
They said it also could force a drastic revision in how TV programs are distributed throughout Europe's lucrative market of over 500 million people.
The European Court of Justice said it is "contrary to EU law" for rights holders to set up exclusive contracts for each EU nation and to seek to prohibit viewers from watching those games in another nation with a cheap decoder card.
Karen Murphy, landlady of The Red White & Blue pub in Portsmouth, England, started showing games to her patrons using a Greek decoder, which cost her about one-tenth of the price she would have had to pay the Sky broadcasting network, which holds the British rights.
After an initial conviction, a British high court sought EU advice and the Luxembourg-based tribunal said in a statement that "national legislation which prohibits the import, sale or use of foreign decoder cards is contrary to the freedom to provide services and cannot be justified."
The Premier League did not immediately react to the ruling.
The decision could force through pan-European contracts as the business model, a sea change compared with the compartmentalized, national way of contracting now.
"It could have a dramatic impact on the marketing of sports rights," said Munich sports law expert Peter Duvinage.
Major rights holders like the Premier League might now look at the future and weigh the limited added value of a contract in Greece with the threat it now poses to its core home market in the UK.
"If I am doing Premier League, then of course, why risk the prices in Greece becoming the prices in Britain. I will make sure that I do one deal," said Nick Bitel, the chairman of the Sports Rights Owners Coalition in London. "Consumers will find that they will have less choice."
Since the EU advice still has to go back to the British court, many warned it was still tough to assess the potential implications of the dense 32-page judgment on the lucrative European TV market.
For years, the 27-nation EU has been working to turn the territory of its member states into on open market unburdened by the commercial borders that hurt continent-wide trade in the past.
The court said the practice of selling rights on a country-by-country basis and keeping cheaper alternatives out of other member states is an infringement of that principle.
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