Trade divided over football rights row
Moves by Europe to break Sky's domination of Premiership football coverage have received a mixed reaction.
Mario Monti, the European Competition Commissioner, wants to force the Premier League to carve up the sale of its football media rights as it believes that the current situation of selling to one broadcaster is "tantamount to price fixing".
This would be a blow to Sky which holds exclusive rights to screen Premiership games in the UK and could bring an end to its control over the TV pub market.
The move has been welcomed by some trade leaders who believe it may end Sky's so-called monopoly while others have voiced caution believing it could lead to increased costs.
The Commission has given the Premier League until the beginning of March to explain its policy of selling rights exclusively to Sky. It has argued that the strategy is anti-competitive because it is closing the market to other broadcasters and is ultimately limiting the coverage of football.
Greene King managed house boss Neil Gillis, who removed Sky from 100 of the company's pubs in September, has welcomed the move by the European Commission.
"I think that is really good news as Sky has a stranglehold on football and we welcome anything that breaks up its monopoly. We are finding that football is less of a draw and we are pushing alternative entertainment systems.
"We would be delighted if more sport stays on terrestrial TV as we think people are always keen to come to the pub," he said.
Nick Bish, chief executive of the Association of Licensed Multiple Retailers, agrees. He said: "If the outcome is that pub operators can get terrestrial non-pay TV it will be very encouraging."
But Tony Payne of the Federation of Licensed Victuallers Associations believes that a breakdown in the so-called monopoly could result in licensees being forced to sign several agreements with different companies. "It could be fraught with danger," he said. "We would need to look more closely at who could have the matches and what games Sky would be able to have." A spokeswoman for Sky said: "Sky can't speculate on the outcome of this inquiry. The status of the inquiry is a matter for the Premier League."
Many publicans have been in uproar about the high fees they are being charged by the satellite giant which has forced them to withdraw Sky from their pubs.
The company was cleared in August of conducting a monopoly of sports coverage in pubs and in December was cleared of breaching competition law after being accused by cable operators NTL, Telewest and the now defunct ITV Digital of overcharging them to carry its Sky Sports and movie channels.
Licensee Stuart Allan, of the Cranleigh Arms in Kirkowan, Scotland, welcomed the European Commission's move. "I think it would be the best thing that could happen. The only people who are benefiting at the moment are the greedy footballers," he said.
Related articles:
Sky cleared of breaking competition law (18 December 2002)
Greene King scraps 100 Sky contracts (5 September 2002)
OFT to take no further action over Sky (23 August 2002)
