What does the new Premier League TV deal mean for pubs?

Live top-flight football has been the engine of Sky’s growth over the past two decades since the formation of the Premier League. The company was determined to hang on to the lion’s share of matches and, by its own admission, paid much more than forecast. It has been rewarded with more matches than ever before and best match picks.

BT Sport entered the market in 2013, proving an attractive option to pubs. Figures revealed last year show that 30% of UK pubs now subscribe to the channel. It has secured 42 matches, four more than previously.

Live sport remains a key footfall and profit driver for pubs and Premier League football is essential for those whose business model relies on their venue being the best environment in which to watch games outside of going to the ground.

Drivers​

David Rey, managing director at Sky Business, said the deal was great news for customers. He told the Publican’s Morning Advertiser​: “We will show three times as many matches as any other broadcaster, with the best match picks and live coverage across more days of the week. Plus, for the very first time, pubs will be able to show live Premier League matches on a Friday night.

“They can continue to look forward to our Super Sunday double-headers and Monday Night Football, which are key drivers of footfall, while also benefitting from kick-off times across the weekend. The deal ensures that Sky Sports venues will continue to be the place to follow the biggest matches.”

The new Friday night slot will see up to 10 games kick-off at 7.30pm or 8.00pm. These matches could prove to be valuable footfall drivers and feature top teams that might favour a Friday night match before playing in the Champions League the following week.

It will be interesting to see how attractive those new fixtures turn out. Licensees may discover new customers in the casual football fan who finds it easier to justify going to the pub to watch the match on a Friday night after work with friends or colleagues than, say, on a Saturday lunchtime when family or other commitments might prevent them from doing so. Those who come to the pub regardless of whether there is sport being screened could be persuaded to stay longer and spend more if a match is being shown.

As always it will be down to individual pubs to make the most of these matches through effective marketing creating the right atmosphere and maximising spend.

Appeal​

The new deal will see BT Sport show a live Saturday evening game every Premier League weekend from 2016/17 for three seasons. The company said this will allow it to build on its current programming and appeal to an even larger audience.

Bruce Cuthbert, director commercial customers, told the PMA​: “We’re delighted to be showing Premier League football for a further three years and that we have secured the prime Saturday evening slot. These new rights will enhance our existing schedule of sport.”

From next season, BT Sport will also be the new home for Champions and Europa League football as part of a separate £900m three-year deal. “Building an even stronger line up will help our customers increase footfall and dwell time throughout the week,” Cuthbert added.

Pub prices​

But what will the new deal mean for subscription prices? Sky said the price paid per year is around £330m more than analysts’ forecasts, but it has a plan to fund the bid and will work hard to minimise the impact of higher costs on customers.

Last year Sky announced a 5% increase in subscription prices for pubs following three consecutive annual freezes. BT increased its prices for commercial customers by 2.7%. Both broadcasters justify the rises by pointing to the continued investment in content and range of support tools on offer to licensees.

Price rises are likely to filter through eventually; at some point the broadcasters will want a return on their investment, but any substantial hike in operating costs will cause some pubs to make tough commercial decisions.

For the new deal, it’s not clear whether other bidders were involved in the process, but publicans will at least be breathing a sigh of relief that a third broadcaster has not joined the party and there won’t be an additional subscription to pay.

Both broadcasters are spending heavily on enforcement activity to protect their copyright. Both are at pains to reinforce the message that the only way Premier League football can be shown legally in pubs is via a commercial agreement with Sky or BT. This enforcement is likely to continue as Sky and BT look to protect the value of their investment.