THIS SPORTING STRIFE
By accepting a bid 369m lower than that of Rupert Murdoch for exclusive coverage of the next five Olympics, the International Olympic Committee not only shocked all observers. It also temporarily retarded the media magnate’s plans for world sporting domination.
But it is just a temporary delay. In the past four years, News Corporation has signed exclusive deals for boxing, cricket, football, golf and rugby league. It has a 175m bid for the Rugby Union five nations tournament on the table.
Murdoch realised earlier than his terrestrial and cable rivals that sport is a commodity. He has executed a plan to not just outspend, but dwarf, any rivals to secure television rights – with the long-term intention of owning the sports. Many have been very accommodating. Both football and rugby league have altered the timing of their games to fit in.
In July 1992, when BSkyB signed its five-year, 200m deal for the rights to Premier League football, there were 2.5m satellite TV homes in the UK. By January 1996, with cable included, satellite had grown to almost 4.9 million homes. During the Cricket World Cup in 1992 – shown exclusively on Sky Sports – connections to BSkyB increased by 70 per cent. Its coverage of this year’s competition, starting next week, should fuel further sales.
Sky Sports is the second most viewed cable or satellite channel in the UK, taking almost six per cent of all commercial TV viewing. Last year BSkyB’s subscription revenue increased by 44 per cent to a mammoth 656m. Sport has been the making of BSkyB, but some fear that conversely BSkyB could be the undoing of sport and other broadcasters.
ITV has come to the party late. In December, it poached Formula One motor racing from the BBC and negotiated an exclusive deal for the FA Cup Final. The BBC’s best bet to retain its hold on the likes of Wimbledon tennis or the Rugby Union Five Nations Championship is a political backlash.
Murdoch is acutely conscious of the political pressure and always negotiates deals allowing terrestrial broadcasters sports highlights. News Corporation’s $1.3bn (855m) bid for the worldwide rights to the Olympics included selling the games on to terrestrial broadcasters.
For once the terrestrials have the upper hand – but it could be the last time. The Olympics represent the sporting pinnacle – Murdoch wants to own that pinnacle.
