March 31 – The Premier League fear a controversial Ofcom ruling will lead to the world’s top players, like Manchester City’s Carlos Tevez (pictured), turning their back on England.
Sky will be forced to sell Sky Sports 1 and 2 to rival broadcasters for up to 23 per cent less than the current wholesale price, according to the ruling by the industry regulator.
Ofcom – the Office of Communications, the independent telecommunications regulator and competition authority for the communication industries in the United Kingdom - ordered Sky to sell its Sports 1 and 2 packages for £10.63 ($16.20) a month each – 23.4 per cent less than at present.
If the two channels are sold together, Ofcom has set a price of £17.14 ($26.13) - a discount of 10.5 per cent on current charges.
The ruling, which applies to rival cable, terrestrial and internet broadcasters, comes into effect immediately.
The Premier League, who have just signed a three-year £1.782 billion ($2.717 billion) broadcast deal, with Sky paying £1.62 billion ($2.470 billion) of that, are considering a legal action believing the ruling will drive down the value of the broadcast rights.
Their biggest fear is a drop in the money available to clubs will stop the best players being attracted to the most successful league in the world.
A Premier League statement said: ”Reduced income from rights sales will be rapidly reflected at every level of sport.
“It will be harder to recruit and retain top talent, youth development will come under pressure, investment in grounds and facilities will be deferred and, in the case of football, the ability to contribute to the rest of the game from Championship to local parks will be severely diminished.”
Premier League chief executive Richard Scudamore called the ruling an “ill-judged and disproportionate intervention in the broadcast market” and said it rewarded broadcasters who had shown little interest in bidding for sports rights but still wanted to show it.
The England and Wales Cricket Board, Rugby Football Union and Rugby Football League also criticised the ruling.