Shares Drop for Sky & BT after Mega Premier League Deal

BSkyB and BT have paid the price for buying Premier League rights for a record price of £3billion by shares being reduced for both media companies.

BSkyB shares dropped more than 7 per cent, wiping £764million from its market value, and BT was nearly 3 per cent lower as investors got their first chance to react  to last night’s deal for domestic live TV rights for three seasons from 2013/14.

Satellite broadcaster BSkyB said it would offset the higher price through savings elsewhere in the business, although its reassurances failed to prevent the shares slide.

The long-term Premier League partner paid £2.28billion to secure the rights to show 116 games a season and newcomer BT forked out £738million to gain a 38-game-a-season foothold.

Premier League chief executive Richard Scudamore yesterday admitted he was surprised by the final total.

He said the thrilling climax to last season, when Manchester City won the title on the final day, was a significant factor in the recession-busting 70 per cent increase.

The new deal will extend Sky’s relationship with the Premier League to 24 years, while the football governing body is breaking new ground with BT.

BT will launch its own ‘football-focused channel’ through BT Vision, which will offer new interactive features, but they will look to make it available on other platforms.

Sky’s five packages cover matches on Saturday evenings, Sunday lunchtimes, Sunday afternoons and Monday evenings.

BT has bought the rights to matches that kick off at 12.45pm on a Saturday and for bank holiday and midweek games.

Shares in BSkyB were down 47.75p at 647.75p while BT’s stock was 6.1p lower at 203p in mid-morning trading.