BT’s share price: ₤900 million deal to show Champions League games

on Nov 10, 2013
Updated: Oct 21, 2019
Listen Sunday, November 10: BT (LON:BT.A) won a major victory against BSkyB (LON:BSY) this week after it agreed a ₤900 million deal for the exclusive rights to broadcast Champions League football from 2015.

UEFA has confirmed that the 168-year-old former state telecoms monopoly had won the exclusive UK live rights for both Champions League and Europe League for three years from 2015. “Both tournaments are world class and firm favourites with many. The live rights will give a major boost to BT Sport and give people yet another reason to take our terrific service,” said Gavin Patterson, the recently appointed chief executive who oversaw the launch of BT sport while he was head of the retail division. “BT Sport has got off to a strong start with customers enjoying what we have to offer. We have attracted millions of customers by giving sport back to the fans, and we can assure people who want to catch all the action that European football will be far more accessible and affordable with BT.”

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Trade these shares now through Hargreaves Lansdown from £5.95 per deal.
Sky’s version of the story is that it forced BT to overpay for the Champions League rights. “We bid with a clear view of what the rights are worth to us. It seems BT chose to pay far in excess of our valuation,” said a Sky spokesman. Still, the loss of the games from the 2015/16 season will leave a huge gap in Sky’s schedule and will likely put pressure on the company to agree a wholesale deal with BT so it can stills show the games to its viewers.

John Petter, head of BT Retail, said that the latest deal proved BT Sport was “here to stay” and dismissed Sky’s suggestion that the company had overpaid for the rights. “They would say that, wouldn’t they? Secretly, I’d expect them to be kicking themselves and full of regrets this morning,” Petter commented.
BSkyB is estimated to have about five million subscribers to its sports channels, while BT said in October it had more than two million homes signed up to its sports service. It is viewed in more than four million homes due to a wholesale deal with Virgin Media.

BT said the ₤900 million deal would not affect its financial targets. The company had spent years trimming costs after two profit warnings in 2008 and 2009. It currently brings in annual revenues of about ₤18 billion and has seen its share price climb by more than 60 percent in the year to date. “Despite these payments, BT’s financial outlook is unchanged,” the company said. “The rights are expected to drive additional growth in BT consumer revenue and profits over the medium-term.”

BT Sport has pledged to make certain matches available free-to-air across both the Champions League and Europa League, including both finals. The company has also promised that every participating British team would be shown free at least once per season to non-subscribers.
**As of Friday, November 8, buy BT shares at 390.00p.**
**As of Friday, November 8, sell BT shares at 340.00p.**
**As of Friday, November 8, buy BSkyB shares at 1003.00p.**
**As of Friday, November 8, sell BSkyB shares at 800.00p.**
Trade these shares now through Hargreaves Lansdown from £5.95 per deal.
Prices can go up and down meaning you can get back less than you invest. This is not advice. Dealing services provided by Hargreaves Lansdown.


Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.

Learn more
Media Services Stock Market