By Simon Thiel
Jan. 13 (Bloomberg) -- Walt Disney Co.’s ESPN TV network plans to bid for some of the rights to broadcast English Premier League soccer games live, going up against current holders British Sky Broadcasting Group Plc and Setanta Sports Ltd.
ESPN, the most-watched U.S. sports channel, is considering bids for one or two of the six packages on offer, according to one person familiar with the plans, who declined to be identified because the bidding process hasn’t started yet.
The FA Premier League sent out invitations last month to tender for the rights for the three seasons from 2010 to 2013, offering them in six packages as it did last time. The bids are due by Feb. 4, the person said.
A bid by ESPN would increase competition for BSkyB, in which Rupert Murdoch’s News Corp. owns 39.1 percent, and Irish pay-TV company Setanta Sports. BSkyB, which holds four of the Premier League rights packages, and Setanta, with two packages, declined to comment on the auction. Alex De Groote at Panmure Gordon & Co. in London is among analysts predicting both companies will bid to renew their rights.
ESPN would start a new television channel in the U.K. to market the games after a successful bid, according to the person familiar with the plans. ESPN, which is 80 percent owned by Disney, has two channels in the U.K., one showing historic sports events and another broadcasting U.S. sports.
Examining Opportunities
Disney Chief Executive Officer Robert Iger told reporters on Sept. 10 in London that the company, which also runs theme parks and owns the ABC television network, wants to continue its global expansion and is examining opportunities in several markets. ESPN would “look” at the English Premier League soccer rights in the upcoming auction, he said at the time.
Setanta will be ESPN’s main competitor for the one or two packages, the person said. Setanta Sports plans to raise cash from shareholders to help finance a bid to renew its Premier League football rights, the London-based Times reported on Nov. 8, citing Richard Brooke, director of corporate development.
Premier League teams on average get about half their revenue from broadcast agreements that have ballooned in the past decade. The current U.K. deal for Premier League rights, worth about 1.7 billion pounds ($2.6 billion) over three years, expires in 2010.
The league’s total broadcast agreements, which include international rights, are worth 2.7 billion pounds over three seasons, ranking it as the world’s richest soccer league. The most popular teams and players, such as Manchester United and its Portuguese-born star Cristiano Ronaldo, have a global following.
To contact the reporter on this story: Simon Thiel in London at sthiel1@bloomberg.net.
Last Updated: January 13, 2009 14:20 EST
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