COMPANY OF THE WEEK
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.BSkyB, the satellite broadcaster 40 per cent owned by Rupert Murdoch's News Corporation, agreed to pay pounds 623.4m for Manchester United, adding England's richest football team to Mr Murdoch's sports assets.
United, whose 1997 revenue was more than double that of any other English team, fits Murdoch's strategy of buying big-name sports teams for their broadcast rights. Sports broadcasting attracts viewers, advertising and subscriptions for pay-TV services. BSkyB has dominated UK pay-TV, though it faces more competition from cable companies and traditional free broadcasters as they introduce digital television services and give viewers more channels.
BSkyB's offer looks "like pretty good value," said Paul Richards, an analyst at Panmure Gordon. "Strategically, it's a brilliant move for BSkyB."
BSkyB's current exclusive contract to broadcast Premier League games, a key to the company's success, is in jeopardy. The OFT is preparing to take the company and the League to the Restrictive Trade Practices Court in January. It argues that the League's collective negotiating undermines the rights of the individual teams.
If the OFT wins that case, teams would negotiate their own TV contracts, and United's games would be among the most sought after. The potential formation of a European "super league" gives BSkyB another reason to try to capture the rights to United. "To own key sports teams is very important because it means owning the key critical content," said Nick Bertolotti at JP Morgan Securities.
The Premier League is also considering whether to make televised football available on a pay-per-view basis. It is weighing whether to establish its own channels or sell PPV rights to a broadcaster like BSkyB. Owning United would give BSkyB leverage.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments