K&LNG
APRIL 2006
Alert
European Commission accepts Premier
League media rights package
The Decision
The Decision under Article 9 means:
The European Commission has adopted a Decision
under Article 9 of Regulation 1/2003 formally
binding the Football Association Premier League
("FAPL") to its commitments relating to the joint sale
of media rights.
The previous selling arrangements were considered
to reduce the choice available to broadcasters and
football fans, increase prices and inhibit innovation.
Under the commitments:
n
the FAPL will sell a number of packages of media
rights (including television, mobile and internet
rights);
n
the packages will be sold by public auction;
n
the FAPL will sell six balanced television rights
packages;
n
no bidder will be allowed to buy more than five
packages;
n
the packages will be sold to the highest stand alone
bidder; and
n
only simple stand alone bids will be accepted.
The auction process will be reviewed and monitored
for compliance with the commitments, by a trustee
appointed by the Commission.
n
the party giving the undertakings or commitments
is bound to abide by them; and
n
the Commission has decided there is no need to
take further action.
However, the Decision does not affect any
competition issues that may arise in relation to any
specific media rights contracts. These will need to be
addressed on an individual basis.
Timeline of Events
June 2001
The FAPL is investigated by the Commission in
relation to its joint selling of the media rights in
Premier League matches.
December 2002
The Commission issues a statement of objections to
the FAPL based on the fact that the FAPL's joint
selling arrangements reduce competition for the
acquisition of media rights in football. FAPL's
exclusive right to sell the media rights could infringe
Article 81(1) of the EC Treaty.
December 2003
The FAPL provides the Commission with a package
of commitments for selling media rights for the 2007
season onwards (BSkyB have already bought the
rights up until the 2006 season).
Kirkpatrick & Lockhart Nicholson Graham LLP |
APRIL 2006
November 2005
The Commission receives a revised package of
commitments from the FAPL based on a formal
consultation.
If the FAPL breaches the commitments a fine of up
to 10% of the FAPL's worldwide turnover could be
implemented. FAPL is bound by the commitments
until 2013.
March 2006
The Commission announces that it has adopted a
Decision under Article 9 formally accepting the
commitments.
The Decision brings to a conclusion a long running
disagreement between the FAPL and the
Commission in relation to the joint sale of Premier
League media rights. The Decision sets out a useful
framework for other governing bodies when
considering how to structure the exploitation of their
media rights and the Commission has asked the
national competition authorities to use this Decision
as guidance when reviewing future cases.
Comment
According to the Commission the commitments
provide a clear auction process meaning the packages
of rights are sold in an open and competitive market.
There are more rights to broadcast via mobile phone
and the internet and there is greater scope for clubs to
exploit rights not sold by the FAPL.
For further information please contact one of the following lawyers:
LONDON
Neil Baylis
Warren Phelops
+44 (0)20 7360 8140
+44 (0)20 7360 8129
nbaylis@klng.com
wphelops@klng.com
www.klng.com
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APRIL 2006