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Sky shares took a dive after it announced its new Preimer League deal

Football fans weren't the only ones surprised yesterday evening when Sky Sports and BT payed&nbsp...
Newstalk
Newstalk

13.02 11 Feb 2015


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Sky shares took a dive after i...

Sky shares took a dive after it announced its new Preimer League deal

Newstalk
Newstalk

13.02 11 Feb 2015


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Football fans weren't the only ones surprised yesterday evening when Sky Sports and BT payed a combined £5.14bn (€6.95bn) to buy new Premier League TV rights.

It works out as £10m per game - £111,111 per minute - and £1,852 for each second of live televised top-flight English football aired between 2016 and 2019.

Investors have had a negative reaction to the deal - Sky shares dipped by close to 5 percent.

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Sky spent £4.1bn buying the majority of the rights - it will air five of the seven available packages. This includes the new Friday night games. 

The broadcaster spent 83 percent more than it had for its previous deal.

The company has promised to introduce cost-cutting measures to save £200m to fund the unexpectedly-costly deal.

Laurie Davison, an analyst at Deutsche Bank spoke to Financial Times - she called this saving commitment "dubious" and pointed out that the company previously made a commitment to save another £200m after it acquired its German and Italian sister companies.

Increasing subscription prices could be another option to raise extra funds.

The broadcaster has also been investing heavily in original TV content to keep up with companies like Netflix and Amazon.

Sky will not air the UEFA Champions League next year - it lost the tournament to BT.

BT will air four extra Premier League games in each of the three years - it paid 30 percent more for these rights. The company's share price rose by 3.5 percent after the deal.


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