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Thursday, November 12, 2009

Sky to cry foul as Ashes and football qualifiers set for return to free TV

The England team celebrate after winning the Ashes at The Oval. Photograph: Paul Harding/Action Images
A furious backlash from sport's governing bodies will greet tomorrow's recommendation that the Ashes and international football qualifiers be added to the list of events reserved for live broadcast on free-to-air television.
The proposals, which, if adopted by the government, would represent a serious blow to Sky, could become the latest ammunition in the escalating battle between Rupert Murdoch and No 10, and lead to claims from sports that they are being used as a political football – or cricket ball.
The independent review panel strongly rebuts any suggestion that the government has influenced its thinking during its 10-month review, but the temptation to hit Murdoch's bottom line in retaliation for the Sun's switch in support from Labour to the Tories will inevitably be seen as a factor in the government's deliberations over whether to accept its conclusions.
But the move will be cheered by the majority of viewers and free-to-air broadcasters including the BBC and ITV, which say that more than eight in 10 people support the principle of protecting events.
As revealed in the Guardian on Monday, the whole of Wimbledon fortnight is also likely to be added to the list of protected events, along with Open golf and rugby union internationals in Wales.
The Epsom Derby and the rugby league Challenge Cup final are expected to be dropped from the list. It is also believed that the B-list of events that must be shown in highlights form on freeview TV will also be axed.
Governing bodies will claim that the recommendations of the independent panel, chaired by former FA executive David Davies, will hit their revenues by hundreds of millions of pounds, reducing investment in grassroots sport and potentially damaging the government's post-Olympics sports participation targets.
Those who campaigned against the controversial removal of live Test cricket from the list of protected live events in 1998, a move they say harmed the visibility of the sport, will cheer the move to relist the Ashes. They point to figures showing that 7.4 million people watched the climax to the 2005 series on Channel 4, while fewer than 2 million watched the jubilant scenes from the Oval this year on Sky.
In 2005 Sky signed an exclusive deal to cover all domestic and international cricket, later renewing it until 2013 at a cost of £300m. Cricket authorities claim that money has been invested in a range of projects that have boosted participation at clubs, in schools and among women.
The Davies panel is a mix of broadcasters, sports figures and academics including Eamonn Holmes, Colin Jackson and Dougie Donnelly. The key qualifying characteristic for protection they alighted upon is that of "national resonance", which is understood to have led to the conclusion that international football qualifiers in each of the home nations should also be listed.
The Scottish FA has railed against such a move, claiming it would hit revenues by £12m a year, while the financial consequences for the English FA would also be dire. The FA is already facing the need to cut its cost base as a result of the collapse of its £150m contract with Setanta last June for the broadcast of live FA Cup and England matches, the repayment schedule on loans taken out to finance the new Wembley stadium, and the need to fund a faltering bid to host the 2018 World Cup.
The sports bodies will attempt to convince culture secretary Ben Bradshaw and sports minister Gerry Sutcliffe, who will put the issue out to a 12-week consultation once they have examined the review's conclusions, that it has been too narrow in its scope and failed to take account of the financial impact on sport.
The review was ordered last year by the then culture secretary Andy Burnham, who was keen to examine the issue in the wake of the success of the Beijing Olympics on the BBC, which was watched by more than 41 million people.
The ECB is likely to call for an independent economic analysis of the impact of the decision, arguing that an estimated £120m-£150m of the value of its contract with Sky is driven by the exclusivity premium around the Ashes.
It will also argue that the BBC did not bid for live rights in 2005 or 2008, citing scheduling issues, and even claim that listing the Ashes could damage the future of Test cricket if Sky chooses to invest in other forms of the game instead.
The length of existing contracts means any changes will only come into play following digital switchover in 2012.Read More.........

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