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Sky plays long term with Bundesliga - Venture Insights

Report Overview

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Sky plays long term with Bundesliga

PublisherEnders Analysis.
Publish Date June 14, 2016
Sector Broadcast TV, Media, Non-UK Media, Sports, TV.
Company SKY, Sky Deutschland.

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The award of the match packages in the 2017-21 domestic football rights auction in Germany is probably optimal for Sky (within the “no single buyer” constraint): it will broadcast about eight out of nine weekly fixtures including the top picks, while Eurosport’s package is complementary to Sky’s rather than substitutional.

Sky will, however, pay a hefty price, with the new contract costing 80% more than the current one – although the new Bundesliga rights value is not out of line with other Continental leagues.

We expect Sky’s German operations to briefly break even in fiscal 2017 before falling back into losses with a return to profit if other costs are kept under control. Management has made a bold statement of self-confidence: building scale is the priority.