BSkyB not allowed to cut bid for Premier League football

LONDON – Despite the prospect of no rival bids, BSkyB might not be allowed to submit a lower bid when its three-year, £1.1bn TV rights deal with the English Premier League comes up for renewal.

The claim has been made by a Premiership chairman who, according to the Financial Times, said a clause in the contract stipulated that if BSkyB bids again it could not offer less than it was presently paying.

It had been thought that with enthusiasm for football rights waning, BSkyB unopposed would be able to pay less than it previously had.

Rivals ITV and NTL can not afford to compete with the pay-TV giant, which has made football a cornerstone of its strategy.

The ITV companies Carlton Communications and Granada are currently in negotiations with the Football League, which represents non-Premier League clubs, to reduce the £315m TV rights deal the two signed for their troubled digital venture ITV Digital.

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