Uefa's record-breaking Champions League rights sale has sent shockwaves through the sports industry, with a key takeaway being that demand for global or pan-European deals may have been overstated. The European football governing body secured average annual increases of over 20% in its five biggest markets, largely thanks to American entertainment company Paramount's entry into the market.
The auction saw Amazon Prime retaining its first-pick packages in the UK, Germany, and Italy, while Canal+ secured the rights on similar terms in France. In Spain, Movistar emerged victorious, but it was a mixed bag overall for Uefa, with only one of its biggest European markets failing to see an increase in revenue.
So what went wrong? According to François Godard, a senior media analyst at Enders Analysis, "The global deal is the dog that didn't bark." He believes that big tech firms like Netflix and Apple TV were not as interested in selling rights globally, opting instead for a market-by-market approach. This strategy proved more lucrative for Uefa.
Godard points to several factors contributing to this outcome. Firstly, the global tender launched by Uefa attracted significant interest from major streaming companies, but they ultimately decided that selling rights to individual markets was more valuable. Secondly, the traditional model of selling rights has proven resilient in recent years, with Fifa opting for a market-by-market approach and Apple TV terminating its 10-year global deal with Major League Soccer early.
The Uefa auction also serves as a warning sign for other sports organisations looking to sell global or pan-European deals. Godard notes that the product that failed to materialise – a single package of first-pick games sold to a global streaming company – would have had significant constraints, limiting viewership and fan engagement.
In the UK, Sky Sports emerged as a major winner from the auction, picking up 342 European matches relatively cheaply after its key domestic rival TNT was significantly weakened. The Europa League's increasing popularity among big English clubs has also benefited Sky, with Manchester United and Tottenham contesting last year's final.
However, Paramount's emergence has also had an impact on Uefa's strategy. Godard believes that the company will be forced to make the Champions League available on the Sky platform, leading to further bundling of services. This could ultimately benefit Sky, as other channels would need to be on their platform to avoid losing viewers to piracy.
As the sports industry continues to evolve, one thing is clear: demand for global or pan-European deals may have been exaggerated. Instead, a market-by-market approach has proven more lucrative for Uefa and other rights holders.
The auction saw Amazon Prime retaining its first-pick packages in the UK, Germany, and Italy, while Canal+ secured the rights on similar terms in France. In Spain, Movistar emerged victorious, but it was a mixed bag overall for Uefa, with only one of its biggest European markets failing to see an increase in revenue.
So what went wrong? According to François Godard, a senior media analyst at Enders Analysis, "The global deal is the dog that didn't bark." He believes that big tech firms like Netflix and Apple TV were not as interested in selling rights globally, opting instead for a market-by-market approach. This strategy proved more lucrative for Uefa.
Godard points to several factors contributing to this outcome. Firstly, the global tender launched by Uefa attracted significant interest from major streaming companies, but they ultimately decided that selling rights to individual markets was more valuable. Secondly, the traditional model of selling rights has proven resilient in recent years, with Fifa opting for a market-by-market approach and Apple TV terminating its 10-year global deal with Major League Soccer early.
The Uefa auction also serves as a warning sign for other sports organisations looking to sell global or pan-European deals. Godard notes that the product that failed to materialise – a single package of first-pick games sold to a global streaming company – would have had significant constraints, limiting viewership and fan engagement.
In the UK, Sky Sports emerged as a major winner from the auction, picking up 342 European matches relatively cheaply after its key domestic rival TNT was significantly weakened. The Europa League's increasing popularity among big English clubs has also benefited Sky, with Manchester United and Tottenham contesting last year's final.
However, Paramount's emergence has also had an impact on Uefa's strategy. Godard believes that the company will be forced to make the Champions League available on the Sky platform, leading to further bundling of services. This could ultimately benefit Sky, as other channels would need to be on their platform to avoid losing viewers to piracy.
As the sports industry continues to evolve, one thing is clear: demand for global or pan-European deals may have been exaggerated. Instead, a market-by-market approach has proven more lucrative for Uefa and other rights holders.