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| Version 1 | Version 2 |
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| BT's Champions League deal hits BSkyB shares | BT's Champions League deal hits BSkyB shares |
| (about 1 hour later) | |
| Nearly £1.5bn was wiped from the stock market value of BSkyB on Monday as the City reacted to the loss of its rights to broadcast live Champions League and Europa League football matches. | Nearly £1.5bn was wiped from the stock market value of BSkyB on Monday as the City reacted to the loss of its rights to broadcast live Champions League and Europa League football matches. |
| BSkyB shares tumbled 10%, making it the biggest FTSE 100 faller, and ITV's were down 3% after rival BT Sport revealed an exclusive £897m three-year deal with European governing body Uefa to broadcast all 350 fixtures from 2015. | |
| It is the first time a single UK broadcaster has won the exclusive live rights to all matches from both tournaments. | It is the first time a single UK broadcaster has won the exclusive live rights to all matches from both tournaments. |
| At £299m a year over the three years of the deal, BT is paying more than double the £400m BSkyB and ITV are paying for the current three-year contract. | At £299m a year over the three years of the deal, BT is paying more than double the £400m BSkyB and ITV are paying for the current three-year contract. |
| The loss of the contract is a major blow for BSkyB and ITV, which currently share the rights. Sky said BT's bid for the deal was "far in excess" of its own, while ITV, said it was "not prepared to pay over the odds". | |
| Shares in BT, a newcomer to sports broadcasting, were down 2% down in early trading amid fears in the City that it has massively overpaid. But they later recovered, recouping the early loss and rising by 1.5% to 373.6p as investors considered whether BT's ambitious gamble would pay off. | Shares in BT, a newcomer to sports broadcasting, were down 2% down in early trading amid fears in the City that it has massively overpaid. But they later recovered, recouping the early loss and rising by 1.5% to 373.6p as investors considered whether BT's ambitious gamble would pay off. |
| Nick Dale-Lace, senior sales trader at CMC Markets, described it as "a huge blow to Sky and a monumental statement of intent from BT as it tries to grab a foothold in the UK TV market. | Nick Dale-Lace, senior sales trader at CMC Markets, described it as "a huge blow to Sky and a monumental statement of intent from BT as it tries to grab a foothold in the UK TV market. |
| "Both Sky and ITV, who have a number of years of experience to draw on, do not think the price represents value, but perhaps in the context of BT's plans it may be worth paying up. | "Both Sky and ITV, who have a number of years of experience to draw on, do not think the price represents value, but perhaps in the context of BT's plans it may be worth paying up. |
| BT Sport made its debut on 1 August, and the group said its financial outlook was unchanged despite the latest deal, adding the rights would improve revenue and profit in its consumer division in the "medium term". | BT Sport made its debut on 1 August, and the group said its financial outlook was unchanged despite the latest deal, adding the rights would improve revenue and profit in its consumer division in the "medium term". |
| Announcing the deal on Saturday, the newly appointed BT chief executive Gavin Patterson hailed it as "giving sport back to the fans". He defended the amount paid, saying it injected "a welcome element of competition" into the market. | Announcing the deal on Saturday, the newly appointed BT chief executive Gavin Patterson hailed it as "giving sport back to the fans". He defended the amount paid, saying it injected "a welcome element of competition" into the market. |
| BT's consumer chief executive, John Petter, said: "These were the crown jewels properties for Sky. I'm sure they'll be kicking themselves today. I feel for them obviously, but they got it wrong." | BT's consumer chief executive, John Petter, said: "These were the crown jewels properties for Sky. I'm sure they'll be kicking themselves today. I feel for them obviously, but they got it wrong." |
| Meanwhile investors were left questioning what the loss of the rights would mean for Sky, given the prominence of its football coverage. | Meanwhile investors were left questioning what the loss of the rights would mean for Sky, given the prominence of its football coverage. |
| Mike van Dulken, head of research at Accendo Markets, said: "Bad news for current broadcaster Sky with football such a key offering within its sports package, itself one of the main attractions for households. | Mike van Dulken, head of research at Accendo Markets, said: "Bad news for current broadcaster Sky with football such a key offering within its sports package, itself one of the main attractions for households. |
| "Sky still offers two thirds of the all-important UK premier league football (BT offers the other third), so it is not out of the game". | "Sky still offers two thirds of the all-important UK premier league football (BT offers the other third), so it is not out of the game". |
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