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European leagues tempted by in-house options

In-house channels have become a hot topic among Europe’s top football leagues in recent months, reflecting not so much growing technical opportunities as the looming prospect of difficult rights negotiations next time round.
The threat of creating an in-house channel has long been the last resort of any league faced with an uncompetitive market. Launching an in-house channel is far from easy and shifts the business risk entirely onto the league and its clubs, depriving them of the upfront revenues paid by broadcasters as well as the strategic premium that broadcasters often pay.

Dutch football’s top-tier Eredivisie became the first league to take the plunge in 2008-09 after disappointing offers from broadcasters. An in-house channel was part of Leo Kirch’s strategy for Germany’s Bundesliga, before the deal was scuppered by the German cartel office. The Scottish Premier League considered it after the collapse of Setanta last year. Now the French and Belgian leagues, confronted by the wavering commitment of telecoms partners, are actively considering in-house channels from next season.

For the full story see the latest issue of TV Sports Markets.