NMa Prohibits Joint Trading of Rights to Live Broadcasting of Premier Division Football Matches
As of the start of the football season 2003-2004, the professional football organisations may no longer jointly sell rights to the live broadcasting of football matches, as they now do through Eredivisie N.V. This has been decided by the Netherlands Competition Authority (NMa). NMa is of the opinion that the present situation is to the disadvantage of consumers due to the fact that the live matches are sold to a single authorised broadcasting company, in the present situation the subscription television channel Canal+, and that the offering is limited, both with regard to the number of matches broadcast and the range (only a limited number of matches are broadcast live and these are mainly matches of the top 3 clubs). NMa assumes that separate trading of broadcasting rights will result in a greater variety in the matches broadcast because more authorised broadcasters will be able to broadcast matches of more clubs.
NMa has taken a decision following notification of the scheme for the collective sale of broadcasting rights via Eredivisie N.V. in an application for exemption. The point of departure of NMa's assessment is that every club is the owner of the right to broadcast its own home matches. Under the present situation, Eredivisie N.V. sells a total package consisting of the matches of the 18 Premier Division clubs to a single interested party. The total proceeds are divided amongst the clubs according to a distribution formula determined beforehand, whereby part of the proceeds is divided equally amongst the clubs and part is allocated on a variable basis according to the clubsÂ’ position in the ranking.
In the present situation, Canal+ only broadcasts live 44 of the 306 matches held each season. These are mainly matches of the top 3 clubs. The other matches are not traded. Other possible interested parties are therefore excluded by this method of trading broadcasting rights. NMa has assumed that the separate trading of broadcasting rights by clubs will result in a broader range of matches on offer on TV and more attention to clubs that are not amongst the top clubs. Clubs other than the top 3 clubs also have interesting matches to offer. They can trade the rights to their home matches against the top clubs, regional derbies, matches for positions which entitle the clubs to play at the European level etc.
The collective sale of rights to live broadcasts of football matches is not necessary, in NMa's opinion, to achieve a form of mutual solidarity between clubs. Even if a number of smaller clubs were to sell or trade broadcasting rights jointly, the football clubs could reserve part of their income for investments that are necessary to maintain the competition. A specific characteristic of sport is, after all, that there must be a certain sporting balance if the competition is to be interesting.
Commencement of the decision
To give the football clubs the opportunity to adjust to the new situation, this decision will take effect as of the new football season 2003-2004.
Summary
NMa grants permission for the collective trading by Eredivisie N.V. of rights to broadcast summaries with a view to providing a comprehensive overview of the matches that have been played. Such a comprehensive overview of the summaries of all matches, as is currently broadcast by NOS, is a product which can only be realised jointly by the clubs.