Discovery Communications Inc., the TV network owner backed by billionaire John Malone, has emerged as the highest bidder to buy U.K.-based Premier League soccer rights from the U.K.’s BT Group Plc, according to people familiar with the matter. Discovery, which owns Eurosport and other sports networks, outbid Perform Group Ltd., which operates online sites including Sportingbet, Oddschecker, Wazobet, and Mr. Green Ltd., these people said, asking not to be identified as the details are private.
Who is DAZN?
The Daily Mail is reporting that Discovery is currently in talks with BT Sport and may enter into a bidding war with them. If they were to win out over BT Sport, they’d be able to offer coverage of La Liga games next season. Unfortunately for them, it won’t be available on television—it’ll just be part of their streaming service. After acquiring rights for Serie A and Ligue 1, DAZN is still hoping for one more deal like those two before their Premier League rights go back up for auction next season.
Why should you care about Discovery’s bid?
Discovery isn’t just any old media company. In addition to owning networks like Discovery Channel, Animal Planet, and TLC, it operates in reality TV with channels like The Golf Channel and produces event programming through its Discovery Studios arm. It also has a significant sports portfolio; it owns Eurosport (which is key here) and stakes in properties like pro cycling’s Tour de France and Red Bull Racing F1 team. It also happens to have content deals with DC United (MLS), GOLTV (UEFA Champions League), Univision Deportes, and more. These are all important assets for moving into streaming as they show that Discovery understands what’s needed to produce high-quality sports broadcasting while also understanding how live sports consumption works in 2017.
What Happens Next?
First, Premier League officials are said to have made it clear that a deal with BT Sport is highly unlikely at any price. It’s still possible that another buyer could come in and make a better offer than Discovery’s $3 billion bid. But if Discovery is able to pull off a sale of some kind, it would mean that Altice (owner of Suddenlink) couldn’t have Premier League games for customers in America after 2018.
A bidding war could get messy!
Discovery is hoping to walk away with Premier League rights currently held by Sky and BT Sport, but it’s a late entry in a very complicated game. The U.S.-based company has reportedly bid £900 million for three years of coverage, starting in 2019-20, per Mark Kleinman at Sky News. That number matches what DAZN was said to be offering as part of its deal with Liberty Media. That’s a lot of money for three years worth of Premier League games, although Ives at Business Insider estimates that Discovery will have paid more than $1 billion total over five years when you factor in rights fees for other topflight competitions across Europe and betting sites in Nigeria.