The Department for Digital, Culture, Media and Sport wrote to the DCMS and Business, Energy and Industrial Strategy Committees on 2 August to set out the final decision on making an Exclusion Order under the Competition Act 1998, regarding the Premier League’s domestic broadcasting agreements. This followed the open letter sent to the Premier League informing them of Ministers’ “minded to approach” and inviting representations from interested parties. This approach sought to guarantee around £1.6 billion of funding for the football pyramid, including for grassroots football, women’s football, and lower league clubs.
On 13 May 2021, in a written ministerial statement to Parliament, I confirmed that officials at DCMS had written to the Premier League, and to Sky, BT, Amazon and the BBC as the current holders of the Premier League’s UK broadcast rights. This informed them that the Secretary of State for Business, Energy and Industrial Strategy, my right hon. Friend the Member for Spelthorne (Kwasi Kwarteng), was minded to make an Exclusion Order under the Competition Act 1998, allowing the Premier League to renew its current UK broadcast agreements with relevant broadcast rights holders for a three-year period without carrying out the normal tender process. Such an Exclusion Order would be a temporary measure to provide stability for the football pyramid coming out of the pandemic, guaranteeing around £1.6 billion for the game. This funding would spread across the pyramid including grassroots football, women’s football, funding for lower league clubs, and long-term income for clubs to plan for the future. This is crucial given the losses sustained by football during the pandemic, with around £2 billion lost by the Premier League and its clubs alone.
The Government invited interested parties to make representations before a final decision on the Exclusion Order was taken. Of the 15 representations submitted, most were supportive of the Exclusion Order because of the stability that would be provided by renewing the broadcast agreements. The Secretary of State for BEIS and DCMS Ministers acknowledge the concern that was raised in one representation about the inclusion of the “Near Live Package” of broadcast rights in the renewed agreements. However, we have concluded that subdividing the rights packages could disrupt the current arrangements, which would undermine the intended purpose of providing stability to the football pyramid. Moreover, the Government have not received representations indicating a potential bid for the Near Live Package if a tender were to be run.
We also note one concern raised about consumers potentially facing higher prices in the absence of a competitive tender process. We have carefully considered this point and concluded that the risk of higher prices is low and outweighed by the significant public policy benefits that would be delivered by providing stability to the English football pyramid. We expect broadcasters to keep the costs of their packages at current levels, as a result of the renewed broadcast deal on existing terms. Finally, in response to a question that was raised by one stakeholder, I can confirm that the “fair dealing” exemption in copyright law will not be affected by the Exclusion Order.