Sky Sports customers would be hit with a staggering 10 per month increase in their subscription rates, or 120 a year, to pay for the new 5 billion Premier League deals if the broadcaster passed on the full cost to their 'football viewers', according to analysts.
While industry experts do not expect the price hikes to be quite that extreme in the immediate future, there is a broad consensus Sky customers will pay an initial rise of around 4 per month, or 48 per year, to help Sky meet the rights cost.
The Premier League announced last week that Sky and BT Sport will together pay 5.136bn for live UK rights to show games for three years from 2016 17 to 2018 19 inclusive.
Sky will show 126 games per season (up from 116 now), and BT Sport will show 42, up from 38. But though the split from 2016 will remain much the same, Sky have paid massively more for their share in the new deal, or 1.392bn per year, up from 760m per year now.
That annual extra spend of 632m every year will be partially offset by Sky no longer paying around 130m a year for Champions League rights from next season, which they lost to BT Sport.
'Sky have made it clear they will do what they can to absorb the extra cost,' says Toby Syfret of industry experts Enders Analysis. 'But it's a bloody big sum to recover'.
Sky Sports have paid 4.176 billion for Premier League TV rights to show 126 matches
Mr Syfret added that if the total extra spending by Sky were passed on solely to sports channel customers, around 5 million of them, it would result in a 10 per month extra charge, on top of the current 24.50 for sports channels bundle. 'But 35 a month is the last thing Sky want [to charge],' he says.
His company estimates that Sky could instead raise around 100m in new income per year by levying an extra 1 a month on all customers, in which case a rise of few pounds a month to all Sky customers would pay for the rights.
Sources claim BT Sport always intended to give the impression they would bid huge sums in order to force Sky to pay more, and then increase costs. Analyst Joshua Raymond, the chief market strategist at City Index, agrees.
'Sky has paid 83 per cent more than it did last time for a similar range of match slots,' he says. 'Sky has been duped into over paying significantly and its now likely that its subscribers will have to absorb at least some of the additional cost as a result.'
Sky's Soccer Saturday has become essential viewing for football fans around the Cheap China Jerseys country
Mr Raymond estimates subscription fees will rise by up to 4 per month each year for the sports packages.
A third expert, Roddy Davidson of Westhouse Securities, says losing the Champions League was 'a blow' to Sky, meaning in terms screening English club side live in big events 'all their eggs are in one basket, the Premier League.'
Mr Davidson expects price rises to be introduced across Sky's customer base in a way that does not make it obvi ous the cash is for the football. 'In terms of visibility on how they achieve it, that's another matter. Our view is BT played a cheap nhl jerseys cool hand here and Sky had to go big to keep the packages.'
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While industry experts do not expect the price hikes to be quite that extreme in the immediate future, there is a broad consensus Sky customers will pay an initial rise of around 4 per month, or 48 per year, to help Sky meet the rights cost.
The Premier League announced last week that Sky and BT Sport will together pay 5.136bn for live UK rights to show games for three years from 2016 17 to 2018 19 inclusive.
Sky will show 126 games per season (up from 116 now), and BT Sport will show 42, up from 38. But though the split from 2016 will remain much the same, Sky have paid massively more for their share in the new deal, or 1.392bn per year, up from 760m per year now.
That annual extra spend of 632m every year will be partially offset by Sky no longer paying around 130m a year for Champions League rights from next season, which they lost to BT Sport.
'Sky have made it clear they will do what they can to absorb the extra cost,' says Toby Syfret of industry experts Enders Analysis. 'But it's a bloody big sum to recover'.
Sky Sports have paid 4.176 billion for Premier League TV rights to show 126 matches
Mr Syfret added that if the total extra spending by Sky were passed on solely to sports channel customers, around 5 million of them, it would result in a 10 per month extra charge, on top of the current 24.50 for sports channels bundle. 'But 35 a month is the last thing Sky want [to charge],' he says.
His company estimates that Sky could instead raise around 100m in new income per year by levying an extra 1 a month on all customers, in which case a rise of few pounds a month to all Sky customers would pay for the rights.
Sources claim BT Sport always intended to give the impression they would bid huge sums in order to force Sky to pay more, and then increase costs. Analyst Joshua Raymond, the chief market strategist at City Index, agrees.
'Sky has paid 83 per cent more than it did last time for a similar range of match slots,' he says. 'Sky has been duped into over paying significantly and its now likely that its subscribers will have to absorb at least some of the additional cost as a result.'
Sky's Soccer Saturday has become essential viewing for football fans around the Cheap China Jerseys country
Mr Raymond estimates subscription fees will rise by up to 4 per month each year for the sports packages.
A third expert, Roddy Davidson of Westhouse Securities, says losing the Champions League was 'a blow' to Sky, meaning in terms screening English club side live in big events 'all their eggs are in one basket, the Premier League.'
Mr Davidson expects price rises to be introduced across Sky's customer base in a way that does not make it obvi ous the cash is for the football. 'In terms of visibility on how they achieve it, that's another matter. Our view is BT played a cheap nhl jerseys cool hand here and Sky had to go big to keep the packages.'
Most watched Sport videos Floyd Mayweather shows off his hidden basketball skills Neymar celebrates arriving in Dubai ahead of 198m PSG move Man United signing Nemanja Matic happy to be part of club NBA superstar Stephen Curry gatecrashes party to drink with revellers Allez Roger! Anthony Cheap China Jerseys Joshua takes to the courts for tennis workout Arsenal Alexis Sanchez in numbers Jurgen Klopp gives his thoughts after win over Bayern Munich got to prove myself again Bolt ahead of his last contest Gruesome moment Martinez has bandages removed after surgery Usain Bolt career in numbers Manchester United 2 1 Sampdoria: Jose Mourinho press conference is a genius says IAAF chief Sebastian Coe of the runner
Lionel Messi sends emotional goodbye to Barcelona. Neymar arrives back at Barcelona's training ground. but. Barcelona to step up chase for Liverpool star Philippe. Manchester United 2 1 Sampdoria, LIVE: Juan Mata wins it. Barcelona have allowed the Neymar situation to reveal. Barcelona are willing to let Neymar's agent father sweat. Transfer news LIVE: Follow the latest news and gossip. Manchester United new boy Nemanja Matic sits with Paul. Liverpool 1 1 Atletico Madrid (4 5 pens), RESULT: Jordan. Manchester United 2 1 Sampdoria: Juan Mata nets winner as. Record breaker: Barcelona star Neymar is off to PSG for. I am coming sprinting at you with bricks. Conor. Alexis Sanchez all smiles with Arsene Wenger in Arsenal. Usain Bolt wholesale jerseys hopes Manchester United hand him a dream move. Jack Wilshere refuses to accept Arsenal days are over as. Barcelona can 'save their energy' in their pursuit of. Manchester United have their team bus 'clamped' in Dublin. Jurgen Klopp hails Alberto Moreno after impressing in. MOST READ SPORT Previous.
