Media watchdog ‘to drop Premier League auction probe’

MEDIA watchdog Ofcom is expected to drop its two-year investigation of the Premier League’s multi-billion-pound TV rights auction.

Ofcom will abandon work on a complaint from Virgin Media, saying it does not have the capacity to assess either way whether the way the Premier League sells rights is harming consumers, The Telegraph reported.

It is expected that as part of the announcement the Premier League will increase the number of matches available for live broadcast in the next auction to 190, up from 168.

A source for the Telegraph said regulators and the Premier League have also agreed changes to the structure of the sale that are designed to boost competition among broadcasters. It is believed the changes will boost the number of matches allocated to the minority rights holder, currently BT.

Clubs made an extra 12 matches available at the last auction, early last year.

Virgin Media chief executive Tom Mockridge says fans are paying too much to watch football on TV. It claims that the Premier League’s restriction on the number of matches available for live broadcasters is a barrier to competition and causing costs to rise.

Its complaint also cited the fact that each match is exclusively shown on either Sky Sports or BT Sport, arguing the head-to-head battle in a blind auction also escalates prices.

Ofcom will not make a judgment on whether the Premier League’s auction rules harm competition and consumers, according to sources familiar with its findings. Instead, the regulator will cite a heavy workload – including new responsibility for oversight of the BBC – and the findings of its own research among fans as reasons not to proceed.