The broadcasting of cricket
127. Cricket was moved from the Group A to the
Group B of listed events in 1998. This move meant that the England
and Wales Cricket Board (ECB) was free to negotiate a deal for
its rights with any broadcaster providing a highlights package
was made available to free-to-air broadcasters.
128. From 1998 Channel 4 had a successful and
highly regarded seven year partnership with BSkyB and the ECB.
However, this contract came to an end in late 2005. Therefore
in 2004 the ECB issued an invitation to tender for its broadcasting
rights from 2006-2009. It split its rights into 27 packages to
cover the four cricket seasons. One of these packages of rights
was for live coverage of the seven Test Matches per season involving
England. The ECB told us that these packages were designed to
"create the most competitive market that we could, to create
the widest range of opportunities for people to bid that we could"
(Q 1551).
129. The ECB's invitation to tender attracted
a bid from Channel 4 of £54 million for the rights to
the main home Test series over the four seasons (this was less
than the £59 million Channel 4 had bid towards the three
years of rights it and BSkyB had shared from 2003 to 2005). BSkyB
submitted a bid for the rights to cover all the matches over the
four seasons including those matches that no other broadcaster
was interested in. As a result the ECB sold all its rights from
2006 to 2009 on a exclusive basis to BSkyB. This means there will
be no live cricket available on any free-to-air channel for the
next four years. The ECB sold the highlights package to Channel
five which was the only free-to-air broadcaster to bid for highlights.
130. Channel 4 were not happy with this result.
Andy Duncan told us that he was "genuinely surprised and
disappointed" by the ECB's "bizarre decision" to
sell its rights exclusively to BSkyB. He believed that with further
negotiation it would have been possible to achieve a balance between
"sufficient money and a balance of exposure across both free-to-air
broadcasters like ourselves and Sky…" (QQ 1142,
1143).
131. The ECB's exclusive deal with BSkyB was
approved by Ofcom in February 2005.[46]
During its consultation on the deal Ofcom received no complaints
from other broadcasters. We also understand that throughout the
process of structuring its packages and selling its rights the
ECB sought legal advice from the European Commission (QQ 1558,
1559 1560). Therefore it seems unlikely that the exclusive deal
between the ECB and BSkyB can be questioned on competition grounds.
132. The BBC did not bid for any of the ECB's
packages. Dominic Coles told us that this was partly because the
broadcasting of cricket presents real scheduling problems (Q 241).
However, the BBC also failed to bid for the highlights package
even though this would not have posed the same scheduling problems.
Despite the BBC's lack of action Roger Mosey told us that he was
concerned about the future of cricket on free-to-air television.
He thought some cricket should have remained in the Group A of
listed events to ensure free-to-air coverage (Q 259).
133. The BBC's approach to bidding for Test cricket
was criticised in a recent report by the House of Commons Culture,
Media and Sport Select Committee. This stated that "we are
particularly disappointed by the BBC...its funding by licence
fee…taken together with its public service broadcasting responsibilities,
can only lead us to conclude that it should have made a bid".[47]
134. We are also concerned by the BBC's approach
to bidding for live Test cricket. As the publicly funded national
public service broadcaster the BBC has a responsibility to broadcast
sporting events of national significance—yet in the case
of Test cricket it did not even bid for any of the rights. The
lack of any live Test cricket on free to air television might
reduce youth interest and involvement in the sport and this is
contrary to the BBC's commitments to encourage participation in
sports. Had the ECB received more bids for its rights it could
have refused to agree an exclusive deal with any one broadcaster.
Because it received so few bids it was given very little room
for manoeuvre. The BBC is partly responsible for this.
135. Nevertheless we welcome the BBC's announcement
that it will broadcast highlights of the 2007 ICC Cricket World
Cup and we hope this signifies the BBC's renewed interest in the
game. We strongly encourage the BBC to make a genuinely competitive
bid for live TV rights of home Test cricket when negotiations
begin with the ECB in 2009.
136. One way of ensuring some live cricket remains
on free-to-air television would be to return it to the Group A
of listed events. The House of Commons Committee believed returning
home Test match cricket to this group would potentially damage
the sporting and financial success of cricket.[48]
We agree. David Collier, the Chief Executive of the ECB, told
us that the revenues of the ECB had increased substantially since
the transfer from Group A to Group B listed events. This has benefits
for the grassroots of the sport.
137. We strongly believe that some live home
Test cricket should be available on free-to-air television.
We note that instead of recommending a return to Group A the House
of Commons Committee recommended that "formal binding undertakings"
to secure some free-to-air coverage of home Test cricket should
be agreed between the ECB and the Department of Culture, Media
and Sport.[49] We
support the House of Commons recommendation and believe this is
the most hopeful way forward.
A BBC sports channel?
138. Roger Mosey testified to the considerable
difficulties of scheduling sport on the BBC, citing "the
constraints of where we operate within the two linear channels…
clearly they are multi-genre channels and we have to compete for
the air space against current affairs, religion, drama and comedy"
(Q 245). The recent expansion of the BBC's digital channels
such as BBC Three and BBC Four, as well as the growing success
of BBC Online has provided greater broadcasting capacity and diversity
than ever before. The BBC believes this gives it more flexibility
to deliver choice for viewers and listeners. Roger Mosey predicted
that "using digital technology to expand when you need it
and then to contract… when you do not… may be the way
we should be going in the future" (Q 263).
139. Many sports bodies expressed concern
about the BBC's difficulty in scheduling substantial levels of
sports coverage. For example the Rugby Football Union stated that
the BBC's "limited channel capacity"
and its resultant effect on the scheduling of matches and kick
off times "has become an issue".[50]
The ECB referred in its evidence to the "very specific challenges
that cricket poses to terrestrial broadcasters in terms of the
longevity of some of its formats and the associated scheduling
issues it carries with it" (p 322). The ECB therefore proposed
establishing a dedicated BBC sports channel in addition to the
BBC's current portfolio of TV channels to alleviate scheduling
problems. This was supported by David Moffett, Chief Executive,
Welsh Rugby Union, who thought "it would be ideal" but
did not know whether the BBC could afford such a venture (Q 349).
140. We note the continued popularity and success
of BBC Radio Five Live and believe it is a good example of how
the BBC can expand its sports coverage. However, aside from the
obvious issue of cost, a number of additional problems present
themselves when considering a BBC television sports channel. First
and foremost, the BBC has stated that it does not intend to launch
any further television channels and even if it were to do so,
the new channel would be subject to a stringent public value test
and market impact assessment by Ofcom. We recommend that while
editorial decisions are an internal matter for the BBC, it should
seek to maximise the full potential of its sports rights portfolio.
One possible option would be to utilise its existing digital channels
more imaginatively and flexibly in the broadcasting of sport.
37 Ofcom review of public service television broadcasting,
Phase 1 - Is television special?, para. 119, p. 58. Back
38
Agreement Dated the 25th Day of January 1996 Between Her Majesty's
Secretary of State for National Heritage and the British Broadcasting
Corporation, para. 3.2, p. 6. Back
39
Ibid, 2004/2005, Table 7, p. 140. Back
40
BBC Annual Report and Accounts, 2004/2005, Table 11, p. 143. Back
41
Department for Culture, Media and Sport, Review of the BBC's Royal
Charter: A strong BBC, independent of government, March 2005,
p. 40. Back
42
Department for Culture, Media and Sport, Review of the BBC's Royal
Charter: A strong BBC, independent of government, March 2005,
p. 38. Back
43
Department for Culture, Media and Sport, Review of the BBC's Royal
Charter: A strong BBC, independent of government, March 2005,
p. 40. Back
44
The Advisory Group on Listed Events Report and Recommendations
, March 1998 p.3. Back
45
First Report of Session 2005-06, para. 106. Back
46
http://www.ofcom.org.uk/consult/condocs/cricket/bsbcons/ Back
47
House of Commons Culture, Media and Sport Committee, First Report
of Session 2005-06, para 21 Back
48
House of Commons Culture, Media and Sport Committee, First Report
of Session 2005-06, para 60 Back
49
House of Commons Culture, Media and Sport Committee, First Report
of Session 2005-06, para 38 Back
50
RFU Strategic Plans 2005/06-2012/13, Commercial marketing and
business, para 320. Back
