Select Committee on European Union Written Evidence


Memorandum by the Institute of Professional Sport

INTRODUCTION

  The IPS is the national association for the Professional Player associations in the UK and is pleased to respond to the House of Lords Select Committee Inquiry into Proposals by the European Commission (EC) for the Revision of the "Television Without Frontiers Directive." The EC propose that the scope of the directive be widened to cover new media services.

FINANCING COMMUNITY SPORT

  Sport in the UK and Europe plays an important role in our society and gives a focus for civic and community activities as well as employment opportunities. Televised major sporting events provide access to millions of people world wide and in the UK a substantial proportion of the broadcast revenue from the collective sale of TV rights is invested back into grass roots development. [3]This funding stream is endorsed by the Government which supports the work of sports charities such as the Golf, Cricket and Football Foundations that receive income via the sale of the sports TV rights. In turn the sports bodies are able to fund projects in the community. With any diminution of finances there is a likelihood of less investment in sporting opportunities and facilities.

  It would be interesting to learn whether other national sporting bodies in Europe assist the funding of their community sport programmes through allocating a percentage of their TV revenues to community sport. Since 1997 with the adoption of the voluntary Code on Sports Broadcasting Rights the IPS understand that the UK sports bodies have led the way in this respect.

  A reduction of such finances arising from a limitation on the exclusive nature of the sale of the sports rights would therefore be regretted. We are therefore opposed to the Commission proposals which we believe would create legal uncertainty for rights owners and licensees. Such legal uncertainty would threaten future investment in new media services and pose a danger to continued investment in sport across Europe. Furthermore, the proposals would lead to the creation of a secondary rights market for news, with news content no longer being made available free of charge in line with current practice. Instead news could become subject to market prices, which we do not believe to be in the interest of European citizens.

ADDITIONAL REGULATION

  The IPS would fully support the views of the major spectator sports in UK and from Europe to news access and wholly endorses the right of the public to information. However the proposed Article 3b and accompanying Recitals (26 and 27) are unnecessary given the existing news access framework in the EU. They threaten to undermine the development of news media services and products as well as future investment into European sport. We would therefore recommend that Article 3b and accompanying recitals be deleted from the Directive, and that the existing copyright-based framework continue to provide the basis for effective news access to the public in the European Union.

VOLUNTARY CODE FOR NEWS ACCESS

  The Independent Television Commission (ITC) [4]expressed the view in its submission to the EC that it does not support that provision in the TWF Directive for news access to short extracts of events subject to exclusive rights. The ITC expressed the view that for or any secondary broadcaster to be entitled to provide a news report on a major event would undermine the value of the rights holder. In the UK there is a voluntary code by broadcasters' that governs use of short extracts taken from each others broadcasts for the purposes of news programmes. This appears to have worked well and does not require further legislation.

CONCLUSION

  Further regulation[5] would lead to significant regulation of the Internet and stifle the growth of competitiveness in the new media services as well as raising prices for consumers of national sports events. The IPS believes the self regulatory approach within the UK is in the best interests of Government policy and the sporting public.

  Any restriction on the ability of rights holders to sell their sports TV rights could lead to such bodies relocating to non-EU locations and broadcasting their events back to the UK.

  The recently launched Independent European Sports Review, that will result in a European Commission White paper for sport in 2007, has accepted the model of the collective selling of rights benefits broadcasters and spectators alike. [6]

  The IPS would be pleased to be kept informed of any evidence to be given by sports bodies to the House of Lords Inquiry or indeed any final report it presents to the Government or the European Commission.

21 September 2006



3   CCPR Voluntary Code on Sports Broadcasting Rights. Back

4   ITC Response to the TWF Directive Review. Back

5   DCMS Minister Speech to the Foreign Policy Centre 26 January 2006. Back

6   Independent European Sports Review-P6.60 www.independentfootballreview.com Back


 
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