BBC In Dock Over FA Cup Rights

The BBC Trust has upheld a complaint against the public-funded broadcaster from rival radio station TalkSport over its acquisition of radio rights for the FA Cup.

TalkSport appealed to the BBC Trust regarding the BBC’s acquisition of radio broadcast rights to the FA Cup from 2008/9 to 2011/12.

It alleged the BBC had breached its own fair trading policy – specifically in relation to minimising its competitive impact on the wider industry – as well as obligations under the Royal Charter to ensure value for money for licence fee payers.

TalkSport also alleged the BBC Trust had breached its obligation to exercise ‘rigorous stewardship’ of licence fee money.

The Trust found the BBC failed to conduct a proper competitive impact assessment when bidding for the 2008/9 to 2011/12 FA Cup radio rights.

Furthermore, the Trust determined that the handling of this complaint could have been undertaken with more rigour.

However in terms of other parts of TalkSport’s complaint, the Trust found there was insufficient evidence to support a claim that the BBC breached competition or state aid law. It also said there was insufficient evidence to support a claim that the successful bid made by the BBC was unreasonable in terms of value.

The Trust said that, by January 2010, the BBC must report to the Trust on how it plans to ‘strengthen the process of bidding for sports rights to ensure value for money for licence fee payers’.

Also, by June 2010, the BBC’s Fair Trading external auditors must report to the Trust on steps taken to ‘assess, identify and minimise any potential negative competitive impacts of the BBC’s activities in relation to the BBC’s acquisition of sports rights’.

A BBC spokesperson said: “We note that the Trust did not find any evidence that the BBC either overpaid for the rights nor acted anti-competitively. We recognise that the Trust has identified some issues around the Executive’s approach to formulating sports rights which we will examine and report back to the Trust.

‘The BBC will work with the Trust to more clearly demonstrate the work it is doing to ensure value for money.’