BBC Post-2012 Olympic Deal Under Threat

The BBC’s hold on the Olympic TV rights contract after London 2012 could be under threat after the International Olympic Committee rejected a bid from umbrella group the European Broadcasting Union for the first time in 50 years.

The IOC has traditionally struck a media rights deal for its TV rights with the European Broadcasting Union, which bids collectively and then sells the rights on to public service broadcasters across the continent, including the BBC.

However an EBU spokeswoman has said its bid for the 2014 Winter Olympics in Sochi, Russia, and the 2016 Olympics – which has yet to be awarded to a host city – had been turned down by the IOC because the body had not offered enough money.

The EBU will now withdraw from the process, leaving individual broadcasters to bid individually for the rights thus putting the contract into the open market.

A BBC spokeswoman said the decision by the IOC not to negotiate through the EBU mirrored moves already made by football governing bodies FIFA and UEFA over the World Cup and European Championships, respectively.

In the UK, ‘full live coverage’ of the Olympics is one of the ‘crown jewels’ sporting events listed by the Department for Culture, Media and Sport that must be broadcast on free-to-air television.

However, the culture secretary, Andy Burnham, has said the list will be reviewed in light of the increasing number of digital homes in the UK. In addition, by 2014 digital switchover will have taken place and the list may no longer exist in its current form.

The BBC could face possible bids from public service broadcaster ITV and satellite broadcaster BSkyB.

Sky will have 95% reach across the country by 2014 – one of the key criteria to qualify to screen listed sporting events – although it would have to air the events on free-to-air channels.