Sky Uses Research To Prove Grass-roots Benefits

As part of its ongoing discussions with the government over the review of the Listed Events ruling, Sky has revealed a new research study that indicates that funding provided by broadcasters is essential for sport’s growth at a grass-roots level.

The pay-TV broadcaster has commissioned the research from Deloitte as part of a late addition to its submission to an independent panel led by the former Football Association executive director David Davies that is considering the list of events that should be reserved for free-to-air television.

Sky, along with other pay-TV broadcasters and rights holders including football governing bodies FIFA and UEFA, wants to see the rules relaxed to give governing bodies more control over where they sell their rights.

Sky will use the research to back up its case that Test cricket should not return to the ‘A-list’ of events reserved for live broadcast, amongst a number of other question marks over the existing structure.

Free-to-air broadcasters have commissioned their own studies to show the importance viewers place on being able to see major sporting events on free-to-air television with the BBC supplying the review panel with in-depth research on the public service benefit of guaranteeing free-to-air coverage for certain events.

The Deloitte study for Sky shows factors that restrict the ability of governing bodies to generate broadcasting revenues ‘may place increased pressure on other funding sources to cover potential shortfalls’. As it requires no investment by governing bodies to realise, broadcasting income is disproportionately important, the study argues.

Using the example of the England and Wales Cricket Board, which sold its live rights exclusively to Sky in 2005 and then renewed the deal for four years in 2008, the study argues that the broadcaster’s money has accounted for around 75% of its revenue growth and that the majority of that money has been poured into developing the game at elite and grass-roots level.

The study also argues that Sky has played a role in developing less visible sports that are not shown on free-to-air TV. Netball, which is shown for two hours a week on Sky during its Superleague season, attributed its ability to secure a sponsorship deal with the Co-op to being shown by the broadcaster.

The consultation period closed this week, with Davies preparing to deliver his conclusions by the autumn.