BT denies customers footing bill for Champions League deal

BT insists its customers aren’t being squeezed in order to get its business back on track.

On Monday, BT renewed ownership of the United Kingdom’s broadcast rights to the Champions League and Europa League. The contract, which runs from 2018 to 2021, is, according to the Guardian’s Mark Sweney, valued at £1.18 billion and marks a 32 percent increase on the cost of its current three-year deal. Each season will apparently cost £394 million, rising from £299 million.

But the announcement comes after BT introduced its third price hike in only 18 months, and the communications services company is accused of reaching into the pockets of its customers to fund its fight with Sky, which was reportedly not prepared to make a knockout bid to take the rights.

“I don’t think that is true,” John Petter, the consumer CEO at BT, said. “The broadband market is very competitive. Our share of the broadband market has been growing and customers vote with their feet (if they are unhappy). The fact that the market is competitive means our offering has to represent good value for money. Line rental has not increased, for example. I don’t think people should read that this (deal) translates to price increases.”

BT announced the cost of broadband and calls will be raised in January, and also divulged BT Sport will no longer be given away for free as customers of BT TV will instead be charged £3.50 per month, beginning in August.

As Sweney explains, BT needed to secure the rights after a year in which the company suffered “financial and reputational damage” due to an accounting scandal at its Italian operation that triggered one of its biggest-ever falls of its share price in one day. There was also a “battle with the industry watchdog over the future of its broadband division.”