British telecoms group BT today emerged as a possible bidder for the rights to show Premier League football when the current contract runs out in 2007.
The Observer said BT hoped to beef up its new entertainment division with a parcel of matches picked up as part of an auction of different packages.
The entertainment business was set up in January with the aim of offering video-on-demand and pay-TV to broadband customers under the BT brand.
Instead of going head-to-head with incumbent BSkyB for the entire Premier League contract, BT is basing its plans on the assumption that the European Commission will rule that the number of matches shown by BSkyB be limited.
That is expected to give other broadcasters and organisations the opportunity to get a slice of the highly lucrative pay-TV soccer market.
Today’s report said the move was being masterminded by BT chairman Sir Christopher Bland, who was boss of London Weekend Television before it was taken over by Granada in 1994.
He is said to have no desire to turn BT into a broadcaster as the company is likely to strike licensing deals with operators such as BBC and ITV.
No-one was available from BT today, although when asked whether BT was planning to bid, a spokesman told the Observer: “I cannot rule it out.”
Some industry watchers expect the rights to be auctioned off in up to four different parcels, although BSkyB is keen to retain its current grip.