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Local Rights Push 28 Media Eurosport EUROSPORT DISCOVERED Four years on from the first whispers of Discovery’s NETHERLANDS MotoGP (2018) interest, Martin Ross analyses the overhaul at Serie A and Ligue 1 (2018) French league cup (2018) Eurosport and speaks to chief executive Peter Tour of Switzerland (2018) Hutton about the future strategy LOCAL RIGHTS PUSH Discovery/Eurosport’s major rights acquisitions since deal for 51% Eurosport stake UK Wimbledon (2020 – finals and highlights) LTA grass-court tournaments (2017) IAAF Diamond League (2019) Tour of Switzerland (2018) FRANCE Roland Garros (2020) Tour de France (2020) PORTUGAL Formula 1 (2018) French Cycling Championships (2020) Coupe de France (2018) Coppa Italia (2018) MotoGP (2017) Pro D2 rugby (2020) (expiry date in brackets) * = digital only rights www.sportcal.com Q3 2016 Sportcal Insight 29 NORDICS Uefa Europa League (2018 – excluding Finland) Danish Superliga (2021 – Denmark only) Premier League (2019 – Denmark only) Tippeligaen (2017 to 2021 – Norway Serie A and LaLiga PAN-EUROPEAN RUSSIA only) (2018 – Denmark only) Olympics NHL (2019) Norway friendly games Formula E (2017) (2024 – excluding Coppa Italia (2018) (2017 – Norway only) Russia) English Football Norwegian handball League (2018) Uefa national team (Norway only) Australian Open plus US Masters (2018) qualifiers (2017 – support events (2021) PGA Tour excluding Finland) (2021 – Norway only) ASIA-PACIFIC Wimbledon Uefa Champions US Masters (25 countries League and Europa (2018 – Norway only) plus deal for Turkey, League (2018 – Eurasia) Singapore only) Handball Men’s and Women’s World World Snooker events ASO races, including Championships (2026) Tour de France, Vuelta (2017 – Sweden only) (2021) FIS World Cups and World Championships FIS World Cups and (2021) World Championships (2021) MLS (2018 – excluding UK) Rugby league, including Super Ekstraklasa League, Challenge (22 countries) Cup and World Club Challenge (2019) Superbike World POLAND Championships (2019) Pro D2 rugby (2020) Ekstraklasa (2019) Uefa Europa League European Athletics IAAF World (2018) events (2019) Championships Formula E (2017) (2017 - Australia only) US Masters (2018) Pro D2 rugby (2020) GERMANY Six Nations (2017) Bundesliga (2017-18 to Professional Squash 2020-21 – live rights package) Association events BELGIUM (2020)* MotoGP (2018) FA Cup (2018) MotoGP (2018) Formula E (2017) Badminton World IAAF Diamond League (2019) Federation events (2017)* BALTICS Bundesliga (2021) TURKEY Bundesliga (2017) ROMANIA Premier League (2019) 30 Media Eurosport he investment in Eurosport Paris adapting to the ‘Discovery culture,’ Two rights deals in particular grabbed in 2012 by Discovery the stateside involvement has been a the attention of the industry: the T Communications, the US mass happier and more productive one than €1.3-billion agreement for the Olympics media giant known best for its flagship that of (previous shareholder) ESPN rights in Europe (excluding Russia) from Discovery Channel and documentary during the 1990s. Instead of sporadically 2018 to 2024; and a deal in June for programming, posed plenty of appearing on the radar of armchair a package of live Bundesliga rights in questions about the direction the sports sports fans during coverage of the likes Germany from 2017-18 onwards (worth broadcaster would take after over a of Roland Garros or the Tour de France, €85 million per season). However, it decade of full ownership by French Eurosport has been buoyed by the is another deal that Hutton highlights commercial broadcaster TF1. Would Discovery-backed rush of rights deals when asked about the landmark rights Discovery embark on a lavish spending both locally and across the continent. additions, namely an agreement to show spree as it launched into the world of Having dealt with Eurosport for years Wimbledon across large parts of Europe, live sports programming? And which from the other side of the negotiating having never shown the UK’s grand countries would Eurosport prioritise in table, Peter Hutton, the experienced slam event anywhere until 2015 (when the new era of pursuing prized properties media rights executive, joined as chief coverage was offered in Belgium). in local markets? executive in March 2015 to spearhead Wimbledon was duly added by Eurosport is a complex animal. the rights investment. The Englishman Eurosport in Russia and the Ukraine, Perceived differently by the public in tells Sportcal Insight: “When you step while exclusive rights have been poached different markets, depending on the back and see what has happened in in Albania, Bulgaria, Finland, Hungary, level of rights acquired, it was in need the last year and a half, it’s an amazing Iceland, Norway, Romania and Sweden of new investment and impetus to shed change. The old timers who’ve been until 2019, plus non-exclusive rights in an image associated with second-tier at Eurosport for 20-odd years see that the Netherlands and the former Yugoslav sports rights, low-scale production or change and feel that more than the ones territories. Rights in Turkey and the being the ‘other’ place to watch major that have arrived more recently. Eurasia region are expected to be added events. Having relied heavily for years “You look at where the brand was from 2017 to 2019 in a deal with the on its rights-buying privileges within the going and the history of Eurosport. It Saran Media agency. European Broadcasting Union (which was something that we all grew up with Hutton reveals: “The Wimbledon deal turned to Sky Television plc to launch and part of the sports landscape, but is a big one for us. Partly because of the Eurosport in 1989 to showcase rights it didn’t fit with the modern age. You way it’s been structured. It was almost that EBU members could not), Eurosport have more and more channels in more designed that you couldn’t buy those has independently landed a string of and more markets, meaning that you rights because it was sold market by premium and exclusive rights deals since become more and more irrelevant with market with different expiry dates and the Discovery came on board. non-exclusive content, reliant on EBU [All England] Club is quite conservative After Discovery’s period of deals and a lack of [on-air] personalities. and doesn’t make change often. It shows acclimatisation getting to grips with Even though it has a great history and that we have the humility to prove to a Eurosport’s vast live programming tradition, it was one that was clearly rights-holder that we can do a good job operation and Eurosport’s old heads in taking the brand downhill.” and then build on it bit by bit, creating Discovery and Eurosport – the corporate timeline November 2012 December 2012 TF1 and Discovery announce start TF1 approves conclusion of talks over sale of 20-per-cent stake to Discovery of talks over ‘alliance’ to: drive for €170m, terms that value Eurosport at €850m. Discovery has option to Eurosport’s growth; enhance both raise shareholding to 51% in two years’ time, giving TF1 put option over companies’ pay-TV offerings; and remainder (potentially increasing Discovery’s ownership to 100%). develop a ‘mutually beneficial content production relationship.’ January 2013 TF1 says it intends to keep 49% stake in Eurosport in the long run. www.sportcal.com Q3 2016 Sportcal Insight 31 January 2014 April 2014 Discovery announces deal for majority stake. Agreement values European Commission Eurosport Group at €902m (with €85m valuation of Eurosport approves Discovery’s France deducted). JB Perrette named president of Discovery acquisition of Eurosport. Networks International amid European push. May 2014 Discovery vows to strengthen Eurosport’s rights portfolio as majority stake deal completed. TF1 intends to retain 80% interest in Eurosport France October 2013 at least until end of 2014. Reports emerge that Discovery wants to expedite Eurosport takeover. March 2015 Peter Hutton takes up chief executive role at Eurosport, replacing Jean-Thierry Augustin, who moves to a strategy and development position with Discovery. March 2015 Discovery acquires 51% stake in October 2015 Eurosport France. TF1 and Discovery confirm completion of sale of 49% stake and Discovery’s full ownership. July 2015 Discovery to take full ownership of Eurosport as TF1 exercises option to sell 49% stake for €491m and shortly after Discovery’s headline €1.3bn deal for Olympic broadcast rights in Europe. November 2015 Eurosport unveils dramatically revamped new logo and brand identity, channels now known as Eurosport 1 and Eurosport 2. 32 Media Eurosport local stories so the rights-holder doesn’t have to leave Eurosport losing money and Bundesliga is worry if it will be locally relevant. absolutely no exception to this commitment.” “Wimbledon is a real sign that people are sitting Hutton echoes Zaslav’s thoughts on the pace up and taking notice of what we’re doing, and of future rights spending, remarking: “I think we’re being flexible enough and sensible enough it has slowed down a bit. We needed to shock not to say we’re taking all of Europe or nothing.” people [at first] and we needed then to build the business sensibly. The focus has got to be on the SLOWING DOWN? quality and how we can get involved with those Speaking at Discovery’s slick and well-drilled top 10 rights in any markets that drive the value international press briefing at Roland Garros this of affiliates, advertisers and now direct-to-home year, David Zaslav, the company’s president and consumers. Our focus is on building exclusivity chief executive, said that investment in Eurosport around those big events and creating a distinct has risen from $150 million to “more than $300 identity for ourselves.” He expects fewer small million per year, and climbing.” He has also deals passing across his desk, with more focus vowed that $5 billion would be spent on sports instead on “the big deals, what they are worth rights over the next decade.
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