Broadcast: ESPN in talks to sell UK sports rights

Story is from Broadcast.

ESPN is in talks to sell off its sports rights as part of a deal that could see the US broadcaster exit the UK.
Industry sources have indicated that the Disney-owned company has begun what are expected to be lengthy discussions with a number of broadcasters about offloading rights to showpiece events, such as the FA Cup.

ESPN is weighing up its future in the UK after missing out on Premier League rights last year. BT Sport swooped during the blind bidding process to strike a three-year, £738m deal to air 38 games a season starting in 2013/14.

Those familiar with the situation said BT and BSkyB are at the front of the queue to land the rights, and both are carrying out detailed work on the matter.

One source said that ESPN’s package of rights could be worth more than £15m. Its other events include the Scottish Premier League (SPL) and the German Bundesliga, while the broadcaster also airs US sport, such as Major League Baseball.

However, any deal is likely to be fraught with complications and negotiations are expected to be protracted.

“I don’t expect to hear anything imminently,” said another well-placed industry insider.

If Sky or BT were to take on ESPN’s rights, each contract switch would have to be brokered and agreed in conjunction with the relevant sporting body.

TUPE employment protection regulations will also have to be considered, meaning staff will have the right to remain working on a contract even if it changes hands.

One source said this is likely to also include ESPN’s talent, raising the prospect of presenters and pundits including Ray Stubbs and Kevin Keegan working for new employers.

ESPN’s contracts are at varying levels of maturity.

For example, it only holds FA Cup rights for another year, but its deal with the SPL is due to run for more than four years. It also has an agreement with Uefa to show at least one live Europa League match a match week until 2014/15.

ESPN’s carriage deals, including those with Sky and Virgin Media, are also understood to be adding another layer of complexity to the discussions.

The broadcaster operates three channels, ESPN, ESPN Classic and ESPN America, in the UK.

A spokesman for the company said: “We don’t comment on rumours or speculation. We have said all along that we are active and exploring a range of potential options for our business, but we do not discuss private business strategy publicly.

“We continue to remain focused on our business, and the wide range of content and coverage we deliver to fans.”

Both Sky and BT declined to comment.