(Bloomberg) -- Comcast Corp.’s European pay-TV business Sky plans to challenge BT Group Plc for rights to broadcast Champions League soccer, according to a person familiar with the matter.
The record success of English clubs in the European club tournament has encouraged Sky to bid next week for U.K. rights to the top-level competition and second-tier Europa League, said the person, who asked not to be named as the matter is confidential.
Sky was recently playing down the importance of including the Champions League alongside its core English Premier League offering, raising speculation that BT could keep the rights without stretching its finances.
A costly bidding war may be difficult for BT to afford as it faces pressure to invest more in its broadband and 5G mobile networks while keeping enough cash to pay dividends. BT shares dropped to a low of 187.84 pence and were down 1.6% as of 4:14 p.m. in London.
Sky declined to comment. A BT spokesman said the company couldn’t comment while the process is ongoing.
English teams dominated the final stages of last season’s Champions League and Europa League. Liverpool’s semi-final clash with Barcelona attracted 1.7 million viewers to BT, more than three times the number that watched the 2015 final between Barcelona and Juventus on Sky in a season when English teams performed poorly.
Sky’s decision to seek the rights for 2021 to 2024 is also driven by the enduring pulling power of top-flight soccer, said the person, who pointed to a surge in Premier League audiences this season.
‘Very Disciplined’
BT has spent $6 billion on soccer since 2013 and would like to keep the Champions League as the core of a slimmed-down sports package. Its BT Sport service has around 5 million subscribers.
Since BT paid a record 1.18 billion pounds ($1.51 billion) for the current rights in 2017, the two rivals have struck a deal to buy sports and entertainment content from one other. The agreement, which would make it possible to show at least some games without owning the rights, has not yet been activated.
BT Chief Executive Officer Philip Jansen promised in May that this time around the group would be “very disciplined” in its bidding.
Sky has been sending mixed signals until now. Its takeover by U.S. giant Comcast last year gave it more financial firepower to secure content rights. However, Sky CEO Jeremy Darroch signaled recently that sport is no longer an overriding priority for the company.
“We’re not wedded to any particular part of the business now. The business is very different,” he said at a TV industry conference in September.
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