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BT may sacrifice Premier League tv rights

BT may sacrifice its Premier League television rights in the upcoming auction. BT's television growth has stalled in recent months, after it started charging for its sports channels. With the company facing a range of problems, the share price has lost a third of its value this year.

BT has spent £3.8bn on football rights since 2012 and £1.1bn this year alone. The cost of the move into football is equivalent to 22 per cent of the BT consumer unit's entire cost growth and is no longer driving customer growth. A move away from football would be popular with some shareholders who fear that the increase in the cost of sports rights will continue to eat into BT's profit margin.

BT did pay £1.2bn to retain its exclusive rights to show European football games for three more years in March and also has the rights to the FA Cup. However, it is the Premier League rights that are crucial in attracting and retaining customers.

If BT bids relatively low in the auction, this could mean that Premier League clubs will not receive their customary above inflation increase for their television rights.

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