YouTube Content Deal

Patrick Walker

Date February 7th 2007

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Figueira Den. Tab

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Brodc.ast YoutseK

FAPL Voulube

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Why Do the Deal

First global sports YT deal with worlds

biggest and most recognized sporting league

Globally recognized brand affiliation and

content helping drive usage and break into

new markets APLA following huge

Prime content with which we can test and

improve advertising in various geographies

Already proven as key programming based

on GV and YT popular videos/usage

Supports YouTube expansion onto Mobile

platforms and partnerships

Keep Premier League as collaborative

partner including potential for Claim Your

Content tool use and no-sue provision They

have been patient with us thus far since

knowing we are interested in these rights

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Partner Ov rvii

4..

Who Are They

Business description

Formed in 1992 it is the premier

football competition in the UK

Revenues of over $2.5bn per year the

most lucrative football league in the

world and worlds most popular sport

X-UKllreland TV rights sold at record

$330MM for 2007-2009 seasons

Size

20 teams featuring most of worlds

best players

Market presence

Worlds most watched sporting league

followed by over billion people

world-wide

Most widely distributed sports

programme in Asia

TV audiences of OOm-300m are

reported in China
Proposed Deal Terms

years from 2007/2008 Season beginning Sept. 2007

License fee payable in equal installments pre-payrnent of 6% of sucqessful bid

required before entering contract negotiations

No ongoing revenue share. Post Pat license fee recoupment all profits go to licensee.

Can bid on either or both of

Internet Package

FAPL provides individual match highlights round reviews archive footage and

themed packages across every gameweek

608 dips per year delivered in steady flow

Mobile Package

FAPL provides in-match clips match highlights round reviews and preview packages

every game week

Approx 2128 clips per year delivered in steady flow

Worldwide x-UK/lreland. Can choose to bid either Worldwide or by country

Exclusive license only can bid wfth up to one partner

Sub-licensing and syndication rights available

Bid reoulred by 15 February

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FA PremIer League

at
Comps

Premiership

UK Television rights Sky and BBC $2bn over years

UK Mobile rights and Vodafone $lOOm over years

International Television rights $330m per year

La liga

Spanish Television rights Sogecable and TVE $1 .2bn over years

French Premiere League

French Television rights Canal $2.3bn over years

Bundesliga

German Television rights Premiere ARD and ZDF $466m over years

International All Media rights Sportsman $26m over years

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Major Issues

Google becomes premium exclusive rights owner

Potential direct competition for rights with Media/Telco Partners

Likely to be seen as bold move in the world press

Deal on license fee basis only not advance vs. ad rev share

Responsibility to sub-license/re-destribute for global coverage

Google ability to monetise mobile license

Mobile license enables future YT development

But no monetisation platform in place planned for mobile

Content sub-licensing business is not core Google skills

Significant sub-licensing deals required to drive value particularly

in mobile

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Asks

Shalt we proceed with preparing bid

Recommendation Yes but potentially for PC nly

Which packages territories should we bic on

Recommendation Global x-UK/lreland which re already taken. Note

NTL has clip rights in UK and has approached us about helping them

monitize distribute it so we may get UK as ll via NTL partnership

Any guidance on bid level

Running models now. Aim for roughly $40M.M wer three years which is

what we believe is roughly in range of competi ive bids but not OTT

Should we seek out bid partner

Have been approached by several parties to ipport their bids on PC

side. Risk.in doing this is we get less than opti nal rights with geographic

carve outs such as Japan and China where extremely popular

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