WRITTEN QUESTION E-0146/01

by Margrietus van den Berg (PSE) to the Commission

(31 January 2001)

Subject: Sale of television broadcasting rights for sporting events

Broadcasting sporting events is an important way for public and commercial broadcasting companies to secure loyal viewers. At the same time, the sale of television broadcasting rights is a major source of revenue for the sports sector in general and for professional football in particular. Over the last decade, there has been a huge increase in the price of television broadcasting rights. This trend is forecast to continue over the next decade, with the result that in a few years' time only a very limited number of large international media concerns are expected to be able to afford the sums involved for television broadcasting rights. This may mean it will no longer be possible to see sporting events without a decoder, contrary to the intentions of Parliament, the Commission and the Council.

Annex IV to the conclusions of the Presidency at Nice rightly draws attention to the importance to sport of the sale of television broadcasting rights. It also states that, whilst the primary responsibility lies with sporting organisations and the Member States, the Commission must also take account of the social, educational and cultural functions inherent in sport, in order to preserve its social role.

In its resolution of 7 September 2000 (A5-0208/2000) Parliament stressed that European citizens should not be deprived of the opportunity to watch important sporting events live via public channels, and called on the Commission, pursuant to Article 81(3) of the EC Treaty, to clear the way for certain exemptions from competition rules.

1. How does the Commission view the trend towards a widening gulf between large and small football clubs, caused in part by the fact that revenue from television broadcasting rights is growing at an unequal rate?

2. Does the Commission agree that the growing commercialisation of sport, and in particular of football, is undermining the solidarity principle as set out in the Nice Presidency conclusions?

3. How does the Commission view the anticipated situation that in the near future only a limited number of international media concerns will be able to afford the sums involved for television broadcasting rights for sporting events, and in particular for football competitions, bearing in mind the principles laid down in Directive 97/36/EC(1) ('television without frontiers'), namely that wide access by the public to television coverage of national or non-national sporting events of major importance for society should be ensured?

4. What regulatory/steering role does the Commission envisage playing with regard to the sale of television broadcasting rights for sporting events in the light of the Nice conclusions and European Parliament resolution A5-0208/2000?

(1) OJ L 202, 30.7.1997, p. 60.

Answer given by Mrs Reding on behalf of the Commission

(2 April 2001)

1. In the Helsinki report on sport(1), the Commission drew attention to the unprecedented development of the economic dimension of sport, and particularly the spectacular increase in television rights. Although this has its benefits, it also carries risks, one of them being the widening gulf between large and small clubs and an undermining of the principle of financial solidarity. The Commission therefore feels that it is important for the national and Community authorities and the sporting movement to reaffirm the importance of the educational and social function of sport.

2. The Commission emphasised its commitment to the principle of solidarity, specifying that any exemptions granted in the case of the collective sale of broadcasting rights must take consumer interests into account and ensure that restrictions on competition are proportionate to the legitimate objective pursued and the nature of sport. This implies solidarity between economically stronger or weaker participants, and between professional and amateur sport, and sport played by young people. The Commission's stance was reinforced by the Nice Declaration on Sport(2).

3. The Commission is monitoring very closely the question of selling rights to broadcast sporting events. Any such sales must comply with the competition rules set out in the EC Treaty. The Commission is currently carrying out an in-depth study of the question of collective sales of television broadcasting rights. With regard to the application of Article 3a(1) of Directive 97/36/EC of the Parliament and the Council of 30 June 1997 amending Council Directive 89/552/EEC on the coordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the pursuit of television broadcasting activities(3), it was decided to introduce an optional provision, under which Member States must ensure wide access by the public to television coverage of national or non-national events of major importance for society. This principle applies only in the Member States which have opted to establish a list of events of this nature. Since, according to Article 3a(1) of the above Directive, the Member State concerned may apply measures taken in this context only to broadcasters under its jurisdiction, Article 3a(3) requires the other Member States to ensure that these measures are not circumvented by broadcasters under their jurisdiction. Consequently, there cannot be said to be a general principle which requires the Member States to ensure wide access by the general public to events of major importance at Community level. It should be noted that, so far, only four Member States have given official notification of measures taken under Article 3a(1). These have been published in the Official Journal. Two other Member States have indicated that they intend to give notification in the near future of measures taken.

4. As indicated in the reply to the previous question, the Commission is monitoring the question of collective sales of broadcasting rights for sporting events closely and has begun a study on this subject. It feels that, for the time being, the existing rules at Community level, in particular competition law, adequately address the concentration phenomena in the sector.

(1) Report from the Commission to the European Council with a view to safeguarding current sports structures and maintaining the social function of sport within the Community framework The Helsinki Report on Sport COM(1999) 644 final.

(2) Conclusions of the Presidency European Council in Nice 7, 8 and 9 December 2000 Annex IV: declaration on the specific characteristics of sport and its social functions in Europe which must be taken into account in the implementation of common policies.

(3) OJ L 202, 30.7.1997.