Soccer scores own goal as broadcasting rights soar
The collapse of German giant KirchMedia and Britain’s ITV has cast a harsh new light on soccer clubs’ exorbitant demands that have resulted in a virtual monopoly in digital television transmission of matches, and which, in turn, has proven too costly for the media companies. In Greece, clubs have shown an almost illogical satisfaction with the firm Alpha Digital. To start at the beginning, in 1996, Netmed signed a contract with the Association of Professional Football Clubs (EPAE) for broadcasting rights to first-, second- and third-division soccer matches. The law at the time permitted EPAE to choose the teams, at the cost of something over 14.5 million euros (5 billion drachmas) a year. In 2001, when the contract ran out, the teams, on the basis of a new law, were free to negotiate terms on their own. A new company, Alpha Digital, had arrived on the scene, and managed to scoop up 11 of the 16 soccer teams with the exception of Aegaleo, OFI, Iraklis, Akratitos and Ionikos. To do so, it signed steep contracts: 14.5 million euros for Olympiakos, according to sources; 12.3 million euros for Panathinaikos; 10.3 million euros for AEK and around 8,500 euros for smaller clubs such as Xanthi, Panachaiki, Panionios and Ethnikos Astir. The only problem was that viewers, satiated with soccer, and also having Nova digital TV to watch the second channel, have not responded. No more than 30,000 subscriptions were garnered by the new digital package, which made it impossible for the channel to pay the 88 million euros (30 billion drachmas) needed for the teams. Greek professional soccer clearly cannot support more than one digital TV station. Whether the soccer clubs, which have based their future on the money they hope to receive, will survive remains to be seen. It also has yet to be seen whether the two digital stations will merge or if just one will survive. But we should take care not to have what happened in Turkey happen here. There, two digital TV stations dished out huge amounts of money and promises. Both have since closed.
