Premier League contests Ofcom decision over Sky Sports

The Premier League is to mount a challenge to the decision by regulator Ofcom to make Sky sell sports channels to its competitors at a discount.

Ofcom told Sky it must cut the price it charges rival cable, terrestrial and internet broadcasters to show its premium sports channels.

The broadcaster will have to sell Sky Sports 1 and 2 for up to 23% less than the current wholesale price.

Premier League boss Richard Scudamore said the league had "no other option".

Ofcom said in a statement that it was "in consumers' interests for our pay TV decisions to come into effect as soon as possible to deliver the benefits of wider choice and innovation. We are happy to defend our decision wherever necessary."

'Serious consequences'

Ofcom's inquiry began in 2007 after BT, Virgin, Top Up TV and the now-defunct Setanta, expressed concerns about Sky's dominance of the pay-TV industry. It has an estimated 85% of the market.

The Ofcom decision was aimed at offering viewers more choice of pay-TV services.

But Mr Scudamore said the move had "consequences for UK sport and UK sports fans" that were "too serious and fundamental for us to ignore".

He added: "By forcing Sky to sell its sports channels to its competitors at a discount, Ofcom will reduce the incentives of all broadcasters, Sky included, to invest in the acquisition of sports rights.

"This can only have a negative impact on the ability of sport to attract a fair return on its content in an open market, which is necessary to ensure appropriate investment in maintaining the highest quality of that content."

'Unwarranted intervention'

He said the Ofcom decision helped subsidise companies that had shown little appetite for investing in content.

At the same time he said it would damage the investment models that had "helped sport become a successful part of the UK economy and made sport so attractive to UK consumers".

Sky has already said it would appeal against the "unwarranted intervention", arguing it would be to the detriment of consumers.

Sky will have to sell Sky Sports 1 and 2 for £10.63 a month each - 23.4% less than at present. If the two channels are sold together, Ofcom has set a price of £17.14 - a discount of 10.5% on current wholesale charges.

Bodies representing rugby and cricket, as well as football, which rely on lucrative TV rights deals - have expressed misgivings over the Ofcom decision.