The race for relationships between British media companies and the top football teams intensified yesterday, as British Sky Broadcasting added Sunderland to its portfolio of minority stakes in English soccer clubs.
BSkyB, the satellite television group controlled by Mr Rupert Murdoch, is also understood to be in talks with Chelsea and several other clubs.
The company, which already has interests in Manchester United, Leeds United and Manchester City, yesterday said it was paying £6.5 million sterling (€10.35 million) for a 5 per cent stake in Sunderland.
BSkyB will also pay £4.65 million to become the media agent for five years for Sunderland, which currently stands in fourth place in the Premiership. A further £1.85 million will be forthcoming if Sunderland remain in the Premier League in the 2000/2001 season.
The price paid by BSkyB for the 5 per cent stake values Sunderland at £130 million, a substantial premium to its share price. Shares in Sunderland closed down 15p yesterday at £687 1/2, valuing the club at £56.4 million.
Media companies have been moving in on Premiership clubs, buying small stakes that give them a perceived advantage in the competitive market for broadcasting rights.
The rights to the Premier League, which are expected to prompt a costly bidding contest in the months before they come up for renewal at the end of the 2000/2001 season, are negotiated by the league collectively on behalf of the clubs.
But minority stakes in soccer teams give media groups a chance to share the fortunes of successful clubs and get a last look on bids to broadcast non-Premiership games.
Granada bought a stake in Liverpool football club. NTL, the US-listed cable operator, lifted its stake in Newcastle to 9.8 per cent last week.
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