English Premier League challenges pay-TV ruling

England’s Premier League is to mount a legal challenge against a ruling forcing BSkyB to cut the price it charges other media companies for its two main sports channels, its boss said Thursday.

Britain’s broadcasting watchdog Ofcom last month ordered the pay-TV giant to cut its wholesale prices, after concerns voiced by Sky rivals BT, Virgin Media, TopUp TV and Setanta.

But Premier League chief executive Richard Scudamore said Thursday: “We have concluded that we have no option other than to mount a challenge to their proposed action.

“We do not undertake this process lightly. However, the consequences for UK sport and UK sports fans are too serious and fundamental for us to ignore,” he added.

Following a three-year investigation Ofcom concluded that Sky had undue dominance in the market, and set a wholesale price for Sky Sports 1 and 2 of up to 23 percent below the current rate.

The Premier League, who have just signed a three-year broadcast deal that wil see them receive some 1.8 billion pounds (2.8 billion dollars), with Sky’s contribution 1.6 billion pounds, fear the ruling will hit its clubs’ income, and could lead to top international players going elsewhere.

“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,” said Scudamore.

“This can only have a negative impact on the ability of sport to attract a fair return on its content …which is necessary to ensure appropriate investment in maintaining the highest quality of that content.”

And he added: “It is critical for the Premier League to defend its ability to provide the quality football that has underpinned the successful development of the English game.

“We, and our clubs, operate in a highly competitive market and we intend to resist strenuously this unjustified attempt to reward risk-averse companies and undermine not only English football but UK sport as a whole.”

However, an Ofcom spokesman said: “It is 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.”