UEFA's Lucrative Rights Auction: A Lesson in Market Dynamics
Champagne corks were popping at UEFA headquarters last Thursday as the European football governing body secured a spectacular financial victory. The latest Champions League television rights auction for the 2027-31 seasons delivered average annual increases of more than 20% across Europe's five biggest markets, largely thanks to a strategic masterstroke: luring American entertainment giant Paramount into the bidding process for the first time.
The emergence of Paramount proved transformative, particularly in the United Kingdom where the company secured rights by outbidding incumbent broadcaster TNT Sports. The streaming service also triumphed in Germany and forced Sky Italia to significantly increase its offer to retain rights in Italy. The combined value of the UK deal, which includes Sky Sports returning to European football by purchasing every Europa League and Conference League game, skyrocketed from £1.2 billion to £2.2 billion, albeit over four years rather than three.
The 'Dog That Didn't Bark': The Failed Global Streaming Dream
While rising revenue and a major new market entrant provided cause for celebration, of equal long-term significance was the product that failed to sell. UEFA had ambitiously hoped to sell one package of first-pick games to a single global streaming company, yet this vision did not materialise despite significant interest from Netflix, Apple TV, and DAZN during the October tender.
Instead, Amazon Prime retained its first-pick packages in the UK, Germany, and Italy through separate auctions, while Canal+ and Movistar secured all matches in France and Spain respectively. "The global deal is the dog that didn't bark," says François Godard, senior media analyst at Enders Analysis. "The big tech firms clearly weren't that interested. Sport is not going global."
The traditional model of selling rights market-by-market ultimately proved more lucrative, with Germany's rights rising by 40% annually, Italy's by 30%, and Spain's by 14%. Only France among Europe's big five television markets failed to increase, though given the recent collapse in Ligue 1 rights value, this was not considered a terrible outcome for UEFA.
Market Implications and Premier League Parallels
The auction results offer crucial insights for other rights holders, including the English Premier League, which has speculated about launching its own 'PremFlix' channel for the next rights cycle beginning in 2029. The clear lesson from UEFA's experience is that demand for global or even pan-European deals has been significantly overstated.
"I don't know if UEFA received any global bids, but if they did there was clearly more value in selling market by market," Godard explains. "It's pure mathematics. The indications are that we will continue with the current model for some time."
The global package faced inherent constraints that limited its appeal. In the UK, for instance, there would have been many weeks when viewers couldn't watch English teams—a significant drawback for domestic fans. Evidence also suggests limited interest in watching teams from outside viewers' own countries until the quarter-final stages at least.
In the UK market, the biggest winners beyond Paramount appear to be Sky Sports. Their key domestic rival, TNT Sports, was significantly weakened by losing the premium Champions League rights, while Sky picked up 342 European matches relatively cheaply. The Europa League may hold more value for Sky than during their previous tenure in 2013, given the increasing presence of major English clubs in later stages—Manchester United and Tottenham contested last year's final, while Chelsea won the Conference League.
The fragmentation of rights also plays to Sky's advantage, as Godard notes: "Paramount is already a slave to Sky. Without bundling there will be an even greater loss of viewers to piracy. TNT had the Champions League for 12 years and were just about breaking even, so it's very tough for new entrants to the market. And the more fragmentation the better for Sky, as the other channels need to be on their platform."
As the football broadcasting landscape continues to evolve, UEFA's latest rights sale delivers a clear message: while streaming services are becoming increasingly important players, the future of sports broadcasting remains firmly rooted in territorial deals rather than global ambitions.
