BSkyB has done its multi-million pound deal with the English Premier League to last until the year 2001, ensuring that all 20 of the top-flight clubs in England get a share of the revenue it pays in. But Rupert Murdoch's satellite broadcasting giant didn't get where it is today without anticipating changes in the technical and legal environment for broadcasting. One possible change could come about through the courts, which may decide in years to come that the Premier League is not entitled to sell rights on behalf of all its member clubs; instead, as happens in other countries, clubs may be entitled in some way to the rights to their own games.
One English soccer club looms above the rest when it comes to the attractiveness and profitability of its matches. So BSkyB wasn't about to watch Manchester United put down the foundations for that possible future without joining in. Thus, five weeks ago, BSkyB joined up with Granada (the Manchester-based TV company that makes Coronation Street) and Manchester United to unveil a joint venture: a Man United prime-time subscription television channel, starting from next year.
This is not unprecedented. Leeds United, which is owned by a leisure company, Caspian, has already launched a TV service. MUTV will hit TV screens from autumn 1998 via satellite and cable, broadcasting six hours a day of news and features on the Premiership champions - but not, of course, any competitive matches for as long as the current deal prevails between Sky Sports and the Premier League.
The news of the station came as the club reported a record 79 per cent rise in pre-tax profits for the year to July 31, up to £27.6 million from £15.4 million in 1996.
Turnover was 65 per cent ahead of last year at £87.9 million, hardly surprising given that Old Trafford operated at its full 55,000 capacity all season and the club enjoyed the additional boost of earnings from European involvement.
The results confirmed that as far as finance is concerned, as on the pitch, Manchester United are way ahead of the rest of the field. Even the club's transfer fees resulted in a net gain of £300,000.
Manchester United's chief executive, Martin Edwards, said that although the club was not disclosing the cost or final details of the TV channel, it hoped the venture would break even within two to three years.
An independent survey recently calculated the club's supporter base as standing at 3.3 million people and Edwards said: "We believe that the channel will be viable and provide attractive return if we can attract roughly 10 per cent of that fan base."
The club and the other partners were confident fans would want to watch the station, even though no firstteam games would be on show. Reserve matches and friendlies could be part of the schedule. Edwards said of Sky and Granada: "We have got partners willing to put up most of the money and they have got key expertise in the field. We are comfortable with it, they are clearly comfortable with it."
A fortnight ago it emerged that Manchester United were the only one of the 18 British clubs with shares quoted on the stock market that saw its share value rise since April. "There is no doubt they are the biggest and the best run and that is reflected in their share price," said London stockbroker William Davies. He predicted the inception of pay-per-view television will strengthen United's value and cited Italy as an example of how the market could develop.
"In Italy they already have pay-perview and just about all of the revenue goes to Inter Milan. I am sure if it were introduced here, United would claim most of the market."
