A DEAL between the English Premier League and two broadcasting companies giving exclusive rights to televised football is to be challenged in court, it was announced yesterday.
The new challenge to the deal came just hours before the House of Lords voted by a majority of 117 to deny subscription television channels exclusive rights to broadcast eight major sporting events.
The Director General of Fair Trading, Mr John Bridgeman said he had referred two agreements to the Restrictive Practices Court.
Under one, the Premier League sold the rights to BSkyB and the BBC for five years to the end of the 1996-97 season and agreed to award the rights for a further five years to the two companies if either matched any other broadcaster's bill. The other relates to Premier League rules preventing member clubs from selling television rights to broadcasters without first seeking permission from the league.
Mr Bridgeman said both agreements contained "significant restrictions on competition".
"By selling rights collectively and exclusively to the highest bidder on behalf of its members, it is effectively acting as a cartel and the net effect of cartels is to inflate costs and prices. Any other business acting in this way would be subject to competition law and see no reason why the selling of sport should be treated differently," he said.
Mr Bridgeman said the burden of proof would be on the parties involved in the deals to show they were not against the public interest.
"My concern is about the collective selling of exclusive television rights for Premier League matches not the arrangements for the operation of the league itself.
"I have noted the parties' arguments that exclusive selling provisions bring benefits to the sport in general and improvements to club amenities," he said.
In a statement the BBC said: "The OFT's ruling highlights the special nature of sport and the need for the public interest to be safeguarded in this area.
Last night the BBC welcomed the Lords' vote. The Lords decision is a welcome endorsement of the widely held public view that these great national occasions should be available for all to see," a spokesman said.
The eight listed events are the Grand National, the Derby, the FA Cup final, the Scottish Cup final, the Wimbledon finals, English home Test cricket, the Olympic Games and the World Cup finals.