ESPN's Global Soccer Ambitions

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A Global Following

It's no surprise that soccer—known outside the U.S. as football—is a massive draw. The English Premier League, for instance, is the world's most lucrative sports franchise, broadcast to more than 600 million homes in over 200 countries, according to consultants at Deloitte. FIFA, the sport's governing body, says the monthlong 2006 World Cup held in Germany pulled in an aggregated global TV audience of 26.2 billion viewers.

With its new British soccer coverage, ESPN now will be able to tap into the fanatical local and global following for clubs such as Manchester United and Arsenal. Thanks to its agreement with BSkyB, ESPN's reach will jump to nearly 10 million British households, or about one-third of the market. The deal also will give ESPN a secure revenue stream it would have had a tough time establishing on its own, says Richard Broughton, a senior analyst at media researcher Screen Digest in London. "There would be little chance of success without Sky," he says.

But while the relationship should be mutually beneficial in the short term, tensions between Disney and News Corp. could arise as they compete for future soccer rights. The biggest bone of contention is likely to be the English Premier League (EPL), which will soon start negotiating its post-2013 global broadcasting rights. BSkyB is currently the dominant rights-holder for EPL games, but with its deep pockets and expanding global presence, ESPN could mount a big challenge. If the tussle turns ugly, it could also threaten an existing joint venture between the companies in Asia called ESPNStar Sports. "Disney has the scale and expertise to compete," says Coventry University's Chadwick. "With two really big hitters targeting the market, tensions will obviously arise."

A Chance to Prove Itself

To fully capitalize on global soccer mania, experts say ESPN also must master how to market itself to non-U.S. audiences. The new British TV deal will be an important proving ground. ESPN already has signed up former BBC presenter Ray Stubbs to front its coverage. Other moves, such as beefing up its own broadcasting equipment, instead of hiring gear from others, could save costs if and when ESPN expands its soccer coverage across Europe and further afield.

Says Screen Digest's Broughton: "With its backing from Disney, ESPN can focus on long-term success." That's surely the biggest goal of all.

Scott is a reporter in BusinessWeek's London bureau .

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