• Loading stock data...
Sunday, July 13, 2025

Regulators Tighten on Sports and Media Deals

  • BT Sport and Warner Bros. announced a JV deal that is believed to be worth a reported $797 million and would create a fresh portfolio of sports properties.
  • The deal could potentially be blocked by the UK’s Competition Markets Authority amidst an increasingly strict regulatory environment for mergers.
BT-Sports-JV
BT

Sometimes, the most exciting deals in the market never reach the finish line. Regulatory bodies often act as the ultimate arbiters of fairness for consumers and get the final say in which mergers see the light of day.

Earlier this month, British telecommunications giant BT Group and Warner Bros. announced their intention to create a 50-50 joint venture for a new sports offering in the United Kingdom and Ireland. The deal is worth a reported $797 million and would create an extensive premium portfolio of sports properties.

  • UEFA Champions League and Europa League 
  • Premier League matches
  • Premiership Rugby
  • UFC
  • The Olympics 
  • The Australian Open and French Open
  • Cycling Grand Tours including the Tour de France and Giro d’Italia

One issue: What some might call the “fun police” have come knocking. The deal will undergo antitrust scrutiny from the UK’s top competition watchdog — the Competition Markets Authority. 

Why is the CMA getting involved? The possibility of increased prices for consumers. 

If the deal goes through, broadcasters could be charged more to carry BT Sport and Eurosport channels because of what would become a significantly larger content offering, and those higher costs would likely trickle down to consumers.

The deal comes at a time when BT has to take a serious look at its ability to continue to carry one of its most important properties — Premier League football. International and domestic broadcast rights are expected to fall somewhere in the $6 billion range in the coming years, so it’s looking to Warner Bros to share the burden.

It’s unclear whether the CMA probe will end after Phase 1 or warrant a continuation onto the dreaded Phase 2 — determination of lessening of competition.

What is clear, however, is that large regulatory bodies such as the CMA or the Federal Trade Commission in the U.S. can and will regulate away deals that, on the surface, seem to make sense. 

Deal or No Deal? 

A quick trip down memory lane: Back in 2016, 21st Century Fox owner Rupert Murdoch filed a bid to take full control of Sky Sports for $14.6 billion. At the time, Murdoch and Fox already owned a 39% stake in Sky, but full ownership was just too juicy to pass up.

The CMA had other plans. The deal was blocked due to “media plurality” concerns — or how much power the resulting company would have over public opinion.

Ultimately, the block by the CMA led to Murdoch and Fox’s sale of their 39% stake to Comcast in a landmark deal that saw the telecommunications giant purchase Sky for some $38 billion. Unlike the Fox deal, the Comcast deal was not even brought to the CMA for a Phase 1 investigation. 

The determination that a Murdoch-owned media empire (he also owns the Sun and the Times of London) was not in the U.K.’s public interest demonstrates just how quickly the nature of these transactions can change.

Industries other than media are also subject to the ire of the CMA.

  • In 2019, JD Sports acquired Footasylum for $113 million, but the deal was short-lived.
  • In 2020, the CMA announced that it would prohibit the completed transaction due to expectations of a substantial lessening of competition.

The deal was appealed, but the companies were eventually forced to unwind the merger. 

Tightening the Screws

The U.K. government proposed new laws in 2021 that would drastically lower the burden of proof needed to block a potential acquisition, particularly for larger and more strategic companies.

The measure would apply to tech companies with “strategic market status” (SMS), a new designation for those with an entrenched, powerful position in a digital market. In time, companies like Amazon, Apple, and Uber could be included if they are deemed to have SMS. 

  • The proposed change would allow transactions that had any realistic prospect of reducing competition to be blocked.
  • The language from the merger assessment guidelines describes the threshold as “greater than fanciful, but below 50%.”
  • Basically, deals would require a less than 50/50 chance of potentially being anticompetitive to garner action. 

There are currently only 42,300 public companies listed globally. For most, an acquisition by an SMS company is a lifeline and for many, the ultimate end goal.

If the decision to make it easier to stifle mergers goes through, companies in the technology, media, and telecommunications space are likely to feel the brunt of the regulatory burden. Startups and smaller companies in the sports ecosystem will find it increasingly difficult to be acquired

Policing on Home Soil

The U.S. equivalent to the CMA is the FTC, and just like the CMA, it’s willing to stamp out any hint of anticompetitive behavior. 

In the past year, we have seen interventions from probes to outright blocks across several prominent industries

  • Nvidia’s $40 billion acquisition of U.K. chip design provider Arm Ltd. was blocked by the FTC over competition concerns in late 2021.
  • In January, Microsoft’s acquisition of gaming giant Activision Blizzard received scrutiny by the commission to determine whether the deal would lead to a monopoly in “metaverse” properties.
  • In May, the FTC announced that it would be launching an investigation into Sony’s acquisition of Bungie in an aggressive probe to police tech consolidation. 
  • The Washington Commanders could soon be under investigation by the FTC for engaging in “nefarious financial practices” related to ticket sales. 

One of the main areas of concern on U.S. soil is data privacy — an issue that FTC chair Lina Kahn has made abundantly clear is a top priority as the global economy becomes more digitized. 

Heavier regulation all around will have implications for sports-related companies down the line. 

Deals like Google’s acquisition of Fitbit or Flutter’s purchase of FanDuel may well be a construct of the past if regulators continue to move toward heavy regulation. While regulators aim to protect the interest of consumers, they may start becoming over eager in labeling deals as anticompetitive.  

We do need to protect consumers when existing large companies plan to merge, but extending that logic further down the value chain might lead to unintended consequences. In their quest to protect consumers, I hope these governing bodies don’t unintentionally crowd out innovation.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

May 31, 2025; Philadelphia, PA, USA; Sydney McLaughin-Levrone (USA) reacts before the women's 100m hurdles during the Grand Slam Track Philadelphia at Franklin Field
exclusive

Track’s New Money Is Running Into Old Problems

The sport’s big-money era has hit some speed bumps in 2025.
Bobbleheads are seen at Vintage Indy Sports, Tuesday, April 29, 2025 in Speedway. The local sports memorabilia store opened recently.

Baseball’s Bobbleheads Are the Center of the Collectibles Universe

Baseball’s most important keepsake drives long lines—and big business.

Featured Today

Rimouski, QC - JUNE 1: Final Game of the 2025 Memorial Cup between the Medicine Hats Tigers and the London Knights on June 1, 2025, at the Colisée Financière Sun Life in Rimouski, Qc.

CHL Is Facing a ‘Pandora’s Box’ of Questions Amid NCAA Talent Departure

As players defect to college, the Canadian Hockey League won’t cede ground.
Jun 28, 2025; Arlington, Texas, USA; Seattle Mariners catcher Cal Raleigh (29) bats during the game between the Texas Rangers and the Seattle Mariners at Globe Life Field.
July 9, 2025

The Torpedo Bat Business Is Still Going Strong: ‘Here to Stay’

Demand for the oddly shaped bats has stayed strong across the sport.
July 6, 2025

American Celebs Want to Be Sports Owners. Soccer Is Where They Start

As U.S. team prices climb, investors set their sights abroad.
July 5, 2025

Baseball’s Celebrity Row: Behind MLB’s First-Pitch Ritual

Often planned, sometimes spontaneous, the ritual throw is baseball’s celebrity row.
Jul 10, 2025; Wimbledon, United Kingdom; Iga Swiatek of Poland at her on court interview after winning her match against Belinda Bencic of Switzerland on day 11 at All England Lawn Tennis and Croquet Club.

Wimbledon Set to Deliver Strong Finals Matchup for ESPN

Novak Djokovic is still in the hunt for his 25th Grand Slam.
Feb 7, 2025; Storrs, Connecticut, USA; UConn Huskies center Tarris Reed Jr. (5) reacts after his basket against the St. John's Red Storm in the first half at Harry A. Gampel Pavilion.
July 8, 2025

After Decade Apart, ESPN and Big East Rekindle Media Rights Relationship

After a decade-plus apart, the network will stream hundreds of conference events.
Paige Bueckers
exclusive
July 8, 2025

Women’s March Madness Expansion Wouldn’t Yield More ESPN Money

ESPN is not required to pay extra if women’s March Madness expands.
Sponsored

Game On: Portfolio Players Stories, Brought to You by E*TRADE from Morgan Stanley

Dealmaker Jeffrey Kaplan maps the evolution of sports as an asset class
Jul 6, 2025; Houston, Texas, USA; Mexico forward Marcel Ruiz (14) heads the ball in front of United States midfielder Brenden Aaronson (11) in the second half during the 2025 Gold Cup Final at NRG Stadium.
July 7, 2025

USMNT Struggles Still Produce Big Gold Cup Ratings for Fox

The U.S. team’s recent issues culminated in a loss to Mexico.
July 2, 2025

Paramount Settles Trump Suit Ahead of NFL Season, Skydance Merger

The deal likely allows the much larger Skydance merger deal to proceed.
Leo Messi
June 27, 2025

TNT, Club World Cup Ride Messi to Surprisingly Solid Debut Ratings

TNT Sports carries about a third of matches in the U.S.
June 24, 2025

Fever vs. Aces Draws 5th-Largest TV Audience of 2025 WNBA Season

ESPN will carry seven more Indiana Fever games this year.