Discovery, BT in ‘exclusive discussions’ to form sports-focused JV

Discovery and BT Group have confirmed they are in exclusive discussions to create a new sport and entertainment joint venture in the UK and Ireland.

JB Perrette

The proposed combination of Discovery-owned Eurosport’s UK business with BT Sport would give customers access to the events such as the Olympic Games and football including the English Premier League, UEFA Champions League and UEFA Europa League.

As well as cycling Grand Tours, tennis Grand Slams, the winter sport World Cup season and Premiership Rugby, it would also give BT Sport customers access to Discovery’s entertainment content, including the Discovery+ app.

The two companies are aiming for the 50:50 JV to be operational later this year, pending a definite agreement and regulatory approval.

It comes after reports earlier this week suggested sports media group DAZN was closing in on a deal to acquire BT Sport and its Premier League rights. This came after DAZN chairman Kevin Mayer confirmed in September last year that it was in the market for the lucrative rights.

However, Discovery looks to have entered pole position to strike a deal with BT. Discovery said the JV would “bring together major long-term rights and world-class sports broadcast and digital capabilities,” while BT Group said it was talking to Discovery after a “detailed process to identify the best way to generate investment and strengthen our sports business.”

Factual media giant Discovery entered the global sports media business in 2014 with its acquisition of Eurosport, while teleco BT entered the fray with BT Sport in 2013 by entering the highly competitive market for Premier League rights as a challenger to Sky. Since then, Amazon has also successfully bid to stream Premier League games.

JB Perrette, president and CEO of Discovery streaming and international, said: “We are excited about this opportunity with BT Group to offer consumers a stronger and simplified combined sport offering in the UK and Ireland and, more broadly, to advance our strategy of bringing sports and entertainment to more consumers on the platform of their choice.

“We are aligned with BT Group on a shared vision to maximise the value and appeal of our respective UK sport assets, and we look forward to concluding a deal in the coming weeks.”

Marc Allera, CEO of BT Consumer, said: “The proposed joint venture with Discovery would create an exciting new sports broadcasting entity for the UK and would act as a perfect home for our BT Sport business.

“With a shared ambition for growth, as well as the combination of our world-class sports assets along with Discovery’s premium sports and entertainment content, our customers will benefit from even more content in more places.”