FRANKFURT, April 18 (Reuters) - Germany's second-largest commercial broadcaster RTL may stop showing Champions League soccer unless license prices are cut and competition rules improved, its head said in remarks to be published on Friday.
Gerhard Zeiler, chief executive of the German unit of
Europe's largest television firm RTL Group, said the League's
ratings were too low as the extended qualifying phase included
too many unimportant matches.
'Even if the license price was halved, I would think five
times before I continued with the Champions League,' Zeiler told
the Sueddeutsche Zeitung newspaper in an interview to be
published on Friday.
'I don't expect that we will continue to have the Champions
League in the program after the next season,' Sueddeutsche
quoted Zeiler as saying.
Prices for movie and sports TV rights, which appeared to be
perfectly normal during high-profile bidding wars two years ago,
have come under scrutiny recently as media groups struggle with
lower advertising revenues.
Insolvency administrators have blamed overpriced rights
deals for the collapse of Germany's KirchMedia, one of the
largest television rights traders in Europe.
A spokesman for RTL Group, which owns 23 television stations
in Europe and posted a 2.5-billion-euro ($2.23 billion) net loss
in 2001, said the drive to cut prices was not limited to its
German subsidiary.
'We will put pressure on the pricing for both sports and
movie rights,' said Markus Payer, a spokesman for the RTL Group.
'The prices must come down.'
RTL bought the rights to broadcast Champions League from
media mogul Rupert Murdoch's News Corp for an undisclosed sum
after Murdoch pulled out of his German television channel Vox in
2000.
RTL reportedly paid News Corp only half of the 220 million
marks ($99 million) that they had paid per season to the
soccer's European governing body, UEFA.
A spokesman for RTL said their deal to broadcast the
Champions League expired in the 2002/2003 season. There were no
new talks yet on a continuation of the contract, the spokesman
said.
The Champions League format has expanded in recent years at
the behest of the top clubs and now includes a qualifying
competition, two group stages and a final knock-out phase of
quarter-finals, semifinals and a final.