Sky reportedly to receive £25 million Carabao Cup rebate

Sky Sports has reportedly secured a £25 million rebate after successfully arguing that the Carabao Cup has been devalued by the English Premier League.

The Carabao Cup is English football’s secondary domestic cup tournament, and the Daily Mail reports that this lower-profile positioning – along with the increased status of the Premier League – has given Sky cause to believe that it is worth less than the £80 million-per season it agreed to pay to the English Football League (EFL).

The paper reports that the Premier League clubs have agreed to pay back £25 million to Sky, with the Premier League making an undisclosed contribution towards that total.

The broadcaster was apparently able to argue for this based on the fact that the condensed 2020/21 season will have potential conflicts with UEFA’s Champions League and Europa League competitions and that the two-leg semi-finals will be scrapped.

The £80 million Carabao Cup deal represents two-thirds of Sky’s total £119 million broadcast contract with the EFL.

This news comes at a time where many have argued that sports rights will see a depression in price as a result of the pandemic. One such industry exec is BT Sport chief Simon Green, who said: “I personally believe that Covid-19 will cause a correction in the markets for television sports rights which will mean the value will not rise as it has done in the past. I think everyone will be more discerning about what they pay given that the country is facing a potential recession which could leave viewers with less money in their pockets.”