Sky deal with FAI criticised by Sports Minister

Sky's deal with the Football Association of Ireland (FAI) to exclusively broadcast the national team's home matches has not been well received in the terraces or in government circles.
The Republic's Sports Minister John O'Donoghue has been highly critical of the FAI for agreeing to the £7.5 million four-year deal which he believes will leave many supporters - without a Sky package - in the dark.
Following a 40-minute meeting with FAI chiefs, Mr O'Donoghue said that the deal was "done and dusted" and any possibility that the deal could be hijacked with a larger bid to ensure free-to-air terrestrial broadcasts of the games has been ruled out by the government.
It has been reported that the FAI will seek to dampen the powder of objectors by proposing that the screening of the Republic's first home game against Switzerland be aired on Sky One – and not the premium rate Sky Sports channel as was agreed. Screens could then be placed in public areas, such as community centres, for viewing. Insiders, however, believe it is unlikely this will happen, describing it as "speculation".
Sky's operation in the Republic has been met with opposition of late, particularly so following the deal between Sky and RTÉ to air the national broadcaster's programming on Sky's digital platform. That deal has been slated as a challenge to the government's digital terrestrial policy regarding the analogue to digital switchover.
Independent News & Media spokesman Gavin O'Reilly said: "RTÉ will now be entirely dependent on Sky for digital transmission of its network signals in key parts of the State."
Mr O'Reilly also claimed that the government had been lobbied by his organisation four months ago to increase regulation of BSkyB's role in the southern market.
"There are no controls, obligations or restrictions available to control the manner in which Sky will treat its Irish customers," Mr O'Reilly added.
However, a Sky spokesperson said that the corporation is closely regulated in the UK by OFTEL and the ITC, making it "probably among the most regulated broadcasters in the world".
Media observers have also suggested that the growth of Sky in the Irish market will affect government revenues, as the £50 million a year BSkyB currently receives from subscribers in the south is not subject to VAT charges. Instead, VAT is paid to the British treasury.
However, Sky would argue that VAT is paid to the Dublin government on the installation of set-top boxes with its 232,000 subscribers. The set-top box installation costs about €400 per customer (equating to about €80 in VAT charges per customer) and is treated as a one-off expense by the company.
Sky, www.sky.com
(GMcG)