In a significant double blow to its sports portfolio, broadcaster TNT Sports has lost the UK rights to the UEFA Champions League and opted not to bid for the new Nations Championship in rugby union.
A Strategic Retreat from Major Rights
The Guardian revealed that TNT, which previously held the Champions League rights under its former BT Sport brand, was outbid by streaming service Paramount+. The new deal, running from 2027 to 2031, sees the value of the UK rights skyrocket from £1.2 billion to £2.2 billion. Paramount will show most matches, while Amazon Prime Video gets first pick of one exclusive game per round. Sky Sports secured a consolation prize, picking up the rights to the Europa League.
Senior sources at TNT have expressed they are "absolutely gutted" to lose the Champions League, its flagship property since 2013. However, the company insists it has a clear financial model and will not overpay. "We have a clear business model, and in rights negotiations there is only a certain level we will go to," a TNT insider stated, referencing the huge losses incurred by the former BT Sport operation.
Financial Reality Bites for TNT
The financial context for TNT's cautious approach is stark. Accounts for TNT Sports Broadcasting Limited show losses of £148 million up to July 2024, although this figure includes start-up costs for the Warner Bros Discovery and BT Group joint venture formed in 2022. The company is projected to break even soon.
Ironically, losing the expensive Champions League contract, which would have cost around £1 billion, could accelerate that journey to profitability. TNT acknowledges it will lose subscribers but is already planning to mitigate this by acquiring other rights and is even considering lowering its monthly subscription price, currently £30.99.
"It's not as if there is a fire drill happening," another TNT source commented. "We've got 18 months to really think about other opportunities regarding pricing, packaging and buying other rights." The broadcaster has recently expanded its content, adding international cricket, English club rugby, and the FA Cup to a portfolio that already includes the French Open, cycling, and the Olympics.
Walking Away from Rugby's New Tournament
Separately, TNT made a strategic decision to walk away from the auction for the new Nations Championship in rugby union without submitting a bid. Having broadcast the Autumn Internationals for the past two years as a test, TNT concluded that international rugby did not drive enough long-term subscriber loyalty to justify a major investment.
The broadcaster found that too many casual fans cancelled their subscriptions immediately after the tournament, and its year-round offering of the Gallagher Premiership was not enough to retain them. With TNT seeking a discount and free-to-air broadcaster ITV willing to pay £80 million for two tournaments, ITV won the auction unopposed.
The challenges facing TNT highlight the enduring difficulty of competing with Sky Sports, which has dominated the UK market since the Premier League's inception. While BT Sport previously used sports to drive broadband subscriptions, the new TNT venture under Warner Bros Discovery is squarely focused on achieving direct profitability—a task that has now become even more formidable.
