BT may sell off part or all of BT Sport after €10.3bn in soccer rights costs         

Amazon is a potential bidder for BT Sport.

BT Group is in talks to sell a stake or all of its sports-broadcast division, BT Sport, possibly to a US-based media or tech giant. 

Potential bidders include Walt Disney, Amazon, and the Len Blavatnik-backed sports streaming platform Dazn, sources said. 

Investment bank Lazard is advising on the process, and it isn’t yet clear how much money a stake may fetch. 

“Early discussions are being held with a number of select strategic partners, to explore ways to generate investment, strengthen our sports business, and help take it to the next stage in its growth,” BT said. 

The London-based telecom giant launched its sports broadcasting service in 2013, after springing an expensive surprise attack against the UK’s best-known sports broadcaster, Sky, by bidding for Premier League soccer rights the previous year. 

The move continues to divide opinion. 

The division “carries zero value” in the sum-of-the-parts equity valuation, said Jefferies analyst Jerry Dellis. 

Upended by Covid

The talks come as the economics of sports have been upended by Covid. Earlier this month, some of Europe’s biggest soccer clubs made a failed attempt to start a breakaway Super League. 

“Should BT get the opportunity to make a profitable exit from a business they entered in 2012 that has absorbed £9bn (€10.3bn) of rights costs, they should go for it,” said media analyst Claire Enders, founder of Enders Analysis. 

“It is a structurally loss-making situation, given the current wholesaling arrangements.” 

• Bloomberg