Vodafone’s sports TV turnaround

Vodafone made the decision in 2022 to withdraw from broadcasting football in bars, cafes, and hotels due to escalating costs, but that decision has recently been reversed.

Vodafone Spain, soon to be under the ownership of British company Zegona, is set to return to televised football and other sports in hospitality establishments.

Vodafone’s renewed strategy

The date was August 2022 when Vodafone exited the televised football market in the hospitality sector.

Now, as market sources have revealed, Vodafone is on the brink of a comeback. The company is finalising an agreement with LaLiga to recommence offering these popular sports packages to its hospitality business clients.

The aim is to start broadcasting LaLiga this season (2023-2024), along with major UEFA competitions like the Champions League and Europa League.

This package will also include MotoGP and Formula 1, which became part of the LaLiga Bar TV package after Dazn sold this business to the association led by Javier Tebas in 2022.

Expanding business horizons

Vodafone’s proposed commercial agreement encompasses the remainder of the season and may extend further. This movement does not signal a return to the residential market, which Vodafone left in 2018 due to the high cost of television rights.

In the summer of 2022, Vodafone made a limited foray into residential broadcasting by acquiring rights to La Liga Hypermotion, the Spanish Second Division football. This content was bundled in a sports package at a cost of €6, including Eurosport sports as well.

Zegona’s vision for growth

Zegona, set to become Vodafone’s new owner in the coming months, has outlined several strategies for growth, particularly in television content.

As stated in the brochure presented to the regulator, the British communications company aims to renegotiate agreements with major platforms and rights holders.

Additionally, they plan to leverage Lowi, Vodafone’s ‘low cost’ brand, to broaden the customer base by introducing TV into their packages.

In parallel to Vodafone’s negotiations, LaLiga is resolving the auction of Telefonica’s packages – 55 per cent of the total – for the seasons from 2024-2025 to 2026/2027.

The incumbent is expected to retain these assets, though the price remains a point of speculation, previously set at €520 million per season.