Pay broadcaster HiTV successfully expanded its hold on Premier League rights in Nigeria with an opening round offer of about $125 million (€83 million) for exclusive rights, comfortably clear of its nearest challengers.

Both MultiChoice’s Supersport and local rival Daarsat bid considerably less than $100 million.

It is understood that the league, which has a well-earned reputation for requiring strong guarantees, requested that HiTV make a significant upfront guarantee by early this week as a pre-condition of it being awarded the rights. HiTV is thought to have secured the deal with a $4 million initial down payment and a $50 million bank guarantee.
Rivals claimed that HiTV, which launched in 2007, would struggle to recoup its outlay, particularly given that it is already paying some $120 million for Uefa’s Champions League and Europa League rights in a three-year deal starting this season.

The new deal is worth more that four times what HiTV is paying in its present deal, in which it has some 80 percent of Premier League matches, and more than three times the total fee from Nigeria. Last time the league sold the rights in two packages, with HiTV paying $28 million for the bulk and Supersport about $8 million for the remainder.

HiTV chief executive Toyin Subair told TV Sports Markets that the renewal of the Premier League deal was “extremely important” allowing further investment in the HiTV platform and enabling it to expand its offering globally. It has already agreed carriage deals – although obviously not for its sports content – in the UK and France and it will soon launch channels in the US.

Subair said that HiTV had so far sold 258,000 set-top boxes in Nigeria, although exact subscriber numbers vary because of a monthly pre-payment system that allows regular churn in and out. New direct debit systems are now being offered which will allow longer-term subscriptions and HiTV is aiming to reach one million customers by 2012.

Having Premier League exclusivity from next season will certainly help towards this target, as will the deal for Champions League rights, although the challenge will be harder since HiTV increased its monthly subscription charges from Naira 4,000 (€17.50/$26.30) to Naira 6,000 a month earlier this year.

HiTV’s new deal also incorporates mobile and internet clip rights. Subair also said that HiTV was interested in the league’s centrally-produced channel, which he said was a good idea. The league has floated the possibility of providing winning licensees with a Premier League Channel, production costs for which could be shared out between those broadcasters interested in taking the service.

HiTV is owned by six or seven private investors, some from overseas but most from within Nigeria. They include the Nigerian Guaranty Bank, which is listed on the London stock exchange.