Sky has promised at least £200m a year in extra cost cuts to help fund the unexpectedly high price it paid to secure the majority of Premier League football rights.

Europe’s largest pay-TV company by subscribers blew its fierce rival BT out of the water in the auction for the rights on Tuesday, agreeing to pay £4.2bn over three years for 126 matches a season, including the prime Sunday afternoon fixtures.

Sky’s costs will rise 83 per cent starting from the 2016-17 season, while BT’s will increase 30 per cent. “The trajectory is unsustainable,” said Claudio Aspesi, an analyst at Bernstein, noting that costs rose by a similar amount in the last auction three years ago.

 

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