In a world where sports broadcasting is big business, international sports federations are increasingly looking to centralise the sale of media rights. This approach allows them to bring broader exposure to the sport by securing more mainstream media coverage while maximising revenue, simplifying negotiations and consolidating their influence. But is this trend in the best interests of fans, broadcasters or even national federations? While this debate is playing out across many sports, skiing has brought it into sharp focus.

The skiing case: German Ski Federation (DSV) vs. FIS

One of the most high-profile examples of this shift to media rights centralisation is the legal battle between the International Ski Federation (FIS) and several national federations, including the German Ski Federation (DSV).

The case centres on the FIS's attempts to centralise the sale of media rights for its various skiing events. Traditionally, national federations had more control over media rights for domestic events, negotiating with local broadcasters to strike deals that suited their individual markets. However, the FIS introduced a new approach – centralised media rights. The idea is to sell media rights for all skiing events at a global level, giving them more negotiating power to strike bigger media deals but cutting out national federations and their ability to negotiate local deals.

This resulted in legal action – the DSV filed a lawsuit in Germany, accusing the FIS of abusing its dominant position in the market for skiing media rights. It argued that the FIS's decision to centralise media rights unfairly restricted competition by preventing local broadcasters from negotiating their own deals. The Munich Regional Court handed down its decision on 9 October 2024.

The Austrian Ski Federation brought a similar case in Austria, expected to be heard in November 2024, and Swiss-Ski has expressed concerns but not yet filed a lawsuit.

So why are sports federations like the FIS so keen to centralise media rights and why are national federations resisting?

Why centralise media rights?

For international governing bodies, the centralisation of media rights allows them to consolidate power and negotiate bigger deals with broadcasters, since they can offer a package of events rather than piecemeal deals for individual competitions. The FIS, for instance, now controls broadcasting rights for the World Cup, World Championships and the Winter Olympics, all of which attract substantial global attention.

By selling all media rights together, international federations believe they can attract bigger sponsors (e.g. media giants, such as NBC, Eurosport, ESPN) and therefore boost revenues for the sport as a whole. It allows them to streamline negotiations and ensure that major sports properties are showcased at the same time, often leading to more unified and broader coverage.

The pushback: national federations and local broadcast rights

On the other hand, national federations are concerned that centralisation undermines their influence and ability to negotiate deals that are better suited to their specific markets. Smaller broadcasters, in particular, worry about being shut out of key events. Take the DSV as an example. Before the FIS began centralising the sale of media rights, the DSV had negotiated deals with local broadcasters to showcase skiing events that were of particular interest to German audiences. If the FIS took over, the DSV argued, German broadcasters would be forced to pay more for rights that included events in which they might not even be interested, such as the World Cup races held in countries where skiing is less popular.

The court decision

On balance, the German court ruling is a win for national federations, but there is an important confirmation benefitting international federations too: the court found that FIS is entitled to centralise media rights (an important confirmation for international federations), but – in doing so – it must not undermine the rights of national federations or harm competition. On assessment, the court concluded that the FIS had abused its dominant market position to the detriment of national federations and issued an injunction preventing it from proceeding with the centralised marketing of media rights for the 2026/2027 season. The court effectively set boundaries, stating that the FIS must ensure that its approach to media rights respects local federations' interests and ensures broadcasters in specific markets still have the ability to operate.

The FIS expressed a strong disagreement with the ruling and is expected to appeal to the Munich Higher Regional Court.

If the court ruling is upheld, the FIS will likely need to create a more flexible model, potentially allowing national federations to retain some control over local media rights, or providing a portion of the revenue generated by global deals to national federations, which would help maintain the balance of power between national and international authorities.

The final German court ruling is not only relevant within Germany – competition law applies uniformly across the EU (and, in fact, is aligned worldwide), meaning that similar conclusions will likely be reached in any EU country and beyond. Similarly, the ruling is not only relevant to skiing – competition law applies in the same manner to all sports.

Competition law and governing bodies: a balancing act

This case highlights an important aspect of competition law in sports – how to balance the commercial interests of international governing bodies with the commercial rights of national federations, while preserving the ability of local broadcasters to compete for national events.

At its core, the issue is about whether a centralised media rights model stifles competition and whether national federations should retain the right to negotiate media deals independently. The FIS's centralisation model could result in a higher overall revenue pool, but if it limits local broadcasters' ability to compete for rights to national events, it may infringe on competition laws. National federations have argued that local deals are often more reflective of regional fan preferences, leading to a more diverse, competitive sports media landscape.

Is centralisation the future of sports media?

The case of skiing is not an isolated one. Similar issues are playing out in other sports, including football and tennis. In tennis, for example, the ATP Tour has been working to centralise media rights for its tournaments, consolidating deals for the men’s tour in a similar way to FIS. The International Tennis Federation has also explored similar approaches to maximise media revenue for its events, like the Davis Cup and the Fed Cup.

Meanwhile, in football, FIFA has long centralised media rights for the World Cup and other international competitions, which has led to enormous revenues but also sparked arguments over the exclusion of smaller broadcasters from certain markets.

Why should fans care?

For many, the move towards centralisation means a more streamlined, professionalised sport with better exposure on a global scale. It can also create opportunities for new fans to discover sports to which they might not otherwise have had access.

However, centralisation can also mean higher prices for broadcasters (which can lead to higher subscription costs for fans), less local coverage of niche events and an overall reduction in the diversity of sports media. Smaller broadcasters, who may be more focused on niche sports or regional events, could find themselves squeezed out by the global giants that dominate the media rights market.

Conclusion: a growing trend

The skiing case illustrates the challenges and opportunities of centralising media rights in sport. While international federations see it as a way to maximise revenue and boost global exposure, national federations and smaller broadcasters warn of the negative impact on competition and local access to sports coverage.

As more sports explore centralised models, this debate will continue to shape the future of sports broadcasting. One thing is clear – whether fans love or loathe the idea, the centralisation of media rights is a topic that is set to stay at the heart of sports governance for years to come.