BSkyB extends its football empire

Satellite TV group British Sky Broadcasting (BSkyB) has added a fourth investment in an English football club. BSkyB, 40% owned by Rupert Murdoch, is buying a 5% stake in Premier League Sunderland for £6.5 million. It is paying a further £6.5 million to be the club's exclusive media and commercial agent for five years, with revenues raised to be split 70:30 in favour of Sunderland. Sunderland said that the money raised will be pumped into a new youth academy. The Sunderland stake adds to BSkyB's stakes in Premier clubs Manchester United and Leeds and first division Manchester City.

BSkyB's position in pay-TV is to be investigated by the competition watchdog, the Office of Fair Trading (OFT). The OFT wants to look into whether BSKyB has a dominant position. The decision to investigate has been prompted by the launch of digital television as well as consolidation within the cable television industry.