UK: Banks's hit at Sky cost
Wolverhampton and Dudley Breweries is reviewing subscriptions at its boozers as interest in Premiership games wanes following last season's relegation of two more leading teams in the West Midlands. Banks's could ditch Sky TV football at half of its pubs after branding the £2.8 Million cost "ridiculous". As many as 115 of the 265 managed pubs could pull the plug on the coverage, the brewery confirmed May 30.
Bosses say more and more fans are becoming bored with Chelsea and Manchester United hogging the limelight.
Chief executive Ralph Findlay said booming televisions disturbed dining customers and that it made little sense to pay Sky's "ridiculous costs".
The group could cut the subscriptions back by the start of next season to cut back its annual bill.
Fans are also said to be growing despondent following the recent relegation of Birmingham City and West Bromwich Albion from Britain's top football league.
The brewer and pub operator also said it had the capacity to spend about £500 Million on future deals without turning to equity markets.
Mr Findlay said if no acquisitions were made in the next 12 months the firm would consider using some of that capital to buy back shares.
The company is thought to be bidding in the auction for 290 ex-Spirit pubs being sold by Punch Taverns. Punch has apparently called second round bidders, including the brewery, to give an update on the auction's progress.
The other three bidders are R20, the investment vehicle of property entrepreneur Robert Tchenguiz, GI Partners and private equity group Alchemy Partners.
Negotiations are due to continue this week.
Wolverhampton & Dudley Breweries recently reported a 20 per cent rise in pre-tax profit to a whopping £41Million in spite of rising costs and a sluggish trading environment.
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