BSkyB has taken a 9 per cent stake in Leeds United FC for Pounds 14 million. The deal will allow BSkyB to act as exclusive media agent for Leeds Sporting, the company that owns the club, for a five year period. Additional revenues generated for the club will be split 70 per cent in favour of Leeds, with BSkyB taking 30 per cent. BSkyB will elect a non-executive director to the Leeds board upon completion of the investment. Peter Ridsdale, chairman of Leeds said the deal was "a further step in its strategy of developing Leeds as an integrated sports, media and leisure group."

BSkyB, which paid Pounds 13.8 million for the stake, already holds an 11 per cent share in Manchester United. It has been widely speculated that the pay-TV operator will follow up by taking stakes in other clubs around the country in advance of the Premier League rights contract coming up for renewal in 2001.

The fact that BSkyB is to act as the exclusive media agent for Leeds has raised a few eyebrows, although Leeds chairman Peter Ridsdale has denied that the agreement could lead to a conflict of interest in deciding where the rights are to go. The Premier League as ruled that no broadcaster should own more than 10 per cent of a football club if it has shares in more than one club.