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Monday, October 4, 1999 Published at 15:01 GMT 16:01 UK

Business: The Company File

BSkyB-Leeds United deal approved

BSkyB will share television revenue with Leeds

Leeds United shareholders have given the go-ahead to the football club's tie-up with satellite broadcaster BSkyB.

In August, BSkyB signed an agreement to buy a 9.08% stake in Leeds for Ł13.8m.

Under the deal, BSkyB will act as the exclusive media agent for the club for an initial five years, barring those negotiated collectively by the Premier League.

Leeds will receive 70% of any revenues, while BSkyB will get 30%.

Television rights

The club's owner, Leeds Sporting said the BSkyB funds will be made available to team manager David O'Leary for squad strengthening.

The team is currently at the top of the Premier League.

BSkyB, which already has a stake in Manchester United, is also believed to be interested in a number of other clubs.

In July, Granada bought a 9.9% stake in Liverpool.

Broadcast companies have been rushing to snap up stakes in top flight football clubs following the Department of Trade and Industry's decision not to allow a take-over of Manchester United by BSkyB.

BSkyB's collective deal with the Premier League for the exclusive rights to show live Premiership football is due to expire 2001.

Broadcasters see holding a stake in major clubs as a way to gain influence in future rights negotiations, with the possibility of clubs coming to individual agreements.

Football Association rules allow no single company to own more than 10% of any one club.