• Reuters, Monday, February 19, 2007 12:15 PM

YouTube secured a potentially smart deal last week when it agreed to become the official highlights destination for the English soccer giant Chelsea FC. The West London club is one of the biggest soccer teams in the biggest league in the world, which recently signed away its international and domestic TV rights for nearly $6 billion. As part of the deal, Chelsea will receive its own channel on the popular file-sharing service, showing news updates and archive content. The team can't yet show live footage, though may change.

Which would be a big score for YouTube parent,Google. As the Internet opens up the prospect of separate live streaming broadband and highlights packages on the Web, these video deals could become significant. The Chelsea agreement sets a precedent, which other EPL clubs like Manchester United and Liverpool will surely follow, especially if it proves to be lucrative.

For YouTube, it's a solid reminder that the online video giant isn't beholden to big media when it comes to diversifying its legal content offerings. For clubs like Chelsea, it's a rare opportunity to strike a content deal independent of the league, which shops its TV rights to broadcasters collectively.

Read the whole story at Reuters »