Liverpool beat City in TV money stakes

The Premier League has published its TV revenue for the 2018/19 season, ranging from £97m for relegated Huddersfield Town to £152m for Liverpool, who earned more than league winners Manchester City £151m, due to more matches broadcast live. Each club receives equal shares for 50% of domestic TV £34.4m, overseas TV £43.2m and commercial income £5.0m. Each league position is worth £1.9m (merit payment), while each match broadcast live is worth £1.1m (on top of £12.2m for a minimum of 10 games).

Liverpool's Premier League TV money increased by £6.5m from £145.9m to £152.4m in 2018/19, due to a £3.6m higher merit payment (for finishing 2nd, compared to 4th the previous season) and £2.4m more from overseas TV deals. They benefited from most live TV games: 29 versus City 26. Premier League TV money for City increased by £1.6m from £149.4m to £151.0m in 2018/19, due to £2.4m more from overseas TV deals. No change in league position or number of matches broadcast live (26), but this was fewer than Liverpool, which explains why they got less than the Reds.

Chelsea's Premier League TV money increased by £4.3m from £141.7m to £146.0m in 2018/19, due to a £3.6m higher merit payment (finished 3rd, compared to 5th the previous season) and £2.4m more from overseas TV deals, offset by £1.4m less for fewer live matches broadcast (25 vs. 26). Spurs had a marginal increase in their TV revenue of £0.8m. Arsenal were up by just £0.2m.

United's Premier League TV money decreased by £7.3m from £149.8m to £142.5m in 2018/19, due to £7.9m lower merit payment (finished 6th, compared to second the prior season) and £1.4m facility fees (fewer live matches broadcast: 27 vs. 28), offset by £2.4m more from overseas TV deals.

The club with the largest year-on-year increase in Premier League TV money was Watford, whose revenue rose by £7.6m from £106.3m to £113.9m in 2018/19, mainly due to improving three places in the league from 14th to 11th (£5.7m), boosted by £2.4m more from overseas TV deals.

The largest year-on-year decrease in Premier League TV money was Burnley, whose revenue fell £12.5m from £119.8m to £107.3m in 2018/19, mainly due to dropping eight places in the league from 7th to 15th (£15.5m), offset by £2.4m more from overseas deals and one more live game (£1.0m).

2018/19 parachute payments have not yet been published, but the authoritative Swiss Ramble estimates these, based on the percentage applied in 2017/18 to the PL equal shares (year 1 – 55%, year 2 – 45%, year 3 – 20%): Stoke, Swansea, WBA £43m; Hull, Middlesbrough, Sunderland £35m; QPR £17m; and Aston Villa £16m.

The Swiss Ramble notes, 'The Premier League TV payments are obviously massive, especially compared to the Championship, where most clubs only receive around £8m (including £4.5m PL solidarity payment and £2.3m EFL central distribution), which represents just 8% of the £97m for last place in the PL.'

He continues, 'In the latest chapter of the “rich getting richer” in football, the total Premier League TV rights will rise 8% for the next 2019-22 cycle. Despite domestic rights falling by 7%, overseas rights have shot up by 30%, leading to a net increase from £8.5 bn to £9.2 bn. This is important, as the increase in overseas TV money will for the first time be distributed based on league position. No Premier League clubs will be worse off, though the leading clubs will clearly benefit the most, but EFL clubs will not receive any of the growth.

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to ...

Millwall punch above their weight

Millwall’s season was overshadowed by the tragic death of owner John Berylson following a car accident. The American had been an exemplary owner, beloved by the fans for his leadership, passion and generosity. Millwall’s finances had been pretty good during his tenure, which we shall explore by looking at the most recent accounts from the 2022/23 season, when the club narrowly missed out on a place in the play-offs after finishing 8th. Millwall’s pre-tax loss slightly reduced from £12.6m to £12.2m, as revenue rose £0.8m (4%) from £18.6m to a club record £19.4m and player sales improved from a £0.1m loss to £2.5m profit. However, other operating income dropped from by £1.1m from £1.3m to £0.2m, while operating expenses increased £1.7m (5%) from £31.6m to £33.3m. The main driver of the revenue increase was broadcasting, which rose £1.1m (12%) from £9.1m to £10.2m, though match day was also up £0.4m (7%) from £5.8m to £6.2m. In contrast, commercial fell £0.7m (19%) from £3.7m to £3....

The Political Economy of Football V2

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