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Football broadcasting revenues under threat

The Canal+ channel has told Ligue 1 that it will not be paying its €120m broadcasting rights instalment due on April 5th: Canal Plus won't pay

This could be the harbinger of more trouble for football with broadcasting companies. Sky and BT are shedding subscribers because they have no sport to show.

The Premier League had already seen its last domestic rights auction drop 7.5 per cent to £5 billion despite the involvement of Amazon. This was offset by overseas rights going up to £4.2 billion over 2019/22, up from £3.1 billion in the previous three year period, thus giving an overall income of over £9 billion.

The Premier League came through the global financial crisis largely unscathed. No two recessions are the same and that will not happen this time, although it will still be more attractive globally than other leagues.

Clubs will face some difficult choices. Should they spend the money they have on transfer fees or player wages? Probably the cost of both will fall, but a wages gap could open up between marquee players and the rest of the squad. There are also concerns that the 'trickle down' effect from the top to lower league clubs will diminish.

Sponsorship deals may be more difficult to obtain as cash strapped firms cut back on their marketing budgets. They make up a bigger proportion of revenue (44 per cent) at Manchester United than other clubs. The seven year deal with Chevrolet comes to end in 2022 and finding an equally lucrative successor in the wake of the corona virus pandemic could be challenging.

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