Skip to main content

How much is a Premier League place worth?

The authoritative Swiss Ramble reckons there may be more to play for than is generally realised.  As a reminder, in 2018/19 each club received equal shares for 50% of domestic TV £34m, overseas TV £43m and commercial income £5m. Each match broadcast live was worth £1.1m (on top of £12.2m for a minimum of 10 games), while each league position was worth £1.9m (merit payment).

Total 2019-22 Premier League TV rights rose 8% (£0.7 bln) from £8.5 bln to £9.2 bln. UK domestic rights actually fell 7% (£0.4 bln) from £5.4 bln to £5.0 bln, but this decrease was more than offset by overseas rights increasing by 34% (£1.1 bln) from £3.1 bln to £4.2 bln.

Overseas rights now average around £1.4 bln a year, up from £1.1 bln in the 2016-19 cycle, accounting for 45% of the total. As recently as 2007-10, these were only worth £200m a year. Overseas TV rights were previously distributed as equal shares by the Premier League, but this was changed in the 2019-22 deal. Clubs will continue to share current levels of overseas revenue equally, but any increase will be distributed based on where they finish in the league.

This means that the amount of money distributed based on league position has significantly increased to £668m, comprising domestic rights £373m plus overseas rights £295m. In this way, each league position in 2019/20 is worth £3.2m (up from £1.9m in 2018/19). One consequence is that the gap to the Big Six is likely to grow.

If we further assume that the rebate [to broadcasters] is based on league position, i.e. the more money a club receives, the higher the rebate, then each place would mean an additional £0.5m towards the rebate. Therefore, the net rebate in 2019/20 would be £2.7m (£3.2m less £0.5m).

In summary, the amount of money each league position is worth was £1.9m in 2018/19, increased to £3.2m with the new TV deal in 2019/20, but has been reduced to a net £2.7m, due to the rebate owed to broadcast companies for the delayed matches caused by the pandemic.

This can mean some chunky moves in each club’s TV distribution. For example, looking at the Premier League table after match day 37, Burnley would receive £16m more (rising from 15th last season to 9th), while Watford would get £19m less (dropping from 11th to 18th).

Arsenal are currently down £13m, having dropped from 5th to 10th. If they win their last match against Watford, they could move up to 8th (depending on results elsewhere), which would be worth an additional £5.4m to Arsenal.



Image
Image




Comments

Popular posts from this blog

Wolves get raw deal from FFP

  I used to see a lifelong Wolves fan for lunch once a month.   He was approaching ninety, but still went to games.   Sadly he passed away the other week. As football finance guru Kieran Maguire has noted, Wolves continue to be constrained by financial fair play rules.  Radio 4 this morning described them as this year's 'crisis club' and the pessimists have certainly been piling in. Martin Samuel wrote sympathetically in the Sunday Times yesterday, saying that the Premier League drives talent away with regulatory red tape: 'Why could Al-Hilal sign Neves? Because Wolves needed the money. And why did Wolves need the money? Because the club had to comply with an artificial construct known as financial fair play. So Wolves are going skint, yes? No. There is no suggestion that Wolves are in financial trouble, only that they are failing to meet the rigours of FFP. Wolves’ owners appear to have the money to run the club, and invest in the club, and in fact came up with a pow

Gold standard ground boosts Tottenham's income

The gold standard in European football grounds is the Tottenham Hotspur stadium in north London, a £1bn construction project completed in 2019. Its impact on the club’s finances has become increasingly clear as the effects of the pandemic have faded. Previously, the average fan would spend less than £2 inside the ground on a typical match day, but now that figure is about £16, thanks to new facilities including the longest bar in Europe and an on-site microbrewery. Capacity has gone up from 36,000 at the club’s previous home of White Hart Lane to 62,000.  The new stadium — built on land adjacent to White Hart Lane — has opened the door to a broad range of other events that have helped to push commercial income up from €117mn in 2018 to €215mn in 2022. Last year, Tottenham hosted US singer Beyoncé for five nights on her global Renaissance tour, two NFL matches, as well as rugby games and heavyweight boxing bouts.  Money brought in from football has gone up too. Match day income is

Charlton takeover approved

The long awaited takeover of Charlton Athletic by SE7 Partners from Thomas Sandgaard has been approved:  https://londonnewsonline.co.uk/se7-partners-obtain-efl-approval-for-charlton-athletic-takeover/ Charlton have had unhappy experiences with owners for over a decade, so how this works out will remain to be seen.  There is certainly potential there, but will it be realised? This interview with Charlie Methven gives detail not available elsewhere:  https://thecharltondossier.com/charlie-methven-on-the-record/