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Premier League secures better than expected TV deal

The Premier League has secured a three year roll over of its broadcasting agreements with Sky Sports, BT Sport, Amazon Prime and BBC TV: https://www.premierleague.com/news/2139168?sf245845494=1

Although it comes at a price, it does represent a win in the current uncertain climate.   It is open to question whether it would have been permitted by competition authorities if Britain was still a member of the EU.  It is certainly a change from getting broadcasters to bid against one another in an auction.

The deal will secure a £1.67bn income from domestic broadcasters and protects the value of domestic rights revenues at a time when many analysts had expected them to fall by perhaps as much as 15 to 20 per cent.  The domestic rights for 2019/22 fell in value by eight per cent compared with the previous three years, though that was more than offset by an increase in overseas TV rights.

In order to secure government approval the Premier League agreed to make a £100m one-off payment to EFL clubs and football further down the pyramid.  This will be spread over three years from 2022 to 2025 and will be on top of the £124m already paid in solidarity payments.

The full Government statement on the deal is here: https://www.gov.uk/government/speeches/written-ministerial-statement-from-the-minister-for-sport-and-tourism-on-premier-league-broadcasting-rights

Dr Borja Garcia of Loughborough University commented: 'This is going to be the second time in a row that the value of PL domestic TV rights will go down if calculated per game and in real terms. All in all, a good act of damage limitation.'

'What this demonstrates, once again, is how resistant football/premier league is to wider systemic crises. It weathered incredibly well the 2008 financial crisis, and seems to limit its damages in the even more difficult context of COVID+Brexit.'

Garcia added: 'By the way, £100m of a contract valued around £4.8bn is not that much, to be honest. But will make good PR, I guess.'


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