Skip to main content

Premier League is very much a premium product

The authoritative Swiss Ramble analyses the increasing importance of overseas television rights for the Premier League.

Total Premier League TV rights are forecast to rise by 11% from £9 bln to £10 bn for the new 3-year deal starting in 2022. UK domestic rights have been held at the same level of £5 bn (Sky, BT and Amazon), but overseas rights estimated to increase by 25% from £4 bn to £5 bn.  As recently as 2007-10, these were worth only £200m a year.

In fact, this forecast means that the new deal would see the overseas rights reach the same amount as domestic rights, thus accounting for 50% of the total payment, compared to 37% in the 2016-19 cycle (or 25% in 2007-10).

NBC have signed a 6-year deal worth $2.7 bn (£2.0 bn) covering 2022-28, more than doubling the previous agreement, which was worth $1.1 bn (£0.8 bn). The new deal is worth £333m a year, compared to £150m for the last 3 years of the old deal (£116m in the first 3 years).

This compares with La Liga £120m, Serie A £56m and the Bundesliga £25m.  Not only is the Premier League TV deal well ahead of the other major leagues, but the gap is actually widening.

The increased deal reflects the growing interest of American sports fans in soccer, as seen by higher viewing figures, which are reportedly up 14% this season to 609,000, the highest audience since 2015-16.

Other overseas deals suggest the Premier League is still very much regarded as a premium product. New Nordic £2 bln 6-year deal is double the previous one, while Australia is nearly 60% higher and Serbia 10 times as much. Only China saw a decline after PPTV agreement terminated.

Compared to the 2020/21 payments, there will be substantial growth in TV money for the elite clubs. My estimate suggests that the top 5 clubs will receive £20m to £25m more in a season, while the last placed club will only see a £3m increase.

There is a notable difference between the new way of distributing overseas rights (any growth paid per league position) and the old system of equal distribution. In this way, the 1st place club gets £19m more than it would have done, while the 20th place club gets £19m less.

Even so, the bottom club in the Premier League receives more TV money than all other European clubs with the exception of the top 3 clubs in La Liga. In 2019/20 the top English club got £163m, £71m more than Bundesliga and £89m more than Serie A.

 




Labels:

Comments

Post a Comment

Popular posts from this blog

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
1 comment
Read more

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
Post a Comment
Read more

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 depl
Post a Comment
Read more