For all the talk of a Premier League engulfed by civil war, business is still ticking along nicely, argue Financial Times writers.
‘Last week the league presented clubs with an update on
revenue projections for the coming cycle, which runs from 2025-28. According to
people with knowledge of the matter, income is expected to rise by 17 per cent
during that period, boosted largely by the increased prices fetched for
overseas TV rights. Domestic rights may have flatlined, but international
interest is still on the up.
The contrast with other European leagues is stark. On the
continent, domestic TV is sliding, while international interest pales in
comparison to England’s top tier. Broadcasters have diverted their spending to
Uefa competitions instead.
Italy’s Serie A recently renewed its domestic deal at a
reduced rate, while French TV rights for Ligue 1 have fallen sharply. Olympique
Lyonnais’ recent quarterly numbers showed that revenue from domestic TV had
dropped 61 per cent year-on-year. Meanwhile Germany’s tender process is stuck
in limbo after a legal challenge by sport streamer DAZN.
Internationally, Premier League rights generate more than
€2bn a year, according to a new Enders Analysis report, which has been
gleefully shared around EPL HQ. La Liga, Ligue 1, Serie A and the Bundesliga
bring in around €1.25bn combined. “UK
football rights values have pulled further away from European peers in a
stagnant market,” wrote Enders.
It is against this backdrop that Premier League clubs voted
last week to bring production and distribution of its games in house, ending a
relationship with IMG that has lasted more than 20 years. Instead, the league
will build up Premier League Productions as its own media business.
In some senses, the EPL is playing catch-up here. La Liga
and the Bundesliga have long kept production in house. But this is about
preparing for the future, perhaps one where the Premier League has its own
streaming channel offering round-the-clock content to fans across the world.
For the clubs, the media business becomes an asset rather than a cost centre,
one that could one day by monetised in other ways.
And after months of headlines about bitter legal battles, it
must come as a welcome relief for those running the league to get back to
talking about big strategic moves. But the soap opera will no doubt return
soon.’
And my comment is
Does the advent of a football regulator pose any threat to
the Premier League model? Probably not
is my answer, despite a lot of bleating from the E PL and top clubs. Attempts are being made to maul the bill in
the Lords, but on the other side the Football Supporters’ Association and
supporters trusts. However, a Government
that has already used a lot of political capital will be looking for ciomprises
that don’t upset the movers and shakers of the EPL.
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