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Income from TV rights

GGyid

GGyid

Luke Young
Emirates Marketing Project's income from Premier League broadcast payments for last season was a record ?ú60.6million - but even bottom club Wolves earned ?ú39million.

The figures highlight the money available to clubs in the richest league in the world - and the fact that compared to many other leagues the split of the cash is not skewed massively towards the top sides.

Half the domestic TV cash and all the overseas rights income are split equally between the 20 clubs.

Premier League chief executive Richard Scudamore said: "The Premier League's income distribution mechanism rewards sporting success in the League while also guaranteeing a significant amount of broadcast revenue to each club in order that they can plan from one season to the next.

"It has been a fantastic season, arguably the best of all the 20 Premier League seasons, and the clubs deserve huge credit for the quality of football on show throughout 2011-12.

"We believe the way we distribute broadcast income plays a part in allowing each club to compete at the highest level."

Each club received an equal share of ?ú13.7m from domestic TV money, ?ú18.7m from overseas broadcast rights, plus ?ú755,000 for each place they finished in the final league table - that was the sum received by bottom Wolves while champions Emirates Marketing Project earned ?ú15.1m.

On top of that, each club receives around ?ú570,000 for each time they are featured in live TV matches - at least ?ú5.7million but in Manchester United's case ?ú13.5m after taking part in 26 live TV games.

That explains why Tottenham finished below Arsenal in the league table but earned more - ?ú57.3m compared to ?ú56.2m - because they played in 23 live TV games, compared to the Gunners' 19.

Premier League total broadcasting payments season 2011/12:

Arsenal ?ú56.2m, Aston Villa ?ú42.1m, Blackburn ?ú40.3m, Bolton ?ú40.6m, Chelsea ?ú54.4m, Everton ?ú48.9m, Fulham ?ú47.4m, Liverpool ?ú54.4m, Emirates Marketing Project ?ú60.6m, Manchester United ?ú60.3m, Saudi Sportswashing Machine ?ú54.2m, Norwich ?ú45.6m, QPR ?ú43.3m, Stoke ?ú43.6m, Sunderland ?ú44.4m, Swansea ?ú45.9m, Tottenham ?ú57.3m, West Brom ?ú46.6m, Wigan ?ú42.8m, Wolves ?ú39.1m.

Total ?ú968.2m
 
I like that its split this way.

Bar a and real get 35% of all Spanish tv money with Valencia and atletico getting 15% or something like that. Other 16 clubs get the rest split between them. Won't be long until they all get fed up with it.
 
GGyid said:
Emirates Marketing Project's income from Premier League broadcast payments for last season was a record ?ú60.6million - but even bottom club Wolves earned ?ú39million.

The figures highlight the money available to clubs in the richest league in the world - and the fact that compared to many other leagues the split of the cash is not skewed massively towards the top sides.

Half the domestic TV cash and all the overseas rights income are split equally between the 20 clubs.

Premier League chief executive Richard Scudamore said: "The Premier League's income distribution mechanism rewards sporting success in the League while also guaranteeing a significant amount of broadcast revenue to each club in order that they can plan from one season to the next.

"It has been a fantastic season, arguably the best of all the 20 Premier League seasons, and the clubs deserve huge credit for the quality of football on show throughout 2011-12.

"We believe the way we distribute broadcast income plays a part in allowing each club to compete at the highest level."

Each club received an equal share of ?ú13.7m from domestic TV money, ?ú18.7m from overseas broadcast rights, plus ?ú755,000 for each place they finished in the final league table - that was the sum received by bottom Wolves while champions Emirates Marketing Project earned ?ú15.1m.

On top of that, each club receives around ?ú570,000 for each time they are featured in live TV matches - at least ?ú5.7million but in Manchester United's case ?ú13.5m after taking part in 26 live TV games.

That explains why Tottenham finished below Arsenal in the league table but earned more - ?ú57.3m compared to ?ú56.2m - because they played in 23 live TV games, compared to the Gunners' 19.

Premier League total broadcasting payments season 2011/12:

Arsenal ?ú56.2m, Aston Villa ?ú42.1m, Blackburn ?ú40.3m, Bolton ?ú40.6m, Chelsea ?ú54.4m, Everton ?ú48.9m, Fulham ?ú47.4m, Liverpool ?ú54.4m, Emirates Marketing Project ?ú60.6m, Manchester United ?ú60.3m, Saudi Sportswashing Machine ?ú54.2m, Norwich ?ú45.6m, QPR ?ú43.3m, Stoke ?ú43.6m, Sunderland ?ú44.4m, Swansea ?ú45.9m, Tottenham ?ú57.3m, West Brom ?ú46.6m, Wigan ?ú42.8m, Wolves ?ú39.1m.

Total ?ú968.2m
Click to expand...

Told you we`d finish 3rd!!
 
PL-payments-2011-12.jpg
 
I'd force them to share a third of all the money pro bono with the lower leagues as well if it was up to me.
 
P.D. said:
I like that its split this way.

Bar a and real get 35% of all Spanish tv money with Valencia and atletico getting 15% or something like that. Other 16 clubs get the rest split between them. Won't be long until they all get fed up with it.
Click to expand...

? they are all (the 16) in a fiscal mess already. The spanish league is crap, it's only the Barca/Messi tossfest that stops people from seeing it. The 3rd place team was 30 points behind the second place team, almost 40 behind winners. The EPL is heading there, but the tv money, parachute payments at least helps counter balance some of the CL damage.
 
LOads of Primera Liga teams owe their players brick loads of wages!!

It's very disfunctional, I can see a financial implosion soon.

Look at teh state of Spain FFS!
 
?î'd guess that we were on ESPN alot more.. meaning us Tottenham fans having to pay more.

It seemed like every disaster was on ESPN.

I'd also like to mention that the BBC never covered all the Tottenham games let alone the whole EPL on a MOTD format.
 
mudshark said:
I'd force them to share a third of all the money pro bono with the lower leagues as well if it was up to me.
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I would argue very strongly against that.

The contracts already have enshrined within them amounts which filter down throughout the league structure, right down to grassroots. The FAPL don't have to do that, it's their choice.

We have to remember, that it's the product of the Premier League which brings this money in - not lower league football. Therefore, to maintain the ability to be able to filter money down through the league structure, it's important that you don't compromise the quality of the product. Obviously, to adopt your suggestion - 33% of all revenue - would compromise quality, as it would impinge on the league's strength, relative to its European peers.

There's always been this common misconception that the Football League and leagues below it are, or should be considered as, some sort of charity case. I don't agree with that view. It's up to Football League management to change the nature and appeal of their product, not become reliant on the strength of the Premier League. The reality, is that there isn't sufficient interest in lower league football, so why claim otherwise and pretend that there is? It's a romantic view; misty-eyed nonsense, but I'd rather not have to fund that, thank you very much.

Notwithstanding Liverpool's corporate greed, collective bargaining works very well for the FAPL and I don't see any need to change it or to align ourselves with the La Liga model, which favours 'the rich getting richer'. Collective bargaining respects that the strength of the product is the competition, not the competitors themselves - and I think, in this day and age, is a very commendable business model.
 
Raziel said:
? they are all (the 16) in a fiscal mess already. The spanish league is crap, it's only the Barca/Messi tossfest that stops people from seeing it. The 3rd place team was 30 points behind the second place team, almost 40 behind winners. The EPL is heading there, but the tv money, parachute payments at least helps counter balance some of the CL damage.
Click to expand...

Not too dissimilar to here then where the third place team was 19 points behind second. I believe the Spanish league is better technically, but the English league is more likely to throw up a surprise result. It's that unpredictability that makes it so popular.
 
The value of the next contract(s) will be very interesting. A lot of people are saying the bubble is about to pop, yet there's absolutely no evidence to that effect. The new domestic deal allows for 16 more games, so an 11.59% increase in value of the marketable asset. If you prorata that increase, then it proposes an increase of at least ?ú206m (+?ú3.438m/pa, per club) on current financial terms. That of course assumes steady state.

This tender round, we're likely to see strong competition from three main bidders: Sky (as incumbents), Walt Disney (ESPN franchise) and the rapidly growing Al Jazeera. All of those three are huge, global media interests. It's also rumoured that Apple Inc. may look to make an opening gambit into the rights arena - possibly to promote uptake of products such as Apple TV, and mobile products such as the iPad - but it's only a rumour at this stage. Regardless, there will be very strong competition for the rights and that promises for a strong auction.

If, for illustrative purposes, you conservatively uplifted the current adjusted deal using the last increase % which Sky paid (24.85%) then, in financial terms, the new deal should yield around ?ú2.482Bn. That would represent an annual income, per club of ?ú41.3m.

Even bigger will be the renegotiation of the overseas rights package; that has - ever since inception - doubled in value every time it's been put to tender. If it does so again, when re-tendered in May 2013, then it'll be approaching ?ú3bn alone. And, again, that would represent an annual income, per club of ?ú50m.

Combined, annual TV rights income for Premier League clubs of somewhere in the conservative order of ?ú5.5Bn, or ?ú90m or so. On-top of this already astronomical figure - a figure which would be very respectable for a blue-chip company - are sub-licence deals such as highlights and internet packages. These alone yielded a further ?ú250m or so, the last time they were renegotiated.

Everyone recognises the massive growth in on-demand, on-the-go viewing on their tablets/phones, so I'd expect marked price inflation in these rights too. Essentially, success of that all depends on infrastructure being in place; devices, networks and software technology - all of which have seen substantial improvements in the last 2yrs or so. Of all areas, this is where I could see the likes of Apple, Facebook or Google showing a real interest in associating their brand and success with that of the Premier League.

With these figures in mind, it's easy to see how wage inflation will continue to spiral skywards, in-line with increased revenues. There is a very close correlation there and, because there aren't controls in-place to cap its growth, that'll continue to dovetail with increased revenues. The upshot will be that todays footballer on ?ú250k a week will grow to somewhere in the order of ?ú400k/week, within the next 2-3yrs.
 
The fact that this season was such a moneyspinner for TV companies and the likes of ESPN, (Owned by Disnet lets not forget) are very keen to increase their footprint tells me the new deal will definitely be bigger.
 
It seems I've misunderstood how it works. I thought all the money from Sky goes to the Premier League, then 50% of that money is shared equally between clubs, and then the rest of it is shared depending on where you finish, not how much you were broadcast.
 
It will be interesting if any bid from Al Jazeera would pass a fit and proper means test, considering they have made there name of the back of showing attrocities around the globe, and often a mouth piece for the worlds qunts.

I can assure the PL that should they win ANY package I shall definatley refrain from purchasing. Besides, I'd imagine it would be Emirates Marketing Project every week on it.
 
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