Premier League Broadcasting Rights Revenues Explained
The Context: The Latest Premier League Deal
Sky and BT won the latest domestic live Premier League broadcasting tender, providing the Premier League with a record £3bn+ in revenue for the UK market. Such a figure is a huge increase on the previous deal agreed with Sky and ESPN. The total global revenue figure is believed to be around £5.5bn.
The average overall price per match paid by the UK broadcasters has risen from £4.7m to £6.6m. Sky secured five of the seven packages on offer (116 matches per season from the 2013-14 season for three seasons) after paying £2.3bn. BT won two packages worth 38 games per season for three years from the 2013-14 season, after bidding £738m.
Prize Money for Premier League Participation
The Premier League distributes its UK broadcasting monies to its member clubs in the following way: 50% is split equally, 25% is based on the number of television appearances with a stipulated minimum amount (called facility fees) and 25% based on where that club finishes in the league (called merit payment). The overseas broadcasting monies received from broadcasters outside the UK is distributed equally amongst the clubs too. The table below sets out the distributions for the 13-14 season. See http://www.premierleague.com/en-gb/news/news/2013-14/may/premier-league-broadcasting-commercial-payments.html
Despite finishing second, Liverpool received the highest total payment any club has ever received in a Premier League season with £97.5m. This is because the club was picked the most (28 games) for live broadcasts in the UK. As mentioned previously, the club received £43m more than they did in the previous season with over £1.5 billion being distributed to the 20 Premier League clubs. On a more general level, every place in the Premier League is now worth £1.2m with the bottom club guaranteed £62m. This means that any clubs promoted to the Premier League will receive over £120m based on their year in the league and four years’ worth of parachute payments worth over £60m.
Football’s Financial Crisis: Three Ideas to Help Lower League Clubs
By Daniel Geey and Jonny Madill EFL Chairman Rick Parry has explained that without serious intervention, lower leagueRead More →
Concentrate on the Invisible: Supercharge Your Knowledge and Build Your Network
I recently ran a week long YouTube course on my experiences in breaking into the sports industry and forging a career.Read More →
The Newcastle Takeover: The Rules on Spending Will Still Bite
First Published in the Mail on Sunday Should the Newcastle takeover happen, it’s important to understand the spendingRead More →
An Insider's Guide to Football Contracts, Multi-Million Pound Transfers and Premier League Big Business Insightful, enlightening and thought-provoking, leading Premier League lawyer Daniel Geey lifts the lid on the inner workings of modern football.
Whether it is a manager being sacked, the signing of a new star player, television rights negotiations, player misconduct or multi-million-pound club takeovers, lawyers remain at the heart of all football business dealings. Written by leading Premier League lawyer Daniel Geey, who has dealt with all these incidents first hand, this highly accessible book explores the issues – from pitch to boardroom – that shape the modern game and how these impact leagues, clubs, players and fans.Buy Book