The Premier League television human rights were auctioned off last week with Sky and BT charming the contract for an increasing £5.136bn over a gage of three seasons, starting 2016/17. In adding, BBC held the rights for ‘Match of the Day’ at £204m. The charming bid saw a 70% add to from the present deal at £3bn for 3 seasons, the age of which begins in 2013. It is noteworthy that these television human rights include only the United Kingdom. The Premier League earns an extra £2.23bn from abroad broadcasting revenues at present. The overseas human rights for the period starting 2016/17 period has not been auctioned yet, but it is predictable to see a similar increase particularly in the Asian and European market.
There has been a lot of discuss over how the fresh deal will impact the distribution revenues of other top European football leagues, with the establishment of some even express concern concerning the unprecedented add to in the revenues. While some publication have focused on how the additional leagues are preparation to respond, some have opined that this strength create the money won from participate in the Champions League superfluous as more and additional Premier League clubs will be able to pay for top drawer players with no qualifying for UEFA’s prestigious rivalry.
It is a given that this contract plays straight into the hand of the Premier League clubs, particularly in the modern era of Financial Fair Play, but how a great deal does it add to their revenues, in contrast to their European counterpart?
In order to make the comparison convenient, from now on we will contract with all financial information in euros. For example, the Premier League distribution revenues are at present worth €4.08bn and will be worth €6.9bn from 2016/17 beyond.
The commercial revenues generate by the top 5 are what sets them separately from the rest. Barcelona’s case is sole as their total income is dependent on all 3 sources additional or less evenly. The only Premier League club feature among the top 5 previous seasons was Manchester United, who in malice of final seventh and receiving a lesser cut of the distribution pie, broke into the peak two of the Money League. It is clear from the above infographic that clubs similar to Chelsea, Arsenal, Juventus currently rely on the income generate from the broadcasting human rights to merge their position in the top ten. Theoretically, only an add to in profitable revenues can put clubs similar to Chelsea, Manchester City and Arsenal in the same group as that of Real Madrid, Bayern Munich or Manchester United, when it comes to pay. However, the new distribution deal will make sure that the Premier League clubs will have smaller dependence on player sales, match day income and (to a little extent) even profitable income to stay spirited while ably talk Financial Fair Play.
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