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Manchester (Reuters): Premier League clubs have struck a new deal over sharing revenue from international broadcast deals which will see any future increases divided according to league position.
Currently all the revenue from international deals is shared equally among the 20 clubs but the bigger clubs had been pushing for a greater share of the money, arguing they are the main attraction for foreign viewers.
Under the new agreement, which comes in place from the 2019/20 season, the clubs will continue to share current levels of revenue equally but any increase will be distributed based on final league position.
Under the new formula, the maximum a club can receive is 1.8 times the amount received by the lowest earning club, the Premier League said in a statement. Premier League Executive Chairman Richard Scudamore said the league’s revenue sharing remained the most equitable in Europe but it was time to amend an agreement dating back to 1992.”Back then the clubs put in place a revenue sharing system that was right for the time and has served the league well, enabling them to invest and improve in all areas,” he said. “This new agreement will continue that trend with a subtle change that further incentivises on-pitch achievement and maintains the Premier League’s position as the most equitable in Europe in terms of sharing central revenues.
The revenue from British rights is not distributed entirely on an equal basis with clubs given more according to league position and also the amount of times they feature on live broadcasts.The Premier League said yesterday that Amazon.com had won a share of UK rights for the first time, meaning it will show 20 games per season from 2019-20. Sky and BT have retained most of the domestic rights.
Reuters: The big five European leagues enjoyed record revenues during the 2016-17 season as a result of new broadcasting arrangements, according to data released yesterday by Deloitte.
The combined revenue of the big five leagues in England, France, Germany, Spain and Italy was GBP 12.6 billion ($16.91 billion), representing a 9% increase from the previous year. “The financial results of the class of 2016/17 are the most impressive we have ever seen,” said Dan Jones, a partner in the Sports Business Group at Deloitte. The 27th Annual Review of Football Finance said European soccer’s growth was primarily due to improved broadcasting deals in the English Premier League, Spain’s La Liga and France’s Ligue 1. The European football market was worth GBP 21.9 billion, with the English top division the clear driver.
“Whilst the Premier League is the clear market leader, we expect to see continued growth and interest across Europe’s leagues in the years to come,” said Sports Business Group Director Tim Bridge. Revenue from the clubs in the Premier League jumped 25% to GBP 4.5 billion, boosted by the three-year domestic TV rights deal worth GBP 5.1 billion signed in 2015.
Deloitte said that, for the first time, no English top-flight club recorded an operating loss, while the wages-revenue ratio fell to its lowest since the 1997-98 season to 55%.
