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TV Rights for Football Set to go above £5bn

TV Rights for Football Set to go above £5bn

TV rights income for Season 2013/14 is set to top the £5bn mark. On top of the blockbuster £3.018bn deal announced in June for TV domestic live rights with Sky and BT for the three seasons from 2013-14, and the £178m banked from the BBC for Match of the Day highlights, the Premier League is well on course to improve on the £1.4bn it brought in from overseas broadcasters under the current deal. If the total revenue breaks through the £5bn barrier as expected, the amount that the title-winning club receives from 2013-14 is likely to top £100m for the first time.

Each Premier League club is on course to collectively achieve an uplift of more than £500m a year. In the US, NBC outbid the incumbents Fox and ESPN and will pay around $250m (£157m) over three seasons, triple the existing contract, and show more matches on its national network. Manchester United's vice-chairman, Ed Woodward, recently said that the US represented the number one growth target for the club, because a number of factors had coalesced to make it ready to take off. In Brazil, rights have been stripped out for the first time from a pan-continental deal and sold to Fox and ESPN for $50m, more than four times what the rights were believed to be worth as part of the previous South American deal.

In China, in contrast, the focus has been on expanding reach rather than maximising revenue. A six-year contract was last week signed with the agency SuperSports Media to sub-licence matches to regional and IPTV broadcasters across the country. It goes beyond a traditional rights deal and also includes a joint marketing agreement to promote clubs in the country. Deals have already been concluded in the US and South America, South Africa and sub-Saharan Africa, China, Singapore and Scandinavia. Deals for Asia and Australasia and the Middle East and north Africa are expected to be wrapped up within the next fortnight.

Increases in income from the middle east, in particular, are expected to be driven by competition between al-Jazeera and its rivals. If you then look at how much Spurs could earn from finishing fourth you can see what Daniel Levy and Spurs have to gain, which makes it all the more curious that Levy did not go to the market this transfer window to ensure that the club gets that lucrative 4th spot. You can guarantee that Le Scum will be pressing us hard for that 4th Spot for the rest of the season and we have to press Chelski even harder therefore for that 3rd Spot.

There is no doubt that football, especially English Football, has a global brand and we need to be in with that elite club. AVB has now got a job on his hands, let's just hope Levy has left AVB with enough quality on the pitch to get us over the finishing line. We could miss out on a fortune next season if we don't get at least 4th Place this year. With a new stadium to pay for and the opportunity to keep our biggest box office attraction, Gareth Bale, Spurs could start to compete for real honours.

Written by OyVeh Maria

Click here to join in the debate on the club forum.

Writer:OyVeh Maria
Date:Friday February 8 2013
Time: 8:34AM


Is he back yet?
spu 4 life
08/02/2013 08:44:00
It does make you wonder how the shift in technology in the home will change the overall revenue flowing into football? The Sky model was based on satellite dishes and co-axial cables running to your TV whilst the new way of consuming TV will be through fibre optic cables into broadband projected through a TV or any device. Will that open up the market so much that Sky won't have the cash to bid for the TV coverage at the front-end?

All in all, I think money will stay in football as TV viewers will pay for consumption and somehow that money will get back to the clubs. However, at some stage I think we need to look beyond this monopoly between Sky and the Premiership. The losers at the moment are Liverpool. If they could negotiate independently on the cameras at Anfield they would be a lot richer because of their worldwide fan base. Something will give at some stage though.

Anyway, at the moment I'll keep watching those dodgy websites each match :-)
08/02/2013 08:50:00
I dont think it will be very long before you can access every game on your TV and that will increase revenues further. My only hope has always been that clubs spend the money wisely and control spending and debts, this will hopefully be the start of sensible administration from clubs and the league
08/02/2013 09:03:00
yeah those dodgy websites rock i havent missed a game at 3pm on Saturday love or any match actually,,s h i t Sky they have made agents and players rich not our clubs.
Edinburgh Spur
08/02/2013 09:07:00
There is no "Real" substitute for being live at the game. For this to happen, match day has to be affordable, Safe and non complicated Value for money.
08/02/2013 10:06:00
Would anyone think that the benefit MIGHT be passed onto supporters with lower priced matchdays? I somehow doubt that as football is just about money now and will be in the future.
08/02/2013 10:18:00
Thats what infuriates me the most about Sky, the choice. Every other country around the world has all the games available to them, yet I have to settle for whatever crappy Scottish league game they give me OR being forced to watch Utd pLay Wigan at home for example. I never used to mind because i worked for a bookie, they have every channel from around the world, but half the time i find myself listening to Stelling et al talking about the games rather than watching the scheduled broadcast. AND dont get me started on ESPN!!
08/02/2013 15:23:00
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