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New TV Deal Great For Mike Ashley, The Players…The Fans?

9 years ago

The definitive guide to what the new TV deal is all about and who gets what!

The new TV deal is worth £3billion to the Premier League over three years (2013-2016).

The latest deal is ten times the £305m which was paid for the first premier League deal back in 1992, plus that was the cost for five years!

At the moment 70% of money going into Premier League clubs is paid out to players in wages.

The £3billion deal is just for the domestic rights, just wait for the next world rights deal.

Before winning the rights to the Premier League, BSkyB were near financial collapse but have built their power largely on owning live football rights.

In the year to June 30th 2011, BSkyB brought in income of £6.6billion (mainly from their 10m subscribers) and made a pre-tax profit of £1billion.

They increased shareholder dividends by 20% and paid them £253m.

The Murdochs have been absolutely slaughtered in the Leveson & phone-hacking inquiries but the Premier league were more than happy to stay in bed with them.

While players get richer and richer with every successive deal, clubs struggle to even break even and in 2010-11, twelve of the twenty Premier League clubs lost money.

People were amazed when Chris Sutton was given a £10,000 a week contract in the mid nineties, now nobody seems to blink when Carlos Tevez and others are paid over £200,000 a week!

Obviously all this extra TV money will have brought down the real cost  (after taking inflation into account)of going to matches…wrong! Ticket prices have increased by up to 1100% and only in recent times are showing signs of levelling off.

Richard Scudamore, Chief Executive of the Premier League, thinks the new deal is great for football. Obviously this is in no way connected to the fact that Scudamore is on a personal bonus for TV deals…

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