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Tyne Talk

Premier League release official statement – A disaster for most clubs

1 year ago

The Premier League have released an official statement on Thursday morning.

This follows the 20 clubs getting together this morning in Harrogate (Lee Charnley spotted hitching a ride at Washington services at 5am this morning….) for the latest AGM of the Premier League.

In Autumn 2017, the ‘big six’ tried to force through a plan which would have meant 35% of the money from international revenue (chiefly broadcast deals) would be decided on where you finished in the league.

Basically meaning that the ‘big six’ would be guaranteed a lot more money than the rest, rather than the current equal share of international revenue as it is now.

Needing 14 clubs in total to support it, including eight of the 14 clubs who aren’t part of that top half dozen, not surprisingly it was thrown out. As the bottom line is that most clubs would have been voting to receive less (lower proportion of) money in the future.

Ahead of today’s meeting, it was ominous when Liverpool owner John Henry went public, saying that the rich clubs were determined to make sure they would get richer, questioning why they should ‘subsidise’ other poorer clubs.

Sure enough, the official Premier League statement now published, says that the turkeys have indeed voted for Christmas, no doubt with a shotgun to their heads, as there is no reason as to why the clubs almost guaranteed to lose out, would have supported the plan. So we are left to wonder exactly the turkeys were threatened with if they didn’t agree?

Interesting to see the Chronicle reporting that they understand Newcastle were intending to vote for the change.

The plan that was voted through, means that as from the next TV deals starting in 2019/20, any additional international revenue above what is currently received by the Premier League, will be shared out on a sliding scale, depending on your league finish.

As from two seasons time, the team that finishes top of the Premier League is set to receive 1.8 times what the bottom club gets, from the international revenue increase on the current deal.

With UK TV rights deals not rising this time around, it is obvious that the rich clubs clearly see that any extra big money is almost sure to come from deals made abroad.

With almost all of the international TV deals sorted for the three years starting 2019/20, clearly all the Premier League clubs will know just how much has been agreed so far.

It appears obvious that there must be some serious increase in the revenues from abroad, for the big six to pursue this so ferociously.

This is a disaster for the vast majority of clubs, as this guarantees that year on year it is set to get harder and harder for you to compete, unless of course you show now the ambition to try and work towards breaking into that top group of clubs.

Over to Mike Ashley to start and back & treat Rafa Benitez in a proper manner.

Premier League Official Statement:

From 2019/20, increases in international broadcast income to be distributed based on where clubs finish in League

Premier League clubs have agreed a new formula for sharing any future increase in international broadcast revenue from season 2019/20 onwards.

The League currently distributes all international broadcast revenue equally between the clubs.

From season 2019/20, clubs will continue to share current levels of international revenue equally, but any increase will be distributed based on where they finish in the League.

When total central revenues were distributed in 2017/18, the ratio between the maximum and minimum a club received was 1.6:1 – the highest-earning club received 1.6 times the amount received by the lowest-earning club.

The new formula for sharing any future increase in international revenues caps the ratio at 1.8:1.

This means the maximum that a club can receive in total central revenue payments is 1.8 times the amount received by the lowest-earning club.

Should future revenues rise to the point where the cap is reached, any additional income will be distributed so the 1.8:1 ratio is maintained.

“When the Premier League was formed in 1992 nobody could have envisaged the scale of international growth in the competition which exists now,” Premier League Executive Chairman Richard Scudamore said.

“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.

“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.

“By coming together and agreeing this change, the clubs have provided a platform for the future success of the League for many years ahead.”

In the Premier League’s inaugural season, 1992/93, the ratio between the maximum and minimum a club received from central revenues was 2.1:1

This new agreement will maintain the Premier League’s position as the most equitable in Europe in terms of distributing central revenues.

The ratio in 2017/18 was 1.6:1 and under the new system from 2019/20 could rise to a maximum of 1.8:1

The League’s UK broadcast revenue, 50 per cent of which is shared equally between clubs and 25 per cent each of prize money and broadcast facility fees, will continue to be distributed in the same way it always has been, as will central commercial revenues which are shared equally.


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