Premier League clubs agree £100m drop in new Government approved TV deal – Report
The 20 Premier League clubs have had their latest meeting.
Connecting remotely, Newcastle United and the other 19 Premier League clubs had one particularly important item on the agenda.
The next domestic TV deal(s) which will cover the 2022/23, 2023/24 and 2024/25 seasons.
Recent weeks have seen informed media reports saying that the Premier League clubs want to secure this next three year arrangement without having to go through the usual competitive bidding process.
The plan would mean that the current three year domestic TV arrangements would simply be repeated / continue for another three years after that current one concludes at the end of 2021/22. Those current arrangements seeing Sky Sports, BT Sport and Amazon paying a combined £5bn over the course of three years.
Both the Bundesliga and Serie A have seen their next domestic TV deals revenue fall, compared to their existing arrangements.
So what the rollover of the existing Premier League domestic TV deals would mean, is that the clubs would then be guaranteed the same level of riches for another three years, whilst for the broadcasters involved, in return for agreeing to repeat the existing cash they would be guaranteed ongoing rights without having to go through the usual competitive closed bids secret process which means they are always at risk of losing. This is especially the case if one or more new bidders aggressively enter the bidding process.
However, to go with simply repeating the existing deals without a bidding process would obviously break competition laws, if excluding others from bidding.
So Government approval is needed to allow an exception to be made.
Now the Financial Times have reported that their information is that the Government have indeed agreed to back this exception…but at a price.
Currently, Premier League clubs provide ‘solidarity payments’ of £140m a year to lower league clubs, financed by the TV money. The FT report that the Government have agreed to back the rollover and make it an exception, if an extra £100m goes to the lower league clubs.
The report saying that at their meeting the 20 Premier League clubs agreed yesterday to the Government trade-off, with the existing domestic TV arrangements set to be repeated for another three years (2022-2025) but with extra cash to help the clubs lower down the leagues.
The Premier League clubs could make a formal announcement as early as today (Thursday) according to the FT.
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