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Marketing and Sponsorship

Premier League Television Rights Deal Takes Pressure Off Club Shirt Sponsorships

Experts pointed out that the billions Premier League football clubs will net between '16 and '19 as a result of Tuesday's domestic TV rights deal "will dwarf sponsorship income, even from the title Barclays deal," according to Daniel Farey-Jones of MARKETING MAGAZINE. The 70% increase in the amount Sky and BT have agreed to pay to screen matches live means that "even the club that finishes bottom of the Premier League" in the '16-17 season will earn £100M ($154M) from the deal. Generate Sponsorship Managing Partner Rupert Pratt said, "This takes the pressure off the clubs with regards to sponsorship, which has been a buyer’s market with much less inflation." Pratt said that the TV income dwarves the £2M ($3M) to £5M ($7.7M) per year cost "of sponsoring a low to mid-tier Premier League club." Synergy CEO Tim Crow said that even the £40M ($61M) per season the Premier League gets for Barclays’ title sponsorship will look small, "especially when one factors in the expected increase in the value of overseas TV rights," for which the audience is nine times that in the U.K. One area "where sponsorship costs could be subject to upward pressure is broadcast sponsorships sold by Sky," which is paying 83% more for its rights than it did in the last deal (MARKETING MAGAZINE, 2/11).

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