The English Premier League’s TV rights windfalls "may soar" to more than $13B once the '16-19 int'l sales "are completed this year," according to Rob Harris of the AP. And with 11 of this season’s 20 clubs already under foreign ownership, the world’s richest football league "expects the new deals will make its clubs even better propositions for would-be investors." EPL CEO Richard Scudamore: "Reducing losses and making clubs more sustainable clearly is an important use of that money. That does make clubs more attractive to investors."
Many investors "are enticed by the distribution of television cash: half is split equally, a quarter based on finish in the standings and a quarter based on number of television appearances." That ensured last season’s bottom team, Cardiff, collected $95M. The 70% leap in domestic rights to $8B for the three seasons starting in '16-17 "could see the bottom-placed finishers" earn $140M in broadcast revenue. The champions could rake in more than $200M. Pointing to the league's appeal to U.S. and Middle East investors, Pinsent Masons sports lawyer Trevor Watkins said, "You will see a continued interest in English football being an important part of an investment strategy globally." Scudamore "does sound a note of caution." He said, "It’s a pretty risky investment unless you are purchasing a club that can pretty much guarantee its Premier League status." Globally, competition among broadcasters "is likely to be as intense." For the '13-16 overseas rights, the league generated around £2.5B of its £5.5B of broadcast revenue from overseas. Media analyst Claire Enders expects that figure to rise by around 30% -- to £3.25B ($5B) -- which "would see the league’s overall broadcast revenue" top $13B (AP, 2/12).
GOING HEAD-TO-HEAD: In London, Aaron Bower reported Super League GM Blake Solly "believes there is no need for rugby league to fear" the Premier League TV deal, which "will feature matches in one of Super League’s traditional timeslots."
Sky has shown Super League fixtures on Friday nights "since the inception of the competition in 1996," but it could now face "direct competition from the Premier League after it was announced that the new TV deal, which begins in 2016, will include 10 matches per season to be broadcast on Fridays." Solly has been quick to point out that rugby league "has squared off against Friday-night football for years, namely Football League games, which Sky have broadcast for some time now." Audience figures, he said, "suggest there is nothing to be overly concerned about." Solly: "I don’t think we’ve got too much to fear from going up against the Premier League on a Friday night. It won’t stop us from doing what we’re doing" (GUARDIAN, 2/12).
FOREIGN REACTION: DW's André Leslie reported German Football League (DFL) Christian Seifert said the EPL's new TV rights deal will force German football "to reconsider how it markets its own games." New match start times "could be one option." Seifert said that the deal "will force German football authorities to consider whether new plans need to be introduced in order to make the German game more marketable." Seifert:
"If you look at the German TV market, it will not be possible any time soon for the Bundesliga to sell its rights for that much money. We need to have an honest discussion about it: Are we prepared to head towards unpopular options in order to make sure that we can still attract the world's best players to the Bundesliga?" (DW, 2/11). The SID reported Bundesliga side VfL Wolfsburg GM Klaus Allofs "is worried about the Bundesliga's competitiveness" in light of the EPL's new TV deal. Allofs: "If nothing happens here and something happens in England then it means the competitiveness of the Bundesliga is suffering. From an economics perspective it's a clear signal that the Premier League further increased its dominant position in this area" (SID, 2/12). The London GUARDIAN reported Ligue 1 side St. Etienne co-President Bernard Caiazzo has called on UEFA "to take action to stop the Premier League becoming 'the NBA of football'" after reaching a record TV deal.
Caiazzo believes France’s Ligue 1 and other leagues in Europe "will be left behind by the English top flight" at the start of the '16-17 season. Caiazzo: "The Premier League will become the NBA of football. It will be greater than the Champions League. Clubs such as Manchester United or Chelsea will have budgets of €700 or €800M. What is happening in England will impact on Germany, Italy, Spain. And I do not imagine that UEFA will not react. But there will be a greater attention if the request comes from Bayern [Munich], Real [Madrid] , Barcelona or Milan instead of St. Etienne" (GUARDIAN, 2/12).
