TV Deals Will Offer English Football Clubs 'Golden Opportunity' To Fix Finances
Lucrative new TV deals starting in August offer Premier League football clubs a "golden opportunity" to strengthen finances undermined by the vast sums they pay to players, according to Keith Weir of REUTERS. A study by Deloitte showed that football is "increasingly prized by broadcasters seeking to drive pay TV audiences," and clubs in Germany and England "will start to enjoy the benefits of enhanced TV deals from August." In Britain, former state telecom company BT "has taken a share of the domestic Premier League rights, alongside long dominant pay TV operator BSkyB," driving a 70% increase in their value. Sales of rights around the globe "have inflated total TV revenues" for the 20-team Premier League to an estimated £5.5B ($8.6M) over the next three years (REUTERS, 6/6). The PA's Martyn Ziegler reported Premier League clubs will begin to receive an extra £25M ($39M) on average each year from the new TV contracts, and for most clubs "that could wipe out their losses." Relegated clubs will also receive up to £60M ($94M) in parachute payments. The Deloitte report predicts that "player wage costs will rise considerably with the new TV money coming in" -- but said that clubs "should keep that rise to respectable levels" (PA, 6/6).