Are Premier League big boys selling themselves short?
Following the huge opposition Liverpool Managing Director Ian Ayre faced when he suggested clubs should negotiate their own television deals, Manchester United may be starting to jump on board with the idea and follow the path well trodden by Spanish giants Real Madrid and Barcelona. A good idea for individual clubs rather than the league as a whole, or will the determination for club’s to take advantage of their global appeal cripple the Premier League and rock the equilibrium that has kept the ship steady for so long?
Before swift opposition from the teams regularly placed lower in the Premier League arrives, it would be wise to think over the positives of allowing club’s to negotiate their own television deals. Not just because Real Madrid and Barcelona do it, but because the top Premier League clubs can do it—and they could likely get very close or even equal what the Spanish clubs are getting. Is it in the best interest of top clubs in England to look out for those below them on the revenue ladder? Surely there is a greater market to take advantage of now than there was when the Premier League was formed.
Looking at the Deloitte’s financial report this morning, Manchester United are looking to slip further away from Barcelona and Real Madrid over the next year due to their failure to reach the knock-out stages of the Champions League, and Liverpool are equally in danger of slipping out of the top ten of the Money League if they fail to qualify, at least, for next season’s Europa League. The widening gaps are of great concern and perhaps clubs should start to look out for themselves and the financial rewards their club’s name represents abroad.
Ian Ayre did make an interesting point when he put forward his idea last year: he raised the question, why would foreign fans of the league want to pay to see Bolton, when the majority of their fans live around the Bolton area. Instead, fans want to see clubs like Liverpool and Manchester United on a weekly basis, not as a package with other teams that are rotated on a regular basis. And there is nothing wrong with that. Club’s like Liverpool have a global audience and brand which maybe should dictate who is broadcast in foreign markets. Similarly, American sports such as NHL teams are televised within the region of which they’re from. Games will sometimes air nationwide, but for the most part the Chicago Blackhawks’ games will be regularly broadcast in the state of Illinois and the surrounding area, where as their games are limited nationwide and are more evenly distributed to national carriers such as Versus and NBC. Of course, America is on a much bigger scale than England, but there is nothing wrong with what they’re doing—selling to the market that will pay to watch.
It is definitely an issue that needs to be brought up again and analysed from the point of view of the clubs that will benefit. Will Premier League clubs negotiating their own deals really put such a dent into the league as a whole? Yes, there will be great disparity over the income between clubs at the top and those at the bottom of the table, and the financial trouble of La Liga is well documented; but the fundamental reasoning here is that there is a market to be taken advantage of, and Manchester United, as well as the rest of the Premier League big boys are steadily falling behind those who are active and reaping the rewards.
The Deloitte Sports Business Group presents the Football Money League 2012
Football News 24/7
let me make this simple for you, Premier League TV model fair, La Liga model unfair.
It takes two teams to play a football match, and we all hope it’s not a foregone conclusion before kickoff – sadly, it is in Spain if Barca aren’t playing Real.
Lose the competitivness, lose the fans, that’s why the Premiership is avidly followed the world over, it would be ridiculous to kill the cash cow just to appease a couple of historically greedy clubs.
Reply
Thomas Hallett Reply:
February 9th, 2012 at 9:56 pm
A fair model for who? The lower teams who are being carried by the clubs who draw the bigger audiences? Let me make this simple for you now, i’m not advocating one or the other, i’m raising a question as to whether it is something to look at and whether lower teams are holding the top teams back financially.
If you think the way it is now is fair then fine. But will the bigger clubs think the same way? Why should United look out for Wigan and essentially give them a helping hand?
Again, questions i’m raising but not necessarily what i believe should be done. I don’t need people banging their fists on tables and pointing to La Liga shouting “bad”.
Reply
Rafael Reply:
February 10th, 2012 at 2:54 pm
Well if you add a other competition in all the other leagues than that would greatly diminished the E.P.L broadcasting so technically if you have all the leagues playing additional games in one more competition that would mean extra revenues, ticket sales,not to mention broadcasting rights. Then it would be a fairly playing field in all accounts in Europe. Although, I love to see more teams who are not owned by a arrogant owner who thinks they can do what they please. No matter what Real and Barca will still thrive in the near future, and more so if one day the share revenues come into affect in la liga. Don’t be ignorant to agree that if every country would play in the Christmas holidays it would be greatly watched around the world. only the EPL does this, if you take the carling cup or the FA cup the revenues that they currently receive would be much less, therefore the money list would be very different.
Reply
Rafael Reply:
February 10th, 2012 at 3:02 pm
In favor for the other Europeans teams, English fans forget to realize that their pathetic overrated league plays more games than other leagues. If you would delete one competition the ticket sales and all kinds of revenues would be less and out of those six teams in the money league you would probably only have 3. Therefore, more German, Spanish or any other team would take their place. Who do you think has more to lose . The taking out a competition in the EPL, or adding a other competition in all other countries??? Rest my case!!!!!
The very presentation you copied here shows that the English model is better for football. There are 6 English teams in the top 20 – and only 3 Spanish teams, with Valencia trailing the top two so badly it would take them, like, 20 years to regain balance.
Another thing is: due to this disparity caused by the uneven distribution of TV money, Barca and Real are employing an unsustainable model, being overly reliant on that cash. This way, both the big clubs, and the small ones are on the verge of bankruptcy: Real and Barca regularly spend more than they have to be champions, while Valencia, Sevilla, Atletico, and the lot of them spend more than they have to get to the 3rd spot. Result? All Spanish clubs are up to their necks in debt that isn’t going to be repaid because show must go on. Do you think it would help the English clubs, many of which are also deep in debt, to have to share the TV money less evenly?
Reply
Sam Reply:
February 10th, 2012 at 5:04 pm
Emotional response lacking analysis.
Reply