SKY and BT pay £3.018 billion for new deal

[john@staustell]

New deal, 2013/14 to 2015/16

http://www.dailymail.co.uk/sport/footba ... T-Sky.html


The Premier League have sold the domestic broadcast rights for 2013-16 for £3.018billion to BSkyB and BT.

Sky have bought five of the seven available packages for the seasons 2013/14 to 2015/16, totalling 116 matches per year while BT have 38.

BT have acquired the rights for 32 matches in the first season of the deal but their package includes 18 of the 38 first-choice picks, which means some of the biggest games will theirs.

It is currently unknown how BT will go about screening their games, but it is possible they could set up their own TV channel as well as providing online coverage.

The Premier League have secured a remarkable £1.254billion increase on the current deal, which is shared between Sky and ESPN.
Premier League chief executive Richard Scudamore revealed the thrilling climax to the recent season, when Manchester City won the title in injury time on the last day, contributed to the increase.
'We have just come off the back of a fantastic season and it has been good for us,' Scudamore said.
'We went to the market at the right time. It was a very competitive process which if you are selling is a very good thing.'

WHO GOT WHAT?
Sky have 116 matches per year and 20 of the 38 first choice picks in 2013-14.

BT have 38 per year, but 32 in the first season of the deal. They have 18 first choice picks in 2013-14.

.In a statement on the Premier League website, Scudamore said: 'The Barclays Premier League continues to provide excellent football and enthralling drama as we saw last season. The value this drives for our rights holders is evident and we are extremely pleased that this has been realised for our UK live rights.
'As ever, the security provided by broadcast revenues will enable our clubs to continue to invest in all aspects of their football activities and plan sustainably for the foreseeable future. This deal allows them to keep delivering what fans want; top quality football in some of world’s best club stadia and an increasing focus on and commitment to areas such as Youth Development.
'The continuing support of BSkyB for Premier League football is significant beyond the revenues delivered; the longevity and quality of their commitment has done much for the English game as a whole. We are very happy to see this relationship maintained for another three seasons.

'We welcome BT as a new Premier League broadcast partner. They are a substantial British company that is at the leading edge of technology and infra-structure development. They are clearly investing in quality content to use on their platforms and when combined with the reach and pull of Premier League football they will deliver new ways in which fans will be able to follow the competition.
'These are exciting times for both the football and media worlds and we should all be proud of the value both industries contribute to the UK culturally and economically.
'I would also like to place on record the Premier League's thanks to the numerous other highly credible bidders that showed such interest in the live UK rights.'
More to follow.

[King Kev]

Going to be hugely pissed off if I have to pay extra to watch the games that BT have the rights to!

[Patrick]

BT has been talking about this for over a decade - I used to present this shit to the board! It makes me laugh that I would be 10 years older and 10 years sadder before they leapt out onto the pedestrian crossing of content based charging.....

There must be loads of my old colleagues choking on the dust raised when a mummy moves

[Beefymcfc]

Going to be hugely pissed off if I have to pay extra to watch the games that BT have the rights to!

Looks like you're going to be pissed off mate, they're not going to give it away for free. I take it they've taken over the ESPN package?

[ashton287]

Where does this 3 billion go?

[Beefymcfc]

Where does this 3 billion go?

It goes on your Sky/BT bill.

[Im_Spartacus]

Where does this 3 billion go?

If its more than a 50% increase that is fucking bonkers.......but will be all good for FFP anyway, if we got a pro rata increase it would take our Basic TV payment north of £60m wont it?

So in answer to your question, straight into the pockets of the greedy cunts that play the game

[blues-clues]

Presumably makes FFP a bit easier.

Winning the league will presumably start to attract higher rewards as will the individual match fees paid.

Oi - Mr Messi - over here son!

[Blue Blood]

With this surely FFP becomes nearly a non issue.

The increase in TV money is huge!

[john@staustell]

Going to be hugely pissed off if I have to pay extra to watch the games that BT have the rights to!

I'm hoping we just cancel ESPN and take up BT.

[Feed The Goat]

I'm hoping we just cancel ESPN and take up BT.

They better not cancel ESPN it's free for me

[King Kev]

Going to be hugely pissed off if I have to pay extra to watch the games that BT have the rights to!

I'm hoping we just cancel ESPN and take up BT.

We've just dumped Sky and gone with Virgin, partly because ESPN was free with Virgin!!

[Wooders]

i hope they don't put it out on the god awful "BT vision"

[Wonderwall]

Doesnt that statement menrion sky and espn as well as BT?

[johnny99]

that's fucking typical i have just fucked bt off and gone to sky

[Beefymcfc]

Doesnt that statement menrion sky and espn as well as BT?

It does, good spot. It doesn't say the split though, just shared.

[Wonderwall]

It does, good spot. It doesn't say the split though, just shared.

Just makes LOL footy or the pub all the more attractive to me...

[ant london]

So basically if we say that the new TV revenue is 3.081billion over four years, that is just under GBP 75.5 million per year overall (these are US billions by the way my american friends, not our traditional version...ie a thousand million not a million million).



The traditional split of the PL cash between the clubs is on a 50:25:25 basis which means

50% is on a straight split between the 20 clubs (ie. each club would get 75.5million divided by 2 (377.2m) then divided by 20 which brings that portion of revenue under the new deal to 18.9m per club.

The other two components of 25% of the overall and the final 25% of the overall total is split on the basis of "merit" (ie finishing position) for the first 25% and then "facility fee" (which is basically factored on how many times you have been broadcast in some way or another).

If we take the 2010-2011 PL figures and use United as a parameter as they came in first place then the effect on income for us would, proportionately be:

United got 9.52% of the overall "merit" payment for coming first. So that would mean (if we came top in 2013-2014) we would generate 9.52% x 192.6 million = 18.3 million

United then also got 8.52% of the "facility fee" (ie. apart from Liverpool who got 7.6%) they were the most screened side. Again if we replicated this proportion we would get 8.52% x 192.6 million = 16.4 million

Overall that would bring us 18.9 + 18.3 + 16.4 = 53.6 million in domestic TV revenue. If we then assume that the same overseas deal remained in place that would add another 17.9 million per year and total TV revenue would be 71.5 million

In FY 2011 our reported numbers were a loss of 197 million

That did not take account of lots of new commercial deals such as the Etihad campus and sponsorship nor will it take account of the new Nike deal. However, our TV revenue in FY2011 was 55.5 million. So, even if we matched United's TV revenue proportions under the new deal (essentially if we are champions next season and then again most likely) we would only add an extra 16 million to our TV revenues (ie. reduce the 197 million loss by 16 million).

So, in overview, no this new TV deal won't take care of FFP for us!! In reality domestic TV revenue for first place under that deal would go up about 30% so we could expect the 17.9 million of annual overseas TV revenue would likely increase to around 23.3 million which is another 5.4 million to add to the 16 million loss reduction but still not a game changer.

Obviously I'd expect our loss to organically reduce in 2012/2013/2014 in any event due to several factors (reduced spend on new players so a reduced amortisation charge each year, more controlled spend on agents fees and a gradual shedding of "excess" payroll costs on the likes of Adebayor, Santa Cruz, Bridge etc etc....(if we assume someone like Ade is on 150k a week that is almost 8 million quid a year)...getting rid of that lot really will help).

All in all I can see how we are on track to comply with FFP but this new TV deal is in no way a panacea for those concerns

[Dronny]

Going to be hugely pissed off if I have to pay extra to watch the games that BT have the rights to!

I'm hoping we just cancel ESPN and take up BT.

Just phoned BT to understand the ramifications of the deal but they're engaged

[Blue Since 76]

@Ant - sorry, couldn't be arsed getting my head round all your maths, but last season (or is it still this season) we had the highest domestic tv revenue of any club in the league, beating the rags by about £300k. Can't remember the exact figure, but think we got just short of £60m, based on prizes, appearances and basic fee. If we get a 70% increase on that, we'll earn an extra £40m a season. Not going to fill the hole, but a big jump in revenue.

The best bit about this though is that every news article about it means they show us winning the league again.