SKY and BT pay £3.018 billion for new deal

[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.

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

Can't think why. It's 3am at their call centre HQ in Bangalore, so it should be very quiet. Must be poor staffing levels!

[DoomMerchant]

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

you need to squeeze your fat ass into a mankini and start your new job, pronto, fuckstick. This post should get you a ban from this site for like a week or something just to sort your head.

Anything, i mean ANYTHING...shoving a tube up your ass with a gerbil encased in it while you drink the vomit that resulted from the 4 quarts of jizz that Rod Stewart slurped in 1982...would have been a better use of your time and mine.

Also, what are you wearing?

cheers

[ronk]

ESPN are still showing their football this season. It's 2013-2014 when this takes effect. Full year to kick them to touch.

[King Kev]

ESPN are still showing their football this season. It's 2013-2014 when this takes effect. Full year to kick them to touch.

Good point.

This is mentioned in the first line of the first post in this thread, but so many of us missed it!

[Socrates]

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

it's 3bn over THREE years not 4 (and your decimal place was in the wrong place too). Also that 197m is a bogus figure to use, had loads of pre-ffp one off adjustments in it. Do you want to try again or do you want me to do it?

[Socrates]

Correct answer is £90.4m, puts us £30m per year closer to FFP and I can't imagine we were going to be that far off it without this increase, so it does effectively "sort it out" as it removes any doubts that we can make it.

[Ted Hughes]

Correct answer is £90.4m, puts us £30m per year closer to FFP and I can't imagine we were going to be that far off it without this increase, so it does effectively "sort it out" as it removes any doubts that we can make it.

Hilarious that our battle against the evil empire, which Platini is trying to stop, has actually brought our whole league (which Platini hates) a huge increase in value thus diluting his whole plan to stop us doing what we (& Chelsea) have just done.

Scudamore has openly admitted that our efforts have made the league a fortune. If the Premier league has made an extra billion from it, I wonder how much that last day in particular will be worth to City in the coming years ? And how much is it worth to Abu Dhabi ?

[Crossie]

A fucking "Merit Payment"


That's total bullshit.

How is that worked out...?

[Socrates]

A fucking "Merit Payment"


That's total bullshit.

How is that worked out...?

Finishing position in the table.

[Socrates]

Correct answer is £90.4m, puts us £30m per year closer to FFP and I can't imagine we were going to be that far off it without this increase, so it does effectively "sort it out" as it removes any doubts that we can make it.

Hilarious that our battle against the evil empire, which Platini is trying to stop, has actually brought our whole league (which Platini hates) a huge increase in value thus diluting his whole plan to stop us doing what we (& Chelsea) have just done.

Scudamore has openly admitted that our efforts have made the league a fortune. If the Premier league has made an extra billion from it, I wonder how much that last day in particular will be worth to City in the coming years ? And how much is it worth to Abu Dhabi ?

The irony isn't lost on me Tedward. Initial estimates were that it would boost our revenues by £30m a year, you can add in another £30m now. So about half a billion over a decade.

[Ted Hughes]

Correct answer is £90.4m, puts us £30m per year closer to FFP and I can't imagine we were going to be that far off it without this increase, so it does effectively "sort it out" as it removes any doubts that we can make it.

Hilarious that our battle against the evil empire, which Platini is trying to stop, has actually brought our whole league (which Platini hates) a huge increase in value thus diluting his whole plan to stop us doing what we (& Chelsea) have just done.

Scudamore has openly admitted that our efforts have made the league a fortune. If the Premier league has made an extra billion from it, I wonder how much that last day in particular will be worth to City in the coming years ? And how much is it worth to Abu Dhabi ?

The irony isn't lost on me Tedward. Initial estimates were that it would boost our revenues by £30m a year, you can add in another £30m now. So about half a billion over a decade.

I recon that last minute goal may turn out to be our 'Munich' moment. The key is to make sure we are brilliant next season, then a lot of little City fans will spring up all around the world. They have taken the bait, now we have to keep them on the hook.

Just a couple of players (the right ones) in this window could do that, so imo, it's still worth continued spending even if there is a temptation to try & balance the books now.

[Socrates]

Correct answer is £90.4m, puts us £30m per year closer to FFP and I can't imagine we were going to be that far off it without this increase, so it does effectively "sort it out" as it removes any doubts that we can make it.

Hilarious that our battle against the evil empire, which Platini is trying to stop, has actually brought our whole league (which Platini hates) a huge increase in value thus diluting his whole plan to stop us doing what we (& Chelsea) have just done.

Scudamore has openly admitted that our efforts have made the league a fortune. If the Premier league has made an extra billion from it, I wonder how much that last day in particular will be worth to City in the coming years ? And how much is it worth to Abu Dhabi ?

The irony isn't lost on me Tedward. Initial estimates were that it would boost our revenues by £30m a year, you can add in another £30m now. So about half a billion over a decade.

I recon that last minute goal may turn out to be our 'Munich' moment. The key is to make sure we are brilliant next season, then a lot of little City fans will spring up all around the world. They have taken the bait, now we have to keep them on the hook.

Just a couple of players (the right ones) in this window could do that, so imo, it's still worth continued spending even if there is a temptation to try & balance the books now.

This deal might give us the bit of wiggle room we need to get in an extra player!

[Rag_hater]

Might give the others a bit of chance but hopefully the Sheikh will take the value out of the market again by paying some ridiculous prices for some players again.

[Swales4ever]

surely this's another brick to smooth my mate 1632's concerns.
and still the huge boost [of the title] on merchandise sales has to be accounted.

ciao Michel, stay cool... ;)