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Premier League domestic TV rights go for £3bn. THREE BILLION


The_Rev
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Is that actually going to make a huge impact on the clubs? I always see American football clubs as huge income & huge expenses.. A million and a half isn't a big deal, is it? Be akin to Arsenal being given an extra million and a half - not even really noticeable.

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http://www.bbc.co.uk...otball/20319573

Wigan owner Dave Whelan believes Premier League clubs will vote for a new break-even rule on Thursday.

Under plans which could be introduced next season, clubs would not be allowed to spend more cash than they generate.

Whelan told BBC Sport: "I think the clubs will say break-even is something they want. We could definitely see it."

The rule would mark a major change for the league, with champions Manchester City, for example, having made a £197m loss in their latest set of results.

Premier League clubs made cumulative losses of £361m in 2010-11, the most recent season for which there are complete financial results.

Representatives of the 20 top-flight teams will discuss the issue of financial regulation at one of their regular "shareholder meetings" in London on Thursday.

With 14 clubs needed to vote in favour of the proposals for them to pass, Whelan says Fulham are the only club opposed to any kind of new rules being brought in.

"This break-even rule will stop clubs getting into the red," he said. "There's nothing worse than seeing a club like Portsmouth getting into financial trouble - or Rangers, who are such a big and powerful club.

"I don't think Fulham want anything at all to do with it but generally it is accepted it's a very good rule. If it's passed on Thursday I think it's going to be a very good thing for football."

There could still be some flexibility permitted under any potential change, with wealthy owners allowed to put additional money in.

Uefa will introduce its own financial fair play rules next season, permitting clubs to make only set losses in the first three seasons. Failure to comply would result in exclusion from either the Champions League or Europa League.

Whelan believes the penalties should be severe if a break-even rule is introduced in the Premier League.

"We've got to say 'if you agree with this, you've got to abide by the rules'," he said. "If you don't break even, you get relegated or get a 10-, 15-, 20-point deduction."

A new £3bn television deal comes into force in the Premier League next season, up 70% on the existing arrangement. The chairmen are eager to ensure the extra money is not swallowed up by increased player wages.

Premier League clubs spent almost £1.6bn on wages in 2010-11, constituting 70% of their income. Only once in the 20 seasons of the Premier League - 2004-05 - have wages fallen year-on-year.

Manchester City spent 114% of their income on wages in 2010-11, Aston Villa 103%, and Chelsea 84%.

Another proposal is the introduction of a wage cap, pegging a club's salary bill to a maximum percentage increase year-on-year. Sunderland have pushed hard for this, but Whelan is not in favour.

"We control ourselves and don't pay what we can't afford," he said.

"I don't think they will go along with a wage cap, I can't see them getting a majority to put in too many controls.

"I say to players, get what you can while you can but be sensible and give respect to the club you play for."

Wigan reported a profit in earnings before interest, tax and other associated costs in their latest set of financial figures and Whelan expects them to be able to easily comply with a break-even rule.

"This doesn't come as any shock or surprise to a club like West Brom or Wigan, which are very carefully, well-run clubs," he said.

I'm surprised this hasn't received more coverage. That 103% figure of ours is shocking. I was agreeing with this until "There could still be some flexibility permitted under any potential change, with wealthy owners allowed to put additional money in."

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http://www.bbc.co.uk...otball/20319573

I'm surprised this hasn't received more coverage. That 103% figure of ours is shocking. I was agreeing with this until "There could still be some flexibility permitted under any potential change, with wealthy owners allowed to put additional money in."

We still had all the high earners back in 2010-11 so that should be considerably lower now but I'm surprised that the figure was 103%.

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http://www.bbc.co.uk...otball/20319573

I'm surprised this hasn't received more coverage. That 103% figure of ours is shocking. I was agreeing with this until "There could still be some flexibility permitted under any potential change, with wealthy owners allowed to put additional money in."

That 103% would have dropped considerably last season and is probably lower again now. If Bent, Given and Dunne are cleared off we will be in a much better position again.

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For 2010-11, we saw an attendance drop and probably lost a few (5?) percentage points of topline just from finishing below sixth. We'd probably have about the same wage bill as 09-10 (when we had something like 83%), but with a 20% or so YoY revenue decline, 103% is absolutely to be expected.

At this point, with the new TV deals around the world, the PL should start really pulling away from the other leagues (the Mediterranean leagues aren't going to be getting big TV deals for years and the Germans don't seem to be that interested in chasing big money). The clubs capable of consistently paying bigger wages than midtable PL clubs will probably be countable on one hand.

That means that the players in the PL will have lost a lot of their leverage and while we will see substantial appreciation in their wages, it's not going to be a case of them hoovering up all the new money.

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At this point, with the new TV deals around the world, the PL should start really pulling away from the other leagues (the Mediterranean leagues aren't going to be getting big TV deals for years and the Germans don't seem to be that interested in chasing big money).

One interesting point will be the gap between those "established" midtable premier league sides and the clubs getting promoted from Division 1. Will we see a situation where there is a massive gap between the bottom 4 sides in the league and the rest of the midtable sides? With the huge gap in revenue it will surely happen?

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