MANCITY AND SPURS LEAD THE WAY
the premiership is awash with cash and they sure know how to burn it.
Spending by Premiership clubs on new players in the January transfer window has hit a fresh all-time high of £160m according to Deloitte's sports business group. The amount may still go up because the transfer window was extended because of the bad weather so that deals in progress could be completed, but the total is already well above last year's £150m. Spending between Premiership teams made up around £105m of the £160m. Manchester City and Spurs have been the two biggest spenders. Deloittes said Manchester City have spent more than £50m during the transfer window and Tottenham around £45m. Total spending by Premiership teams in the January window again far exceeded that in other European leagues. Peter Rawnsley, director in the sports business group at Deloitte, commented. 'With the majority of their revenue streams already secured for the current season, whilst [Premier League] clubs are not recession-proof, they are relatively recession-resistant. Looking ahead, while the clubs will not be complacent, the latest transfer activity re-emphasises the financial strength and global appeal of the Premier League competition.'
Showing posts with label Premeirship. Show all posts
Showing posts with label Premeirship. Show all posts
Wednesday, February 11, 2009
PREMIERSHIP IS POWERFULL DESPITE ECONOMIC SLUMP
>>>>as rights yield 1.8bn pounds per year
Forecasts that the Premiership bubble would burst in the credit crunch increasingly look premature, if not misplaced altogether. The Premier League has secured a record television deal that will be worth almost £1.8 billion over three years. The 5 per cent increase over the last deal will bolster finances of clubs until 2013 when the deal ends. By that time, even on the most pessimistic estimates, the recession should be over. With the overseas rights for 2010 to 2013 still to be distributed, the Premier League is on track for another record for its total broadcasting rights, surpassing the £2.7 billion it achieved in the 2007-10 round. The Premiership has also been canny in its current overseas deals, signing contracts to be paid in dollars. With the value of sterling falling against the dollar, it is thought that payments from overseas broadcasters have become worth millions of pounds more over the last few months.
Sky won five of the six packages available, the maximum it is allowed under EU rules. BSkyB paid £1.62bn of the £1.78bn total the Premiership will pay over three years. It is paying just under £5m a game at £4.7m and getting 115 games a season. Tony Syfret from Enders Analysis told the Financial Times 'I estimate that Sky may make £20m more annually in increased advertising and revenues from pubs and clubs, but they are paying £103m more, so it is not absolutely clear what the benefit is for them, except putting Setanta in its place.' However, if Sky had cut back on what it paid, the quality of English football would have suffered. There is already strong consumer demand for Sky subscriptions and by seizing the Monday night games - coupled with extended Champions League rights from next season - it will have enough matches to strengthen its appeal.
Irish broadcaster Setanta Sports is the big loser. It won a single package of 23 matches that will be aired at 5.15 p.m. on Saturday evenings. Analysts are sceptical whether it will reach break even point on its subscriber model. It's an open question whether Setanta's 1.5 million paying customers think it will be worth paying between £8 and £13 a month for the reduced service, including some football free weekends. It has saved more than £200m over the next three year deal and could use the cash to buy into other sports, improving its weak summer schedule. It could always try to sell itself to EPSN, the American sports broadcasting giant owned by the Walt Disney company, which was unsuccessful in the rights auction. EPSN could afford to buy into Setanta, providing the venture with real firepower with which to fight Sky.
Forecasts that the Premiership bubble would burst in the credit crunch increasingly look premature, if not misplaced altogether. The Premier League has secured a record television deal that will be worth almost £1.8 billion over three years. The 5 per cent increase over the last deal will bolster finances of clubs until 2013 when the deal ends. By that time, even on the most pessimistic estimates, the recession should be over. With the overseas rights for 2010 to 2013 still to be distributed, the Premier League is on track for another record for its total broadcasting rights, surpassing the £2.7 billion it achieved in the 2007-10 round. The Premiership has also been canny in its current overseas deals, signing contracts to be paid in dollars. With the value of sterling falling against the dollar, it is thought that payments from overseas broadcasters have become worth millions of pounds more over the last few months.
Sky won five of the six packages available, the maximum it is allowed under EU rules. BSkyB paid £1.62bn of the £1.78bn total the Premiership will pay over three years. It is paying just under £5m a game at £4.7m and getting 115 games a season. Tony Syfret from Enders Analysis told the Financial Times 'I estimate that Sky may make £20m more annually in increased advertising and revenues from pubs and clubs, but they are paying £103m more, so it is not absolutely clear what the benefit is for them, except putting Setanta in its place.' However, if Sky had cut back on what it paid, the quality of English football would have suffered. There is already strong consumer demand for Sky subscriptions and by seizing the Monday night games - coupled with extended Champions League rights from next season - it will have enough matches to strengthen its appeal.
Irish broadcaster Setanta Sports is the big loser. It won a single package of 23 matches that will be aired at 5.15 p.m. on Saturday evenings. Analysts are sceptical whether it will reach break even point on its subscriber model. It's an open question whether Setanta's 1.5 million paying customers think it will be worth paying between £8 and £13 a month for the reduced service, including some football free weekends. It has saved more than £200m over the next three year deal and could use the cash to buy into other sports, improving its weak summer schedule. It could always try to sell itself to EPSN, the American sports broadcasting giant owned by the Walt Disney company, which was unsuccessful in the rights auction. EPSN could afford to buy into Setanta, providing the venture with real firepower with which to fight Sky.
Friday, November 21, 2008
COSTLY BENCH WARMERS
The Premiership's most costly bench-warmers have been revealed in a new list published by football website IMScouting.com. Heading the league is West Ham's injury-prone Kieron Dyer, who having played no more than two Premiership games since August 2007 has cost the Hammers an estimated £1.1m per game. He is closely followed by Manchester United's Gary Neville, who is only now returning to long-term action following a succession of long-term injuries. Since the start of last season, Neville has played just four Premiership matches, putting his estimated cost per game at £840,000. Manchester City fans won't be surprised to see the unfortunate Valeri Bojinov as their club's most costly non-performer. Since signing for the Eastlands club in the summer of 2006, Bojinov has played a mere four games due to injury, putting his cost to City at an estimated £480,000 per game. Other high profile names on the list including Tottenham's perenially-crocked Ledley King, costing an estimated £285,000 per game since last August. Louis Saha has cost Everton an estimated £87,000 per game while Dwight Yorke has been worth an estimated £58,000 a game since joining Sunderland. Football database site IMScouting.com created the list by calculating the ratio of estimated salary against Premiership games played amongst players at each top flight club since August 2007.
Thursday, October 30, 2008
IS FOOTBALL IMMUNE FROM RECCESION?
There is talk of a fearful and dangerous economic headwind heading our way as a result of the Financial Crisis. The financial crisis is slowly trickling into the "real economy" and it feared some of the biggest economies in the world will suffer recces ion in the coming months and years.
Football has largely been untouched by the crisis around us. Judging by the amount of money flowing around football these days one would be fooled to think the money is a bottomless ocean. The major European Clubs spent a whopping $900bn during the transfer season this summer.Premiership Clubs led the way with over $500 expenditure funded by their football "Sugardadies" and the take over of MAN CITY by the Abu Dhabi Group increased the tempo and possibility of even of expanding their expenditure in the Winter Window.
The TV money too is secured for at lest two years while gate prices are at all time high and the supporters have until now put up with it the demand fro ticket is inelastic; that is ,it is not relatively responsive to price changes. Marketing and sponsorship deals have never been this lucrative.All these point to a secure and prosperous future for the world's most loved sport.
However since football forms part of the real economy it will not be spare by any recession. Infact football could suffer disproportionately from any recession ensuing from the credit crunch.Football fans are normal everyday people who survive on jobs so in hard times their incomes fall leaving them with little for entertainment. ticket sales and merchandise revenue will undoubtedly suffer in the event of a recession
The clubs will suffer marketing and sponsorship revenue losses as firms cut down on ad/branding spending . Even some of the firms might even go bankrupt which nearly happened to AIG ,the shirt sponsor of MAN UTD.
The next TV deal to be negotiated in a couple of years time will be crucial in determining the future financial stability of most European leagues esp the Premiership.
Again some clubs may find it difficult to raise funds fro their day to day activities because of the freeze of the credit system. some of the biggest clubs in Europe are heavily indebted and there could be frightening specter of Giant clubs that will fail financially in an environment of recession English clubs owe in total about $5bn .
football is an integral part of the economy despite its "special status" designation and any economy-wide imbalance will not leave football unscathed
After all football ,we're told is BIG BUSINESS
Monday, December 17, 2007
SUPER SLAM SUNDAY IN ENGLISH PREMIERSHIP
....... It underlines the Star Power of the English League.
This weekend billions over the world tuned in to wacth the biggest matches in the premiership season. Whether by design or coincidence they star studded fixtures of Liverpool v Manchester and Arsenal v Chelsea on one day proved to be a TV audience bonanza for the business sharks of British football. It is estimated that about 1.6 billion people tuned in to watch boyh mayches on Sunday. This racked up about 30 million pounds in pay poer view revenue alone together with other premium ad placement worth millions. The premiership continues to grow both in stature and financail muscle as more money attracts better players and bigger stars.
Subscribe to:
Posts (Atom)
