How Much Do Clubs Make in Broadcasting Income?

Summary

This summer, the Premier League's financial prowess was highlighted by record-breaking transfer fees. The TV rights deal, which began in the 2016/17 season, saw a 71% increase in revenue to £5.14 billion, with SKY paying 83% more. Revenue is distributed equally, based on merit, and through 'facility fees' for TV appearances. Overseas rights add £780 million, shared equally among clubs. Chelsea earned £150.8 million for winning last season, while even relegated Sunderland received £93.471 million. The Premier League's revenue sharing is more equal compared to other European leagues, with the ratio between the highest and lowest earners being 1.61 to 1.

Takeaways

• 🏆 The Premier League's financial power was highlighted during the summer transfer window with clubs breaking transfer records.
• 📺 The 2016/17 season saw a new TV rights deal that brought in a 71% increase in revenue for broadcasters, totaling £5.14 billion.
• 💷 Domestic TV money is worth around £1.7 billion per season, with 50% divided equally among clubs, 25% based on league position, and 25% on TV appearances.
• 🔄 The merit-based distribution means the bottom club receives £1.9 million, increasing by the same amount for each higher position.
• 🏅 Champions earn roughly £38 million from merit-based TV money, while 10th place earns £21 million.
• 📹 'Facility fees' ensure each club gets £1 million per TV appearance, with a minimum guarantee of £10 million per season.
• 🌐 Overseas rights add £780 million per season, equally distributed to each club, amounting to about £39 million per club.
• 🏦 Last season, Chelsea, as champions, earned £150.8 million, while relegated Sunderland earned £93.471 million.
• 💲 The Premier League has a 1.61 to 1 ratio between the highest and lowest earning clubs, indicating a more equal revenue sharing compared to other European leagues.
• 🇪🇸 In contrast, La Liga's previous structure heavily favored Barcelona and Real Madrid, but a renegotiation in 2016 introduced a more equal distribution model.
• 💰 Bournemouth, Watford, and Swansea are the clubs most reliant on TV money, while Manchester United is the least reliant according to the Daily Express.

Q & A

What is the significance of the Premier League's financial power in the summer transfer market?

The Premier League's financial power allows clubs to break their previous transfer records, as seen in the summer months of June, July, and August, by spending large sums on player transfers.

How did the latest Premier League TV rights deal impact the clubs financially?

The latest TV rights deal, starting from the 2016/17 season, resulted in a 71% increase in revenue for broadcasters, with clubs earning a record windfall of 5.14 billion pounds.

Which broadcaster paid 83% more for the latest Premier League TV rights deal compared to the previous deal?

SKY paid 83% more for the latest Premier League TV rights deal compared to the previous one.

How is the domestic TV money distributed among Premier League clubs?

50% of domestic TV money is divided equally among clubs, 25% is merit-based on final league position, and the remaining 25% is based on the number of TV appearances (facility fees).

What is the minimum amount a club can earn from domestic TV money per season?

A club can earn a minimum of £10 million per season from domestic TV money, even if they appear in less than 10 games.

How much does each Premier League club earn from overseas rights per season?

Each Premier League club earns roughly 39 million pounds per season from overseas rights, which adds up to 780 million pounds to the pot.

What was the earning ratio between the highest and lowest earning clubs in the Premier League last season?

The ratio between the highest and lowest earning clubs in the Premier League last season was 1.61 to 1.

How does the Premier League's revenue sharing compare to other European leagues?

The Premier League is more equal in sharing revenue compared to its European rivals, with a lower earning ratio between the highest and lowest earning clubs.

What changes were made to the revenue sharing structure in La Liga after 2016?

In 2016, La Liga renegotiated its structure to 50% equal share for all clubs, 25% merit money based on the clubs' performance in the last three years, and 25% based on the clubs' resource generation ability.

Which clubs are most reliant on TV money according to the Daily Express?

Bournemouth, Watford, and Swansea were estimated to be the three clubs most reliant on TV money, with Manchester United being the least reliant.