The Premier League is the most lucrative, and most watched, soccer league in the world and has been for quite some time. But with a new TV deal in place for 2016-2019, clubs can look forward to even more TV revenue coming in. This new deal will solidify the league as the economic powerhouse in the soccer world.
Richard Scudamore, Premier League Chief Executive, announced Tuesday that Sky Broadcasting and BT Sport had won the rights to broadcast live games for the upcoming three years. At a price of $7.8 billion (!) it makes it the second highest TV-deal in the world after the NFL overtaking the MLB. And that’s only for the UK rights, the Premier league still has to negotiate all the international broadcasting rights. Scudamore said that all his focus has been on the UK rights first and foremost and that he now will take a look at the international rights during the rest of the year.
Clubs will now have even more economic muscles to go after the best and most talented players in the world as they’ll be able to pay both higher transfer fees and pay higher wages. It also gives the teams more money to invest in their youth academies and scouting networks in the surrounding ares. As the league goes forward, more and more teams are realizing that they need to invest in the local talent and develop youngsters into first team players.
“The clubs are absolutely committed, totally committed to this idea of youth development, of developing the best talent,” Scudamore told the Independent. “A huge majority of academy players will be English. This deal allows these things to carry on being invested in.”
Just to give you an idea of just how strong economically the Premier League is, Scudamore said in a press conference that Burnley, the smallest club in the Premier League, has bigger economic muscles that Ajax, who has been dominant in the Dutch league for a number of years and regularly features in the Champions League.
According to sportingintelligence.com, the bottom-placed club will get around $151 million under the new TV agreement, and the winner will receive around $238 million.
With the league is such high demand around the globe, currently the Premier League is being broadcasted in 212 territories, it wouldn’t be surprising if the international right will also see a significant rise in price. Hopefully, this won’t jack up the subscription fees too much for Premier League lovers, but there is concern that prizes might go up.
You would also hope that with so much revenue coming in from the TV side, that clubs can lower the ticket prices slightly to ensure that the stadiums around the league remain packed on match days. Because the last thing the Premier League wants to see if matches being broadcasted throughout the world with half-filled arenas.
So with the coming influx of cash to the Premier League, it will be even more exciting to see what happens in the coming transfer window this summer. Maybe the top clubs such as Chelsea, Man City and Man United can battle the likes of Real Madrid, Barcelona and Bayern Munich for the world-class players along with producing homegrown talents.