By Paul O'Sullivan
Details of the allocation of TV revenues among Premier League clubs for the 2013-2014 season just finished were released recently (see here and here) and there were some interesting outcomes. Liverpool did top this table. Despite finishing last, Cardiff earned more this season than Man Utd did as champions last year.
Of course, comparing 2013-14 to 2012-13 is not keeping ‘all else equal’. The season just finished was the first one under the new Sky-BT domestic TV rights deal which was worth far more than the previous TV deal (£3.02bn as opposed to £1.77bn.). Consequently, the amount of money distributed within a season increased from £0.97bn to £1.56bn. In terms of how the Sky-BT money is distributed, 50% is distributed equally while 25% is allocated depending to both finishing position and the number of appearances in a live game. Overseas TV income is divided equally among the clubs. Liverpool earned almost 60% more than Cardiff.
Of course, comparing 2013-14 to 2012-13 is not keeping ‘all else equal’. The season just finished was the first one under the new Sky-BT domestic TV rights deal which was worth far more than the previous TV deal (£3.02bn as opposed to £1.77bn.). Consequently, the amount of money distributed within a season increased from £0.97bn to £1.56bn. In terms of how the Sky-BT money is distributed, 50% is distributed equally while 25% is allocated depending to both finishing position and the number of appearances in a live game. Overseas TV income is divided equally among the clubs. Liverpool earned almost 60% more than Cardiff.
What is interesting about the increased revenue of all clubs is how it may affect the likelihood of the relegated clubs (Cardiff, Fulham and Norwich) being promoted back to the Premier League from next year’s Championship. While 2013’s bottom team QPR (currently awaiting the play-off final for the last promotion place) received £39.7m in TV revenue, Cardiff received a whopping £62.1m, an increase of over 56%. Similarly, Fulham and Norwich received around 58% more than Reading and Wigan did last year. This must surely put the relegated clubs at a huge advantage in terms of competing for promotion.
This increased advantage will be exacerbated by the relegated clubs now receiving much higher ‘parachute’payments of £59m over four years (see here). While Championship clubs receive ‘solidarity’payments from the Premier league, these are dwarfed by the former.
The ‘yo-yo’ effect may be about to get stronger.
This increased advantage will be exacerbated by the relegated clubs now receiving much higher ‘parachute’payments of £59m over four years (see here). While Championship clubs receive ‘solidarity’payments from the Premier league, these are dwarfed by the former.
The ‘yo-yo’ effect may be about to get stronger.
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