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EPL TV deal: a way forward for Celtic

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By on CQN BLOG & Comments

Some thoughts to the 70% increase in English Premier League TV income:

Our financial strategy

Stop feeling sorry for ourselves.  We are not part of the easy-money league, so instead of complaining about Burnley’s financial strength, exploit the massive inefficiencies in England.  Lazy recruitment strategies, unscientific risk-taking and chronic managerial processes put a lot of money on the table for those who know how to run a football club properly.

If your forward business model involves selling players, better to be close to a rich, lazy, unscientific and chronic league.

Player values

After the last increase in TV income in England was announced transfer fees appreciated markedly, even before the increase came into effect.  Forgive the impersonal language, but player commodities are more valuable this week than they were last week, not just in England, but in Scotland and everywhere else.

The goalkeeper we sold for £10m last summer would command a higher fee, if we sold him next summer.  A player we ‘hoped’ to earn £7m from selling should now have his target value adjusted to £10m.

More than ever, it is important to manage playing assets.  Buy assets with development potential, hoard their registrations if necessary – Benfica employ and loan-out players to top leagues who would easily get into their first team.  It helps build the player’s value, which helps build Benfica.

Player trading velocity

If player trading is important going forward, my hunch is that trading velocity should increase.  To do this properly, it is absolutely crucial we invest more in the scouting process.  Scouting and recruitment is as important to the club as tactics and team selection.  Resource it accordingly.

SPFL TV deal

I’ve read lots about what we should do next in Scotland with regards to our TV deal, some ideas have merit, some not.  What is perfectly clear is that the current deal is practically worthless.  We must change.  The potential downside is almost immaterial, as we’re starting from such a low point.

Bin SKY and BT, go it alone, or get one of the new media players involved, or better still, collaborate with the Dutch league, which has its own TV channel, have learned some lessons, have many of our challenges, and would benefit from the fresh content we could provide.  There are more leagues in Europe with exactly the same challenges, if a pan-European league is a step too far, a collaborative TV infrastructure is a good start.

In football TV terms, we are the Straw Man, with nothing to lose.  Lead a path away from Sky and BT, educate fans on how to link up with Virgin, Amazon or an equivalent, do something genuinely radical.

The Bubble

It’s a bubble.  Just because the English TV market has not burst, doesn’t mean it’s not going to. Ask yourself a few questions:

Is this level of contract affordable by Sky or BT?

Will this new cash make the downside of relegation from the EPL any easier?

Will this cash make EPL clubs any more likely to change their business model, specifically, will they be more likely to spend less because they no longer fear relegation?

No, no and no.  The downside of relegation from the EPL will become more onerous and clubs will fear relegation more.

Sky are enjoying enormous market power but the entrance into the market of Amazon Prime, Netflix and others, while the offerings from Virgin and BT have matured, leaves Sky open to competition in the TV and film market in the future which they have never experienced before.

You no longer need Sky to watch multi-channel TV, round-the-clock news, recent or legacy films.  Their failure to maintain future Champions League rights, together with the fact that they are legislated out of the World Cup and European Championship rights, reduces their assets down to one lucrative prize: English Premier League football.

English Premier League football is the asset they are betting the farm on.  They need this and as long as the ‘farm’ exists in the form of a nation uniformly consuming TV through them, they will pay whatever they can to retain these rights.

BT are in the process of buying market share.  They are vastly better funded than Sky and need a strategic place going forward (which traditionally telephony isn’t).

It’s not a case of if Sky’s ability or desire to pay changes but when.  Then the bubble will burst, then football will plunge into a reverse gear.

Until then, we play the system.

Busy week for CQN11 St Patrick’s Dinner bookings (Friday 13 March, Kerrydale Suite, Celtic Park).  Email me for booking details, celticquicknews@gmail.com

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  3. 50 shades of green on

    Evening folks.

     

     

    What’s with a they folk ripping the mince oot ma wee moniker? ?:-).

     

     

     

    Someone once said football without fans is nothing. Nothing has just started on BT sports then.

  8. Jobo Baldie on

    Did I mention that McBookie have an ‘impossible to lose’ offer on tonight’s football fest? Bet £5 on any market in the Hibs game and if it loses you get your stake back, in cash! No brainer.

     

     

    Hibs at -2 at odds of 9/1.

     

     

    £50upbutnothingtoloseCSC

  19. foghorn leghorn on

    DeniaBhoy

     

    19:42 on

     

    13 February, 2015

     

     

    Thought I’d see the Hibees on the old VIP service but nothing there.

     

    ——-

     

     

    yes it is, though to be fair its more of a ‘league’ now than a ‘box’ if you get my drift, though i got forwarded automatically to said ‘league’ from my ‘box’

  26. Chairbhoy on

    Hi Paul67,

     

     

    Interesting piece, would certainly agree with most of it.

     

     

    Especially the assertion the bubble could bust – Although the headline figure is a 70% increase in English Premier League TV income or averaging more than £10Million per game.

     

     

    BT are paying an average 7.6Million per game up from 6.5Million – a 15% increase.

     

     

    The huge hike is coming from Sky. After the loss of UCL rights BSkyB’s business model would have been kapoot if they lost the FAPL rights, they had to bid way over the top and will have to change their business model for the2020 rights.

     

     

    If the premier league Clubs are smart they would be paying down their huge borrowings, hoarding money for a rainy day and putting in place a sustainable business plan, based on a reduction next time round.

     

     

    Of course what is going to happen is the money will be spent on agents, players and selling Clubs.

     

     

    Which bring me to a dilema, of course selling the likes of Ki Su Yung, Wanyama and Foster to the Premier League has brought some much needed income into Celtic. But at what price.

     

     

    The diamond in the rough strategy has had mixed results, we’ve had a whole squad of imposters and crocks that have to be treated, trained, developed etc, etc……

     

     

    This in my opinion has been to the detriment of our first team and UCL ambitions. If we can find away to sell on players to England on a regular basis who have made a good first team contribution to Celtic so be it, but the projects and prospects has to stop.

     

     

    We had a good transfer window, and if we loose the likes of GMS and Armstrong when they reach their peak in a few years time for megsbucks well then that’s the nature of the UK Football business for us. But bringing in a dozen players a season hoping a few make it has been a waste of valuable resources.

     

     

    Get or Coaches, Physios, Mentors and Doctors concentrating first team and genuine development team player. The players that produce on the pitch for the Celtic First team, will be spirited away for a barrowload of cash after making a valuable contribution to Celtic.

     

     

    As far as the SPFL TV rights are concerned, an organisation who can’t produce a sponsor and re-align’s it’s structure and TV deal to assist a new Club is not an organisation that can maximise 21st Century Media rights.

     

     

    Hail Hail

  27. pedrocaravanachio67 on

    Wee curry & beer night in the town of John, hopefully gettin a wee crew together, BMCUWP’s, up so put the word oot, hoping Catman, Saltires, Murdochauldandhay and others are going to be there…..would be good if ye could join us.

     

    Catman was hoping st stivs would dust off his passport and make an appearance.

  34. Speyside Lhad on

    evening all

     

     

    got £6 (all the change left in my pocket after Valentines shopping) on the the hibbies -2 with Ladbrokes @ 9/1

     

     

    any winnings will be split 50/50 on 2-0 and 3-0 the Hoops tmrw

  36. midfield maestro on

    Favourite Uncle

     

     

    Just sent text to Dick. Bookies surname, start with O, end with R, Christian name Jimmy. Is he right?

  37. A Ceiler Gonof Rust on

    A nice wee starter pack from 16 roas, in the form of a flask of Bowmore delivered to me on arrival at Belfast.

     

     

    Very nice, getting tore into it before hitting the toon.

  40. South Of Tunis on

    Glasgow based Hibs pal used to delight in ” that lot chanting about being The Peepul “. He says he will enjoy it even more tonight , if it gets an airing.

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