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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Paul67 et al
When it comes to broadcasting (and its’ impact on match times etc) the Celtic support are treated with contempt by Sky, BT, the BBC, the SFA, the SPFL and the Celtic Board respectively. Make that absolute contempt. The Sky “deal” alone equates to little more than the ground receipts for one big CL match at Celtic Park. The Inter Milan game will raise not far short of the same amount. Moneywise we do not benefit from the present set-up, and I for one would prefer to pay directly to Celtic FC for as many home games as possible, via an improved Celtic TV but I do not expect that to happen any time soon. Failing that ditch Sky altogether, BT has far more flexibility available for games over the next few years. We owe Sky the precise sum of nothing.
Geordie Munro
17:52 on
13 February, 2015
Weebgfc
You are too young to bet.
But if you weren’t….bet365 looks best. 27/10
——-
Cheers GM – me and Wee BGFC are working on our European Fund :-)
Off to see if any thon on-line bookies have free first-time bets.
HH
BGFC
BuyingMoneyCSC
Dallas Dallas
I too had a soft spot for Sinky, he gave his all. Cruyff actually broke Sinky’s nose that night. I think 2-3 months prior to that game he was playing for Dumbarton, so some step up. I remember him doing a similar man-marking job on Paul Sturrock.
He did tend to get some pelters though…
HH
Hibs -1 is a standout 6/1 with SB(sporting bet?) generally 4/1
Wee Jay – on The Celtic Way
http://www.thefootballlife.co.uk/post/110845474811/a-square-deal-or-a-square-go-the-future-of
On Sky, Media and the future of Scottish Football broadcasting
Weebgfc,
Ignore them odds I gave you. I was given a bum steer by a site. 7/2
Sorry. Good luck :)
https://pbs.twimg.com/media/B8jDekyCIAAw99z.jpg:large
Jock’s testimonial
HH
Paul67 – Excellent article. This is one of the best things I’ve read on CQN since you introduced me to the concept of amortisation.
Is this level of contract affordable by Sky or BT?
Long term? No.
BT is simply parking its tanks on Rupert Murdoch’s lawn.
For the past 15 years or so BT has been sitting on its hands watching Sky, Virgin, and other competitors eat into BT’s traditional bread and butter business of fixed line services. Thanks to Ofcom rules, those competitors get to resell BT’s broadband and phone line infrastructure to BT’s customers at a price point BT – with its public service obligations – can’t match.
Sky has been taking bread out of the mouths of BT shareholders’ children for years.
BT Sport is the empire striking back. (The planned acquisition of EE is another huge deal. BT, after years of conservatism, is on the march in a way we haven’t seen since the heady days immediately post privatisation.)
Look at what BT Sport has achieved in its short time in business – it has doubled the cost of Sky holding on to its flagship TV rights. That’s a couple of billion Sky no longer has to spend on tempting away BT customers.
It’s business by attrition and I love it. J.D. Rockefeller, J.P. Morgan and Genghis Khan would approve.
But it’s not sustainable, because Premier League games just aren’t worth £10m a pop. Sky and BT would have to sell an unfeasible number of subscriptions or broadband lines to make that a viable long-term proposition.
As public limited companies, sooner or later both BT and Sky will have to account to their investors on the wisdom of subsidising the Bentley dealers of Burnley.
But that doesn’t help us. What will help us is offering to help our nouveau riche friends in England spend some of that television money.
Leslie Crowther had the right idea.
(thumbsup)
Winning captains,
I reluctantly voted to give Aberdeen more tickets if they restore our allocation. However let’s not kid ourselves ! Giving them in the region of 7k would turn Parkhead into a hate fest with thier vile songs. Aberdeen,s travelling support have more than their fair share of anti social elements, as past visits have shown.
Unfortunately Football without fans is nothing, but we do have families to consider. Yes give them the tickets, but ensure children and families are kept well away.
HH.
Hibs are favourites with William Hill. That was not the case a few days ago. Maybe they believe that, with Elbows not available, Hibs will be allowed to play football and be more likely to worry the replacement `keeper ( whoever he is).
JJ
Gordon Durie – “Hibs are the best team we have played this season.”
You can feel his pain…
4/1 at skybet. If you ain’t on a sky boycott :)
Roy, you are bang on about Sinky giving his all in games. He did his job in defence or midfield when required.
His tackle when he sorted out Simpson got some roar from the Beach End at Pittodrie.
At the Sporting Lisbon game, he let their speedy right winger know he wasn’t to be messed with in the first few minutes. He played his part in two of our best & memorable European victories against Ajax & Sporting Lisbon.
quickest goalever…? bwll college
.pllayibf ar carnryne..oppositiob took kucj off…passed back to cwntre half who passed back to keeper..he was tying his laces..1-0 4 secs and we hadnt touched the ball..
keeping the faith
18:02 on 13 February, 2015
Hibs -1 is a standout 6/1 with SB(sporting bet?) generally 4/1
…………..
I use Betfair and it’s 5-1 online, easy money :>)
Mon the Boys in Green
Hx2
https://pbs.twimg.com/media/B7L05vyIMAMOGgc.jpg:large
Jinky v Spurs
HH
Good evening friends.
Not a political post.
I was looking at the finances of Ibrox.
Salary of;
Obama £262,168
Cameron £142,500
Merkel, £217,500
Total £622,168.
The above three are world leaders.
Ally McCoist, £750,000 (according to BBC on 15/12/13)
Ally is a failed manager of a 2nd Division, bankrupt club. He is currently gardening somewhere in Glasgow.
Not making a statement, just highlighting the facts.
For the sake of Scottish football I do hope Sevco 2012 put on a reasonable display against the Hibs, if only for the wellbeing of the Zombie no sir ender brigade, cheeky wee monkees that they are :>)
Hx2
mullet and co 2
13:06 on 13 February, 2015
Aye that’s right ya Mantovani where in my post did I indicate that the ticket was for my use
bournesouprecipe
17:17 on 13 February, 2015
….as long as it has been sharpened
clogher celt
18:21 on 13 February, 2015
…………..
Aye but have ye seen the size of his cabbage patch! Green fingers that lad.
:>)
Listening to all this nonsense on sevco ssb would bring a tear to a glass eye, bless them
Clogher celt –
Dave Cameron for Sevco manager.
http://blogs.telegraph.co.uk/news/files/2010/01/plebs1.jpg (thumbsup)
Hibs-1 only 100/30 on Paddy Power …too short
Burgas hoops
13:30 on 13 February, 2015
You quite sure about your post,the ticket which fell through my door (not necessarily for my use) is prezzo €23 for the Anello Blu Terzo Set 313 ingressi 9-10
If you have a ticket in your possession for elsewhere Guid luck tae ye
Paterson has morphed into moonbeams!
Shortbread sevco in full swing tonight deary me
RS is very amusing this weather …mad hurting Huns with no answer to their woes
Hello , no need to ask if many of us will be tuning into the latest edition of The Gong Show tonight, is it on Teuchter TV or BT? Never mind , I will give it a miss, I agree that the lead article tonight is as good a response as we could get to the EPL madness.
The future is not about having an ugly receiver stuck on our houses, incidentally the more you give people , the more they want and then they become sated and uninterested. The EPL is a league that suits itself…..their day will come.
Now getting worried I cannot get a brief for Thursday……work means I am now in Glasgow , will be heading up from Preston on day of match…..any spares?
67 Heaven,Phil,
Cameron would be cheaper, maybe Barrack or Angela?
BT Sport @ 7.45 live-50 Shades of Rage….
….PFayr supports WeeOscar
I’m sure it’ll all be gravy after Bomber speech, we could start having him on TV instead of the Queen when Scotland is independent:))
Dick Wilson said the game’s up for Ashley & Co…….
The funny thing about Sevco wanting Dave King is that his boss was Craigy Whyte.
TheGift CSC
BSR-The total case of amnesia surrounding all things Oldco,Newco, Sevco is staggering. The only constant is blame everyone else….
Bada Bing 18:38
You have to admire his optimism. If not his wisdom…..