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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philvisreturns
18:12 on 13 February, 2015
Your first paragraph is incorrect, it’s Openreach that holds the regulatory obligations.
BT can basically set their own prices, dictating margins, as long as Openreach charge all Communication Providers equivalently.
The main thrust is BT, with their own TV channels need content and providing content at reasonable financial cost balanced against the regulatory environment has to be their aim.
P
A picture was posted on either e tims or celtic underground twitter the other night showing the iron gates at Ibrox.
The words on the gates are Rangers Football Club Ltd. Interesting with regard to the company only being liquidated not the club.
The wording on the gates would indicate what we already know, the club and the company were the one entity.
Richard Wilson : I don’t believe it.
!!Bada Bing!!
as Phil Mac hinted through the week, wee Dickie Wilson is lining up his next job. Shortbread seems to be the development Academy for sevco media…
HH
Pedro,
But they had more than one foot in the grave :)
pod i
Keeping well big mhan?
50 Shades of Green Whyte & Brown
Did that Willie hill guy say even money Sevco ???
15/8 on PP
MM
Whit you doing on here ? :-)
bournesouprecipe 18:41
The funny thing about Sevco wanting Dave King is that his boss was Craigy Whyte.
————–
The thing I find funny is that neither him nor P Murray seem to realise that the old club was being run on a completely unsustainable basis and all their success was built on debt and tax dodges.
There’s all this talk about “getting investment”. Yeah, sure, cos you can’t possibly hope to compete with giants like Raith Rovers and QoS with the limited budget you currently have!
Clogher celt – the smart money’s on Clyde from “Every Which Way But Loose”.
https://i.imgflip.com/hlqep.jpg
(thumbsup)
https://pbs.twimg.com/media/B9p4sEaIYAAexlq.jpg:large
50 Shades of Grey
steadyCSC
Starry plough
Ole Bomber a spokesperson with all the gravitas , dignity and panache of a true blue legend( legned even)))
geordie munro
13:10 on 13 February, 2015
Mullet,
Small correction to your post I wasn’t going to rip up my domestic AWAY ticket application form….I did rip up my Domestic Away Ticket application form. The tickets that were offered for sale,at face value, were the 3 match home package should we we have reached the Champions League group stages
As it is I have the opportunity to be considered for tickets for away cup ties, domestic and european, on an individual basis. The ticket for Milan away was successfully applied for and passed onto a family member
If the point of your petty post was to ingratiate yourself with some of your fellow bloggers good luck to you.
Pedro
7/5 Hibs as favs
Bada
He’s fit and proper, a convicted tax evader. Craigy Whyte didn’t sack him as he was too busy sacking everybody else.
He’ll sink Sevco if they are still around, there’s no way out of Zombieness.
PC67
nothing on Twitter
MM,
As pedro says, what you doing on?
I’m great thanks, don’t post as much, have the occasional blast…
Hope you and the family are all well
P
“I watched Daly against Raith Rovers and he didn’t do a very lot”
G Dee-el
Good grief!
Pf
I know, when was the last time a team outside Celtic or a European team ( no laughing at the back ) were favourites at the stadium that John brown played for?
Since everyone else asks….
Looking to rent a place with a pool anywhere in France summertime.
Anyone have a recommendation please?
P
GlassTwoThirds
They’ve scraped the bottom ‘off’ the barrel.
pod i
Still lurk every day, but nothing worthwhile to add to the shenanigans you read here. Leave it to the “experts”.
All well here.
MM
Don’t think you’ll have long to wait on the ole twitterati wi the bomber’s speech comin up.
pod i – Your first paragraph is incorrect, it’s Openreach that holds the regulatory obligations.
Whit?
No. Ofcom is the regulator. Openreach is the division BT was forced to set up at arms-length to ensure its competitors have equal access to the BT network.
BT can basically set their own prices, dictating margins, as long as Openreach charge all Communication Providers equivalently.
By law, BT is forced to put phone lines into every remote croft or farmhouse in the UK that wants one, and then provide engineers to service those lines and their local exchanges. Its competitors don’t have that burden, they can pick and choose where they want to provide LLU services or simply resell BT’s own network where it isn’t profitable to install their own kit. (thumbsup)
Pedro/MM,
Was thinking of you the other day.
I’ve booked Aberdour for our outing this year, enjoyed our day last time.
Here’s hoping I’m a winner this year though!
P
https://pbs.twimg.com/media/B9rM6TGIcAA5HuR.jpg:large
King and Murray are on dictionary corner…
HH
Pod I
You tried Charles of Normandy, he’s got horses for the weans ;-)
Roy Croppie 18:48
Seems strange. Why would he pay him to be his PR guy when he’s already doing that job for free? Or at least paid for by licence fee payers…..
GlassTwoThirdsFull
Thought that myself but they’ll have plenty volunteers to take his place. Although I suspect he’s been ‘tapped up’ already.
HH
Pod I
Aye that was a good day, apart fae awe the snoring in the motor awe the way home.
midfield maestro .
nice to see you back .is uncle dick still about.
Landed home today from work today to be greeted at the front door by a little two month old puppy called Marnie
A Valentines Day present from the other half
It will break my heart leavin him in the mornin to head to Belfast for the Hootenany
If i get emotional tomorrow after my 13th pint u will know why
B-)
Pod I
Emerald Coast Gites
La Touche
Stayed there about 6 years ago and was very good.
John Brown’s speech to the nation:
https://i.imgflip.com/hlre3.jpg (thumbsup)
Philvis,
Ofcom regulate Openreach to ensure all CPs are treated equally.
Your are correct BT holds the USO which means no-one can be denied telephony service under normal conditions but as long as Openreach charge BT the same price should another CP request same service then Ofcom are satisfied.
Anyway, enough, working week is over, let’s change the subject.
P
There is a big protest at Ibrokes tonight 2,000 angry bears expected to attend plus bomber Brown will be there the current board must be trembling in there boots.I just hope Hibernian can stuff them again tonight. H.H.
HT
Cheers agsin for the tickets. Can we complain about the seats. My wee amigo was not happy that the Firhill Doo has her nest right above it. There was s**** everywhere.
Thanks again HT