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Football must wait for the financial final act

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Interesting financial news from Deloitte that FA Premier League clubs turned a profit in season 2013-14, the first time the combined results of the top 20 clubs in England have been in the black for 15 years.  The reason for the £190m surplus was a 29% increase in revenue, largely as a result of the-then new TV deal, which runs until summer 2016.  Wages rose only 20% that year.

Clubs will be happy to have stemmed the losses, although the first year of a new TV deal is always their high water mark, but the underlying bubble remains a problem.  Income cannot continue to rise at heady double-digit rates, shareholders of BskyB and BT will eventually see to that, despite the fact that next big boost from TV is already confirmed for season 2016-17.

The play to watch is not if or when a dysfunctional football sector gets its act in order, it’s when an almost-as dysfunctional broadcasting industry reaches equilibrium.  We’ve discussed before Sky’s absolute need for Premier League rights to secure their place as a prime broadcaster.  BT, Virgin, Netflix and others are busy eating into their movie, news and entertainment broadcast market.  It’s this need which is driving revenue towards the English Premier League.  Without English Premier League football, Sky are vulnerable.

Sky took the first step towards passing the financial pain of their new deal down the line to consumers this month in the form of a price increase.  The company have successfully done this before, many low income families are now paying £70 per month for satellite TV, and subscriber losses after previous increases have been almost non-existent.

Millions of people have high stakes skin in this game: subscribers, Sky and BT executives, their respective shareholders, Premier League clubs and the dependent ecosystem below them.  All the spinning plates have remained in the air, despite price increases through a recession, but one fundamental remains:

This is a bubble.

Speculators are confused when they only see a market inflate over a long period that it’s not a bubble.  The moment these TV deals become unaffordable to subscribers, or more likely, to the broadcasters, the bubble will burst.

Debts are high, profitability is here, but the underlying commercial pressures to stay in the league remain, so wage pressure will continue to eat away at available funds.  Those outside of the bonanza have to figure out how to compete for audience and players, while waiting on the final act.

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  1. Paul Paton is innocent until proven guilty……………….even if the bastart dun it.

  2. !!Bada Bing!! on

    ray winstone’s big disembodied heid-

     

    you can bet your bottom dollar,if Paton is guilty,he won’t get any punishment from DU or the SFA

  3. thomthethim for Oscar OK on

    Ray Winstone’s Big Disembodied Heid

     

    15:46 on

     

    26 March, 2015

     

    John Guidetti has a joke at the expense of another club and is being taken to task by the Compliance Officer.

     

     

    Paul Paton is charged with assaulting another club’s player……….and what?

     

     

    ****

     

    One would suspect that after the Courts have their day, the SFA’s “justice” system will kick in with their bespoke Not Proven verdict.

  4. Craigellachie10 on

    Paton’s case is subject to the legal process so the SFA will await completion before taking any action. It is similar with Griff case.

  5. I have already contacted SFA regarding their firm stance against Guidetti.

     

    I have also questioned their lack of action following the disgrace that was Feb 1st.

  6. thomthethim for Oscar OK on

    Newsnow headline.

     

    Paul Paton to stand trial over alleged Celtic goalkeeper assault Dundee Evening Telegraph 15:31

     

     

    ****

     

    I don’t agree that Lukasz is an “alleged” Celtic goalkeeper.

  7. South Of Tunis on

    Serendipity .

     

     

    Wee Italian radio item re the social phenomenon of unemployed Italian youth chain smoking home grown erba whilst watching endless fitba on Sky / Mediaset etc..

     

     

    Ciao Ciao.

  8. If Paton is found not guilty, the Compliance Officer will spring into action and offer a 2 week ban to Zaluska for simulation.

  9. Awe_Naw_No_Annoni_Oan_Anaw_Noo on

    A lot of thinking to be done in the aviation industry.

     

     

    If I have collision prevention assist plus on my Mercedes SLK they should have something like this on an Airbus

     

     

    HH

  10. Moonbeams WD. Wee Oscar’s our Bhoy and Kano’s our mhan. The Vow – Critically Rebuked by 45% of this fine nation.

     

    15:55 on

     

    26 March, 2015

     

    Paul Paton should be standing in the doc with Mark Wilson.

     

    ========

     

    I thought he was a witness.

     

    Have I missed something?

  11. Jungle Jim Hot Smoked on

    When a tragedy such as the George Square bin lorry horror or the recent `plane crash, I feel that natural sorrow that , I believe, all normal, human beings feel. I want to be able to help and I hope that the families of the victims can somehow cope with the immeasurable grief that has suddenly become a part of their lives. I believe that these feelings are shared by many but , and I know some people think some things should never be questioned, I am at a loss as to what hope to be gained by praying.

     

    I am assuming that praying means talking to God and asking him to intervene in some fashion but, as I have indicated, I have no idea of the logistics of this.

     

    I am genuinely sorry if this post offends anyone . In the past, I have refrained from making this kind of comment after any tragic event but if those who believe in prayer as a force for good are comfortable in their belief, then I suppose no offence will be taken from my opposing view.

     

     

    JJ

  12. bournesouprecipe on

    Does the length of time to bring a case to court give an strong indication of the likely outcome, or do we just know anyway?

  13. South Of Tunis

     

    15:41 on

     

    26 March, 2015

     

     

    Suicide – playing the Barbican in June (I think). I’d go if I wasn’t otherwise engaged. They’ve still got it by all accounts.

  14. bournesouprecipe on

    Awe_Naw

     

     

    Oh lord won’t you buy me a Mercedes Benz.(SLK)

     

    My friends all drive porsches, I must make amends.

     

    Worked hard all my lifetime, no help from my friends.

     

    So oh lord won’t you buy me a Mercedes Benz (SLK)

  15. The Battered Bunnet on

    JJ

     

     

    It’s not an opposing view. It’s a different view.

     

     

    It may be an opposite view, though you being the pedant will, I’m sure, sort me out on that point.

  16. Awe_Naw_No_Annoni_Oan_Anaw_Noo

     

     

     

     

    16:08 on

     

     

    26 March, 2015

     

     

     

     

    A lot of thinking to be done in the aviation industry.

     

     

    If I have collision prevention assist plus on my Mercedes SLK they should have something like this on an Airbus

     

     

     

    *and that will stop some poor demented soul from flying into a mountain.

     

     

     

    I worked in the airport industry for years and have been on numerable conventions, conferences and training courses.

     

     

     

    For years planes flew with a Pilot and First Officer aka the Second Pilot (also referred to as the “co-pilot”).

     

     

     

    There were also at times a Second Officer and Third Officer, they have been replaced by “Relief Crew” who normally take up reserved seats in the section closest to the flight deck, or cockpit, depending on the length of the flight.

     

     

     

    On older aircraft, typically between the late-1920s and the 1970s there were also a Flight Engineer and Navigator.

     

     

     

    We all like to have cheap vacations resulting in a continued downsizing in the number of aircrew positions on commercial flights.

     

     

     

    That’s the price we pay, not only are high salaried positions being eliminated but also the cabin size has been decreased which allows for more seating.

     

     

     

    I recall in the very early 80’s being allowed in the cockpit of an Air Canada flight with my wee lassie along with other da’s and their weans. It was massive.

  17. foghorn leghorn on

    does anyone know whats on fire beside airdries ground

     

     

    major flames and huge plumes of black smoke for miles

  18. JJ

     

     

    No offence taken, well not by me anyway.

     

     

    It’s about faith and some have it and some don’t.

  19. bournesouprecipe on

    foghorn

     

     

    Big fire at a Primary School in Petersburn in Airdrie. Hopefully no ones injured and the fire is put out quickly

     

     

    CelticQuickNews CSC

  20. foghorn leghorn

     

     

    16:46 on 26 March, 2015

     

    does anyone know whats on fire beside airdries ground

     

     

    major flames and huge plumes of black smoke for miles

     

     

    —–

     

     

    Just got text. It’s St Dominic’s.

  21. Jungle Jim Hot Smoked

     

     

     

     

    16:31 on

     

     

    26 March, 2015

     

     

    I am genuinely sorry if this post offends anyone . In the past, I have refrained from making this kind of comment after any tragic event but if those who believe in prayer as a force for good are comfortable in their belief, then I suppose no offence will be taken from my opposing view.

     

     

    *I’m not offended and I pray every day, just don’t understand your need to post this.

  22. jessiejames1901 on

    Paul.

     

    I’ve been calling the “better half” honey – pronounced hunny of late.

     

    And she hails from Donegal too.

     

    Please advise.

  23. Jungle Jim

     

     

    Agree with your post 100%, and I am one who believes in the power of prayer but can understand others being sceptical ,particularly following such a horrific event.

     

     

    Perhaps people should reserve judgement until the full facts are known.My thoughts and prayers are with all who lost loved ones. They all deserve our sympathy regardless of the circumstances, l will think of them in my prayers as I am sure you will think of them also in your own way. It matters not how we think of them only that we do.

     

     

    HB

  24. Craigellachie10 on

    I see Lawrence Shankland scored twice for Scotland u21s. Someone mentioned he was on our radar, any truth, as he appears to be quite a prospect?

  25. Awe_Naw_No_Annoni_Oan_Anaw_Noo

     

    16:08 on

     

    26 March, 2015

     

     

    Wouldn’t work on passenger planes. They’re not maneuverable enough. I know that Tornadoes used ground mapping radar for high speed low level flying.

     

     

    I think the distances required for passenger planes in terms of detecting objects and getting out of the way would make them non-functional.

  26. Thunder Road: If you are still about. BMCUWP Passed on my contact details to you so feel free to contact me and I’ll help you whatever way I can

  27. Don’t really want to start a Political debate but I just heard some pundit say that Labour could be practically wiped out in Scotland in May General Election. Seats could be reduced to single figures and possibly as low as 3.

     

    Now I know that they were in some trouble in Scotland but surely not that bad.

  28. west of ireland csc on

    RobertTressell

     

    12:59 on

     

    26 March, 2015

     

    Auldheid

     

     

    12:33 on 26 March, 2015

     

     

    The other side of what might lead to subscriber rebellion on Sky is the quality and competitiveness of the EPL.

     

     

    Strip away the trimmings and many games are poor fare to which the need to stay in the EPL contributes.

     

     

    Newcastle for example have that as their success target.

     

     

    The Sky enticement is killing the product.

     

    =============================================================

     

     

    Maybe it’s the socialist bit of me but the very notion that the beautiful game is a product and is now fully ‘marketised’ has killed a lot of it for me.

     

     

    Even the controversy in football is now part of the marketing. Hence evrythin gets sensationalised and all perspective lost.

     

     

    It’s a sport, a leisure pursuit, at it’s very best an art form and a part of what makes life meaningful outside of doing the things we need to simply survive. It is also at times an expression of communal identity. But it lost a lot of that when the TV marketing men moved in.

     

     

    Bill Hicks was spot on about Marketing people. And I think that’s what’s happened to football in large part. A lot of the natural competitive elements have been lost. Geordies used to realistically dream of getting a manager and palyers in place who could make them potential league champions, the Sheffield Clubs and others should be much better placed without the intervention of the massive money to be forces in English football. And all because the money men went after the ‘soccer dollar’….

     

     

    In my humble opinion.

     

     

    great comments

  29. thought he was a witness.

     

    Have I missed something?

     

     

     

    No Iki your right he is a witness, it’s just that nut sack MWD talking out his arse as usual.

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