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. corkcelt

     

    17:06 on

     

    26 March, 2015

     

     

    Yep. That bad. It won’t be as low as 3. Low double figures I think. Lots of people are very hacked off with eg them voting for further austerity alongside the tories. The vote for SNP = vote for Tories rhetoric instead of actually saying why we should vote Labour – combined with the fact that Scotland voted for Labour last time (in greater numbers than returned a Labour Govt) and ended up with the Tories anyway.

     

     

    Also Westminster seem to have forgotten that minority govt was the norm up here until recently and most agreed that it worked very well and proper democratic decisions were made.

     

     

    It’s going to be the most interesting GE for many a year.

  2. jungle jim hot smoked

     

     

     

    Prayer can console, comfort (in great measure), appease, curry favour.

     

     

    For the material, tangible world – God is not an interventionist.

  3. Jungle Jim Hot Smoked on

    BT,TBB,TT, HT and HB,

     

    Four very different responses united by a common factor. Decency.

     

    Well done, chaps .

     

    Cheerio for now.

     

    JJ

  4. weeminger Thanks for that, had zero interest in British General Election up to this, will keep an eye to the Scottish Polls at least from now on.

  5. Jungle Jim Hot Smoked on

    Henke

     

    Thanks for your response.

     

    Maybe we will have an opportunity to discuss one day.

     

    Definite cheerio now,

     

    JJ

  6. corkcelt

     

     

    The polls have consistently shown, that the SNP could win over 50 seats in the General Election. That is out of 59. Labour currently has 41 seats and the SNP is the main challenger in virtually everyone of those constituencies. The Tories only have one MP in Scotland so do not have a lot to lose there. Lib-Dems have eleven and will do well to retain half of them. As for Ed Miliband, well without the Scottish MPs I cannot possibly see how Labour can achieve a majority, 326 of 650 and form a government in its’ own right.

  7. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    ALMORE

     

     

    Ever the gentleman!

     

     

    UNTHANK ROAD,though. Not THUNDER ROAD.

     

     

    One’s a great song and the other’s a great singer!!

  8. whitedoghunch on

    west of ireland csc

     

     

    I have a photo of Bill Hicks standing outside Celtic Park

  9. South Of Tunis on

    weeminger.

     

     

    Suicide

     

     

    Thanks for the heads up re The Barbican date. I can’ t go.My son is going – think The Boredoms / Terry Riley are also on the bill.

  10. scottishleaf

     

    17:13 on

     

    26 March, 2015

     

    McGowans Appeal rejected

     

    ===========

     

    Izzy and Guidetti got yellows arising from that incident and all they did was point and accuse !

  11. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    CELTIC MAC

     

     

    Correct. No majority possible in reality without a large number of Scottish seats.

     

     

    I blame North London for the current state of Labour,rather than Scots for deserting them.

  12. Criag Gordon POTY for me.

     

     

    Never seen a player resurrect a career from scratch like that to get back to the top.

     

     

    Admirable.

  13. South of Tunis – they are. I’m away for The Boredoms too. Really annoyed. They’re amazing live.

  14. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    BURGAS HOOPS

     

     

    I feel so sorry for any group which has the likes of RST as its proclaimed leaders.

  15. BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS

     

     

    A Hun board member fully paid up for life to these no-marks, the mind just boggles mate ……………………..honestly !

  16. 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

     

    —–

     

    As has been said it’s St Dominicc in Petersburn Airdrie

     

    If the photos are anything to go by it’s a bad one in terms of damage to building.

  17. Celtic Mac at 17:42

     

     

    Islington?

     

     

    I don’t think so. We’ll certainly not Islington North where Jeremy Corbyn is MP.

     

     

    A good socialist who has nothing to do with the demise of Labour.

  18. BH

     

     

    I always wonder why any CFC fan even tries to engage with any of the vermin from the dark side of town!

     

    The peepul will never accept any responsibility for anything -instead they prefer to attack everything that we stand for

     

    I’m firmly of the opinion that we should have tramped down the dirt on them when the old Huns died

     

    A simple statement saying we noted their demise would have put all this same team crap to bed -for our support at least!

     

     

    HH

  19. west of ireland csc on

    whitedoghunch

     

    17:28 on

     

    26 March, 2015

     

    west of ireland csc

     

     

    I have a photo of Bill Hicks standing outside Celtic Park

     

     

    could you upload the photo onto the blog??????

     

    would be brilliant if you could

  20. greensideup-gbwo

     

    No no, he is going down next week to sort it all, there are no problems, just a lot of work moving everyone from The Riviera to the New Hotel just up the road. As the Riviera is being imploded in May.

  21. lubo of the lamp on

    Jungle Jim Hot Smoked – 16:31

     

     

    “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.”

     

     

    No offense taken but since Jesus tells us to pray then I do it (or try to remember too anyways), same as if He asked me to jump I’d ask how high, or that I was to start supporting The Rangers I’d, er, have to pray about it, a lot… :o)

     

     

    Find prayer brings comfort and hope when both are conspicuous by their absence, specially when the night is dark and stormy and I am far from home.

     

     

    John 15:7

     

    If you abide in me, and my words abide in you, ask whatever you wish, and it will be done for you.

     

     

    Philippians 4:6

     

    Do not be anxious about anything, but in everything by prayer and supplication with thanksgiving let your requests be made known to God.

     

     

    Mark 11:24

     

    Therefore I tell you, whatever you ask in prayer, believe that you have received it, and it will be yours.

     

     

    1 Thessalonians 5:17

     

    Pray without ceasing

     

     

    Luke 11:9

     

    And I tell you, ask, and it will be given to you; seek, and you will find; knock, and it will be opened to you.

     

     

    Matthew 6:6

     

    But when you pray, go into your room and shut the door and pray to your Father who is in secret. And your Father who sees in secret will reward you.

  22. croppybhoy

     

    17:59 on

     

    26 March, 2015

     

    BH

     

     

    I always wonder why any CFC fan even tries to engage with any of the vermin from the dark side of town!

     

     

    ————————

     

     

    I blame mixed marriages croppy -)

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