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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Sorry…csc
Correction: should have been to Unthank Road
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.
Weallmakemistakescsc
TD,
My mistake, yes I believe they are moving to Westgate the former Hilton where Elvis got his start. Good choice too as I always stay there when in Vegas
Him and Jackie do a great job for the NA guys.
The only reason I asked, was when you posted, I thought you meant the plans had imploded, lol, and I have a connection with Caesar’s
HH
gsu
huge rangers fans gregory campbell mp east derry asked in westminister on 23 march
To ask the Secretary of State for Business, Innovation and Skills, if he will bring forward legislative proposals for regulating the sale of ouija boards.
this in 2015
ffs next thing the dup man will be looking for the reenactment of witchcraft legislation
this is is the mindset we are dealing with
still stuck in 1690 with absolutely no intention of leaving it
above thanks to phil macgillabhain
greensideup-gbwo
NAW, lol, your ok mate it’s all going well I spoke to Jackie today.
Anyone have an email for bmcuwp?
Zaluska brings it on himself obviously!
Melba Moore radio special (it’s awesome): https://soundcloud.com/natasha-kitty-katt-probert/ghetto-disco-melba-moore
It should be interesting in the coming days to see how Paul Payton is treated in the media compared with what John Guidetti has endured.
Although I think we all know how that will go…
BTW, I get the impression that PP is a stick-on to be lining up the huns next season.
“lining up for the huns”, obviously.
clunks
E-mail me and I will mail it to you, even his Moby
lennybhoycfc@gmail.com
Keep the Faith!
Hail Hail!
Paul Paton set to take it on the chin.
We all in our innocence thought that the Sky and cash rich EPL would eventually collapse when the World recession hit but both are still there and continue to thrive better than ever, with even relegated clubs standing to make a 100 million – fantasy stuff.. The downside being that English born players cannot get into the top clubs which is having a negative effect on the International team. I don’t watch soaps or cop shows but I like my sport and documentaries so have both Sky and BT packages.
I’m not sure if this has already been mentioned on the blog but the officials who opened the gates of Murrayfield until all hours to allow thousands of Irish fans back into the ground to watch that fantastic climax to last weekend’s rugby Championship deserve to be congratulated. This was a party to beat all parties.
TD,
Good to hear
HH
gsu
Livornobhoy
Wasn’t being totally serious! Islington got the rep due to the fact that Tony Blair had moved there, Richmond Place I think, from Hackney in fact, not long before the 1997 election. After moving into No.10 they sold the Islington abode, for double the money they had paid for it. Islington was also where Blair and Brown cooked up (well it was a restaurant in Upper Street) the succession to the recently deceased John Smith.
Agree re Jeremy though, sound man, North London’s answer to Dennis Canavan.
Bsr,
Someone should have chinned him last time out
HH
gsu
Bada
STV is the unofficial Sevco TV Channel that only show goals against Celtic. A very different ‘animal’ from STV online news.
Lennybhoy
Cheers, email in your inbox
Clunks
Greensideup
There were some eager in the ole FS at CP at the 4-0 humping ;-)
It’s prob. A case of Black out Paton in rat for rat.
I’m astounded of forehead that Paul Paton is alleged to have assaulted big Zaluska. I only know him from his appearances on the premiership pitches of Scotland and to me he appears to play in the Corinthian spirit. He seems to be unlucky in that he gets caught up in the odd ‘stramash’ and I’m sure that’s all that’s happened in the lane…
ayerightCSC
The Unseen Fenian Handlebar
I don’t think Rangers will win promotion to the SPFL next season and I think John Guidetti will eventually pen a deal with Celtic.
clunks
Sent you a text, tell him I’ll see him Saturday. Will also e-mail you.
Keep the Faith!
Hail Hail!
If you haven’t voted already can you head over to http://www.cqnmagazine.com and vote for the CQN Player of the Year…
Bournesouprecipe………….I saw him at the Cup final with Rod Stewart.
I’d like to see ole Dermot look King straight in the eye…
missionimpossibleCSC
hankray
I concur.
Sevco got the debt and Celtic… Guidetti.
Surprised Jason Denayer only 1 vote so far.
The small and medium-sized clubs in the EPL will be getting 75 per cent or more of their income from TV next season. My home-town club, Stoke, project 83 per cent of their income will come from TV (ticket prices frozen for seven years, some season tickets available for less than £300). If Bournemouth reach the EPL they’ll get 90 per cent of their income from TV.
The question arises – who actually runs football clubs and leagues when one or two, literally one or two, companies supply the money that keeps the whole thing going?
hankray
An unseen handlebarred handsome fenian billionaire bar steward that he is.(⊙_⊙)
France v Brazil ITV4 @ 7.45
Brooney suspended for Partick Thistle game on April 8th.
hankray
Your red top jargon is about 2 years out of date.
You must surely know that players “ink” deals noo, not “pen” them.
EG. I inked a new Sky contract.
Ruperts CSC
Re the co pilot on the German plane , he’ll be judged by God and God alone just like the rest of us when our day comes. Tradgedy
RWE…………..I gotcha
exslaemuirbhoy
18:58 on 26 March, 2015
Re the co pilot on the German plane , he’ll be judged by God and God alone just like the rest of us when our day comes. Tradgedy
Not looking for an argument, over a very serious subject, with much of the details unknown, would you be as philosophical if he murdered one of your family mate.?HH
RWE…….
>03:00 a.m. here and I am still checking flights whilst lurking………..
TBM
winning captains,
Vote cast.
I’ll be glad to see the back of that David Cameron.
Árd Macha