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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coneybhoy
interesting, thanks. you clearly know a lot more about this than I do.
Magnificent
Yip no probs.
TBB
:o)
But who did/will Ted beget?
A double for Henderson
Lennybhoy –
thanks. He still has plenty of time to get his pick in.
Mike
Ha, reminds me of going to Filey in 1977 as a kid and meeting an English girl who said Scotland? Do you have TV in Scotland?
TV said I, we invented the thing ya eejit. 8))
France Brazil on council telly….canny whack it…
bgx
I cannae be bothered I’m afraid
Diving cheating pre madonnas ?
Does nothing for me, I’m watching pawn stars, not as bad as it first sounds….;)
Didn’t even know Richard the III had died?
bournesouprecipe
20:13 on
26 March, 2015
Didn’t even know Richard the III had died?
Maybe we will all get the day off work for the funeral
bgx
19:37 on 26 March, 2015
Saw Ian Cathro on stv…..That guy Will be a Proper manager…100% ..No doubt…#Sawitherefirst….
It just goes to show it’s all about opinions, I saw the clip and didn’t take to him at all, he will probably take Real Madrid to Champion’s League glory now that I’ve said that :-)
Matuidi has filled out a bit since Chicken Run
Blantyretim…aint missing much mate…games really poor so far..
enjoy your po/ sorry pawn stars…my fav is Diamond Jackson….but im a bad man..
Colourblindbhoy….Trust me …he will be a TOP manager….
box
It’s American pickers at the mo
Life in the fast lane in ole G72
Building collapse following an explosion in Manhattan.
Árd Macha
Árd Macha
Went to sky news and bcc news24
Nothing on
looks like a gas explosion demolished a building in east manhattan … looks similar to the one in harlem a year ago.
ExSlaemuir
500 years to organise a funeral, no wonder he took the hump.
Just been looking at the polls for the GE in May, tories have nae chance so we must be due a wee war with some poor unsuspecting nation. Usually does the trick
bournesouprecipe FYI
Bosworth Field euph. A messy battle fought on the toilet the morning after a heavy night on the ale and curry.
After a protracted period of unpleasantness, it ends with the death of Richard the Third by drowning.
Courtesy of Roger Mellie’s Profanisaurus
BGX, I thought you were joking but just to be sure, I googled Diamond Jackson, you weren’t joking.
Mon the Hoops Are you sure you are not mixing him up with his cousin Richard the Turd.
See a lot of football fans down south.complaing about the prices of watching football,they are saying that it should be about 20 pounds to watch a match, to true,We the fans could make this happen.for all the billions that get pumped into football,one thing for sure is the fans are getting a raw deal.apart from the clubs,the ones that gaing out of this is them middle class shareholders,as for Joe Bloggs who i might add probaly spend more money on season tickets, which go up every season,along with merchindise ,catering etc while these prawn sandwich mob get the best seats in the house,there catering facilities.are much better, no time for big changes,for the ordinary fans, no for some who have money to be given the 5 star treatment, maybe thats how at our club there isnt one ordinary fan on the Board,bunch of selfish b——-s the lot of them.
Is it richard III or Richard ill cos that would explain the funeral,no?
Why was he buried in a Coe church?
Did they steal that one from us too?
Richard 3? A hivnae even seen the first 2 yet.
A lot of conjecture on hear about this terrible aviation disaster which is understandable. Horrendous experience for everyone involved especially the loved ones left behind.
One set of parents will have the added burden of a son being implicated as being responsible for the deaths of all on board. As I said earlier I will be praying for all the victims and the families.
It is still to early to say for definite what the cause has been, but it would appear from the information available that the evidence is mounting.
I have no knowledge of the co pilot or his family but I cannot begin to imagine the horrors that they will be going through. Regardless of the outcome of the investigation they deserve our sympathy as much as anyone at this time.
theglasgowcelticway ….
I think I and II are on netflix ….
Exslae,
Daft post. Labour would never take us into a war, would they? I look forward to Scotland humping corrupt Scottish Labour.
Mon The Hoops
Imagine it wasn’t really him, and it was just a wee dude handyman?
SomeSendOff CSC
timbhoy2 …………….. 20:35 on 26 March, 2015
Agreed…………… I think!
TBM
timbhoy2
English clubs promise to pay living wage
With all the money they are making it’s about blinkin time
Richard III dead, was he ill?
BT
Richard the Tim.
BSR
Aye,but they where all tims then.
Richard the turd is full of shit………………
TBM
TGCW
Wasn’t it you who, when returning my DVD of 300, asked me did I have the sequel?!