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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Cathro will only be a manager,if he stands on Fir Park when it’s -4,with a blue BT Sport microfone,wearing a Gloverall
Captain Beefheart
Did thatcher no pull that trick down the falklands in the 80’s ?
Corkcelt…ma man …and you had to google her….Sheltered life man…laughing…
bgx and corker
Im truly astonished that my search engine has been corrupted , honestly had no idea. 8((
Hamiltontim
From last night …Tried calling T.O. Today for ICT away ,said you had to have taken last 15 games to be successful for this game and I had only took 14/15. Nothing doing just now try call back on Monday.
HH
caeser1967
Bada bing…Cathro will be s Top manager round about the time our country is Independent…say…5 years…YES thats about right.
France playing in a Scotland kit. Scotland last night wore a wee lassies summer frock design kit.
CQN….never heard of DIAMOND JACKSON….im in shock.
Richard the third spoonerism
A shroe, a shroe, my dingkom for a shroe
Where did Billy Bhoy 05 go to anyway?
TheBarca
So he died on the throne?
Belated thoughts on today’s headline
We’ve been waiting for the satellite bubble to burst for years, when it hasn’t burst, it has got bigger.
I suspect there may be a window emerging when the SPFL’s hand will strengthen.
The last time there’s was no Scottish football on satellite TV, and a deal was brokered, there was a lot of PR stuff about wanting to support Scottish football.
On the street, the word was that commercial premises many of whom are paying £1000+ per month for satellite TV were dumping it because there was no Scottish football.
( Do the maths on how many pubs at £12k a year it takes to recover the cost of £15/18m to the SPFL)
With the recent EPL renewals, SKY had to win the broadcasting rights.
If they didn’t, their entire business proposition carried a big risk, and so they paid what they had to.
Budgeted in those numbers will be commercial and domestic subscribers from Scotland.
If the satellite TV Cos don’t have their Scottish subscribers, their model is at risk., and this is the opportunity for the SPFL – it’s called hard negotiation, and either the satellite channels pay us a fair sum, or we walk away.
Personally, I would walk away, and look to the BBC.
At a national level their sports broadcasting is excellent , and over the years they have done a great job of promoting sports like rugby, F1 and getting excellent viewing figures.
I would look to a partnership with the BBC at a national level.
Give them broadcasting access for free, on the proviso we get 7/8 games on national prime time, a weekly game on BBC 3 or 4, weekly highlights, and then make money from advertisers, sponsors, who are getting full national visibility.
ffs a just googled Diamond Jackson with the wife looking over ma shoulder, cheers bhoys
Exslaemuirbhoy
I think it was the Junta that pulled that one and might be at it again. Leasing warplanes from Russia for beef.
Russians now saying Falklands vote is like Crimea. We are sending more kit down there.
All getting a bit silly
Come on, help a man with a few sheckles for his court appearance:
If you can help then make a donation via Paypal – http://tinyurl.com/FF-SDLegal
I bought a single share in Sports Direct International and then I requested a copy of their share register. Their company secretary then wrote asking why I wanted the register and I explained thus:-
Mr Cameron Olsen, The Company Secretary, Sports Direct International, Monday 16 February 2015
Dear Mr Olsen, Thank you for your letter of the 9th February requesting me to explain the purpose of my request to obtain the shareholders register. As you will be aware, Section 116 of the Companies Act enables a shareholder to request a copy of the company’s register of members where this constitutes a proper purpose. As a shareholder I am concerned over the bad publicity the company has been receiving over its use of zero hours contracts and the retail agreements in place with RIFC plc which have also caused a large amount of detrimental publicity which may damage the share price.
I wish to canvass my fellow shareholders as to whether they would be willing to support resolutions to end the use of zero hours contracts and to review the terms of the retail agreements with RIFC plc to ensure that these generate sales revenue that benefits shareholders; rather than the current agreements which whilst appearing to be favourable are generating low sales volumes due to the level of hostility amongst the public to what are viewed as unfair terms.
I look forward to receiving the register so that I can canvass my fellow shareholders to ensure that we are able to ensure that the business does not continue to be involved in contracts which damage the long term interests of shareholders.
Regarding the requested fee of £65, my understanding is that as a member of the company, under Section 116, that this information should be available for free. I have laid out the appropriate section below:
Section 116
Rights to inspect and require copies
(1)The register and the index of members’ names must be open to the
inspection— .
(a)of any member of the company without charge, and .
If my understanding is incorrect, or the company feels this is too great a financial encumbrance, then I will, of course, send a cheque subject to your advice.
I would prefer the copy of the register to be in electronic form.
Yours sincerely,
MARK DINGWALL
The same day Sport Direct lawyers made an application to the Companies Court in London seeking the following –
1/ That the Claimant shall not comply with the request of Mr Mark DIngwall by letter dated 3 February 2015 for a a copy of the Claimant’s register of members.
2/ That they “shall not comply with any future request (whether made by Mark Dingwall or any other person) to inspect the Claimant’s register of members or for a copy of that register where the only purpose given for the request is to enable members to be contacted, without identifying the subject matter and purpose of such contact:
3/ Mark Dingwall do pay the Claimant’s costs, such costs to be assessed if not agreed.
The hearing is set for 11.30 on 14th April.
I can understand a company not wishing to hand out it’s share register willy-nilly but the principle is that sensible shareholders dis-satisfied with the performance of a company should be able to seek out other shareholders and canvass their opinions. In my original request I undertook not to share the register with anyone else and not to contact the shareholders regarding anything other than the company’s affairs.
By moving to strike out my request; and specifically to set the precedent that neither I nor any other shareholder can in the future obtain a copy of the register; Sports Direct are seeking to remove one vital right whereby shareholders can seek to enforce their rights by lobbying other investors in the company.
I have had some free advice so far but with the 14th April looming I think engaging a lawyer would be the sensible way to go. FF.com exists on a hand to mouth basis – we have no rich and mysterious backers nor plentiful sources of income. If we can settle outside of court or are otherwise successful then the balance will, of course, be donated to charitable causes after consultation with the donors.
Well there was a King, a death and a car park…..oh wait, that’s part of the Sevco story.
The Royal family should be given a parking ticket for the 503 years he was in that parking space.
That’d sort out the the NHS budget.
bgx
20:54 on 26 March, 2015Bada bing…Cathro will be s Top manager round about the time our country is Independent…say…5 years…YES thats about right.
i think you may be getting me mixed up with the politicos on here mate..
Diamond Jackson???
Airdrie player???
Richard the Third…this is true…i saw a guy, in his 60’s on tv say that watching the burial of Richard the third was the most Exciting day of his LIFE..he said that…I mean Really…i wish i had his email..
Id Diamond Jackson his Ass..
poor guy…
Delanys Dunkey…Naw mate ..
Shes s bird from Whitecrook..
HT
I’ve still got it and it’s a con, I’ve only counted 294 Spartans..
Paxman loving this…
bournesouprecipe
20:13 on 26 March, 2015
Didn’t even know Richard the III had died
******
Didn’t even know he was ill. Nobody tells me anything.
Bada bing…im sorry…i did..
caeser1967
Sounds harsh. If no joy on Monday give me a shout mate.
In the news today…………
Dick Gough the turd………..
A Sfedash, Sud Effrrikan, majestic, captain of Scoddland that…………….
John Guidette would launch into the Serengeti………
cos the huns are deid……..
he’s a Super Swede and the huns are deid…….
walking in Guidetti wonderland…………..
..
Regards & Hail Hail
TBM
Coneybhoy
I was 15 back then, probably blamed thatch for everything back then… wait a minute, I still do .
syd negakev,
Excellent:-)
Árd Macha
TGCW
You’re grand, the sequel is called 306!
Hamiltontim
Appreciate that mate, hope not to bug you tho. Had the cheek to miss the Rossco game in January as working away.
Diamond Jackson is now an officially a REBEL…all those in agreement raise your, ahem, Hands….me me me…
bgx
21:05 on 26 March, 2015Bada bing…im sorry…i did..
no bother mate……i am actually watching Paxo stuff Cameron
which kind of defeats my reply to you……:)
Paxmans goooood
BGX
Cool name for a Crazy Braesy burd! :)
If any Huns are lurking CQN’s love affair with Diamond Jackson will be headlines tomorrow.
Broken welfare system eh? The only thing that they think is broken about the welfare system is the fact we have one in the first place.
Bada bing…im recruiting for the DIAMOND JACKSON CSC…when you finish with paxman..feel free to join…