Football rights, an oligopoly working with a closed shop

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What’s the value of the Scottish Professional League sponsorship package?  It’s whatever the highest bidder is prepared to pay for it.  £4m from Ladbrokes over two years is, therefore, a true value.  It’s down on the previous SPL deal, which was £2m from Clydesdale Bank, as it includes rights to the lower leagues, but this reflects variations in market and product conditions since that deal was signed.

The SPFL chose to go without a sponsor rather than significantly reduce their asking price, believing that it would be difficult to up-bid from a lower position than wait on the market returning to a position closer to the expected value.  As we don’t know what offers they received two years ago, and we’ll never know what subsequent value would have been received, there’s no point even trying to judge that decision.  The most we can say is that despite worries in some places of Armageddon, clearly member clubs believed they had enough in the tank to ride out some years without sponsorship money.

Everything is for sale (Ibrox naming rights for £1, anyone?), but you only take low value deals when you’re in a low value starting position – and there’s no point making moral ‘right or wrong’ judgements about people who make decisions from a poor starting position.

Unlike Scottish football’s broadcast deals, the values of which are determined by an oligopoly, league, shirt and stadium sponsorship is open to a very wide number of potential partners.

The real focus of our angst, should be against the behemoth who own the majority of football TV rights, pays a huge premium for the rights which are critical to its business, while exploiting the large barriers to entry to pay a pittance for Scottish football.

As TV consumers we pay some of the highest subscriber rates in the world as we are part of a very valuable TV market.  Our football clubs operate within the boundaries of this TV market but are excluded from competing in the lucrative section of that market by a closed shop.

An oligopoly working with a closed shop to the detriment of some competitors within the EU.  I cannot believe this is legal.

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  1. Geordie Munro on

    Ps.

     

     

    I’d happily pay a monthly premium to watch/support a spfl/celtic channel

     

     

    HH

  2. Clashcitybhoy on

    F.a.b. Virgil at 13.56

     

    I suspect that proportionately more folks in Scotland / head of poulation subscibe to satellite TV than elswehere in UK.

     

    ( The satellite TV Cos dont release that data,for obvious reasons)

     

    One of the big money earners is commercial premises, where the norm is £1500 / month.

     

    A few years back, when Setanta went bust, and Scottish football wasn’t on TV, then commercial premises started to cancel their satellite subscriptions.

     

    The satellite Cos had just forked out on another big hike in EPL fees, and hey ho, within a few weeks the satellite TV Cos were back at the negotiation table,,albeit we got a poor deal.

     

    Imho, the Scottish subscriber , subsidises the EPL, and IfScottish footballl authorities ( and fans) had held their nerve, for another 2/3 months, they would have got a much better deal.

  3. ernie lynch

     

     

    The world is a very small place these days. People travel, explore and minds are expanded. Embrace new things sir. It probably won’t kill you.

  4. tonydonnelly67

     

     

    14:05 on 14 May, 2015

     

     

    ‘Yet the picture we publish today on page two shows two PCs in Stirling carrying handguns as they go to Waitrose to to buy lunch.

     

     

    This is not what the Scottish public want to see.’

     

     

    ###

     

     

    Damned right it’s not what we want to see.

     

     

    They should stick to Dunkin Donuts or KFC.

  5. South Of Tunis on

    Afternoon visit from the Inter mad old codger from down the valley – awfy concerned that Rube might just do it .

     

     

    He told me that the Italian for Oligopoly is – oligopolio.and opined that Italy is an oligopoly and that Italian football was an oligopoly but was now a monopoly and would be even more so if the ladri bastardi get lucky v Barca.

  6. Clashcitybhoy

     

     

    The price of a pint is ridiculous because amongst other things pubs have to pay for Sky Sports and have to supply beer garden materials due to the smoking ban.

     

    It’s a crazy auld world.

     

     

    LB

  7. beatbhoy

     

     

    14:07 on 14 May, 2015

     

     

    My favourite line from Minder.

     

     

    Terry McCann ‘You can tell what God thinks of money by the people he gives it to’.

  8. ernie lynch

     

     

    I am still in shock that there is a Waitrose in Stirling!

     

     

    LB

  9. Here’s the rub on 13/14 the average number of viewers per EPL game on SKY was 1.2M, on BT Sport it was 560k.

     

     

    SPL figures are harder to come by but I saw some on KDS for season 12/13 the average number or viewers per game was 73.5k.

     

     

    That would the per match fee at around 700k that would equate to £38.5M/season based on 55 Scottish Premiership games. It excludes the 15 RIFC games and the 16 shown by ALBA from the lower leagues.

     

     

    I believe the current deal is about £15M for the whole package. Around 1/4 to 1/3 of what it should be, based (very roughly) on viewing figures.

  10. SoT

     

     

    I thought they got lucky last night when James was booked for getting assaulted by Vidal in the penalty area. Clear penalty, and maybe a red card.

     

     

    I can’t see Juve keeping 11 men on the park against Barca, although they might bait Suarez and try to get him to bite.

  11. ernie lynch

     

     

    I used to work at the Prudential out there and went up the Raploch regularly for lunch. It was alright up there but doubt a Waitrose would fit in. Was in one of them once years ago and didn;t see the fuss to be honest. Reminded me of M&S foodhall. When it comes to scran the cheaper the better for me.

     

     

    LB

  12. beatbhoy

     

     

    Suarez is the key in that side. Very clever and dangerous player. Saw Messi and Neymar a few times and looked like they could not play together. Suarez has proved to be the missing link.

     

    Barcelona sort out their defence and make a couple of key signings in midfield and at CB and they will dominate in Europe and at home for another 3 or 4 years as the front 3 are that special.

     

     

    LB

  13. So my question is – why aren’t Doncaster et al going in with average viewing figures and saying this is what you pay for x EPL viewers so therefore each viewer is worth £y.

     

     

    We average 73.5k viewers so we’ll start negotiations at 73.5k X £y.

  14. !!Bada Bing!! on

    margaret mcgill

     

     

    13:29 on 14 May, 2015

     

     

    What are the chances of league reconstruction if the Huns don’t get through the play offs?

     

     

    A certainty IMO.Plan B will be good to go if/ when Sevco flop again.

  15. F.A.B. Virgil (WATRC) on

    Big Cup Winners

     

     

    Agree. When I was wee (TV monochrome) I’d be happy to watch MotD as an interest. At School nobody supported an English team unless they were from England originally. They might have a preferred or followed team but that was really just in the way that some people will take Juve or Barca in the CL final.

     

     

    Nowadays, my kids go to school with people who support and follow an English Team and the EPL and ignore Scottish football completely. Sky wall to wall coverage is IMHO largely responsible for that in a way that MotD still can’t impact.

     

     

    I’d go with any option that changes that pattern rather than be funded via the same de’il.

     

     

    SPFL should give the rights to BBC or STV as long as they get prime saturday night coverage, competing slots with EPL for live games and sundry add on products to enhance the coverage and exposure. Top line coverage and tech for a ‘free’ product. MotD should be relegated to the later slot and no England championship.

     

     

    Find the £10m from sky from elsewhere. A fee pay version would need £30k subscribers at £35 a month. That seems very achievable? If premiere sports can do one offs is there a similar charge option you could pick up via freeview platform?

     

     

    Can’t believe the lack of even basic thinking/imagination around some of this from the great ‘administrators’/’business men’ that surround our game.

     

     

    HH

  16. Ernie lynch

     

     

    Ha! Yeah, they share the good lines out, but Mr Cole always delivers them best.

  17. LiviBhoy

     

     

    14:19 on 14 May, 2015

     

     

    ‘ernie lynch

     

     

    I used to work at the Prudential out there ‘

     

     

    ###

     

     

     

    That’s where I would have built the Scottish Parliament.

  18. The league is boring so something needs to be done, playing teams 4+ times a season is dire, 16/18 team top league with the league cup going into groups or something.

  19. Geordie Munro on

    “Suarez has proved to be the missing link.”

     

     

    Livibhoy,

     

     

    In both senses of the comment :)

     

     

    HH

  20. Livibhoy

     

     

    He might be the key to those three gelling, but Messi is still the player who makes the difference for them, and always has been.

     

     

    But a fantastic front 3 up against a strong defence should hopefully make for a great final.

  21. See the club reportedly looking at Rudy Austin,Jamaican defender released by Leeds..should go down well with a few of the guys on here…Funkin for Jamaica..Oh Yes…..

  22. That was an attempt to show a pic. Of Bobby Murdoch, and he had the number 8 on his pants, my memory must be going, I don’t remember him ever wearing the number 8,

     

    4 was what I remember?

  23. Geordie Munro on

    Hun skelper,

     

     

    I’d do away with the league cup.

     

     

    Or make it an u21 only comp

     

     

    HH

  24. FourGreenFields on

    Livibhoy

     

    bawsman

     

     

    We let you know how the meeting goes next week .

  25. South Of Tunis on

    Tallybhoy @ 13 03.

     

     

    Guy I sat beside @ Palermo v Rube rolled a 5 skin cone with his right hand whilst using his left hand to hold his mobile and talk to his nonna. Job done, he sparked up and continued talking to nonna. He smoked it all himself .When he finally finished talking to nonna he got very creative re insulting Rube and their support.

  26. Hebcelt

     

     

    Even the Old Bill get good lines.

     

     

    Rycott: ” it’s a 24 hour job this, son. Criminals don’t work to a timetable”

     

     

    Jones. ” they do if they’re planning a train robbery! “

  27. Belgium’s last deal 70m Euro.

     

    Netherlands 83m Euro.

     

    Spl must be worth at least 50m Euro.

  28. FourGreenFields on

    downforsam

     

     

    Copied your posts mate , will fit them into the piece I’ve prepared for the meeting .

  29. FourGreenFields on

    downforsam

     

     

    Regarding food outlets etc around Celtic Park perimeter .

  30. ernie lynch

     

     

    On top of the man from the Pru? Harsh!

     

     

    beatbhoy

     

     

    Messi on his own was starting to toil. Messi and Neymar didn;t work. Suarez is a clever player. He links the 3. How well did Barca do after he went off the other night?

     

     

    LB

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