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Sky, BT, fewer watching TV and disenfranchisement

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The most significant factor in how competitive or otherwise Celtic, or any other aspiring club in Europe is, is the value of TV rights for the Premier League in England and Wales. Next week, bids will be submitted for domestic rights packages from summer 2019 until 2022.

Things really got out of hand when the current deal was agreed three years ago. Sky increased their bid by 83%, they now pay £11m for every one of the 126 games broadcast each season. BT applied a more modest 18% increase, taking their cost per game to £7.6m. The League also banks international rights, as well as highlights and online packages.

What has changed in the last three years which will impact on the rights values?

On a corporate level, both Sky and BT have plenty to concern themselves with. BT’s consumer broadband and TV business is no longer growing in value, and it is shrinking in headcount. Annual revenue for this division is £1.26bn. The fee they pay to the Premier League each year is £320m.

Even more interesting is Rupert Murdoch’s decision to sell Sky TV along with his other entertainment divisions. Murdoch has had enough, Disney wait in the wings, pending regulatory permission for the deal to proceed.

I don’t think Murdoch is standing alone at the back of his yacht at night, contemplating the wisdom of a former newspaper rival. He is not in trouble, instead he wants out of the business.

Perhaps the most significant ingredient in the mix is the recent agreement for Sky and TV to sell both their Premier League sports channels to customers as a single package. Currently, Sky customers have to pay BT a premium to access BT Sports, and vice versa. If each broadcaster can access the others football package, the competitive frontier moves away from football, to areas like broadband provision.

With the January transfer window just closed, Premier League clubs are clearly not anticipating financial trouble from their paymasters, but the product as lost some of its early shine. TV audiences are on the wane, not just for English football, and not just for football either. This is a phenomenon for live sports in the US too. People just don’t watch as much television as they did five years ago.

So what does all this mean for us? During the Martin O’Neill era, Celtic were regularly in the Deloitte money list of the world’s highest earning 20 football clubs, and only five clubs in England paid more in wages. Since then, we have been disenfranchised from acquiring or retaining top talent.

English football could not afford to survive on the TV deal it had as recently as May 2016 (a 71% difference from the current deal). It would plunge into carnage and, perhaps, structural change. This could be a decade away, or it could happen next week.  But it will happen.

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  1. celtic40me

     

    while Celtic Hospitality is an insult.

     

    Got a mail from them to eat a valentine dinner,

     

    Not that even in my courting days would I dream of eating out on such a dreadful night

     

    but went to the site for a peek.

     

    No Menu

     

    OK will nosey at No.7 while here

     

    Menu 70’s style xmas menu.

     

    Whomever in charge of that eatery should be sacked for not having the current menu up.

     

    Last booking time on sat night 8pm- What ?

     

    What is its function ?

     

    A Joke

  2. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    31003

     

     

    I read an article the other day that US sports are declining rapidly in viewing figures,TV income,sponsorship. And that the decline in TV income is down to a huge reduction in advertising revenue,rather that in subscribers.

     

     

    Which leads to an obvious conclusion. Subscribers can cancel,aye. But it’s the advertisers who call the shots. And fewer subscribers means fewer advertisers willing to cough up.

     

     

    Would you place an advert for your company where it is unlikely to be seen,or noticed? Doubt it. That’s why you’re still in business.

     

     

    The business model,by any standard,is in decline. I’m amazed it’s lasted this long.

  3. GENE on 6TH FEBRUARY 2018 1:33 PM

     

    BMCUW

     

     

    and henri’s sky salary of £4m is more than the TV deal for scotia

     

    ————————————————————————————————————————————–

     

    Like I said earlier, the SPFL team (which did include Pedro) that negotiated the last TV deal was totally incompetent and agreed a deal that was far less than Rugby League and other equivalent leagues got. At the time, Sky was making noises about with-drawing from the deal following the death of Rangers. There was not a hope in hell would have carried out that threat but our negotiators panicked and caved in to a crap deal. Scottish football has only itself to blame for what has gone on since then.

  4. BMCUW

     

     

    It’s all there in the glorious balance sheet, (or so they tell me as I don’t pretend to understand it ) but bow to the superior knowledge of our positive posters who do.

     

    backwards, upside down, as well as forward .

     

     

    I’m totally dismissive of all malcontentedness. around the financial machinations of Celtic. I think I understand basic arithmetic £35M in can’t possibly relate to £35 out when it comes to transfer of players, that’s easy and not exactly rocket surgery. Celtic Boardroom personal wealth heated drive,or otherwise, are of no consequence to the man on the Clapham omnibus, or in my case the 18 to Rutherglen.

     

     

    Not to say I don’t have misgivings on other issues of running the club at board room level especially the demise of Rainjurz, but I also fully understand exactly where Celtic are and why, but remain steadfastly opTIMISTIC on that issue too.

     

     

    These are the best days of our Celtic supporting lives.

     

     

    HH

  5. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    WHITEDOGHUNCH

     

     

    I know yer not as for as you were in your heyday,but you still know the restaurant/bar/hospitality business better than most.

     

     

    Proved it often enough.

     

     

    I know that you know that a manager doesn’t have to be hands on,the genius is in delegation.

     

     

    And training.

     

     

    They could do a lot worse than ask you to oversee the operation. Because you’ve clearly pointed out that it is currently a failure.

  6. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    BOURNESOUPRECIPE

     

     

    I’m not entirely sure that post makes a lot of sense. And since I’ve not been in the pub today I’m not sure it’s my fault.

     

     

    Mibbe I’m just inherently thick,and need beer to motivate my brain cells. There’s a thought.

  7. CELTIC40ME

     

    Tottenham have Levy Restaurants UK, the Roux family

     

    soukous

     

    I weep when I see the level of restaurateur running the food operations at the top Spanish clubs

     

    In all of the above I would want to have a special occasion, any occassion, spend money, take a client.

  8. Paul67 et al

     

     

    Timely article Paul. The question is to what extent the deal between Sky and BT affects their respective bids for the 200 games or so that the EPL is selling. Barring any bids outside these two that is. Sky will be able to sell BT Sport directly to its’ own customers, but the customer will still have to pay more. Given the shared platform do either of these broadcasters have any incentive to up the ante re the new EPL deal?

  9. I’ve said this before—the only way to make the powers that be—and I include Celtic in that–is to boycott the TV licence en masse and tell them why. You can include crap revenues to Scottish football if you wish, but my main gripe would be BBC Scotland’s overuse of Rangers EBT recipients in all their glory on the State Broadcaster. I’m a pensioner and still pay tax. Why should I pay an extra tax in the form of a TV licence on top of this, and not see a semblance of fairness and balance in presenters on BBC Scotland?

     

    It would stir a hornet’s nest if nothing else.

  10. CultsBhoy- Last of the famous international PlayBhoys on

    As a short term protest the Board could urge Celtic supporters only to attend home matches. On the days we are away the club could lay on a reserve/development game at vastly reduced cost.

     

     

    Be good to hit each of the SPfL clubs once.

     

     

    Send the message.

  11. BMCUW

     

    don’t know what’s the real issue perhaps we are just small beer for our current I believe hospitality provider Centreplate

  12. DBHOY on 6TH FEBRUARY 2018 11:08 AM

     

    CLOGHER CELT on 5TH FEBRUARY 2018 7:58 PM

     

     

    I was unaware of the great Desmundo’s involvement in Daon.

     

     

    https://www.irishtimes.com/business/technology/dermot-desmond-s-daon-will-know-all-about-us-yet-we-know-nothing-of-it-1.3270030

     

     

    ______________________________________________________________________________

     

     

    DBHOY,

     

     

    Yep with Daon really taking off at the cutting edge of Biometric Data Collection, Dermot wouldn’t want to cause any conflict with the British as they rollout the technology throughout the UK.

     

     

    Especially with so many establishment types signing off multi million pound contracts for the UK Government and Banks etc… :))

     

     

    Dermot has bigger fish to fry.

     

     

    Hail Hail

  13. HOT SMOKED

     

    Yeah the very same. Have seen both him and Norman Beaker loads, absolute knockout and the band especially sax is a real blast. As I said, Norman Beaker is so so under-rated. I spoke with him at a gig and he’s the most down to earth, unassuming guy you woulld wish to meet. He’s played with all the big US Blues stars.

     

     

    KINGLuBO

  14. SKY awarding 6 pts for a Sevco win tonight stating they go second with a win, unreal incompetent or just hurting huns take your pick

  15. South Of Tunis on

    KINGLUBO .

     

     

    A pal dragged me to see a band called Morning After playing in a London boozer ( 1970 /71 . ) I didn’t like them -way too heavy /prog for me –

  16. South Of Tunis on

    KINGLUBO

     

     

    Ooops — reason my pal wanted to see Morning After was that Norman Beaker was in Morning After

  17. Raymac on 6th February 2018 2:30 pm

     

     

    I’ve said this before—the only way to make the powers that be—and I include Celtic in that–is to boycott the TV licence en masse and tell them why. You can include crap revenues to Scottish football if you wish, but my main gripe would be BBC Scotland’s overuse of Rangers EBT recipients in all their glory on the State Broadcaster. I’m a pensioner and still pay tax. Why should I pay an extra tax in the form of a TV licence on top of this, and not see a semblance of fairness and balance in presenters on BBC Scotland?

     

     

     

     

    It would stir a hornet’s nest if nothing else.

     

    >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

     

     

    This makes sense to me.

  18. dessybhoy on 6th February 2018 3:51 pm

     

     

    SKY awarding 6 pts for a Sevco win tonight stating they go second with a win, unreal incompetent or just hurting huns take your pick

     

    >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

     

     

    Maybe it is something to do with what a famous ex-manager of Sevco once said, ‘even when we lose we win’, so possible when they win they get 6 points?

  19. Is it possible for the various Celtic supporters groups, whilst retaining their own identity and philosophy, to unite as one Celtic organisation?

     

    If so and following from that, CQN and all the other Celtic sites could promote One Celtic Membership.

     

    If and I realise it is a massive `if`, we then had thousands of supporters willing to act in unison , we could surely bring pressure to bear on those in power to do the right thing for Scottish Football?

     

     

    PipedreamCSC ?

  20. cathedral view on

    In it’s preview of tonight’s Partick Thistle game the BBC are using a league table the was correct prior to the weekends games indicating Sevco could go second with a win tonight.

     

     

    Click on the full SPFL table and the ugly truth reveals itself.

     

     

    It’s almost a metaphor for the way the media have treated us during the liquidation and Bobby Ewing shower scene that washed away the credibility of football in this country.

  21. Raymac on 6th February 2018 2:30 pm

     

    Well said mate!! It makes my blood boil too!!

     

    Although not resident in UK, I still pay UK tax and the fact that these EBT bandits are still on BBC payroll is just plain wrong!!

     

    HH

     

    TC45

  22. CATHEDRAL VIEW

     

    Noticed that – the table is titled ‘As it Stood’ what the heck does that mean – what next the 1963 league table

  23. cant cut&paste.

     

     

    nice change with floyd music. time….easy star all stars. reggae style.

     

     

    from the gambler sound track.

  24. HEN1RIK on 6TH FEBRUARY 2018 5:17 PM

     

     

    No access to that link, the account is protected.

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