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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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181 Comments
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  1. I’m sure a good number of you will be watching the stock market with more than a passing interest. (I’m sure many more couldn’t give a tinkers toss)

     

    The last few days of carnage have sent an awful lot of short term it’s gamblers to the poor House, particularly those who jumped in for day trading on Monday or Tuesday!

     

    Reading some real horror stories of the amounts some individuals, and a good number of brokers, have peed away in the last few days.

     

    Not looking for sympathy for those concerned, ( its gambling after all and you pays your money and takes your chances) but merely pointing out the devastation in the past few days.

     

    Nasdaq had its worst ever loss on a single day’s trading. FTSE didn’t fare much better. Europe and Asia similar stories.

     

    I do hope Sevco financial backers had their last 30 bob invested in the markets …….

  2. I’ve withdrawn my verbal offer for the Bentley Continental………

     

    and I confirm verbally that I shan’t return with another……………………..

  3. VFR8000/MONSTER 821

     

     

    Seriously: ‘Therianthropic’ as word of the day?

     

     

    How is a guy supposed to weave that into a conversation … ?

     

     

    VIP

  4. POGMANTHONYAHUN,

     

     

    Yes, the monsoon in Borneo often lasts from around Christmas til Ash Wednesday. Sometimes, 24 hour non stop downpours. An experience to be missed.

     

     

    By the bye, a number of the great grand sons of the so called “wild men of Borneo” are now Catholic priests.

  5. PARKHEADCUMSALFORD

     

    By the bye, a number of the great grand sons of the so called “wild men of Borneo” are now Catholic priests.

     

    ——————————————————————————————————————————

     

    Aye, I think me and Frau PMTYH have encountered one or two of them both here and in Sarawak.

  6. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    TWISTSNTURNS

     

     

    I doubt Sevco could even afford the commission on a thirty bob financial transaction.

     

     

    After all,they couldn’t afford a down-payment on a two bob player.

  7. VFR800 is now a Monster 821 on

    JUNGLE VIP on 7TH FEBRUARY 2018 9:51 AM

     

     

    We have very different thought trains.

     

     

    Reading the Alfredo “El Buffalo” stories this morning drew me to it:

     

     

    “I see that the Chinese have withdrawn from the race to sign the therianthropic Morelos in this window.”

     

     

    Of course it would be more apposite had 2018 been the year of the ox and not the year of the dog.

     

     

    KTF

  8. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    VFR

     

     

    Wasn’t the “bid” made towards the end of January?

     

     

    So Year of the rooster. Apposite,as the chickens have been coming home to roost ever since-see STARRYPLOUGH’s link to The Celtic Blog.

  9. VFR800 is now a Monster 821 on

    BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS on 7TH FEBRUARY 2018 10:52 AM

     

     

    Technically correct so I’ll give you that one!

     

     

    KTF

  10. LISBON –

     

     

    The Oceanarium

     

    The Calouste Gulbenkian Museum

     

    The Fado Museum – in the Alfama -near Santa Apolonia Station

     

    The Feira da Ladra (the flea market )

     

    The Cafe A Brasiliera

     

    A Ginjinha bar — tiny places -open early / close late – serious drinking -alcohol made from cherries

     

    Mercato da Ribiera

     

    Mouraria / Martin Moniz .

  11. I heard BBC radio sports news this morning invent a new league position.

     

     

    Almost second appears to be the new third place.

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