How the Big-4 Benefit from TV Appearances
Written by Phil McThomas on July 12, 2008 – 2:36 amSky and Setanta announced their fixtures for the first 15 ‘match days’ in the 2008 Premier League calendar (here is a Premier League TV Guide for US television). What often goes unnoticed by football fans is the power that the television companies have over which clubs their money goes to.
The Premier League clubs decide how to split the money received from television, and due to bullying by the big-4 in their wisom award 25% of the money according to how many times a club is shown on TV. For the current TV deal, that works out to £460,000 per appearance (with a minimum payment of £4.6million per year).
The fixtures announced today break down as follows:
9 appearances: Arsenal, Chelsea, Liverpool, Manchester United
7 appearances: Manchester City, Newcastle, Spurs
6 appearances: Everton
5 appearances: Aston Villa, West Ham
4 appearances: Sunderland, Bolton, West Brom, Blackburn
3 appearances: Fulham, Wigan, Portsmouth, Stoke, Middlesbrough
2 appearances: Hull
The usual suspects are at the top of course, but it’s also interesting to see the ‘big clubs’ like Newcastle and Spurs getting a lot of games despite disappointing campaigns last year. The ’small clubs’ like Blackburn and Portsmouth are getting relatively few games despite finishing higher up the league table.
This translates into cold hard cash as follows: If the discrepancy remains over the course of the season, Newcastle will receive over £3.5million more than Portsmouth - at the discretion of Sky/Setana - even though Portsmouth finished 4 places higher last year.
Putting this in real terms, it’s enough to pay two players £35k per week, or it’s like having an extra 7,500 fans at every home game.
SoccerShout posted some more examples of unfair TV money distribution last season. For example, Newcastle getting £5million more than Middlesbrough, despite finishing only once place higher.
Let me be clear on one thing: I don’t blame the TV companies for wanting to show more of the big-4, and even teams like Spurs and Newcastle, if that will draw the most viewers. It’s their prerogative to optimize their offering.
I do have a problem with the Premier League distributing that money according to appearances, which effectively lets the TV companies decide which clubs get the most money.
Tags: Arsenal, blackburn, chelsea, liverpool, manchester city, manchester united, middlesbrough, newcastle, portsmouth, spurs
Posted in Rethinking Finance |