Newcastle have just signed a new deal with Wonga for their shirts, and the renaming of the stadium back to St. James’ Park, and it’s said the deal is the biggest ever signed by the club, and thought to bring in as much as £8M a year to the Newcastle United coffers.
The Premier League agreed a three year TV deal worth around £3.018B in the summer, for the domestic TV rights for the three years, starting next season.
That figure is a 70% increase over the last three year deal, which ends at the end of this season, and marks the English Premier League as the most popular sports league in the world, and certainly the richest.
BT were the surprise entry in the mix this time around, and they paid out £738M over three years for the 38 games they will show, and Sky paid out £2.28B for their 115 games.
The American sports channel ESPN, who are part of ABC and owned by Disney, were also in the bidding, but they missed out, having carried games over this last three year period.
Newcastle can make a lot of money by just staying in the Premier League, with the new deal made for the three seasons starting next season, being simply unbelievable.
The figures mean that the Premier League is being paid £6.5M for every one of their 154 live TV games each season, at a time when the world economy is in a sorry state, and the European economy is struggling, and entering into another recession.
The Managing Director of Sky Sports, Barney Francis, had this to say about the broadcasting rights:
“Broadcasting rights for Premiership football are particularly competitive now, it wasn’t particularly competitive 2 years ago. The market rate depends on how many buyers there are out there”.
Under the current deal, BSkyB (Sky Sports is part of this) paid out £1.6B to broadcast 115 matches, but when the new deal kicks in it will see them paying out £2.28B for 116 matches over the next three years, so that’s an increase of almost 44% for BSkyB.
Whoever finishes bottom of the Premier League this season will pick up around £40M, that could well increase by 70% in the future, since that’s the total increase in money being paid for the games, so whoever finishes bottom next season could end up with as much as £68M, which is 1.7*£40M.
Another way to put it is that Newcastle received £54.2M for finishing 5th last season, so if they finish in 5th position next season, we could could get around (1.7*£54.2), which is around £92M.
That’s big money indeed, and we think our figures are correct – and it assumes a 70% increase that clubs get in the next deal over the current one.
That really is big money.
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