The negotiations are currently ongoing for the new Premier League TV rights that will kick in for three years at the start of the 2016-2017 season, and the deal could be a massive one for Premier League clubs.
Lee Charnley with Mike Ashley – money, money, money
The one that ran out 18 months ago, before the current one kicked in guaranteed PL clubs between £40M to £60M each May – so each place in the league was roughly worth around £1M.
The new TV deal that started 18 months ago is much bigger and clubs are guaranteed a minimum of £55M, and depending in the main on where the clubs finish in the league table, they get between £60M and £100M – so each place is roughly worth £2M.
Last May Newcastle got around £78.5M for finishing in 10th place and in our last financial year we made £129.5M – a record.
The Star today is reporting the next Premier League TV deal will be even bigger than the current one.
The Star reports that based on views of people in the City it could even double, as broadcasters bid for the Premier League rights to games, which are of course watched around the world by hundreds of millions of viewers.
On NBC Sports yesterday for the Chelsea – Manchester City game – the reporters mentioned that 650M viewers were expected to be watching the game around the world.
Wonder how many viewers watched the Newcastle – Hull game – which they had broadcast earlier?
If the deal for the Premier League increases by say 33% – just as an as an example – that would mean clubs would get anywhere from £80M to £133M and an average could be around £100M.
Dan Jones, of Deloitte, when asked if a £100M average was possible said:
“I don’t think those numbers are unrealistic.” “Nobody called the rises correct last time. But there’s no doubt they are only going one way – which is up.”
“And there is still a lot of room for that to grow internationally.”
We have seen how the increased revenues have ensured that eight of the 20 wealthiest football clubs in the world are from England – with Newcastle in 19th position in the Deloitte Money League – which is based entirely on club revenues.
And that number is likely to increase in the future, and at the moment all 20 Premier League clubs are in the top 40 in the most recent Money League.
And there were rumors at the start of this year that both Apple and Google are looking at placing bids for the TV rights, so they can stream the games.
The Mail earlier this year reported the following:
“The Premier League is seen as the type of premium content that will help establish Apple TV in the UK and boost iPad sales, while the iTunes subscription service infrastructure is already in place.”
Goggle is also looking to do a similar thing in streaming the games – which was initiated several years ago by Netflix and is catching on across the world.
With all this big money in football these days, and it looks like it will only increase, you will see some serious faces at game when clubs fighting relegation are on show.
It’s (very) big money lost if PL clubs are relegated.
It’s no wonder Mike Ashley’s number one goal is to keep Newcastle in the Premier League, and any reports that he wants to buy Rangers FC and sell Newcastle just don’t make sense.
Not from a financial view in any case, and we have seen there’s not much else that Mike thinks about than finances – and he’s very good with money – making it that is.
The Newcastle finances are in great shape – although that cannot be said about the team.
But with players coming back maybe we can climb the league table a bit before the end of the season – maybe.
The win yesterday has certainly raised our spirits this morning after a terrible January for Newcastle – on and off the field.
No wonder Mike was seen laughing at the final whistle yesterday at the KC Stadium, when Newcastle had just registered a great 3-0 win at Hull City – our biggest win of the season – so far.
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