There are different estimates being banded about on how much the PL clubs will receive in May for the first year of the new three year £5.1B Premier League TV rights deal.
In the previous three years the amounts were anywhere from £60M to £100M depending on where the club finished in the league table and how many times the team was on TV and stuff like that.
The way we got to our estimate was to say that previous deal was worth £3B so we basically multiplied the previous figures by 5.1/3 – and that’s a multiplying factor of 1.7.
Manager Rafa Benitez and owner Mike Ashley
So if you do that the money this May will be anything from £1.7*60M to £1.7*100M.
That’s £102M to £170M so if Newcastle finish around mid table next season we will get around £136M oin TV rights .
Rough estimates for sure but some logic to it hopefully.
Our total revenues are also made up of match day revenues and commercial revenues.
By Rafa getting Newcastle promoted at the very first attempt Newcastle survived financially for one season, but if we didn’t go back up this year we would have had to cut expenses as the parachute payments tend to drop off over the three years we would get them.
Believe me there will be massive relief at Newcastle for that great win last night that finally sealed our promotion.
From the Championship this year the TV rights for each club are £7.1M, but in May this year we will also get a parachute payment of £40M – it was going to be a total of £87M over three years – but the £40M will be the only parachute payment we will now receive.
Not sure what the exact parachute payment would have been for the second year but if we assume it’s £30M then we would get about £37M next season whereas if we finish mid-table in the Premier League we’ll get £136M – almost £100M more.
So Mike Ashley’s club will generate some serious revenues next financial year and it’s not only that which makes Newcastle United a much richer club.
Newcastle United Football Club is now a Premier League club once again with a world-renowned manager in place so how much would Newcastle be worth on the open market right now?
It’s now got to be close to £300M or even more and the publicity today around the world today cannot hurt Newcastle’s profile.
Now compare that to how much Newcastle were worth this season as a second division English club.
So if you ever thought Rafa was overpaid at about £5M a year in wages he gets – think again – he’s brought in maybe £200M to Newcastle United:
- £100M on the increased worth of club (estimate)
- About £100M in extra TV rights next May (estimate)
And Mike doesn’t want to fund him to make Newcastle much better than we are and all that entails in Premier League TV rights money and the worth of the club?
Mike will fund Rafa what he wants this summer or as much as he can possible give him – and the above points are some of the financial reasons why Mike will do that.
He’s also a money-man and not daft financially in any way.