There is more than likely going to be a lot of stuff that Mike Ashley, and indeed any Premier League owner, will know about before it actually happens.
It happens in any business of course as the men at the top tend to get wind of important things before they happen. Could that have been the case with this new bout of TV rights that promise to swell the coffers of any team that happens to be in the Premier League at the time?
The new deal, which kicks in for the start of the 2013-2014 campaign is worth a shade over £3bn and will run for three years meaning that for each game broadcast by either Sky or BT the Premier League will receive £6.5m, some of which will then be passed onto the teams who are participating.
It makes you wonder if all of these season ticket offers or ticket offers were priced in as they knew a deal like this might have been forthcoming? I’ve still not worked out the business sense behind such a long term ticket price freeze – to me it seems like cutting your nose off to spite your face – but if an increase in revenue was known it would have made it a bit easier to account for.
In terms of prize money it will mean that the team who happens to finish bottom of the Premier League will pick up more than Manchester City have raked in for winning the thing. To me it seems like reward for losing but hey ho, it is what it is I guess. The ladder between the Premier League and the those below is about to be pulled up a little bit more though…
The deal is the largest in the history if the Premier League and the rise comes at a time of financial austerity which defies the rise in cost. The original deal between Sky and the Premier League was worth £633,000 per game. In 1997 thins jumped to £2.79m and in 2001 it jumped again to £3.64m per game. However in 2004 the deal fell and games dropped to £2.47m a game before picking back up in 2007 to £4.12m per game. A smaller rise took place in 2010 to £4.3m per game – the current rate – which will be replaced by the new deal in 2013.
Of course that is not what each club gets per game, but it’s pretty safe to assume that each as the level of money goes up then the split each team receives will also rise.
Before anyone starts thinking that this will give us a help in the transfer market, I’d just like to point out that it will be the same for EVERY club in the Premier League potentially making transfer negotiations more difficult as more sides have finance to offer players a deal that may interest them.
Interesting times for the Premier League perhaps?