Filthy stinking rich!

toonsy

TV money
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?

About toonsy

A lifelong Newcastle fan and current webmaster of this very 'blog who has the sole aim of creating a place by Newcastle United fans, for Newcastle United fans.

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269 thoughts on “Filthy stinking rich!”

  1. What I can’t understand is how they are doing this at a time when they have lost a big amount of the revenue that came in from the pubs and clubs, many of which have switched to foreign satelite providers.

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  2. Toonsy, what about the foreign broadcast rights? They aren’t part of this right?

    The reason I ask is that interest in although the Prem has been steadily growing in popularity here in the states it has absolutely exploded in the past 2 seasons.

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  3. well, we all know who is going to be paying for this 🙁 🙁 US!!!
    if my sky goes up anymore, am going to have to get rid of the wife 😉 😉 😉
    shame thou, cause she’s done a canny job for the last 22yrs 🙄 🙄 🙄

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  4. Never mind, answered my own question. Looks like overseas rights are being determined later in the year. That will be another bonanza

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  5. @DJG

    We’re insignificant. For every pub skipping Sky/ESPN costs and getting a foreign box I bet there’s 20 new subscribers across the world. That’s probably wildly underestimating it as well.

    As toonsy said, it makes English players now even more expensive than players abroad.

    Can only be bad for the national team. I think there’s way too much money in our leagues. It’s hard though, i think to have a better national team we would need a lower quality of football leagues here.

    It’s too easy for our players to make a living, even in League 1/2 they get very decent wages now. In most other countries apart from the top league the standard is dire. This means as an up and coming professional you no that you have to work bloody hard to get to the top of that tree to earn a good amount, whereas our players (people like Ravel and Ranger) know they are now set for life, no hard work or application needed, they are basically guaranteed league football in their careers.

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  6. “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.”

    True. But some clubs won’t be able to spend it all since they will need the extra money to break even each year. It will likely all be profit for us

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  7. Is there anything more gluttonous than the premier league when it comes to money . It’s ruining our game with some owners/clubs out of control with their spending ,and all the while the small clubs in the lower leagues fight a daily battle to stay in existance ,what ever happened to the beautiful game ,it’s become obese on it’s own self importance.

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  9. well if we take any notice off the rags toon have pulled out of a deal for douglas of which ime pleased i didnt rate the guy,i hope young fergie gets a run out in the euros now they are out he needs game time imo and they have nothing to lose

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  11. SIDEKICK its just some say he hasnt got the weight to play l/b,cole and baines are real heavyweights then 😕

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  13. Prem@8 😆 😉

    ice@9 Yeh ,best news of the day not going for Douglas . 😀 relief all round ,I reckon we dodged a bullet with that one. 😉

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  14. Toonsy – I dont believe this board makes sentimental gestures like the price freeze coz they are getting from Sky or EPL. Personally I think the price freeze was simply to have a packed out SPORTS DIRECT ARENA. Doesn’t look good with large sections of the stadium empty, especially when you’ve put your name to it. The other think is that this doesn’t take effect until 2013-2014 season – we could get relegated next season, meaning we miss out and having learned lessons from last time I don’t think he would be that stupid.
    I think he definitely would have known about this and, having balanced the books, it wouldn’t surprise me if this extra revenue is what will be used to pay back his loan, hence why he is making such long term plans like giving Carr an 8yr contract.
    If he can get his money back from the loan, whilst at the same time making Newcastle an established top 6 Prem team, then he could look at selling the club for top dollar again.

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  15. Sharpy
    Our of interest what do you believe “top dollar” to be? Surely more than the £200m that was touted in the relegation season. I personally don’t believe Ashley’s gunna leave any time soon, though I do agree that some of the fee could be used to repay Mike the 140m that he lent us, then we can use the rest of the money to remain stable financially and develop the team (also the youth team).

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  16. KIMTOON@13 your right about dogging a bullet by pulling out of the race for Douglas . The guy is overrated and he believes all the hype around him too .It would of been another Boumsong type signing .

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  18. Isn’t the problem with making the Club more financially attractive also that it makes it more attractive to just er…. keep? If MA gets his loan back and starts raking money in on just such a bonanza, meanwhile hooking punters into long-term ST deals, building a CL team, expanding his brand worldwide and so on ad nauseam, won’t he just keep it? He’s all about making money, and make no mistake, nothing else. Mike only wants to sell a going-nowhere rich mans plaything, not a money-printing machine, he’s going nowhere unless he has to cut it loose and run.

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  19. i see that top site caught-off-side lol,are saying big sam has bid two and a half mill for shola after missing out on holt 😯 😯

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  20. Sharpy @ 14 😉 your not as stupid as some say you are 😀 I agree with you the price freeze wasn’t brought out for the benefit of the fans

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  22. Ice nah mate he never but if Worthington had of stayed in charge he would have switched.
    As for not getting involved tell that to the politicians and FA that allows our players to be brought up through the ranks at our expence and time for the ROI to sneak in at the last minute and poach them 👿 👿

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  26. Andy – he has £140m to recoup so he’ll definitely be around for the next 10yrs i would think, unless a buyer agrees to pay the loan off aswell.
    Don’t think he’s planning on selling anytime soon but by clearing clearing his loan he could ask for whatever he wants, whatever he sees as being ‘top dollar’.
    I wouldn’t have a problem with that extra revenue being used to pay him back like.

    Tsunki – how many football clubs turn a profit? Even the most successful clubs ‘rake it in’. I have no doubt that if the right offer was made for the club, he’d take it, regardless of whether the loan was paid or not!. That would be the right offer for him by the way, not the fans or future of the club.

    Big Dave – ‘as stupid as some would say?’ it’s only been Ice up to now I think, you obviously heard different 😕

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  28. The reason to offer competitive season ticket prices based upon long term agreements is to allow the club to negotiate with their creditors from a stronger position. The key is Cash Flow. If a business can prove that they can/will be able to, service their debt, creditors such as Banks are more willing to be flexible regarding the terms they offer the business. You would probably find that any additional revenue that could be generated from higher priced season tickets, could alternatively be matched by the lower rates of interest a bank would charge us, for loans which we can show we can service by, amongst other things, having guaranteed income from 10 year season ticket sales. There is also a benefit as the repayment period of any load can also be extended meaning the monthly repayment amounts can be less …………. MA will have made detailed calculations.

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  30. If it were true and we took 2.5 million for Shola ,Ba leaves and Celtic take Best , with Lovenkrands already gone that leaves us with Just Cisse and Ranger . We would need at least 2 forwards coming in .

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  31. Do we know how much each individual club gets? Would it be enough to fully repay Mike and have lots remaining?

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  32. Axel it would mean that we would have to get a few strikers in and maybe we could get some that can score more often than Best and Shola 😉

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  33. i think pardew has been bulling shola up praying for a nice bid like this,if true of coarse 😀 😀

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  34. BIG DAVE wouldn’t mind us bringing Rhodes in from Huddersfield , that lad has bagged a fair few goals in the last couple of seasons . Young and English so if he started scoring in the premiership then he fits our transfer policy . Big Big resell value just because he is English .

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  36. Can’t sell Shola, who’s gonna slay the Mackems if he goes 😕

    Seriously ,he’s been a great impact sub this season ,I think we may miss him 😯 😉

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  37. Axel I think the biggest prob is that he’s english, as Ice says because of that they will be looking big money, see Ice isn’t as daft as some say he is 😆 😆

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  38. Kim I would risk it, as I don’t think he is worth taking a place in the 25 man squad just on the chance that he will score in 2 games a season 😯 we need someone that can score more often imo

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  40. DAVE 😀 😀 kna i think he will cost big money more so when you look at burnley getting 7mill for there striker hes scored a hell of a lot more goals all be it a diff lge but not now of coarse

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  41. Any one else starting to think England have a chance of surprising everyone now and getting to the Final . I am starting to get a bit excited about the tournament now with Rooney to get back in the team .At this moment the bragging rights are mine here in Holland , my workmates aint gonna like me if we keep on going :mrgreen:

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  43. Ice 😉 😀 I don’t think my other comment @ 20 was took the way it was meant 😛 😕 .
    As for the title im not surprised Rich hasn’t been on, I thought that that was a bit nasty of Toonsy to publically have a go at Rich 😆

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  44. DAVE aussie said we have to keep a eye on richie while hes away a few days,felt he was near the edge while his white-mac was in the washing 😀

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  45. DAVE go on to org hes running a comp to win a toon top worky sure to let you win mate 😆 ,dont tell kim she will beat you to it 😀

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  46. We shouldnt sell Shola, he’s been one of my favourite NU players for a few years now because he seems a nice guy and gets the job done when it’s asked of him. Would never start him but coming on after 65min he is class.

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  47. Ice 😆 Its nice to see them giving something away for a change wonder who paid for it 😆 😆 , I think I will leave Kim to try for it 🙂

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  48. DAVE heard it was BATTY but dont know if i trust richie 😉 but then again hes always slumming it up over there 😀

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  50. I’d take 2.5m for Shola in a heartbeat, sentiment aside, the lad is coming to the end of his career, his scoring rate is poor and 2.5m is bloody good money for him!!
    Personally, I’d let Shola go and keep Best but that wont happen and Shola won’t be sold.

    I went missing for a while as little bollocks nicked my phone to play on before bed time. 👿

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  52. Tried to register for .org so I could enter that shirt competition, it says my password should have been emailed to me, yet it hasnt and its been 30 minutes 😡 . Why can’t they just ask you to make up your own?

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  56. ANDY hes always causeing bother over there,might help if you drop a few quid in there kitty like 😉

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  60. ANDY your wiser than we were we all sent a few quid plus dave even sent him his lucky four-leaf clover 🙁

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  61. One of the questions is asking about highest point total for NU in the Premiership, just want to check, by ‘Premiership’ thats THE PL and not the league prior to 1992 right?

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  63. ANDY we all sent a few quid think they got a few hundred,but its a long storey,dave still gives him stick over it but got banned as he asked were it was ect ect,sad sad time mate

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  65. Dave – you trying to get me into bother with Richie and Batty? 😈

    Ice – come on man, he’s only 3!! .. he cant text type .. just tells me what to write 😆

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  67. SHARPY your not allowed to pick on dave,if hes said something it must be reet,nee smoke without fire in daves defence 😉

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  68. Dave
    I’m sure 😉 , reet my answers have been sent off, wonder when the winner will be announced. 😀

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  69. Ice – in that case Richies been calling me stupid 👿 and Batty has small testicles 😯 😳

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  70. SHARPY well it will be right dont forget all us members of the 500 club are honest men 😀

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  71. Just realised that there’s a positive to Blackburn and Bolton going down, we start the season in the top half (9th) :mrgreen:

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  74. The football has been ***** tonight like, still if Poland get knocked out at least it means they can concentrate on the fighting

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