Tuesday 22 October 2019

New TV deal sees 'Big Six' prosper

Premier League managers Pep Guardiola, Mauricio Pochettino, Jurgen Klopp and Ole Gunnar Solskjaer
Premier League managers Pep Guardiola, Mauricio Pochettino, Jurgen Klopp and Ole Gunnar Solskjaer

Tim Wigmore

The financial chasm between the "Big Six" and the rest of the Premier League will be widened by a new overseas broadcasting rights deal.

Leading clubs are to receive up to £75 million more over three years than their lower-placed rivals, thus further damaging the Premier League's competitive balance.

The total value of the latest overseas deal, for 2019-22, is to exceed £4 billion for the first time - a rise of around 25 per cent and a major boost for the league after the value of domestic broadcasting rights fell.

The overseas rights will be divided up according to league position for the first time. After years of wrangling, the "Big Six" last year secured a new formula, ending the equal-share agreement in place since the league was founded. This is now coming into effect.

The change will make it easier for clubs to adhere to Financial Fair Play rules; Manchester City are currently being investigated for allegedly violating FFP rules, and were earlier fined for breaking the rules.

Clubs currently receive £40.7 million per year from overseas broadcasting rights.

Under the new formula, they will be guaranteed to receive at least as much, but shares in the surplus from the current £3.3 billion over three years, will be paid depending on league placing.

Assuming that the total overseas rights ends up at £4.05 billion, in any season the bottom-ranked side would stand to receive an extra £ 1.19 million a year and total of pounds 41.9 million.

The side finishing 10th would receive an extra £13.09 million (total of £53.8 million), and the champions would get £23.8 million (£74.5 million).

From 2019-22, the Premier League has raised the cap for the ratio between what the top and bottom clubs receive from 1.6 to 1.8 times as much.

Telegraph.co.uk

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