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Premier League eyes bigger pot of gold by broadcasting direct to fans

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'The Premier League makes £3.1bn a year from TV rights, of which £1.4bn comes from foreign buyers.' Photo: Nick Potts/PA

'The Premier League makes £3.1bn a year from TV rights, of which £1.4bn comes from foreign buyers.' Photo: Nick Potts/PA

PA Wire/PA Images

'The Premier League makes £3.1bn a year from TV rights, of which £1.4bn comes from foreign buyers.' Photo: Nick Potts/PA

The Premier League will eventually sell matches on a Netflix-style channel, its new chief executive Richard Masters has admitted. Masters confirmed that the Premier League had considered launching its own digital service - streaming live games and other content directly to fans - in some countries during the TV bidding process for the 2019-22 seasons.

He confirmed that such an option - which would allow the Premier League to charge directly for a 'Premflix' channel rather than sell the rights to TV companies - was on the table for the 2022-25 seasons.

"During the last process we spent quite a lot of time and invested a lot of recourse in building our expertise and capacity in 'direct consumer'," said Masters. "We considered whether it would be the right time to test a few markets and decided not to. But we are going to continue for the planning phase in the next commercial term to build out those capabilities."

He added: "We were ready last time and we will be ready next time should the opportunity arise."

The Premier League makes £3.1bn a year from TV rights, of which £1.4bn comes from foreign buyers. However, launching its own streaming service in some territories could lead to a substantial rises in revenue. In Singapore, say, Singtel pays £70m a season to the Premier League, yet it makes £175m a year from subscribers who pay around £35 a month for live games. If the Premier League kept these TV rights for itself it could potentially make another £100m in Singapore alone.

The chances of a 'Premflix' channel happening in England, where Sky Sports has around six million subscribers and BT Sport close to two million, is slim. But Masters suggested a two-tiered system - with some countries watching games shown by existing TV broadcasters and others streamed directly by the Premier League - was inevitable. "I'm not saying it will happen in the next cycle or when it will happen, but eventually the Premier League will move to a mix of direct consumer and media rights sales," he said.

Masters was also bullish about the Premier League maintaining its global popularity despite a recent fall in the value of domestic TV rights. On Thursday the League announced a massive £2bn deal with NENT for the rights for Norway, Denmark, Sweden and Finland from 2022-28 - an increase of more than 20 per cent a year - and Masters insisted that the Premier League was in robust health. "I don't think the bubble has burst, because our business is effectively hedged between domestic performance and international performance."

Another issue facing Masters is how many foreign footballers each Premier League club should be allowed in their 25-man squads after Brexit. Clubs are permitted to have 17 non-homegrown players but the FA wants this reduced to just 13. Masters believes that anything less than 16 foreigners could damage the league's standing, as well as the competitiveness of English clubs in Europe.

"If you did have a quota system that was vastly different to Europe, you would put our top clubs at a big disadvantage. I think the average number of foreign players that the most likely winners of the Champions League have is 16. So if our clubs were lower than that it would be a disadvantage to them."

Masters struck a conciliatory note too, saying that he felt the FA's aim to have 35 per cent England-qualified players was a "defensible objective", before adding that "We're not far away from it." However, he insisted that the view of the Premier League and its clubs was that the existing system was working.

"I'm old enough to remember when England struggled to qualify for World Cups and European Championships. We don't want to take any risks with the Premier League because it is phenomenally successful."

Observer

Sunday Indo Sport