Season 2011-12
The Mail Bag

Premier League implosion

 11 Comments: First  |  Last

Will today be the day that the premiership ends? Not seen much talk about this [Verdict due in landmark TV-football case] but if the landlady wins then where does that leave the Premier League and the TV money?

I can see 3 teams not being terribly affected (Man U, Chelsea and Man City). Apart from that most other clubs will simply go to the wall. This includes ourselves who have mortgaged against future TV money we may never receive.

I?m assuming that SKY probably have a clause in the prem contract that voids it if they no longer have exclusivity to prem games in the UK. If this ruling goes ahead I expect the TV money to dry up rather quickly.

Craig Harrison, Toronto, Canada     Posted 03/10/2011 at 17:48:01

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Steve Smith
1   Posted 03/10/2011 at 22:47:07

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You have to remember that it is Skys equipment and facilities that enables the broadcast of games, it is Sky who provide the cameras and crews and technical facilities etc.. etc.. Without Sky or another company like them, there would not be any coverage for foreign company's to sell on the cheap, the ruling {if found in favour of the pub landlady} will only serve to make Sky that bit more competitive in the commercial sector, with the loss being made up through the retail sector, in other words US.
Ciarán McGlone
2   Posted 03/10/2011 at 23:04:13

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Part of the revenue comes from foreign licensing. The question has already been answered by the EU, but it will have little effect on anyone's bottom line. What they lose in pub subscriptions they'll regain from renegotiated foreign contracts. Either that or they'll contractually close the supply lines.
Craig Harrison
3   Posted 04/10/2011 at 01:54:16

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Yes but they cant renegotiate foreign subscriptions untill the contract is done. What will they do in the meantime when people switch over to the cheaper options. Who is selling to the foreign broadcatsers sky or the prem? I dont see the foreign companys wanting to pay more than they already do. This will lead the way to smaller TV revenue and the bigger clubs launching there own PPV service. If TV revenue goes down then so do a lot of clubs in the prem ourselves included.
Eugene Ruane
4   Posted 04/10/2011 at 08:04:08

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She won - http://www.bbc.co.uk/news/business-12355022 .

(not sure WHAT she won but..she won)

Matt Traynor
5   Posted 04/10/2011 at 08:51:18

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Eugene (#4) - that's old news. The verdict today is the result of the appeal lodged by the Premier League.

Under the current TV contracts, which have now been brought into line to have the same termination dates, the overseas TV component is worth £18m per annum to all teams, and the domestic TV is worth between £38m-£65m depending on the variables (prize money, number of times broadcast).

The overseas contracts are negotiated on a territory-by-territory basis, and hence are influenced by competition. Therefore you have a situation where a state like Singapore (population 5.6m) pays more I believe than the whole of China...

This also has implications for licensing of TV broadcasting. Basically it's a minefield, and a lawyer's wet dream.

Don't expect a final answer today.
Simon Smith
6   Posted 04/10/2011 at 09:33:23

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Good on her, that's what I say! Sky have had it their way for far too long!

I used to have Sky but getting married, moving house and the loss of my job means that you have to make do without things so I've not had Sky for 7 years and I have also had to give up my season ticket ;0( but needs must!

Yes, it could be the downfall of a lot of teams, us included, but clubs had to make do without Sky money before so they will just have to get used to it again!
If this means the formation of a non-backed Sky league then let me in ? the likes of Man Utd and Chelsea can do one for all I care.
Peter Clarke
7   Posted 04/10/2011 at 09:42:07

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Eugene is correct. Result is in and the Premier League lost. http://soccernet.espn.go.com/news/story/_/id/965746/premier-league-loses-television-rights-case?cc=3888
Eugene Ruane
8   Posted 04/10/2011 at 10:15:13

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Matt (5) - http://www.youtube.com/watch?v=rX7wtNOkuHo
Eric Myles
9   Posted 04/10/2011 at 11:08:31

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"The ECJ ruled that the opening video sequence, the Premier League anthem and pre-recorded clips showing highlights of recent Premier League matches and various graphics are covered by copyright."

Probably why when we watch live games in Thailand it has Thai commentators and graphics up until a ball is actually kicked and and at the half time interval.
Eric Myles
10   Posted 04/10/2011 at 11:20:20

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That BBC web page that Eugene linked to in post 4 is dated 4 February 2011. and refers to the AG decision.

The soccernet link posted by Peter (#6) upholds the verdict from the ECJ and is binding.
Eugene Ruane
11   Posted 04/10/2011 at 13:10:49

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Mystic Eugene - Palms read, fortunes told.

"He really CAN see into the future!" - Ena Biddy

No refunds under any circumstances.

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