TV Rights – Every Broadcaster for Themselves

 The other major financial factor surrounding football is the media. Since TV is the biggest broadcaster of the sport, this section will concentrate on that more than radio.

The three major broadcasters of football in the UK, Sky Sports, BBC and ITV, have fought over the rights for the Beautiful Game for years, with Sky often winning out for the right to show Premier League games. With other channels such as Setanta and ESPN entering the fray in recent years before opting out, it remains to be seen whether big-spending BT Sport can hold firm.

The evidence from the past year suggests they can, with the new-boys spending around £750 million last year to show 38 games per season for the next three years. They then shocked the footballing world in November by paying nearly £900 million across three years to be the only UK broadcaster allowed to show Champions League games.

The infograms here show how much UK broadcasters have spent to show football, whether it be live or highlights, for the 2012/13 season.

This chart shows the amount of money it cost broadcasters to show the Premier League this season

This chart shows the amount of money it cost broadcasters to show the Premier League this season

This chart shows the amount of money it cost broadcasters to show the FA Cup this season

This chart shows the amount of money it cost broadcasters to show the FA Cup this season

Football League

This chart shows the amount of money it cost broadcasters to show the Football League this season

This chart shows the amount of money it cost broadcasters to show the Champions League this season

This chart shows the amount of money it cost broadcasters to show the Champions League this season

As it stands, according to the FA, 50% of revenue is divided equally all 20 clubs, 25% is awarded depending on a club’s final league position, with the final 25% distributed as a facilities fee depending on how many games are shown live on TV. Income from any foreign broadcasters, such as Al Jazeera Sport in the United Arab Emirates and NBC Sports in the USA, is divided equally amongst every Premier League club. Last season this amount was £18,391,726.

The amount it costs per season to show football has increased every single year, meaning that Premier League teams earn more and more revenue each year from simply playing in the league. In the 2012/13 season, QPR finished bottom of the Premier League and earned £5.8 million from media revenue, along with an extra £0.75 million from the FA for finishing 20th.

The winners of the league, by contrast, will rake in approximately £72 million for their hard work as opposed to the £61.4 million Manchester United earned in 2013. They earned £15 million on merit for finishing top, and this amount decreases by around £0.75 million the lower down a team finishes. The ratio of earnings from Manchester United to QPR was 1.53:1. Each team also received nearly £14 million from the FA for competing on top of the overseas broadcast payments, a number which fluctuates from season-to-season depending on their income.

Arguably the most interesting statistic, and certainly the most useful, is that a team is paid a minimum of 10 ‘facility fees’ – no matter how many times they are shown on live TV. Last season, the sides on TV the most were Manchester United (25), Liverpool (22), Arsenal (22) and Manchester City (21). The facility fee was around £550,000. This leads to the conclusion that if a team wasn’t on TV at least 10 times a season, the broadcasters (which was only Sky Sports at the time) must feel that they will bring in more money from advertising and sponsors by showing a game involving better-supported sides and paying facility fees to the teams that missed out as well as those involved.

These figures are only going to continue to rise and it will only be a matter of time before broadcasters pay over £1 billion for one season of Premier League rights, which is an astronomical amount of money, even in sport. The chart below shows how much money each team made from broadcasting rights last season: Premier League amounts by team

As a rule here, the amount earned by a team is directly proportional to their league position; the higher up they finish, the more money they receive. There are odd exceptions, like Newcastle United finishing 16th but having the 13th highest income, but this is likely because of their 5th-place finish the season before. On top of being one of the most well-supported clubs in England, broadcasters will have hoped they could have had another similar season so they could be shown on TV more. The Magpies ended up being shown on Sky Sports 16 times last season, the 6th most in the league.

Infogram sources

Premier League: http://www.bbc.co.uk/news/business-18430036

http://www.theguardian.com/media/2012/may/25/bbc-premier-league-highlights

FA Cup: http://www.theguardian.com/football/2012/jan/16/fa-cup-england-internationals-itv

http://www.bbc.co.uk/news/business-21577676

Champions League: http://www.theguardian.com/media/2011/apr/27/itv-sky-sports

Football League: http://www.bbc.co.uk/news/business-12965536

http://news.bbc.co.uk/sport1/hi/football/7080696.stm

http://www.bbc.co.uk/sport/0/football/18153109

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