looks like only champs clubs could go bust in this recession...

[lucky green trainers 0]

yep - this inde article today suggests that if their revenue is threatened (sky crying into their beer???), the prem league will offer footy via their own TV channel - ouch,,,thats one in the eye for sky...but insiders say UK TV rights should be equal to the last package and that foreign tv income is forecasted to show an increase as the popularity of the prem worldwide increases...horray - the prem is saved...what about the poor ole champs???  left to rot in the poor house by its richer relatives by the looks of it...

"Premier League planning TV channel to beat the recession

Exclusive: Clubs plot bold contingency plan should bids plummet in value for next TV deal

By Nick Harris

Wednesday, 17 December 2008

The

Premier League will "recession proof" its most important income stream

– television money – by launching its own TV channel from the summer of

2010 if the value of bids for live rights plummets when the auction for

2010-13 opens in the next few weeks.

A

survey of major broadcasters and industry insiders by The Independent

suggests that will not be necessary. Contrary to the financial turmoil

in most sectors of business, the League''s overall TV income – £2.7bn

over three years last time, £1.7bn of that for live United Kingdom

rights alone – seems likely to remain high.

"I cannot see the

rights value doing a nose dive," said a broadcasting executive whose

company will be involved in the auction. "There is no evidence of a

decline in interest in Premier League football. The opposite in fact."

Another

insider with a different company said: "The channels with football

already are not going to want to lose it. Those who don''t have it want

it more than ever. Football remains totally important to the business

model. There is a fear factor among the broadcasters that will maintain

a healthy rights income for the Premier League."

Sky and Setanta,

who currently have two-thirds and a third of the live League games

respectively, will certainly be in the thick of the bidding again.

There is also a real possibility that the American Disney-owned giant,

ESPN, will enter the fray, perhaps in tandem with Setanta as rumours

persist of takeover by the bigger company.

The Premier League

is also privately confident that it will register growth in overseas

rights income which hit £650m last time for the years 2007-10. In the

long term, it hopes that total income from foreign markets will

outstrip what it earns from domestic rights.

Yet despite

mounting evidence that the Premier League will buck the trend of

economic doom and gloom to maintain its position as the world''s richest

football competition, it is sufficiently concerned about a slump that

its own TV channel has become an "absolutely feasible, if not perfect"

fall- back option.

The concept of Premier League TV has been

mooted before. The League would sell subscriptions to live games direct

to the public, on multiple platforms, as well as via established

broadcasters in carriage deals.

Market evidence suggests there

are now more than five million potential subscribers willing to pay

upwards of £200 each per year for Premier League football. That equates

to £16.50 per month, which is cheaper than most fans pay now, and might

give the League a crude "baseline" income of £1bn. That compares well

to the £566m earned currently each year from deals with Sky and

Setanta. The major hurdle has always been that starting a channel from

scratch would be costly and risky, with no sales or income absolutely

guaranteed. However, the League is increasingly involved in

broadcasting its international rights, producing previews, magazine

shows, highlights and live feeds for foreign markets through Premier

League Productions, a joint venture with TWI, a leading sports

marketing firm.

If a sharp and sudden decline in bidding prices

happens, threatening the financial dominance of the Premiership''s 20

clubs, PLTV will only become more attractive. Even after bidding has

started early in the new year, the League is under no obligation to

accept any specific offer, no matter how high. If the deals on the

table are not lucrative enough, the League will have more than a year

to get PLTV up and running

"PLTV would be a big step and it is

not the first-choice option," said one source. "But it is absolutely

feasible, if not perfect. If that is the route the League and its clubs

need to take to secure these important revenues going forward, it will

happen. You could say it''s been on the shelf for a while, and it''s

getting a dusting down."

On Monday the League sent out its

"Invitation to Tender" documents for 2010-13 inclusive. It is expected

that six packages of live domestic rights will be offered, as last

time, with a pack of 23 of the best games on Sunday afternoons at 4pm

the pick of the bunch. Sky won the rights to four of six packages last

time, or 92 games per season for three years, paying £1.314bn. Setanta

won two packages, or 46 games per season, paying £392m.

One

broadcaster said: "PLTV is a possibility, but I''m sure the clubs would

rather have their money guaranteed and the product in the hands of

established channels as long as they''re not facing a massive reduction

in income."

92

The number of games per season Sky paid £1.314bn to broadcast between 2007-10."

so yeah - i reckon the champs clubs should drop the player cap idea - and instead campaign for the FA to ditch the anti-competitive ''prem chute payments'' for relegated teams...in one fell swoop - players wages would have to fall because the relegated teams would be unlikely to pay prem wages to their players in the champs without the benefit of the £7m chute money,,,which in turn would have a favourable impact upon other champs teams - who presently feel the need to live beyond their means to compete effectively with relegated prem teams...

instead - promoted teams should get a £10m prem entry bonus, to help them compete on more equal terms with other prem teams - because presently, its a huge step-up, between the two...and without the benefit of prem chute money, prem teams would have to factor in the cost of relegation at the start of the season into their business models and players contracts...

the financial releationship betwen the prem and footy league has always been cockeyed in my view, and while the good times rolled economically, clubs either took on debt to compete (tho many went bust in the 90''s) or have since got sugar daddied up - but in the bad times - the chickens come home to roost...

the champs has been living beyond its means for years to compete with relelgated prem teams and their chute payments - but now incomes are under pressure cos of the recession and we don''t have the benefit of tv money to fall back on...ouch,,,it could get nasty...

 

[BigFish 2,282]

[quote user="lucky green trainers"]yep - this inde article today suggests that if their revenue is threatened (sky crying into their beer???), the prem league will offer footy via their own TV channel - ouch,,,thats one in the eye for sky...but insiders say UK TV rights should be equal to the last package and that foreign tv income is forecasted to show an increase as the popularity of the prem worldwide increases...horray - the prem is saved...what about the poor ole champs???  left to rot in the poor house by its richer relatives by the looks of it...

"Premier League planning TV channel to beat the recession

Exclusive: Clubs plot bold contingency plan should bids plummet in value for next TV deal

By Nick Harris
Wednesday, 17 December 2008

The Premier League will "recession proof" its most important income stream – television money – by launching its own TV channel from the summer of 2010 if the value of bids for live rights plummets when the auction for 2010-13 opens in the next few weeks.

A survey of major broadcasters and industry insiders by The Independent suggests that will not be necessary. Contrary to the financial turmoil in most sectors of business, the League''s overall TV income – £2.7bn over three years last time, £1.7bn of that for live United Kingdom rights alone – seems likely to remain high.

"I cannot see the rights value doing a nose dive," said a broadcasting executive whose company will be involved in the auction. "There is no evidence of a decline in interest in Premier League football. The opposite in fact."

Another insider with a different company said: "The channels with football already are not going to want to lose it. Those who don''t have it want it more than ever. Football remains totally important to the business model. There is a fear factor among the broadcasters that will maintain a healthy rights income for the Premier League."

Sky and Setanta, who currently have two-thirds and a third of the live League games respectively, will certainly be in the thick of the bidding again. There is also a real possibility that the American Disney-owned giant, ESPN, will enter the fray, perhaps in tandem with Setanta as rumours persist of takeover by the bigger company.

The Premier League is also privately confident that it will register growth in overseas rights income which hit £650m last time for the years 2007-10. In the long term, it hopes that total income from foreign markets will outstrip what it earns from domestic rights.

Yet despite mounting evidence that the Premier League will buck the trend of economic doom and gloom to maintain its position as the world''s richest football competition, it is sufficiently concerned about a slump that its own TV channel has become an "absolutely feasible, if not perfect" fall- back option.

The concept of Premier League TV has been mooted before. The League would sell subscriptions to live games direct to the public, on multiple platforms, as well as via established broadcasters in carriage deals.

Market evidence suggests there are now more than five million potential subscribers willing to pay upwards of £200 each per year for Premier League football. That equates to £16.50 per month, which is cheaper than most fans pay now, and might give the League a crude "baseline" income of £1bn. That compares well to the £566m earned currently each year from deals with Sky and Setanta. The major hurdle has always been that starting a channel from scratch would be costly and risky, with no sales or income absolutely guaranteed. However, the League is increasingly involved in broadcasting its international rights, producing previews, magazine shows, highlights and live feeds for foreign markets through Premier League Productions, a joint venture with TWI, a leading sports marketing firm.

If a sharp and sudden decline in bidding prices happens, threatening the financial dominance of the Premiership''s 20 clubs, PLTV will only become more attractive. Even after bidding has started early in the new year, the League is under no obligation to accept any specific offer, no matter how high. If the deals on the table are not lucrative enough, the League will have more than a year to get PLTV up and running

"PLTV would be a big step and it is not the first-choice option," said one source. "But it is absolutely feasible, if not perfect. If that is the route the League and its clubs need to take to secure these important revenues going forward, it will happen. You could say it''s been on the shelf for a while, and it''s getting a dusting down."

On Monday the League sent out its "Invitation to Tender" documents for 2010-13 inclusive. It is expected that six packages of live domestic rights will be offered, as last time, with a pack of 23 of the best games on Sunday afternoons at 4pm the pick of the bunch. Sky won the rights to four of six packages last time, or 92 games per season for three years, paying £1.314bn. Setanta won two packages, or 46 games per season, paying £392m.

One broadcaster said: "PLTV is a possibility, but I''m sure the clubs would rather have their money guaranteed and the product in the hands of established channels as long as they''re not facing a massive reduction in income."

92

The number of games per season Sky paid £1.314bn to broadcast between 2007-10."

so yeah - i reckon the champs clubs should drop the player cap idea - and instead campaign for the FA to ditch the anti-competitive ''prem chute payments'' for relegated teams...in one fell swoop - players wages would have to fall because the relegated teams would be unlikely to pay prem wages to their players in the champs without the benefit of the £7m chute money,,,which in turn would have a favourable impact upon other champs teams - who presently feel the need to live beyond their means to compete effectively with relegated prem teams...

instead - promoted teams should get a £10m prem entry bonus, to help them compete on more equal terms with other prem teams - because presently, its a huge step-up, between the two...and without the benefit of prem chute money, prem teams would have to factor in the cost of relegation at the start of the season into their business models and players contracts...

the financial releationship betwen the prem and footy league has always been cockeyed in my view, and while the good times rolled economically, clubs either took on debt to compete (tho many went bust in the 90''s) or have since got sugar daddied up - but in the bad times - the chickens come home to roost...

the champs has been living beyond its means for years to compete with relelgated prem teams and their chute payments - but now incomes are under pressure cos of the recession and we don''t have the benefit of tv money to fall back on...ouch,,,it could get nasty...

 [/quote]

Cracking idea LGT. Remove the advantage of the parachute payments and level the playing field; it would be bound to reduce salaries in the Chumpionship. The promotion bonus would help cycle the clubs at the bottom of the prem giving us all a chance. Bit like the old days really.