A fundamental feature of the Premier League up to now has been that television revenues are shared equally between clubs, unlike Spain where Barcelona and Real Madrid are able to negotiate their own deals. Of course, in practice, some of the money is relation to position in the league so the top clubs do get more.
A fundamental feature of the Premier League up to now has been that television revenues are shared equally between clubs, unlike Spain where Barcelona and Real Madrid are able to negotiate their own deals. Of course, in practice, some of the money is relation to position in the league so the top clubs do get more.
That could all change if Liverpool get their way after 2013. They would like leading clubs to be able to negotiate their own deals for overseas television rights. Admittedly that leaves the greater domestic share of the revenue to be shared out as it is now. But the overseas share is the real growth area and there are those even think that it may dwarf the domestic revenues over time.
Liverpool think that if this doesn’t happen the big Spanish clubs will overtake their counterparts in England. Liverpool managing director Ian Ayre thinks that changes in the way the overseas broadcast market is organised could be a bigger ‘game changer’ for the club than a new stadium. Sir Alex Ferguson has already argued that clubs should get more revenue from overseas broadcasts, but is prepared to maintain the equal shares principle.
However, Ayre argues that ‘if you’re in Kuala Lumpur there isn’t anyone subscribing to Astro or ESPN to watch Bolton, or if they are it’s a very small number. The large majority are subscribing because they want to watch Liverpool, Manchester United, Chelsea or Arsenal.’
‘So is it right that the international rights are shared equally between all the clubs? Some people will say “well you’ve got to all be in it to make it happen”‘.
Liverpool say that Arsenal, Chelsea and Manchester United (but not City) should get similar treatment. The big obstacle is that 14 teams would have to agree to such a change under Premiership rules. If you are, say, Stoke City, what are the incentives to do so?