Even if ‘Project Restart’ takes-off, the Premier League clubs are slated to lose $400Mn (£325m) due from the media rights revenues. The Premier League informed the clubs on Monday that the broadcast partners both domestic and International are asking for TV revenue refunds, even if they find a way to finish the season. The penalties will be due because they would not be able to fulfil particular obligations from their contracts with the TV companies. This includes changes to kick-off times, and that fixtures will be played without supporters.
One of the incentives for the clubs to finish was to avoid the potential loss of $940m (£762m) in broadcast monies. This was the total rebate that might have been due in the worst-case scenario involving a cancellation of the competition. But the clubs now know that there will be a significant loss regardless of what they do. The UK media has reported that the negotiations remain ongoing between the clubs and broadcasters as they try to find a way to maximise the visibility of the league’s final 92 matches.
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The hope is to spread the games over seven weekends and two midweeks, with the use of staggered kick-off times, and for all of them to be shown live by Sky, BT Sports and Amazon, although this could prove difficult. It is possible that a small number of them could be carried by free-to-air YouTube channels.
Premier League chief executive Richard Masters confirmed that staging the remaining 92 fixtures at neutral venues remain the subject of “ongoing dialogue”, but even if top-flight football returns, the League is bracing itself to be asked to refund to TV deals with domestic and international broadcasters with matches not expected to be fulfilled as originally stated in their contracts.
“We were able to update our clubs today on our situation with broadcasters, which is obviously confidential,” said Masters.
“Whatever happens, there’s going to be significant loss of revenue for clubs. That is inevitable”.
Representatives from all 20 Premier League clubs met on Monday via video conference call to in the latest Project Restart meeting. Brighton, Aston Villa and Watford had led the rebellion but Prem chief exec Richard Masters admitted: “All clubs would prefer to play at home and they accept it’s an issue to be addressed. It’s fair to say that it is not an issue which is unique to any part of the League.”
TV Rights Deals / Values of Premier League
– English soccer’s Premier League has seen the value of its broadcast rights climb eight per cent to US$11.7 billion (UK£9.2 billion) for the 2019 to 2022 cycle.
– Premier League in this 4 year cycle was due to earn US$5.3 billion (UK£4.2 billion) through the international broadcast deals and rest from the domestic market.
– The domestic right deals fetch US$6.3 billion (UK£5 billion) through deals with Sky Sports / BT Sport and Amazon.
– Sky shows the lion’s share of Premier League matches, while BT airs 52 live games exclusively every year. Amazon has a package of 20 games per season.
