?Huddersfield Town v Tottenham Hotspur – Premier League?Last summer was one of the wildest in the terms of transfer deals and with that many analysts expected that the broadcast rights for the 2017-18 season would be higher than previous seasons of Premier League. Many clubs made the record transfer deals during the summer transfer window while winter transfer window witnessed the record signing of Virgil van Dijk for the fee of 75 million pounds. Often, many fans wonder that the clubs who haven’t won any titles in the previous years, how can they afford the players with such a huge transfer fee.
Well, this all revolves around the broadcasting rights of the Premier League.In attempting to understand the reasons behind England’s financial dominance one must look at the benefit of the TV rights deal. The latest Premier League TV rights deal kicked in during the 2016-17 season and saw clubs earn a record 5.14 billion pounds (Source: Dailymail). This is a huge amount but it wasn’t the same for Premier League in the past years.
In the 2013-14 season, the broadcasting rights earned them only 3.08 billion pounds. Sky Sports alone is paying 83 percent more compared to the 2013-14 season. The money is basically split up into domestic TV rights and overseas TV rights.?Sunderland v Hull City – Premier LeagueDomestic TV rights?The domestic TV rights are estimated to be worth around 1.7 billion pounds per season.
Half of this amount is divided equally (35 million pounds) for each club. That means that even if there is a decline in viewership for a club, they will still get these 35 million pounds. The remaining half of domestic TV rights is further divided into two categories. One is merit-based and another one is TV appearance based.?Merit-based earning?In the merit-based system, the amount depends on club’s final league position.
The team that finishes bottom of the Premier League will receive roughly 1.9 million pounds with the further 1.9 million pounds for each place above that. For example, the champions earn roughly 38 million pounds and 10th placed team earns 21 million pounds.?TV appearance based earning?The remaining amount is divided up among clubs depending on how often they appear on live TV broadcasts. Each team receives 1 million pounds per TV appearance and is guaranteed a minimum of 10 million per season even if they appear less than 10 times on TV.?Overseas TV rights?The overseas rights add a further 780 million pounds to the pot per season.
This is dished out equally to each Premier League club and earns them roughly 39 million pounds per season.After reading this, one might think that relegation zone teams would earn much lesser amount compared to top 5 teams but it isn’t true. Taking last season as an example, Chelsea (Premier League winner 2016-17) earned 150.8 million pounds for winning the title while bottom-placed Sunderland earned an equally impressive 93.47 million pounds. Below is the full breakdown of earnings by Premier League clubs.
?Premier League revenue data?In Premier League the ratio between highest and lowest earning club is 1.6 to 1 which is the lowest among Europe’s top leagues. Perhaps this is why most of the football pundits consider Premier League as the biggest football league in the world.Source: Mirror?