English Premier League revenue has skyrocketed.
It gets the bulk of this income from TV rights, having signed a deal in 2015 which was 70% higher than the previous and hit Sky’s profits.
But social media is changing how football is consumed: it has eased the drop in TV subscribers and advertising revenue. And with Amazon moving into broadcasting tennis, how long will it be before digital providers disrupt the traditional broadcasters’ monopoly?
Also, whilst revenue is up, the league made a loss. It’s partly down to unsustainable growth in wages and transfer fees.
The goal posts are widening
There’s a £100m turnover gap between the Premier League and the rest of English football. This could encourage reckless spending by Championship League clubs who covet a Premier League place.
Fears of poor governance started the ball rolling on financial regulation. Premier League clubs are now capped on players and wage spending if they’re solely using TV rights fees to fund the deals.
However, Champions League clubs are allowed losses of £39m over 3 years. They face no specific caps on wages and transfer fees.
Do these rules encourage true competition?
Clubs can no longer use massive debt piles to finance their way to the top.
It means that Championship League clubs will find it harder to move up unless they get backers with deep pockets who are willing to make a long term investment.