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7 - Broadcasting and sponsorship income

Published online by Cambridge University Press:  20 December 2023

Kieran Maguire
Affiliation:
University of Liverpool
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Summary

Football loves television, and television loves football. The English Premier League deal with domestic broadcasters Sky and BT Sport is worth £4.6 billion, and the overseas rights for almost the same sum for the seasons 2019– 22. The Bundesliga comes second to the Premier League in terms of domestic rights, but still trails a long way behind especially after taking into consideration overseas rights too (see Figure 7.1). It was not always the case. Prior to the creation of the Premier League there was a feeling amongst club owners and directors that television was the enemy, not the friend, of football. The common view was that live broadcasts would have a negative impact on people attending matches as people would prefer to watch the game on television from the warmth and security of their homes. Remember that matchday income, prior to the creation of bodies such as the Premier League, was the main source of revenue for clubs.

Table 7.1 shows how Manchester United have grown since the creation of the Premier League. Whilst all elements of the club's income have been significant, broadcast income has shown the fastest rate of growth, albeit coming from a low base prior to the formation of the Premier League.

Why do broadcasters like football so much?

Football, as a live product and a global one, is the most popular team sport in the world in terms of television viewers. In the United States the NFL (American football) had 16 of the 20 highest ratings for any television programme in 2018. People like live television, especially if it relates to a communal experience that can be watched at home or with others in a social environment, such as bars and restaurants. The English Premier League negotiators were quick to realize this and have marketed the game extremely well to broadcasters, both domestic and international. Clubs have worked hand in hand with the Premier League by arranging pre-season tours overseas to increase the interest in both the clubs and the overall EPL product.

Type
Chapter
Information
The Price of Football
Understanding Football Club Finance
, pp. 85 - 94
Publisher: Agenda Publishing
Print publication year: 2021

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