Premier League Rights Update

Yesterday evening came news that the bulk of the Premier League packages for 2019-2022 have been sold to the incumbents, Sky and BT. But revenues are actually down this time around.

Sky is paying less than it was previously for a package of 128 matches across the year, both in overall terms, and in the price per game that it pays. Indeed it has a handful more games this time around despite paying less. But that still gets it all the first picks and many of the second ones, and it includes the new Saturday night kick off package.

BT is also paying a little less for the package it currently does for the Saturday lunchtime games, although there are fewer of them this time around which means the price per game goes up.

Overall, with two rights packages still be finalised, total revenues are £4.464bn compared with a final figure of £5.1bn last time around.

The final two packages are still to be determined, with the Premier League saying that there are “multiple” bidders – for which I read that as meaning more than one.

BT is certainly one of these, and it’s conceivable that Amazon would be the other. There’s no real value in Sky buying more – it has enough to persuade subscribers of the value of its package.

But there is a massive problem with these packages, and I’m still really unclear about how the Premier League formulated them.

One package is made up of Bank Holiday fixtures, and a complete midweek round of the Premier League, while the other contains two complete rounds of the Premier League.

Those complete rounds are surely problematical for any bidder? As I said previously, the winning broadcaster gets only two real bites of the cherry for each round of the Premier League. That assumes that matches are split across a Tuesday and Wednesday. So whoever buys the rights has a very limited window to monetise them. The package that includes Bank Holiday games is a little more attractive, since they’re spread out. But the value per game to broadcasters has to be substantially lower than for any other package.

But I wonder if the real reason that these have not been sold yet is because broadcasters are valuing them lower than Premier League does? The Premier League does set a reserve. That’s precisely what the FT is reporting (£) based on its sources.

It’s still possible that Amazon would come in and buy a package:

“Buy a Fire TV stick this Christmas and get free access to Boxing Day football – only with Amazon.”

But digital rights holders would also want to spread those games out across a longer period, and ideally want global rights, not just UK rights.

There’s no way that the final packages raising anything close to the £600m or so that would at least equal what the Premier League achieved last time around.

Unquestionably, these two package were badly formulated by the Premier League. They somehow believed that they would attract digital players who would hand over their hundreds of millions unquestionably, without weighing up the true value of the opportunity. And that hasn’t happened.

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