No place for losers in the race for the Premier League’s TV cash

TV broadcasts

By Paul Nicholson
May 23 – The difference between the ‘haves’ and the ‘have nots’ in English football was emphasised again by the release by the Premier League of their broadcast payments to clubs for the 2012/13 season just finished. Even within the Premier League, the payments to clubs show a huge gap with Manchester United at the top earning 34% more than bottom placed QPR.

Winning is everything, and in the Premier League there is not much love or help for the loser. Manchester United’s merit payment for winning the championship is £15.1 million, compared to just £750,000 for QPR.

But there does seem to be reward for attractive football and the TV payments table does not exactly match how the clubs finished the season. For example, both North London clubs, Arsenal and Spurs, finished above west London rivals Chelsea in the TV payments table, but below them in the actual league.

The difference is primarily due to facility payments each time a club airs live on TV. Arsenal and Spurs matches were aired live 22 and 21 times respectively. In comparison Chelsea were live just 16 times. Manchester United were live 25 times.

Eight of the bottom 10 clubs in the league had matches aired live just 10 times.

The Founder Members’ Agreement of the Premier League rules that 50% of UK broadcast revenue is split equally between the 20 clubs, 25% is paid in Merit Payments (depending on where a club finishes in the final League table), and the final 25% is paid in Facility Fees each time a club’s matches are on TV in the UK. All international broadcast revenue is split equally amongst the 20 clubs.

The parachute payments made to relegated clubs were not enough to save Portsmouth from another relegation season – Pompey will not receive any further . But they did help Hull bounce back up to the Premier League.

The 2012/13 season was the last of a three-year broadcast deal cycle. It was also a bad season to be relegated, in financial terms. The new broadcast deals beginning next season will earn clubs, collectively, an additional £500 million a year. For clubs they can expect about a 40% increase on their last payment if they roughly perform in the same way as the season just finished.

The breakdown of payments made to the clubs is below.

TEAM          EQUAL SHARE   FACILITY FEES   MERIT PAYMENT   OVERSEAS TV   TOTAL PAYMENT

Man Utd       13,803,038        12,961,611          15,117,620            18,931,726        60,813,999

Man City       13,803,038        11,047,387          14,361,739            18,931,726        58,143,890

Arsenal         13,803,038        11,525,944          12,849,977            18,931,726        57,110,685

Tottenham    13,803,038        11,047,387          12,094,096            18,931,726        55,876,247

Chelsea        13,803,038        8,654,602            13,605,858            18,931,726        54,995,224

Liverpool     13,803,038        11,525,944           10,582,334            18,931,726        54,843,042

Everton       13,803,038        7,697,488             11,338,215            18,931,726        51,770,467

West Ham   13,803,038        7,697,488              8,314,691             18,931,726        48,746,943

W Brom     13,803,038        5,783,265              9,826,453              18,931,726        48,344,477

Swansea    13,803,038        5,783,260              9,070,572              18,931,726        47,588,596

Norwich    13,803,038        5,783,260              7,558,810              18,931,726        46,076,834

Fulham     13,803,038        5,783,260             6,802,929               18,931,726        45,320,953

Newcastle 13,803,038        8,654,602             3,779,405               18,931,726        45,168,771

Stoke        13,803,038        5,783,260             6,047,048               18,931,726        44,565,072

Aston Villa 13,803,038      7,697,488             4,535,286               18,931,726        44,967,538

S’hampton  13,803,038     5,783,260              5,291,167               18,931,726       43,809,191

S’derland    13,803,038     7,697,488              3,023,524               18,931,726       43,455,776

Wigan Ath  13,803,038     5,783,260              2,267,643               18,931,726       40,785,667

Reading     13,803,038     5,783,260              1,511,762                18,931,726      40,029,786

QPR           13,803,038     6,261,817              755,881                   18,931,726      39,752,462

Parachute payments

Birmingham City        12,301,644

Blackburn Rovers       15,575,120

Blackpool                   12,301,644

Bolton Wanderers     15,575,120

Burnley                      5,754,692

Hull City                    5,754,692

Portsmouth               5,754,692

Wolves                     15,575,120

Source: Premier League

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