The promised land. Getting further away......

[narly101]

Interesting spin on the Premier League finances on the BBC this morning.

http://www.bbc.co.uk/news/business-32931345

I was particularly interested in the quote "It may mark a turning point in football finance and "a new age" of significant profitability for top clubs, they said."

Whilst this may be true, it will also have a huge impact on the rest of the league - it will fuel increased spending on wages in the top tier, and create a larger gap between the Championship, and indeed the rest of the divisions.

The fact that combined revenues in the PL "soared by 29% to £3.26bn", with a comparison of the pitiful Championship "the combined revenue increased by £54m, or 12%, to a record £491m". Taken into consideration that there are 4 less clubs in the PL than the Championship, this is stunning.

Now I'm no mathematician, but WTF!

 

[DavidinSouthampton]

I am confident there will be some sort of collective realisation in the not too distant future that things can't go on like this, and something will have to be done to limit the earnings of the premier league clubs, and/or to redistribute income to support the lower leagues.

Either that, or we bring in Sepp Blatter to sort it out! He seems to have had a mission to champion the underdogs in championing football in less football oriented parts of the world. I hear he will be looking for a job soon.

 

[Simster]

On the positive side, at least Phil Gartside and Bolton Wanderers are still on the wrong side of the divide.

 

[wsupp]

I am confident there will be some sort of collective realisation in the not too distant future that things can't go on like this, and something will have to be done to limit the earnings of the premier league clubs, and/or to redistribute income to support the lower leagues.

Mmmmm. And pigs might fly !

 

[Icy Gull]

I don't really care that much about getting to the Premier League. The Championship is a great division and as long as we are entertaining and scoring goals whilst flirting with the top few places I'm happy to stay here. The problem is hanging onto decent player at this level when the wages from the PL are even more astronomical.

 

[Deleted member 22389]

All good things must come to an end at some point, and the clubs who have sensible like us will be the ones who benefit in the end. I reckon we will be thanking Bloom in a few years time.

 

[gordonchas]

"The transformation of Premier League club profitability will fuel even greater global investor interest in Premier League clubs," said Dan Jones, head of Deloitte's Sports Business Group..." the risks associated with investment in Premier League clubs seem to be diminishing."

No it won't. For the top six this is generally good news, for the rest it further jeopardises their future position as none of them have a guaranteed continuation in the Premier League.

What has just happened is what always happens when new TV money is added to the pot, there is a lag before wages catches up with the additional income. There are at least 12 teams at any one time in the Premier League who will not make any significant profit, certainly not enough to guard against the risk of their relegation at some point in the future.

When that day, inevitable as it is, arrives they will be stuck with their PL cost-base (an ever-increasing cost-base by the looks of it) and an even greater income drop than normal.

In order to put that day off, the relegation threatened half of the table will spend like there's no tomorrow.

But Dan Jones is a friggin expert.

 

[Ernest]

It's simply not sustainable, a business model built on SKY paying ever increasing amounts for TV rights will crash at some stage.

 

[gregbrighton]

It will keep rising. There is no limit to the finances being poured into football. It's a very successful product at the top. The gap will only widen between the Premiership brand and Championship but that's life isn't it....

 

[Goldstone1976]

I opened this thread thinking it was going to be about continental drift.

 

[Pavilionaire]

It's simply not sustainable, a business model built on SKY paying ever increasing amounts for TV rights will crash at some stage.

I disagree, I actually think the Premier League IS finally sustainable. They've reached the point where the worldwide TV markets are so big even exorbitant wages (up 7%) can be covered by TV money (up 29%). Fvck you Championship, all aboard the Prem gravy train!

 

[Gullflyinghigh]

I am confident there will be some sort of collective realisation in the not too distant future that things can't go on like this, and something will have to be done to limit the earnings of the premier league clubs, and/or to redistribute income to support the lower leagues.

I like the idea but who is going to be able to do that?

I can't see that the FA, even if it had the stomach for it, would actually be able to. The PL Is a runaway train in terms of finances, the only thing to do is wait for it to either slow down or crash.

 

[Tricky Dicky]

I am confident there will be some sort of collective realisation in the not too distant future that things can't go on like this, and something will have to be done to limit the earnings of the premier league clubs, and/or to redistribute income to support the lower leagues.
.

Zero chance of that happening.

 

[spring hall convert]

"The promised land."

There's is so much hyperbolic bollocks around football these days. It's cringey.

 

[DavidinSouthampton]

Mmmmm. And pigs might fly !

I like the idea but who is going to be able to do that?

I can't see that the FA, even if it had the stomach for it, would actually be able to. The PL Is a runaway train in terms of finances, the only thing to do is wait for it to either slow down or crash.

.

Zero chance of that happening.

I have always been an optimist.

But I have always thought - and it could happen several years down the line - that the "Big Clubs" will one day realise that, unless they do something for smaller clubs and leagues not out of altruism but out of commercial sense, there will be no more talent around that they can poach from the lower tiers because the clubs there won't have
the facilities to develop it

 

[happypig]

I can see a move to get rid of promotion/relegation to the PL altogether; the clubs would argue that it provides stability, the TV companies would be happy enough as long as their armchair supporters continue to stump up cash.

 

[Tricky Dicky]

I can see a move to get rid of promotion/relegation to the PL altogether; the clubs would argue that it provides stability, the TV companies would be happy enough as long as their armchair supporters continue to stump up cash.

Nah, the TV companies won't be happy when most of the games for the second half of the season have nothing riding on them, therefore less excuting and fewer viewers. They also make a lot out of the play offs.

 

[El Presidente]

"The transformation of Premier League club profitability will fuel even greater global investor interest in Premier League clubs," said Dan Jones, head of Deloitte's Sports Business Group..." the risks associated with investment in Premier League clubs seem to be diminishing."

No it won't. For the top six this is generally good news, for the rest it further jeopardises their future position as none of them have a guaranteed continuation in the Premier League.

What has just happened is what always happens when new TV money is added to the pot, there is a lag before wages catches up with the additional income. There are at least 12 teams at any one time in the Premier League who will not make any significant profit, certainly not enough to guard against the risk of their relegation at some point in the future.

When that day, inevitable as it is, arrives they will be stuck with their PL cost-base (an ever-increasing cost-base by the looks of it) and an even greater income drop than normal.

In order to put that day off, the relegation threatened half of the table will spend like there's no tomorrow.

But Dan Jones is a friggin expert.

Disagree. Current TV deal was a tipping point in terms of PL finances. The next one will increase profitability even further, and that's before the overseas rights are renegotiated.

 

[Wrong-Direction]

"The promised land."

There's is so much hyperbolic bollocks around football these days. It's cringey.

This

 

[Blue Valkyrie]

I can see a move to get rid of promotion/relegation to the PL altogether; the clubs would argue that it provides stability, the TV companies would be happy enough as long as their armchair supporters continue to stump up cash.

The problem with that is you would then get even dodgier owners, who would pocket all the TV cash, and just fund pub standard teams, safe in the knowledge that they will still be able to do it all again the next season, and the next, and the next etc. etc.

It would turn Premier League teams into instant 'money trees'.

So what if they lose 7 or 8 nil each week... The owner is still garanteed 50+ million a year for just owning the club, and why on Earth would they bother to share that with players.

There would be 5-6 teams chasing European football, and 14-15 rubbish outfits acting as ATMs for their owners.