The Football League’s revenue from its television deal will be cut by 26 per cent from 2012-13. The BBC currently has a joint deal with Sky but did not feel in a financial position to bid. Against that background the Football League was able to negotiate a three-year deal at £195m compared with the current £264m.
The Football League’s revenue from its television deal will be cut by 26 per cent from 2012-13. The BBC currently has a joint deal with Sky but did not feel in a financial position to bid. Against that background the Football League was able to negotiate a three-year deal at £195m compared with the current £264m.
Clubs will have 15 months to adjust, and it is nothing like the financial shock they received after the collapse of ITV Digital. However, it comes against the background of concerns about sponsorship income and the renewal of season tickets. Fans are concerned about their job security and at most Football League grounds it is not necessary to have a season ticket to get a seat.
The reaction in most businesses would be to do exert downward pressure on what are still high wages. However, there is always the temptation to sign the extra player who it is thought might secure promotion.
There are two broader implications of this decision. First, it may halt the drift of the Championship towards becoming a de facto Premiership 2, which has widened the gap with the lower two divisions.
It may also be an amber warning signal for the Premier League. Tim Crow of Synergy Sport Consultants commented, ‘This may be a warning shot across the bows for the next time the Premier League negotiates with Sky.’ However, the Premier League is key to Sky’s success. Football League games are more of an attractive add on.