The riches that await West Ham from the new TV deal
Last year the Premier League concluded a new TV rights deal worth £5.459 billion over 3 years
Overseas TV rights were sold for £2.233 billion over 3 years
Domestic TV rights were sold to Sky & BT Sport for another £3.018 billion over 3 years for 154 Live games each season
BBC Match of the Day Highlights added another £178m over 3 years and Internet Replay/Mobile rights were sold to News International for a reported £30m
This new deal equates to a massive £1.809 Billion per season but before it can be distributed to the 20 Premier League member Clubs various deductions need to be made such as parachute payments, solidarity payments to other leagues and the administration costs of the league itself plus donations to various football bodies. The total of these deductions total is around £234.6m for this coming season leaving around £1.585 Billion to be split between the 20 Premier League clubs.
A total of £159m Parachute Payments will be paid to former Premier league clubs this season. Last year relegated clubs benefit from a new £59m deal over 4 years. Last season’s relegated clubs get £23m in their first season £18m for the second season and £9m for seasons 3 & 4. Other Clubs relegated in the past 4 years all benefit from the new deal also.
This is what each relegated club will receive this season:
QPR £23m, Wigan £23m, Reading £23m, Bolton £18m, Wolverhampton £18m, Blackburn £18m, Portsmouth £9m, Burnley £9m, Blackpool £9m, and Birmingham £9m
Championship Solidarity payments
Each of the remaining 16 Championship clubs gets a £2.3m solidarity payment which is worth more than their own TV rights deal. This totals £36.8m
League One Solidarity payments23 League One club get a £360,000 solidarity payment (up £22,000 from last season) (Wolverhampton are excluded because of their parachute payment) This totals £8.28m
League Two Solidarity payments
23 League Two club get a £240,000 solidarity payment up £12,000 from last season) (Portsmouth are excluded because of their parachute payment) This totals £5.52m.
The premier league also retains additional pot of approximately £25m to cover the Premier League’s running costs and other money from this pot is given to a variety of other bodies including the PFA, the LMA, the Conference, the Football Foundation, the Football League, the referees’ body and various football charities.
The remaining £1585m is be distributed using rules laid down in the Premier League handbook.
The overseas rights less half the deductions above total £627m. These are equally split between the 20 Premier League Clubs at just over £31m each.
The BBC Match of the Day Highlights TV rights of £59m are also split equally between the 20 clubs at just under £3m each.
The Internet goals/clips for Internet and mobile phones was sold to News International for £10m per season so £500,000 per club.
For the lucrative UK domestic rights less half the deductions (£888m) 50% of it is split equally (£444m divided by 20 clubs gives each club around £22m), 25% of the pot (£222m) goes to merit payments of just over £1m per league place where last place gets roughly £1m and the Premier League winners get around £21m!. Finally the remaining 25% (£222m) gets split by live TV games on Sky and BT Sport as facility fee. This is split by the 154 Live games which equate to 308 payments as two clubs are involved in each match. The facility fee figure per match is around £721,000 and each club is guaranteed a minimum of 10 LIVE games meaning every club gets a minimum of just over £7 million. The top clubs are shown on TV a lot more so the Manchester clubs are shown around 25 times netting them around £18m each.
There still remain a few variables, we won’t know the exact deduction running the Premier League, £25m is my estimate based on last year but it should be quite close and is modest compared to amounts we are talking about. The number of TV lives shown per league position is also an estimate as Sky/BT have yet to decide but it is safe to say the top clubs in the top half of the table will get the lion share of live games and the bottom 10 clubs will just get their 10 games. There are some exceptions to this Newcastle seem to get a lot of LIVE TV games being shown 16 times last season despite finishing in 16th place. Swansea & West Brom finished 8th and 9th but only got 10 Live games each.
West Ham finished 10th in the Premier League table last year earning us £48,746,943 from TV rights after featuring in 14 live games.
A full breakdown and list of money received in the 2012/2013 Premier League season can be found here
The same 10th position and number of live games this season would bring in over £78m and our owners target of 7th place this season could net us £85.7m!
This season every TV live game and every league position will mean so much more financially than ever before. If we keep beating the likes of Spurs and Ravel keeps on scoring the goals than I expect Sky and BT to pick us for more games.
Below is my spreadsheet table showing what this season’s money rewards could look like at the end of the season.