The £3bn goal and Premier League’s global financial hegemony

Goals are important in football, but few hold such significance as the one scored by Sergio Aguero for Manchester City in injury time at the Etihad Stadium.

When he fired past Queens Park Rangers’ Paddy Kenny and wheeled away in jubilant celebration, the Argentine almost certainly knew he had won the Premier League for the Citizens.

What he probably didn’t know, however, was that this goal came at an ideal time for the chief executive of the Premier League, Richard Scudamore. Playing on the “excitement” and “drama” of not only the final day, but the season as a whole, Scudamore was able to secure a record television rights deal with Sky and BT Vision for £3 billion over the next three years.

As the man himself put it: “We couldn’t have gone to market at a better time.” In the words of The Swiss Ramble, “the Premier League’s relentless publicity machine had already given the award for best season to the 2011/12 campaign” for its “mix of wonderfully memorable matches, unbelievable drama and continuing excitement at both ends of the table”.

However, behind the headlines, the £3 billion figure, which left many open-mouthed at its sheer magnitude, holds a few surprises that even those in the know may not be aware of. As The Swiss Ramble points out:

• Sky obtained the maximum number of games available to any broadcaster (116 matches)
• The company shelled out 40% more than last time, a total of £2.3 billion
• BT Vision, the “new kid on the block” secured 38 matches, but managed to nab nearly half the “first pick” games (those featuring the league’s best sides)
• Even the £3 billion figure doesn’t include all the spend of broadcasters – the BBC shelled out £180 million for its Match of the Day highlights package (an increase of 4.5% on last year)
• Overseas rights amount to £1.4 billion, and are expected to reach £2 billion by the time the next rights package is negotiated
• The first ever TV rights package for the Premier League was worth just £50 million back in 1992

The deal is huge – this is undeniable, and with the production quality and global influence of the Premier League, it can be explained away fairly easily. Although Scudamore’s terming of the latest agreement as a “modest commercial increase” may leave some wondering what a “substantial commercial increase” might look like.

There is an additional question to be asked, however: would you pay £6.5 million for the rights to show Wigan Athletic against Stoke City?

Is it worth shelling out £73,000 per minute to watch two relegation-threatened sides play long ball football on a Saturday at 5.30pm?

The Swiss Ramble points out that with the overseas deal to be tied up in a few months from now, the cost of the Premier League could explode once again – overseas rights could perhaps even double, as Deloitte are predicting.

We can only wait and see, but in the meantime, with the Premier League set to rake in almost four times as much television revenue than La Liga in Spain, we can at least profess to dominating European football financially, if not on the pitch.

Read the full post by The Swiss Ramble here.