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Clubs are gambling on continuing TV increases and potential earnings getting into Europe. Most from 8th down are doing so now because they've overextended themselves to the point that a few seasons in the championship will spell financial ruin - basically sat at the blackjack table chasing losses now. Instead of investing the TV windfall in infrastructure to solidify their standing, the vast majority are doing what the transfer junkies want us to do and blow every spare £ on players - an investment that doesn't just depreciate but evaporates.According to these figures despite all of the money in football at the moment, 8 Premier League teams reported losses & only 6 made profits of over £30m. I honestly cannot see the frivolous spending we have seen in recent years continuing its trajectory in all honesty.
It's amazing to think that 40% of the elite Leagues teams all report losses. There's some really reckless panicking going on, these clubs need to find a better model for longevity and fast
Worldwide still not hit peak imo its why bigger clubs stopped it being equal splitClubs are gambling on continuing TV increases and potential earnings getting into Europe. Most from 8th down are doing so now because they've overextended themselves to the point that a few seasons in the championship will spell financial ruin - basically sat at the blackjack table chasing losses now. Instead of investing the TV windfall in infrastructure to solidify their standing, the vast majority are doing what the transfer junkies want us to do and blow every spare £ on players - an investment that doesn't just depreciate but evaporates.
This is where the European Super League will come from - not from an arrogant breakaway, but from a business decision of necessity. When the TV bubble deflates, not bursts but just a market correction, these clubs buried under debt from spending tomorrow's riches will cry out for rescue and the Glazers, Levy, Kroenke, et al will think, "Nah, mate, you fucking shit the bed - I won't clean it up." and presto...the big clubs walk out on a bankrupt and crumbling FA.
We'll see. I simply can't see it continuing to increase - it's a losing investment for broadcast platforms at the current rates which is why you're seeing major rights holders "lose" the rights to competitors who are paying over what all models forecast as profitable. In the US, Turner doubled what FOX had previously paid for CL rights when there's silly no way the value of the audience has doubled and FOX was losing money on the contract anyway. NBC, I've heard rumor, is losing money on their increased Premier League deal which makes sense considering ESPN didn't even bother submitting a bid as Disney overlord accountants had already sussed it as overvalued.Worldwide still not hit peak imo its why bigger clubs stopped it being equal split
I’m not a financial man by any means but if I’m reading those numbers right, I do not see us shelling out the 150 million everyone is bandying about this summer.
I’m actually quite concerned. Unless the debt on the stadium is spread out to something like 20 million a season (including intrest). Which I can’t see us doing because it would mean my 1 year old son turning 20 before we are even close to being rid of it (plus why would the lenders agree). Then I can’t see us realistically competing with transfers and wages in the foreseeable future.
I hope someone quotes me and proves me wrong because I could use a stiff drink after going through that twitter thread. I naively thought that we would start to compete this summer.
Where's the value in broadcasting football matches?
I understand that this is the historical model for basically all sports broadcasting globally - but it relies on an outdated model that is quickly, and easily, being replaced. The subscriber monetization model relies on paid subscription being the only method of accessing the product. All one has to do is visit a match thread here around kickoff and you'll see that the in increasing numbers consumers are turning to pirated streams for watching live sporting events. The old model was to force people to pay for your service by offering sports programming which was difficult to monetize and then redirect that audience to conventional programming (MOTD, talk shows, etc.) which sold high revenue advertising.Subscriptions. Sky have over 23 million subscribers across Europe paying between £600-£800 p.a.
I understand that not everyone has the sports channels, nonetheless that is some serious cheddar.
Not sure how it works where you are.
I understand that this is the historical model for basically all sports broadcasting globally - but it relies on an outdated model that is quickly, and easily, being replaced. The subscriber monetization model relies on paid subscription being the only method of accessing the product. All one has to do is visit a match thread here around kickoff and you'll see that the in increasing numbers consumers are turning to pirated streams for watching live sporting events. The old model was to force people to pay for your service by offering sports programming which was difficult to monetize and then redirect that audience to conventional programming (MOTD, talk shows, etc.) which sold high revenue advertising.
Consumers now, with the option available, aren't paying £X /mo. because they want to watch 4 hours of football when they can just watch a dodgy stream for free. Especially given that the commentary is shite anyway.
Hollywood is suffering from similar issues - people aren't going to the theater or buying DVDs nearly as much anymore. It's why they make little more, at least big budget, than comic book movies and star wars. You can't make money on the movies anymore, it's the lunchboxes you need to sell to turn profit.
Going forward it is only going to get easier to steal the commodity that is football. Look how much money has evaporated in the past 20 years from the music industry. Sales and concert revenues peaked at $21.5 billion/yr in 2000...15 years later that figure was down 68% to $6.9 billion/yr. Music industry revenue is still lower than at any point since the 70s...digitalization, piracy, and shifting consumer habits have cut the industry off at the knees.
The idea that sports programming is invulnerable to the wholesale paradigm shift of mass media in the 21st century is simply false, and a lot of companies will lose a lot of money buying tomorrow's business on yesterday's model. The way we consume football in 5, 10, 15 years is going to be vastly different to the way we consume it today - and it will be less profitable for the football clubs. Which is why it's important we have a stadium that allows us to efficiently monetize the asset whose importance will begin to grow again - live arses in seats, drinking pints, eating chips, and buying shit.