Premier League keen to curb overspending
Reuters - Thursday 15 November 2012, 12:34
English Premier League clubs discussed plans on Thursday to
ensure that a huge injection of cash from broadcasters around the world
ushers in an era of greater financial stability.
Having
secured a domestic television deal worth one billion pounds per season from 2013 - a 70 percent increase - the Premier
League has since negotiated a series of improved overseas agreements
including one with NBC in the United States.
That
has fuelled optimism that overseas TV income will comfortably beat the
total of more than 1.3 billion pounds generated in the three-year cycle
that ends in 2013.
"If you
factor in 40 percent growth, you get to around 2 billion pounds, that
seems eminently possible," said Alan Switzer, part of the sports
business team at Deloitte.
ESPN
Star Sports, owned by Rupert Murdoch's News Corp, is believed to have
retained the rights in India in the latest agreement, expected to be
confirmed this week.
The
trick now for England's top 20 teams is to ensure that the latest cash
infusion does not translate straight into higher pay for players and
bigger commissions for their agents.
WAGE COSTS
Total
club wages ate up 70 percent of record Premier League revenues in
2010/11, according to a study by Deloitte, leaving very little over in
terms of profit.
Measures to
ensure clubs curb losses, known as "Financial Fair Play", have been
agreed for Europe's top teams and were on the agenda when Premier League
clubs held one of their regular meetings in London on Thursday.
The
clubs looked at options including introducing a break-even requirement
and forms of wage restraint, without reaching any final conclusions.
There
is thought to be a broad appetite for tighter financial discipline but
14 or more clubs need to back any proposal before it can take effect.
"We
are supportive of proposals broadly mirroring Financial Fair play which
obviously we abide by already," Manchester United executive vice
chairman Ed Woodward said as the club presented its financial results on
Wednesday.
Along with TV
cash, English soccer has been transformed in recent years by money
poured into clubs by fabulously wealthy new owners like Russian Roman
Abramovich at Champions League winners Chelsea and Abu Dhabi's Sheikh
Mansour at Premier League champions Manchester City.
OVERSEAS APPEAL
The Premier League outperforms other European leagues in the amounts it generates for global TV rights.
It
has not so far commented on how much it has raised from the latest
overseas deals - with some clubs wary of flaunting their wealth ahead of
the January transfer window.
English football 's rich history combined with the cosmopolitan nature of many of
its top clubs help to explain its appeal internationally.
Last
season's dramatic climax when Manchester City pipped local rivals
United to the title on goal difference will also have helped to promote
sales.
"The global TV rights
explosion the Premier League has discussed today has been driven by
England's heritage and connections with so many countries around the
world," said Andrea Radrizzani, CEO of media company MP & Silva.
"The
product values are high with great end-to-end football being played by
the top teams," added Radrizzani, an Italian whose company manages and
distributes TV rights for sports events around the globe.