When Sir Alex Ferguson mentioned a fortnight ago that he believed that TV companies had got football coverage on the cheap, there weren’t many people who failed to agree with the United boss’ view. They have got it on the cheap pure and simple, but only when you are talking about the bigger clubs.
News breaking this morning that Liverpool is thinking of breaking away and securing their own TV rights has brought a mixed response within the media. Liverpool are certainly not doing anything different to what was discussed over 20yrs ago, before the Premier League first struck its deal with Sky. The likes of Tottenham and Manchester Unitedwere championing the idea that clubs should be in a position to negotiate their own set fees for games with the TV networks. In principle it is hard to argue against the reasons behind it, but they were subsequently outvoted in favour of an equal distribution among all clubs.
The consequence of that decision proved positive in my eyes and has helped make the Premier League the most marketable and exciting league in Europe. You have to wonder how competitive La Liga would be if a similar structure was in place. Barcelona and Real Madrid highlight the sheer gulf in the Spanish league – a similar scenario to what would happen in England should other clubs look to follow Liverpool’s suit. There is already a gap (largely down to Champions Leaguerevenues), but it is one that will grow ever bigger.
I don’t blame Liverpool for looking to flex their muscles here. It is not them being greedy, but the simple fact that football is an industry where revenues are being swallowed up by transfer fees and high wages, therefore the need for clubs to look at other possible ways to generate income is the high priority. UEFA’s new fair play ruling has ensured that clubs are in no position to compromise and looking after their own affairs is of paramount importance.
While clubs back in the early 90s were happy to ensure some form of equality, the ridiculous rulings of Platini will actually have the opposite effect of its original intention and will actually destabilise the domestic leagues even further – I mean could a club like Wigan or Fulham actually command the type of fees Liverpool or United would get for a LIVE broadcast? The rich will ultimately get richer while the smaller clubs will subsequently get poorer.
Written by Matt C for FootballFanCast.com
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This TV deal, I see it as down to the size of the Fan base World wide and not down to if the club is rich or poor. Liverpool for examply still had the same fan base last year when they almost went into administration.
Lets look at it from a Fans view as we are the ones that pay the cost in subscriptions. I for one would prefer the money I spend to watch Liverool play go to the club I support.
Bigger clubs pay higher wages and transfer fees, and seeing as they generate the most interest in countries where the licensing rights are sold, they should also get the most money. It makes sense. Smaller clubs should be grateful they get the large amounts they get and that is down to the interest generated by the big clubs.