Soccer... Premier League, La Liga, Champions League and more

Discussion in 'BS Forum' started by Brook!, Sep 23, 2018.

  1. MoWilkBeast

    MoWilkBeast Well-Known Member

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    @Wahoo you were talking about revenue sharing in soccer in the game thread.

    First, teams keep all revenue from their home league games, their own sponsorships and merchandising deals. Most also have local radio deals which is small potatoes and some have their own subscription TV channels. All this is 100% the club's, unlike the NFL. Cup games are treated a bit differently, but I'll ignore that.

    Historically, revenues for league-wide sponsors and broadcasting were split 50% for the top tier, 25% for the second and 12.5% each for the third and fourth. With the creation of the Premier League in '92 this stopped and the PL kept all its own revenues to split between its member clubs and the remaining Football League clubs had their own, much smaller, deals and distributed that revenue in similar way to before. It's also worth noting that within the PL these revenues aren't split evenly. It's basically a prize money system so the higher you finish the more you get, with the exception of international broadcasting money (that's distributed evenly to each PL club). Each team playing in a live broadcast game also gets paid for that game, the home team gets a bigger share.

    In 2006 the PL agreed to give some of its UK revenue to the FL. First, relegated teams get parachute payments for three years (ostensibly to help paying off contracts that are not now affordable). This diminishes each year but is significantly more than their share of the FL's own revenue - this year's parachute payments for newly relegated teams are something like £40 million. Each Championship club that doesn't get parachute payments now gets 30% of the amount given to a club that does get parachute payments in the third year - about £5 million. Tiers 3 and 4 get a lot less than 30%. I think a tier 3, League 1, team gets £0.7 million this year.

    It's complicated but the lower 3 divisions get a lot less than they used to. And revenue distribution within the PL is a lot less even than it is in the NFL where league-wide revenues are shared evenly. On top of this in order to get any money from the PL the FL had to give up a lot of rights over young players and agree to a system where the PL clubs can poach Academy level kids for a nominal payment. Many lower league clubs survived on developing young players and selling them on. This is now much harder to do and a number of clubs have dispensed with Academies entirely because it is just no longer worth it. So they gained on one hand but lost a big revenue stream on another.

    You were right in saying that below tier 4, there is no revenue sharing outside of 2 years of parachute payments for clubs demoted from tier 4. This was always seen as semi-pro or amateur level (although many tier 5 and some tier 6 teams are now full-time professionals) and outside the Football League - hence the term non-league. There was no automatic promotion and relegation between tier 4 and the top non-league level until the late '80s.

    Sorry if this is a bit long!
     
    #141 MoWilkBeast, Nov 19, 2019
    Last edited: Nov 19, 2019
  2. Wahoo

    Wahoo Well-Known Member

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    Not at all, I appreciate you putting it together and educating me. Much clearer to me now. 2 things pop out right away: the actual cost of relegation from the PL, and the fact that with so much money floating about you would think that they could give more to the lower leagues. But that’s business I guess. Thanks again.


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  3. sozopol

    sozopol Well-Known Member

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    Pochettino sacked. :( Love him, but I guess it was time for a change.

    Mourinho in? o_O
     
  4. Brook!

    Brook! 2018 Friendliest Member Award Winner
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    This seems to be the last chance for the chosen one. I have always been a fan of him. I hope he can resurrect his career with you guys.
     

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