The Premier League has published details of the TV payments to clubs for the 2021/22 season. These amounted to £2.5 bln, ranging from £153m for champions #MCFC to £101m for 20th placed #NCFC (the first time the bottom club got more than £100m).
The largest increases compared to the previous season came at #BHAFC, up £16m, and #AFC, up £11m. In contrast, three clubs received over £10m less than 2020/21: #LUFC £17m, #EFC £13m and #LCFC £11m.
Each of the 20 Premier League clubs received £87.5m as an equal share, coming from domestic rights £31.8m, overseas rights £48.9m and commercial revenue £6.8m.
Merit payment depends on finishing place in the league, ranging from £41.1m for champions #MCFC to £2.1m for 20th placed #NCFC. There has always been a merit payment for domestic rights, but latest deal also introduced a merit element for overseas rights. Each place worth £2.1m.
Facility fees are paid based on the number of games broadcast live. In 2021/22 the minimum payment was £11.0m for 12 live games, while the maximum was £25.3m for 29 games (for both #AFC and #LFC). Each live game is worth an additional £0.8m.
A club that is frequently broadcast live can actually earn more than a club finishing above it in the league, e.g. in 20221/22 #AFC finished 5th in the league, but received more money than 3rd placed #CFC, as they were shown live 5 more times (29 games vs 24).
The split of TV payments in the Premier League highlights the importance of the equal share, especially for clubs finishing lower, e.g. #NCFC £101m total TV money was very largely driven by the £88m equal share, while this contributed to only 57% of #MCFC £153m.
In total the Premier League £2.5 bln TV money was split as follows: equal share £1.75 bln (69%), merit payments £432m (17%) and facility fees £355m (14%).
The TV money distribution method in the Premier League remains the most equitable of Europe’s major football leagues with the ratio from top to bottom earning club being only 1.5. This is much better than other leagues: Serie A 2.7, Bundesliga 3.1, Ligue 1 3.1 and La Liga 3.5.
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An explanation of how the new format for UEFA competitions will work from next season, including an explanation of the revenue distribution.
The number of clubs in the Champions League will increase from 32 to 36 with the group stage of 8 groups of 4 teams being replaced by a single league of 36 teams, then a new knockout round, before reverting to the traditional last 16.
Total revenue distribution will increase by 21% from €2.7 bln to €3.5 bln. Lion's share will go to the Champions League €2.5 bln, followed by Europa League €565m and Europa Conference €285m.
Quick review of the money earned by England's Champions League representatives to date after this week's matches.
#MCFC lead the way with £93m, followed by the other quarter-finalists #AFC £80m. The two clubs eliminated in the group stage earned less: #MUFC £51m and #NUFC £29m.
Champions League TV money is split into 4 elements:
- Participation Fee
- Prize Money
- UEFA coefficient
- TV pool
Each club that reaches the group stage receives a €15.6m participation fee.
So Everton have been deducted 10 points by the Premier League for a breach of the Profitability & Sustainability Rules #EFC
I have frequently looked at their case, the last time during an overall review of FFP. The article can be found on my blog here swissramble.substack.com/p/financial-fa…
However, given the importance of this decision, I've attached a series of screen shots from that article that help explain the background #EFC
First, Everton's initial FFP situation over the monitoring period up to 2021/22, where they are a fair way over the maximum allowed loss #EFC
Analysis of Rangers' 2022/23 financial results, when pre-tax loss slightly increased to £3m, as revenue fell 4% to £84m and operating expenses rose £11m, partly offset by profit on player sales more than doubling to club record £24m #RangersFC
In terms of profitability, #RangersFC and #CelticFC were at the opposite end of the spectrum with Rangers posting a small £3m pre-tax loss, while Celtic generated a record £41m profit.
Given that both clubs qualified for the Champions League, the size of the gap might come as a surprise. Cost bases are very similar, but #CelticFC revenue is substantially higher plus once-off other income, partly offset by #RangersFC better player sales.
8 of the 9 highest revenue increases over 2020/21 came from English clubs. #LFC led the way with an impressive £106m, followed by #MUFC £89m and #THFC £82m. The biggest reductions were at two Italian clubs, troubled Juventus £44m and Inter £32m.