The wealth of the English Premier League (EPL) is having an increasing
effect on other European leagues. Often highly priced transfers bring a
welcome stream of income, but the standard is getting worse.
Even in top leagues such as that of Spain it is becoming more and
more difficult in terms of salaries to compete with almost all the
Premier League clubs and even some in the Championship.
The last team in the Premiership earned almost twice as much as the
champions of France last season. Anderlecht in Belgium has a budget for
the season of around €45m (£32m). The bottom team in the Premier
League gets €100m just from television rights. The Belgian television
deal splits just €70m across 16 teams.
With the new TV rights deal bringing unimaginable fortunes to the 20
teams in the EPL, other big clubs from Europe’s top leagues are
beginning to worry.
Revenue from broadcasters forms a huge chunk of money for a football
franchise. The 20 English clubs will share 2.3 billion Euros in
television rights for 3 years from the 2016-2017 season. Add the 900m
Euros per year for international rights and the increase comes to a
staggering 70 percent!
In France, the winner of Ligue1 will get 45 million Euros from
broadcasters Canal+ and BeIn Sports. At the same time, the champions of
England will pocket 210 million Euros!
At present eight English clubs are among the 20 richest in the world;
in about two years time, that is expected to make up half the list.
EPL’s revenue distribution is in stark contrast to how deals are cut in
Europe’s other big leagues.
Usually considered as the EPL’s closest rival, the La Liga, spent a
total of £550 m on Tv sponsorship deal in the 2013/14 season with Real
Madrid and Barcelona carting away with almost half the money –
£204million, leaving the rest to be shared among other clubs.
A breakdown of the rights deal showed that Real Madrid, Barcelona
both received £103.74 m, while the other teams making up the top 5 got
35.57m (Valencia), 31.12m (Atletico Madrid) and 23.71m (Sevilla)
respectively.
In La Liga, top clubs like Barcelona and Real Madrid, negotiate
personal TV deals with the sponsors, as a result of which there is a
huge gap between the money earned by them & other clubs. It prevents
other club from buying top players unlike the big-two, therefore dilute
the competition and leaves a negative impact on the league.
This is very unlike the EPL, where the revenue on TV
rights/Commercials are shared among all the 20 clubs in equal
proportion. Thereby, reducing the huge disparity in earnings.
Earlier, La Liga Clubs threaten to go on strike, asking the Spanish government to take more serious steps with proposed
statutes in the new Sports Law that will ensure that TV revenues of
Barcelona and Real Madrid slashed and split more rationally among clubs.
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