Sunday 2 August 2015

Premier League Clubs Earn Far More Than Other European League Teams.

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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