This pounds with the further 1.9 million

This summer has seen the financial power of the Premier League come into focus once again with a number of clubs breaking their previous transfer records during the summer transfer window while winter transfer window witnessed the record signing of Virgil van Dijk for the fee of 75 million pounds. Often, many fans wonder that the clubs who haven’t won any titles in previous years, how can they afford the players with such a huge transfer fee. Well, this all revolves around the broadcasting rights of the EPL. Let’s analyze how this affects the Champions Leauge clubs but also relegation zone clubs.In attempting to understand the reasons behind England’s financial dominance one must look at the benefit of the TV rights deal.

The latest Premier League TV rights deal kicked in during the 2016-17 season and saw clubs earn a record 5.14 billion pounds. This is a huge amount but it wasn’t the same for EPL in past. In the 2013-14 season, the broadcasting rights earned them only 3.08 billion pounds. Sky Sports alone is paying 83 percent more compared to the 2013-14 season. The money is split up into domestic TV rights and overseas TV rights.+++++++The domestic TV rights estimated to be worth around 1.

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7 billion pounds per season. 50 percent of this is divided equally (35 million pounds) for each club. That means that even if there is a decline in viewership for a club, they will still get these 35 million pounds.

The remaining 50 percent of domestic TV rights is further divided into two categories. One is merit-based and another one is based on TV appearance.Is merit-based system, the amount is dependent on club’s final league position. The team that finishes bottom of the Premier League will receive roughly 1.9 million pounds with the further 1.

9 million pounds for each place above that. Forexample the champions earn roughly 38 million pounds and 10th placed team earns 21 million pounds.The remaining amount is divided up among clubs depending on how often they appear on live TV broadcasts. Each team receives 1 million pounds per TV appearance and is guaranteed a minimum of 10 million per season even if they appear less than 10 times on TV. +++++++The overseas rights add a further 780 million pounds to the pot per season.

This is dished out equally to each Premier League club and earns them roughly 39 million pounds per season.After reading this one might think that relegation zone teams would earn much lesser amount compared to top 5 teams but it isn’t true. Taking last season as an example, Chelsea (EPL winner) earned 150.8million pounds for winning the title while bottom-placed Sunderland earned an equally impressive 93.47 million pounds.

In EPL the ratio between highest and lowest earning club is 1.6 to 1 which is the lowest among Europe’s top leagues. Perhaps this is why most of the football pundits consider EPL as the biggest football league around the world.


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