Premier League to introduce new international revenue distribution model





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From 2019/20, increases in international revenue to be distributed based on where clubs finish in the League.



Premier League clubs have agreed on a new formula for sharing any future increase in international broadcast revenue from season 2019/20 onwards.


The League currently distributes all international broadcast revenue equally between the clubs, however, from 2019/20, clubs will continue to share current levels of international revenue equally, but any increase will be distributed based on where they finish in the League.

 

When total central revenues were distributed in 2017/18, the ratio between the maximum and minimum a club received was 1.6:1 – the highest-earning club received 1.6 times the amount received by the lowest-earning club.

 

 The new formula for sharing any future increase in international revenues caps the ratio at 1.8:1. This means the maximum that a club can receive in total central revenue payments is 1.8 times the amount received by the lowest-earning club.

 

 Should future revenues rise to the point where the cap is reached, any additional income will be distributed so the 1.8:1 ratio is maintained.

 

There have been calls from club’s such as Liverpool that they should be entitled to a larger share of international TV broadcasting monies.

 

However, speaking of the new formula, Premier League Executive Chairman Richard Scudamore said: “When the Premier League was formed in 1992 nobody could have envisaged the scale of international growth in the competition which exists now.

 

“Back then the clubs put in place a revenue sharing system that was right for the time and has served the League well, enabling them to invest and improve in all areas.

 

“This new agreement will continue that trend with a subtle change that further incentivises on-pitch achievement and maintains the Premier League’s position as the most equitable in Europe in terms of sharing central revenues.

 

“By coming together and agreeing this change, the clubs have provided a platform for the future success of the League for many years ahead.”

 

 

In the Premier League’s inaugural season, 1992/93, the ratio between the maximum and minimum a club received from central revenues was 2.1:1. This new agreement will maintain the Premier League’s position as the most equitable in Europe in terms of distributing central revenues. The ratio in 2017/18 was 1.6:1 and under the new system from 2019/20 could rise to a maximum of 1.8:1

 

 The League’s UK broadcast revenue, 50 per cent of which is shared equally between clubs and 25 per cent each of prize money and broadcast facility fees, will continue to be distributed in the same way it always has been, as will central commercial revenues which are shared equally.

 

It’s also understood that Amazon has secured the rights to broadcast 20 Premier League games from 2019. The latest round of TV broadcasting rights, due to begin 2019/20 season will see Amazon show 20 matches a season from 2019 to 2022 after the technology giant picked up one of the remaining unsold TV bundles.

 

 Through its online streaming service, Amazon will show one round of midweek games and one round from a bank holiday which will be available to Amazon Prime’s UK members.

 

The other unsold package of 20 matches was bought by BT Sport for £90m, taking their total to 52 games.

 

Credit: fcbusiness

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