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Premier League secure 1.4bn in overseas broadcasting deals

Tue 23rd Mar 2010 | Television & Broadcasting

The Premier League expect to raise £1.4bn in the sale of its overseas broadcasting rights according to the Independent newspaper.

The new deal for 2010-13 has more than doubled from the £625m which was secured in the last rights issue. Premier League officials have assured its member clubs that they will raise the amount each receives from the current £10m to around £23m per season

The increase in revenues are expected to filter down to clubs in the Football League as well after it was announced that parachute payments to relegated clubs would increase to £16m from the current £11.2m. However, this is expected to be spread over four years instead of two as current and represents a drop in real terms of 0.66% on the current deal.

Solidarity payments paid to the Football League are also expected to increase from next season as a result. The current £21.6m is spread amongst the 72 Football League clubs to fund community, academy and various other club projects.

The Premier League's live domestic rights for 2010-13 raised £1.782bn when sold last summer. With such enormous growth in international sales, and room for expansion, foreign rights should overtake home sales in the future.

However, Ofcom, the television and media regulator is expected to rule that Sky make its premium channels in the UK available to rival broadcasters at wholesale prices. This threatens to diminish the stranglehold the broadcaster has on pay sports, thus reducing the cost of watching football.

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