Jurys Inn 468

Business Directory

Browse the Directory

Sign Up to the Directory

FC Business Twitter
FC business Linked in
FC Business facebook
FC Business Youtube

Global Sports Broadcasting Rights Predicted To Rise To £16bn

Fri 3rd Jan 2014 | Money & Finance

Deloitte predicts the value of premium sports broadcast rights worldwide will increase to £16bn ($24.2bn) in 2014, a 14% rise, or £1.9bn ($2.9bn) over 2013.

This increase in rights fees, one of the Deloitte Technology, Media and Telecommunications (TMT) Predictions, will be driven by new agreements with certain top tier European domestic football leagues and major North American sports leagues. The double digit growth compares to average growth of 5% between 2009 and 2013, and exceeds the forecast 4% increase in global pay TV revenues for 2014.

The premium sports in each market represent a small proportion of all professional sports activity.  However, they represent the vast majority of viewer interest and the bulk of all television revenues.

About three-quarters of the total value of premium broadcast rights fees will be generated by 10 competitions: the top-tier domestic football leagues in England, France, Germany, Italy and Spain, the UEFA Champions League, and the four major North American professional leagues. 

The substantial revenue growth in 2014 will be largely driven by new broadcast deals for England’s Premier League, Germany’s Bundesliga and Major League Baseball.  European football’s top-tier domestic leagues and top clubs competitions will generate £6.5bn ($9.8bn) of the total in 2014, of which the Premier League will contribute £1.9bn ($2.9bn).

Austin Houlihan, a senior consultant in the Sports Business Group at Deloitte, commented: “We see no signs that the premium sports rights value bubble is about to burst, rights fees for live content to premium properties overall will continue to grow. 

“Premium live sport delivers large audiences, typically characterised by an attractive demographic profile.  It drives subscriptions and generates advertising for broadcasters, particularly in an increasingly altered media landscape. In some cases, premium sports broadcast rights fees have been insulated from wider economic pressures by multi-year contracts. 

“Television and premium sports are well matched for each other: at the highest level, sport is great unscripted live drama for television.  Constant advances in technology are leading to ever more sophisticated, compelling ways in which sports can be portrayed. 

“The development of pay TV in particular has transformed the broadcasting of premium sports leagues.  Live content is a key subscription driver for those leagues and underpins pay TV business models.  As the pay TV subscriber base rises and revenue per user grows, operators are investing increasing sums to secure this key content.

“New market entrants looking for attractive differentiating sports content have intensified competition driving substantial uplifts in rights fees.  For example, BT’s entry into the UK sports rights market, acquiring sports content to help retain and build its telephony, broadband, and pay TV services, has resulted in substantial revenue uplifts.  The Premier League enjoyed a 71% increase in the value of its domestic live rights from 2013/14, while the amount paid for UK rights to UEFA’s top club competitions will double in value from 2015/16.”

Image: Action Images - REUTERS/Michael Dalder/Files

Posted by: Aaron Gourley

To subscribe to our range of football newsletters including news, products and jobs CLICK HERE.




If you have any football business related news stories you’d like to share then please contact us – agourley@fcbusiness.co.uk

Add to: Google Google | Yahoo Yahoo | Live Live | del.icio.us del.icio | Digg Digg |

Related Articles

Cup Run Boost To Maidstone Coffers

Tue 29th Sep 2015 | Money & Finance

Maidstone United’s third season at the Gallagher Stadium has seen turnover rise to over £1.3m. Maidstone United Holdings Ltd, which groups together all the club's business activities,...

World’s Football Price Index calculates cost of attending top division games in 25 countries around the world

Wed 23rd Sep 2015 | Money & Finance

With Premier League matches well underway, GoEuro.co.uk , the search engine for comparing flights, coach and rail travel options across Europe, has partnered with Onefootball to calculate the cost of...

Premier League Tourism Worth £684m To UK Economy

Fri 11th Sep 2015 | Money & Finance

International visitors to Britain who watch Premier League football are worth £684m to the economy it's been revealed. VisitBritain 's research report shows football tourism brought 800,000...

The Spiralling Cost Of Pursuing Success

Thu 10th Sep 2015 | Money & Finance

On the opening day of this year’s Soccerex convention, Henry Winter hosted a live forum with Louis Saha, Gaizka Mendieta and Prime Time Sport CEO Esteve Calzada, discussing trends in the...