Leaders
Dallmeier

Business Directory

Browse the Directory

Sign Up to the Directory

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

New Premier League Deal Could Impact The Championship’s Competitiveness

Wed 22nd Jun 2016 | Money & Finance

As we all know, starting from this upcoming season, Premier League clubs will receive more money than ever before after Sky and BT paid mega-money to have the rights for the football in England’s top flight.

The ramifications for this deal will be felt all over Europe, as well as lower down the English football league as all clubs strive for a place at the Premier League table and all the wealth that comes with it. We have already seen some major transfers, with Arsenal splashing out £35m on Granit Xhaka and bidding over £20m for Jamie Vardy, and this is just the start of a summer of serious spending.

Staggeringly, 17 of the richest 30 clubs in the world are based in the Premier League and that makes it incredibly hard for sides to compete with their huge spending power. Whilst spending more money on transfers doesn’t guarantee success it should help and for Championship sides when they are promoted they are faced with a serious prospect of having to spend a lot of money in order to try and compete.

Although, you could argue that the money will make the Premier League more competitive, and after Leicester miraculously broke the big club’s hold of the title, we may see more of that. Mid table clubs can now attract some of the biggest names across Europe, and that should make a more competitive and quality league. You can look at bookies.com for all the latest news, football betting tips and odds that’s suggested by the industry for the upcoming season. However, the biggest worry may come the other way, when Premier League clubs get relegated, they will still be armed with an extortionate amount of cash.

England’s second tier is notoriously competitive but it will struggle to maintain that unpredictability when clubs can comfortably cherry-pick other players and blow other sides out the water when it comes to wages like never before. We have already seen inflated transfer fees at that level, with the likes of Ross McCormack and Jordan Rhodes fetching more than £10m each, and with the new deal, clubs will be prepared to pay over the top prices in order to seal promotion.

Bournemouth recorded a massive £38.3m loss in the year they were promoted which seems like an almighty gamble that paid off, but other clubs aren’t as fortunate. The likes of Leeds United and Portsmouth suffer at the hands of miss-management and with the carrot of becoming unbelievably rich accompanying promotion it may encourage more reckless spending.

Overall, the new Premier League deal could bring some benefits, it should see some more mid-table clubs being able to attract stars, like West Ham did with Dimitri Payet, which in hand creates a better league.

However, the consequences of this could see the Championship losing its competitiveness as some of the wealthiest clubs in the world will be relegated to the second tier, with parachute payments and deep pockets, and a weaker second tier that is something that English football won’t want.

Payet (Dimitri_Payet_West_Ham_January_2016.jpg)

 

Posted by: Aaron Gourley 

Tripleplay 468 banner V2 (468x60_Animated_v2.gif)
RETURN TO LATEST NEWS SECTION
SUBSCRIBE TO THE FCBUSINESS RSS FEED
 
If you have any football business related news stories you’d like to share then please contact us – agourley@fcbusiness.co.uk

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

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

Related Articles

Watford FC: An Unlikely Financial Success Story?

Wed 26th Apr 2017 | Money & Finance

The business model carried out by the owners of Watford FC is unlikely to be adopted by too many sectors outside of football, but by hiring and firing a conveyor belt of managers, they have managed to...

Newcastle United & West Ham Face Tax Investigation

Wed 26th Apr 2017 | Money & Finance

Newcastle United and West Ham United have been targeted by HMRC for alleged Tax and National Insurance fraud. Officers are understood to have raided the offices at St James’s Park and the London...

Premier League Revenues Grow But Losses Return

Thu 20th Apr 2017 | Money & Finance

Premier League clubs’ revenues increased to a new record of £3.6bn in 2015/16, according to Deloitte, the business advisory firm. Analysis of the financial results of Premier League clubs...

7 Tips From The Best Online Football Merchandise Stores

Thu 13th Apr 2017 | Money & Finance

CEO, Lewis Holland and the team at DiscountIF team have been studying various merchandise stores of football clubs in the UK. This article was originally posted here. We’ve compiled a short list...