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Premier League pay-per-view is excessive and out of touch

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Getty Images

The Premier League’s much-criticised pay-per-view venture is a measure of the desperation of clubs to find new revenue streams while fans continue to be locked out of stadiums.

At a combined cost of £100million a month in terms of lost matchday income, the need to diversify grows by the day.

Finding alternative ways to sell their core product is the most obvious solution – even if a charge of £14.95 feels both excessive and out of touch in the current climate.

By the time of Friday’s announcement that fans would have to pay for individual matches not covered by the existing broadcast rights deal a “few” top flight clubs had already favoured a direct-to-consumer option that would see them take charge of their own streaming in a similar fashion to the EFL. But this was a non-starter.

The existing contracts with broadcasters across the globe meant it was not an option to hand over individual control to clubs who are already bound to guidelines over match highlights and clips, including “holdback times” they must adhere to.

With countries around the world paying for exclusive rights, the idea that clubs could sell access direct to supporters raised the prospect of further rebates to broadcasters.

The disruption caused by Covid-19 last season already led to an estimated rebate cost of more than £300million.

Pay-per-view via Sky and BT Sport can be seen as an uneasy middle ground for clubs that have long-considered the benefits individual rights deals.

Under the current plans they will take the majority share of revenue from pay-per-view sales, while the Premier League retains the necessary control without letting the genie out of the bottle.

Even in these extreme circumstances, a move away from collective bargaining over broadcast rights would be a major threat to order in the top flight, with the Premier League fiercely guarding against any form of breakaway.

Sunday’s revelations about “Project Big Picture,” which would give greater power to the so-called “Big Six”, poses a fresh threat of a further imbalance of wealth in the game.

Neville has been critical of the Premier League pay-per-view plan (PA)
Neville has been critical of the Premier League pay-per-view plan (PA)

What the coronavirus pandemic has succeeded in doing is to prove the ongoing value of match-going fans, even in the age of multi-billion-pound TV deals.

It is the popularity of the English game overseas that has made the Premier League the most powerful in the world – but canned crowds and mosaics can’t make up for the loss of supporters through the gates.

Football finance expert Kieran Maguire says it is vital football changes its habits in the face of Covid.

“If you take a look at the Premier League from 18-19 I think it generated £680million from ticket sales, matchday income, so that’s a big gap to fill,” said the author of The Price of Football. “Arsenal generated 24 percent of their total revenues (in their last accounts) from the Emirates.

“Because A: it’s a big stadium and B: it’s a modern stadium and that comes with a modern pricing structure. I think Spurs, had they played a full season at their new ground, would’ve had a similar figure.

“It (matchday support) has, to a certain extent, been taken for granted and now we’re in the realisation that you do that at your peril. From a fiscal perspective, but also from the fact that watching matches live these days is like watching DVD of Glastonbury rather than being there.”

Maguire added: “What clubs need to do is focus on their cost base. We have seen during the transfer window where clubs like Burnley, Brighton and Southampton, their net spend is negative over the window because they are looking to cut back on discretionary expenditure whilst committing to the costs they can’t remove in the form of player wages.

“Going forwards, we don’t know when this thing is going to end, it could be standard that there is some form of Covid clause put into every player’s contract. That’s certainly been the case in Leagues One and Two this season.

“Clubs have dipped their toe into the world of eSports. What we have seen is eSport competitions have managed to deal with the pandemic quite well because it can be quite an insular experience. Trying to broaden the revenue base will be an issue.

“Certainly streaming has its benefits, but there are also drawbacks which mean the net benefits are zero or close to zero.”

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