Premier League terminates £160m per year deal for coverage rights with China

[1892-LFCWasBorn]

 

 

https://twitter.com/MiguelDelaney/status/1301485390239592448?s=20

 

 

This needs it's own thread as it applies to so many others.

 

[dockers_strike]

The loss of the deal equates to over £560m if no other rights holder comes forward.

[Horus]

#Mbappe 2045

[TheDrowningMan]

There’s understandably going to be a lot less money available for the coming season as a result of this. Some non-oil clubs splashing cash liberally in the current environment might be in real trouble, and in our case I wouldn’t necessarily expect the sale of Wijnaldum, should it happen, to lead to any new incomings.

[dockers_strike]

The loss of this deal will like affect us a lot more than say Villa. The overseas tv rights money is now dished out weighted more to the top 6(?) finishers and not an equal split like with the domestic tv rights.

[dave u]

There's no way the games are not going to be shown in China, so presumably they'll just pirate it like the Saudis were doing?

[El Dangerous]

For a second I thought this might be something to do with human rights but then I read it’s entirely financially motivated. Presumably they’ll strike up another deal or is PPTV the only show in town as far as China are concerned. Give the rights to Taiwan free of charge just to piss them off.

[dandyman]

Seems like they missed a payment in March and the Premier League have now flicked them the V’s

[Davelfc]

[Captain Turdseye]

[Davelfc]

You'd be crapping yourself if you'd recently taken a big loan out on the basis of future TV revenue 

[Scott_M]

Just now, Чемпионы said:

You'd be crapping yourself if you'd recently taken a big loan out on the basis of future TV revenue 

Or spent money that you thought you had coming in?

[Davelfc]

7 minutes ago, Scott_M said:

Or spent money that you thought you had coming in?

Or both, hahaha.... 

 

Time for another naming rights payment me thinks. 

[polymerpunkah]

Does this mean the clubs are free to negotiate deals for themselves in that market?

 

 

[dockers_strike]

1 minute ago, polymerpunkah said:

Does this mean the clubs are free to negotiate deals for themselves in that market?

 

 

No, it's still the PL collective rights.

 

Im not confident there will be a new rights holder for China in the short term.

[Salou]

This is why city/chelsea can afford to spend as if they lose out on future revenue (fans in stand/tv rights) they most likely won't care as the owners will cover the shortfall, it even seems like Moshiri has decided to do this for Everton like he has been doing last few years. FSG have never pumped their own money in so they will be much much more risk averse and will most likely keep as much income as possible to manage the shortfall in lost future earnings. I don't doubt that we'll have to take out a loan of some sorts over the next 2 years to account for the shortfall in income for 2020 and 2021 which is inevitable.

[Harry Squatter]

The Premier League has announced it has terminated it's biggest overseas TV contract, with PPTV in China. Was worth $650m over three seasons. Deal terminated after one season. Another big hole in clubs’ finances that will now need to be filled. However, it is envisaged that this is only likely to affect Liverpool @JamesPearceLFC.

[MOGLET]

Apparently China said, "we gave you covid19" now give us the football to take our minds off it.

[Lee909]

We're they asking for a large payback from the Premier league due to changes of games? 

 

Surely they'll find another deal, probably bigger with a rival network

[Lee909]

Just read PPTV withheld over 160ml in payments. 

 

The move comes after PPTV, which is owned by Suning, the Chinese conglomerate that also has control of Italian club Inter Milan, withheld a payment of around £160m in March. PPTV bought the rights for the 2019-2022 broadcasting cycle for £564m back in 2016, eclipsing the $160m deal that was previously held by Super Sports for the preceding batch between 2013/14 to 2018/19.

 

But the company held back a nine-figure payment earlier this year after expressing concerns surrounding the coronavirus pandemic and the financial crisis that has followed.

[Lee909]

From the Independent 

 

Sounds like PPTV used the 160ml as leverage to extend the deal

The Premier League was paused on 13 March before being concluded later in the year due to the Covid-19 outbreak, with the expected payment from PPTV subsequently not arriving on time. It’s understood that the Premier League deemed this as a breach of contract on PPTV’s behalf, and following subsequent talks, it rejected a contract extension offer through to 2025.

 

 

[dockers_strike]

27 minutes ago, Lee909 said:

We're they asking for a large payback from the Premier league due to changes of games? 

 

Surely they'll find another deal, probably bigger with a rival network

They were saying they didnt want to pay the 160m and future payments because the games were stopped then when re started, there were no crowds etc.

 

Make no mistake, this is a seismic moment for the PL tv income. For the first time ever, the domestic tv rights were less than the overseas rights and this deal with the Chinese tv company ensured that was the case after the domestic rights brought in less money.

 

The PL even struggled to sell the package Amazon eventually picked up. The PL has also agreed that tv rebates will be spread over the remaining years of the current contract. The next round of bidding could see a real dip in total PL tv rights.

 

No doubt the 'elite' clubs would prefer to go their own way with subscriptions but they need the magic 14 number in any PL vote to get this. Im not sure they'd get it.

 

There's a political class between the UK and Chinese Governments so it's by no means certain another rights holder for that region would be forthcoming and even less likely they'd pay the same as before.

[Colonel Bumcunt]

 

I think the thing to remember here is the PL are the ones pulling the plug, not China, presumably it's still very much in demand in China, and there will be a deal struck whereby the missing payment is structured alongside normal payments. 

 

There will no other bidders, the only way that happens would be if PPTV set-up some shell company to bid. 

 

This all goes hand in hand with Chinese sponsorship deals for clubs and advertising hoardings etc, they need the Chinese people to see their adverts.

 

i have to say though, I think PPTV have a good argument to seek a reduction in that payment period.  Lord knows the PL sells the arse off the product by highlighting the fans and the atmosphere and the high tension, and PPTV paid for that product, and the PL could not deliver it after March. 

 

 

[Salou]

1 hour ago, Colonel Bumcunt said:

 

I think the thing to remember here is the PL are the ones pulling the plug, not China, presumably it's still very much in demand in China, and there will be a deal struck whereby the missing payment is structured alongside normal payments. 

 

There will no other bidders, the only way that happens would be if PPTV set-up some shell company to bid. 

 

This all goes hand in hand with Chinese sponsorship deals for clubs and advertising hoardings etc, they need the Chinese people to see their adverts.

 

i have to say though, I think PPTV have a good argument to seek a reduction in that payment period.  Lord knows the PL sells the arse off the product by highlighting the fans and the atmosphere and the high tension, and PPTV paid for that product, and the PL could not deliver it after March. 

 

 

PL said they terminated it but in reality it was PPTV by refusing to pay up, kind of like saying you're fired after someone has already quit.

 

Reading some of the finance journos sounds like it could also be a case of Chinese companies pulling investment from UK companies in retaliation for Huawei as this is not the only Western investment that they are pulling out of. 

[dockers_strike]

10 minutes ago, Salou said:

PL said they terminated it but in reality it was PPTV by refusing to pay up, kind of like saying you're fired after someone has already quit.

 

Reading some of the finance journos sounds like it could also be a case of Chinese companies pulling investment from UK companies in retaliation for Huawei as this is not the only Western investment that they are pulling out of. 

Yep. I think people are underestimating this Huawei politicing by the Chinese Government. I wouldnt be holding my breath for any new chinese tv rights deal and certainly not at the price that PPTV paid. I believe it was the single biggest payment by any overseas rights holder. It's not just the loss of 160m for last season, it's the whole 560m+ over the 4(?) year period.