Premier League rights remain Prime attraction for broadcasters

In 1992, the average price of a pint in the UK was £1.29. While that might sound like a bargain by today’s standards, it’s nothing compared to the £600,000 it cost Sky Sports to screen a Premier League game under the terms of its first broadcast deal.

That figure had rocketed to £11m-per-match by the time it signed its most recent three-year deal to cover 2016-2019. And with the Premier League said to be casting furtive glances at a range of online platforms, believed to include Amazon, Apple, Facebook, Google, Netflix and Twitter, there is an expectation that there will be an uplift of at least 40% on the next cycle.

Rumours this week suggest it’s Amazon which is leading the pack of would-be market entrants. The American firm signalled its intent earlier this year when it beat Sky to win exclusive UK rights to ATP tour tennis. It has also secured deals with NFL in the US to stream a small amount of American football and it offers Bundesliga match commentary via Amazon Music in Germany.

It seems a matter of if, not when, an online broadcaster enters the fray. It will undoubtedly have an impact for bookmakers, yet it remains to be seen exactly what that will be. The next package is expected to offer 190 games – up from 168 – and, on the face of it, with more bets placed on televised games, any move which brings more matches to TV is good for turnover.

However, earlier this year, it was revealed that average live viewing on Sky fell 14% over the past season. From a fan’s perspective, as much as a punter’s, it is vital to avoid saturation.

There’s also a big difference between volumes staked on Sky and BT. True, Sky has the pick of the games, but it also has many more subscribers.

How many viewers would Amazon pull in?

Analysts believe about half as many people watched The Grand Tour on Amazon Prime as watched Top Gear on BBC, but it was a big driver for subscriptions and the overall number was considered a success.

Buying football rights would see Amazon double down on this strategy and over the long term it would undoubtedly be responsible for a major drive in sign-ups.

Kick-off times are another important factor in terms of punter attraction, and it will be interesting to see if there are any new slots allotted to home the extra games. Generally speaking, the later the fixture, the more action it sees.

With virtually no competition for attention, Monday night games are particularly popular, and the instalment of Friday evening kick-offs has also proved a hit. Whereas the Saturday lunchtime contests are amongst the quietest televised games on the trading floor.

The spiralling rights fees are vital to enabling clubs to continue to attract and retain some of the finest players in the world and have helped to create the most entertaining sports competition in the world. And this is another area that may have an impact on our industry.

Fans will have to fork out for another service, which could impact their disposable income. Meanwhile, the online TV advertising model is markedly different, potentially reducing a popular and successful communication channel.

For a quarter of a century, supporters and experts alike have debated whether the bubble is about to burst, but it seems to keep growing.

The best outcome for everyone concerned is a sensible solution that improves the quality and range of football on TV, increases the accessibility, without significantly adding to the cost.

Ultimately, consumer behaviour drives change and bookmakers thrive on adapting to it. Once the speculation ends and the next mega agreements come to light, we’ll be ready to do so once again.

Steve Munns is head of Grosvenor Sport, the sports betting arm of Grosvenor Casinos. He started out in the industry in 2001, learning his trade at Stan James UK. In 2008, he moved to Gibraltar to launch 888sport for gaming giants 888.com, before joining the Rank Group in 2016.