Apparently the EPL media rights for 2022/23 will be auctioned later this year by The Premier League. Pre Covid, they were hoping for even larger revenues, with an expectation that digital platforms like Amazon etc would increase competitiveness and increase demand.
However, advertising revenue, which funds a broadcasters bid for rights are down by 35% globally since COVID-19 with majority of worlds biggest advertisers projecting to continue with reduced ad spending into 2021. Even once a vaccine is administered, I suspect it will take a few years before corporations return to pre COVID-19 levels of advertising spend.
So what will happen to the value of EPL media rights, and what is the knock on effects for clubs, most of whom are committed to pre COVID-19 player contract expenses etc?
While the next contract doesn’t start til 2022, broadcasters will act within current 2020 financial restrictions, and so one expects the total value to be dramatically reduced. Unless the PL can demonstrate that football attracts an even higher audience due to lockdown or social distance reducing leisure options. That may be even more true in international markets like USA and China.
However, advertising revenue, which funds a broadcasters bid for rights are down by 35% globally since COVID-19 with majority of worlds biggest advertisers projecting to continue with reduced ad spending into 2021. Even once a vaccine is administered, I suspect it will take a few years before corporations return to pre COVID-19 levels of advertising spend.
So what will happen to the value of EPL media rights, and what is the knock on effects for clubs, most of whom are committed to pre COVID-19 player contract expenses etc?
While the next contract doesn’t start til 2022, broadcasters will act within current 2020 financial restrictions, and so one expects the total value to be dramatically reduced. Unless the PL can demonstrate that football attracts an even higher audience due to lockdown or social distance reducing leisure options. That may be even more true in international markets like USA and China.
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