Football League clubs facing financial hit after revenue from television rights falls by almost 70 million

Football League clubs facing financial hit after revenue from television rights falls by almost #70 million

Football League clubs’ incomes will be cut by £23 million a season from next year after the competition’s revenue from television rights fell by almost £70 million.

Camera, action: Norwich City's Grant Holt reveals a tattoo to a watching TV camera but club's in the Football League will see a significant shortfall in their TV money next season Photo: PA

By Rory Smith 9:42PM BST 04 Apr 2011

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The League has announced a new, three-year deal with Sky under which the broadcaster will pay £195 million for the rights to screen 75 league games a season, as well as the play-offs, Carling Cup fixtures and the Johnstone’s Paint Trophy, until 2015.

That represents a significant reduction on the current deal with Sky and the BBC, which earned the League £264 million across three years.

Negotiations over free-to-air highlights of matches from the Championship, League One and League Two are ongoing, and though that will swell the pot by several million, clubs now have just 18 months to prepare for a substantial reduction in their income.

“This has been a challenging climate in which to negotiate television rights,” said Greg Clarke, chairman of the Football League. “I am confident that our clubs will take heart from seeing such a significant ongoing investment in their competitions, despite a reduced level of broadcasting income, as it provides financial certainty in uncertain times.”

Sources at the League have attributed the downturn not only to a far bleaker economic climate but also the absence of any substantial competition to Sky. When the previous rights deal was signed, the broadcaster was facing serious competition from Setanta but the Irish company has since gone into administration.

The League believes the fact it has agreed the deal so far in advance will help clubs plan accordingly. More than 80 per cent of all player contracts will have expired by the time the next deal starts, allowing clubs to adjust budgets and avoid a repeat of the troubles seen after the collapse of ITV Digital.
Telegraph.feedsportal.com