comparison between ipl and epl
TRANSCRIPT
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COMPARISON BETWEEN IPL AND EPL
.
Submitted byName of Student: Steve Varghese
Roll NO: 346
Submitted to,UNIVERSITY OF MUMBAI
BACHELOR OF MANAGEMENT STUDIES.Semester- V.
(201314)
Project Guidance byProfessor: - Sita
UTTARI BHARTI SABHASRAMANAND ARYA D.A.V COLLEGE OF COMMERCE AND SCIENCE.
DATAR COLONY, BHANDUP (EAST)
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DECLARATION
I Mr/MISS : Steve Varghese thestudent of BACHELOR OF MANAGEMENT STUDIES (BMS)Semester V (2013-14) hereby declare that I have completed my projecton
The information submitted is true and original to the best of myknowledge.
Signature of student
NAME OF STUDENT: Steve Varghese
ROLL NO : 346
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CERTIFICATE
This is to certify that MR/MISS..,RollNo:..of T.Y.B.M.S Semester V ( 2013-14 ) has successfully completed theproject on. under the guidance of
Prof. Yashesh Ranpura submitted on September, 2013 to this college in fulfillmentof the curriculum of BACHELOR OF MANAGEMENT STUDIES, MUMBAIUNIVERSITY OF MUMBAI.
PROJECT COURSE EXTERNALGUIDE CO-ORDINATOR EXAMINER PRINCIPAL
(Prof. Yashesh Ranpura) (Chandrakala Shrivastav) (Dr. Ajay Bhamare)
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OBJECTIVE OF THE STUDY
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NEED OF THE STUDY
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INTRODUCTION
The IPL is a Twenty20 cricket tournament which was inaugurated in 2008. Twenty20 cricket
was first introduced at a competitive level by the England and Wales cricket board in 2003 but
the Indian Premier League is largely credited with being the institution that projected the formatof the game onto the world stage.
The Indian Premier League was initiated by the Board of Control for Cricket in India (BCCI) and
has been an enormous success. The annual tournament, played in the months of April and May
has gone from strength to strength and is largely viewed as being the 'richest' tournament in
world cricket.
There are the eight franchises that field teams to play in the IPL (in brackets original cost of
franchise in $/million):
Chennai Super Kings, CSK (91)
Delhi Daredevils, DD (84) Kings XI Punjab, KXIP (76)
Kolkata Knight Riders, KKR (75.1)
Mumbai Indians, MI (111.9)
Rajasthan Royals, RR (67)
Royal Challengers Bangalore, RCB (111.6)
Sunrisers Hyderbad, SRH (159)
The following three teams have played in the IPL but due to financial constraints have ceased to
exist:
Kochi Tuskers Kerala, KTK (333) Deccan Chargers, DC (107)
Pune Warriors India, PWI (370)
The tournament has been won by five different teams:
2008 Final: Chennai Super Kings vs Rajasthan Royals; Winner: Rajasthan Royals
2009 Final: Deccan Chargers vs Royal Challengers Bangalore; Winner: Deccan Chargers
2010 Final: Mumbai Indians vs Chennai Super Kings; Winner: Chennai Super Kings
2011 Final: Chennai Super Kings vs Royal Challengers Bangalore; Winner: Chennai Super
Kings
2012 Final: Chennai Super Kings vs Kolkata Knight Riders; Winner: Kolkata Knight
Riders
2013 Final: Mumbai Indians vs Chennai Super Kings ; Winner : Mumbai Indians
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HISTORY
First season[edit]
Main article: 2008 Indian Premier League
The inaugural season of the tournament ran from 18 April, 2008 to 1 June, 2008. The group stagesfeatured eight teams playing each other twice - once at home and once away - with the top four overall
progressing to the semi-finals.
The final was played in DY Patil Stadium, Nerul, Navi Mumbai. The first winner of the IPL was Rajasthan
Royals, who beat Chennai Super Kings in a match that went down to the last ball. Rajasthan's Shane
Watson was named player of the tournament. Brendon McCullum scored the first century in the IPL.
Second season[edit]
Main article: 2009 Indian Premier League
The 2009 Indian Premier League season, also known as IPL 2, was the second season of the Indian
Premier League. The tournament was held inSouth Africa because of the General Elections in India andwas played for 37 days from 18 April to 24 May 2009. The top four ranking sides progressed to the
knockout stage of semi-finals followed by a final. Deccan Chargers beat Royal Challengers Bangalore in
the final (these two were placed 8th and 7th respectively in the standings of previous season).
Third season[edit]
Main article: 2010 Indian Premier League
The third season returned to India and it was the first IPL tournament that was broadcast live on
YouTube. The final four matches of the tournament were screened in 3D across movie halls in India.
Chennai Super Kings defeated Mumbai Indians in the finals to win their first title. Lalit Modi was ousted by
BCCI as the so-called Commissioner of IPL.
Fourth season[edit]
Main articles: 2011 Indian Premier League andList of 2011 Indian Premier League personnel changes
On 21 March 2010, it was announced in Chennai that two new teams from Pune and Kochi will be added
to the IPL for the fourth season. However, the bid around the Kochi franchise turned controversial
resulting in the resignation of minister, Shashi Tharoorfrom the Central Government and investigations
by various departments of the Government of India into the financial dealings of IPL and the other existing
franchises. Later, Lalit Modiwas also removed from IPL chairmanship by BCCI. On 5 December 2010, it
was confirmed that Kochi will take part in the fourth season of IPL.[11]
The addition of teams representing Sahara's Pune Warriors India and the Kochi Tuskers Kerala was to
have increased the number of franchises from 8 to 10. The BCCI originally considered extending the
tournament format used in previous season to ten teams, which would increase the number of matches
from 60 to 94. Instead, the round-robin stage of the tournament was to have been replaced by a group
stage with two groups of five, limiting the number of matches to 74.[12] But this format was replaced by
another one in which each team would play 5 other teams in a two-way round robin format and there
would be 2 teams against whom they would play only at home and remaining 2 teams against which they
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would play only away matches.Thus each team plays 14 matches.Top four teams would qualify for the
semi-finals.
In October 2010, Rajasthan Royals and Kings XI Punjab had their franchises terminated for breaching
ownership rules. The new Kochi franchise was also issued a warning to resolve all their ownership
disputes.[13] Two months later both teams were finally allowed to take part in the 2011 edition after a court
ruling.[14]
Chennai Super Kings won their second consecutive title after defeating Royal Challengers Bangalore by
58 runs in the final.[15] This was the first time a franchise has won two titles.
Fifth season[edit]
Main articles: 2012 Indian Premier League andList of 2012 Indian Premier League personnel changes
The fifth season featured nine teams after the termination of the Kochi franchise. The players auction was
held on 4 February 2012. This season saw an increase in the allowed maximum number of players in
each squad from 30 to 33. The season of 76 matches began and ended inChennai, Tamil Nadu with the
opening match on 4 April and the final on 27 May.[16]Delhi Daredevils, Kolkata Knight Riders, Mumbai
Indians andChennai Super Kings qualified for the playoffs. The final of the season was played atthe Chidambaram Stadium on 27 May, where the defending champions Chennai Super Kings played
against the Kolkata Knight Riders. Kolkata Knight Riders won the match in the last over riding on the
backs ofManoj Tiwary and Shakib Al Hasan with 5 wickets and 2 balls to spare.
This edition of the IPL was the most competitive with 14 matches producing results in the very last over,
and a couple in the last ball.[17][18] Towards the end of the league, the season faced various hurdles
including a spot fixing case, which allegedly included five players caught on a sting operation carried on
by a local news channel; India TV.[19] The fifth season is often considered the most controversial Indian
Premier League organised.[20]
Sixth season[edit]
Main articles: 2013 Indian Premier League andList of 2013 Indian Premier League personnel changes
Pepsi replaced DLF as the title sponsor. Nine teams are participating in the sixth season. The sixth
season opened on 3 April 2013 with the playerauction broadcast on Sony SIX. 108 players were on offer
but only 37 players were sold for US$ 11.87 million. The Australian all rounderGlenn Maxwell was the
only million dollar buy. The Deccan Chargers franchise having been terminated by the IPL governing
council, had their spot taken by Sunrisers Hyderabad. The new team retains most of the players from
the Deccan Chargers. The tournament is scheduled to run from 3 April to 26 May 2013
with Kolkata and New Delhi hosting the playoffs. Kolkata's Eden Gardens will host the first match as well
as the final as they were the champions of the 2012 season.
Due to protests in the state of Tamil Nadu, Tamil Nadu Chief Minister, Jayalalithaa has requested thePrime Minister of India, Dr. Manmohan Singhnot to allow any Sri Lankan players, umpires or any other
support staff to play in IPL matches to be held in Chennai.
Controversy hit IPL again with 3 players (Ajit Chandila,Ankeet Chavan and Sreesanth) arrested by the
Mumbai police on May 16 on charges ofspot-fixing. Vindu Dara Singh was also arrested on charges of
spot-fixing and alleged links to bookies during IPL 6.
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Chennai Super Kings, Mumbai Indians, Rajasthan Royals and Sunrisers Hyderabad were the four teams
in the league stage to qualify for the playoffs.
On 21 May 2013, Chennai Super Kings defeated Mumbai Indians in the first qualifier in New Delhi by 48
runs and became the first team through to the Final.[21] On the same day, Pune franchisee owner Sahara
Group (owner of Pune Warriors India) decided to pull out of IPL. This decision was taken after Sahara
failed to pay IPL dues.
On 22 May 2013, Rajasthan Royals defeated Sunrisers Hyderabad in the eliminator in New Delhi by 4
wickets.[22]
On 24 May 2013, Mumbai Indians defeated Rajasthan Royals in the second qualifier and faced Chennai
Super Kings in the Final.
On 26 May 2013, Mumbai Indians defeated Chennai Super Kings by 23 runs for their first title
win. Michael Hussey and Dwayne Bravo of Chennai Super Kings won the highest run getter (Orange
Cap) and wicket taker (Purple Cap), respectively, of the 2013 IPL.
Despite significant European success during the 1970s and early 1980s, the late '80s had marked a low
point for English football. Stadia were crumbling, supporters endured poor facilities, hooliganism was rife,
and English clubs were banned from European competition for five years following the Heysel Stadium
disasterin 1985.[7] The Football League First Division, which had been the top level of English football
since 1888, was well behind leagues such as Italy's Serie A and Spain's La Liga in attendances and
revenues, and several top English players had moved abroad.[5]
However, by the turn of the 1990s the downward trend was starting to reverse; England had been
successful in the 1990 FIFA World Cup, reaching the semi-finals. UEFA, European football's governing
body, lifted the five-year ban on English clubs playing in European competitions in 1990 (resulting in
Manchester United lifting the UEFA Cup Winners' Cup in 1991) and the Taylor Report on stadium safety
standards, which proposed expensive upgrades to create all-seater stadia in the aftermath of
the Hillsborough disaster, was published in January of that year.[8]
Television money had also become much more important; the Football League received 6.3 million for a
two-year agreement in 1986, but when that deal was renewed in 1988, the price rose to 44 million over
four years.[9] The 1988 negotiations were the first signs of a breakaway league; ten clubs[10] threatened to
leave and form a "super league", but were eventually persuaded to stay.[11] As stadia improved and match
attendance and revenues rose, the country's top teams again considered leaving the Football League in
order to capitalise on the growing influx of money being pumped into the sport.[11]
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Season Champions Runners-up
199293 Manchester United Aston Villa
199394 Manchester United Blackburn Rovers
199495 Blackburn Rovers Manchester United
199596 Manchester United Newcastle United
199697 Manchester United Newcastle United
199798 Arsenal Manchester United
199899 Manchester United Arsenal
19992000 Manchester United Arsenal
200001 Manchester United Arsenal
200102 Arsenal Liverpool
200203 Manchester United Arsenal
200304 Arsenal Chelsea
200405 Chelsea Arsenal
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200506 Chelsea Manchester United
200607 Manchester United Chelsea
200708 Manchester United Chelsea
200809 Manchester United Liverpool
200910 Chelsea Manchester United
201011 Manchester United Chelsea
201112 Manchester City Manchester United
201213 Manchester United Manchester City
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STRUCTURAL COMPARISONS
THE EPL
The Premier League is operated as a corporation and is owned by the 20 member clubs. Each club is
a shareholder, with one vote each on issues such as rule changes and contracts. The clubs elect achairman, chief executive, and board of directors to oversee the daily operations of the league. [19] The
current chairman is Sir Dave Richards, who was appointed in April 1999, and the chief executive
is Richard Scudamore, appointed in November 1999.[20] The former chairman and chief executive, John
Quinton and Peter Leaver, were forced to resign in March 1999 after awarding consultancy contracts to
former Sky executives Sam Chisholm and David Chance.[21] The Football Association is not directly
involved in the day-to-day operations of the Premier League, but has veto power as a special shareholder
during the election of the chairman and chief executive and when new rules are adopted by the league.[22]
The Premier League sends representatives to UEFA's European Club Association, the number of clubs
and the clubs themselves chosen according to UEFA coefficients. For the 201213 season the Premier
League has 10 representatives in the Association: Arsenal, Aston Villa, Chelsea, Everton, Fulham,Liverpool, Manchester City, Manchester United, Newcastle United and Tottenham Hotspur.[23] The
European Club Association is responsible for electing three members to UEFA's Club Competitions
Committee, which is involved in the operations of UEFA competitions such as the Champions
League and UEFA Europa League.[24]
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IPL
The winning bidders for the eight franchises were announced on 24 January, 2008. [23] While the total
base price for auction was US $400 million, the auction fetched US $723.59 million.[24]
On 21 March 2010, teams from Pune and Kochi were unveiled as the two new franchises for the fourth
edition of the Indian Premier League. The base price was $225 million. While Pune was bought bySahara Adventure Sports Group for $370 million, the Kochi franchise was bought byRendezvous Sports
World Limited for $333.3 million. The process was to have been completed on 7 March but was
postponed by two weeks after many bidders and the BCCI objected to stiff financial clauses. [25] The
second franchise auction fetched total $703 million.
The rights to the Hyderabad franchise were awarded to the Sun TV Network in October, 2012.[26]
Chennai Super KingsMumbai Indians
Royal Challengers BangaloreDelhi Daredevils
Kings XI PunjabRajasthan Royals
Kolkata Knight RidersSunrisers Hyderabad
Locations of IPL teams
http://en.wikipedia.org/wiki/File:India_location_map_3.pnghttp://en.wikipedia.org/wiki/File:India_location_map_3.pnghttp://en.wikipedia.org/wiki/File:India_location_map_3.pnghttp://en.wikipedia.org/wiki/File:India_location_map_3.pnghttp://en.wikipedia.org/wiki/File:India_location_map_3.pnghttp://en.wikipedia.org/wiki/File:India_location_map_3.pnghttp://en.wikipedia.org/wiki/File:India_location_map_3.pnghttp://en.wikipedia.org/wiki/File:India_location_map_3.pnghttp://en.wikipedia.org/wiki/File:India_location_map_3.png -
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Team Name City Owner(s) Price CaptainHead
Coach
Current Teams
Chennai Super
KingsChennai India Cements
US$91
millionMS Dhoni
Stephen
Fleming
Delhi Daredevils New Delhi GMR GroupUS$84
million
Mahela
Jayawardene
Gary
Kirsten
Kings XI Punjab Mohali (Chandigarh)
Preity Zinta,
Ness Wadia(Bombay Dyeing),
Mohit Burman (Dabur)
Karan Paul (Apeejay Surendera
Group),The Oberoi Group
US$76
millionAdam Gilchrist
Darren
Lehmann
Kolkata KnightRiders
Kolkata
Shahrukh Khan(Red Chillies
Entertainment)Juhi Chawla, Jay Mehta(Mehta
Group)
US$75.09million
GautamGambhir
TrevorBayliss
Mumbai Indians MumbaiReliance Group
Teesta Retail
US$111.9
millionRohit Sharma John Wright
Rajasthan Royals Jaipur
Lachlan Murdoch(Emerging
Media)
Shilpa Shetty, Raj Kundra(UK
Tradecorp Ltd)
US$67
million Rahul Dravid
Paddy
Upton
Royal Challengers
BangaloreBangalore UB Group
US$111.6
millionVirat Kohli
Ray
Jennings
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Sunrisers
HyderabadHyderabad Sun TV Network
US$159
million
Shikhar
DhawanTom Moody
Defunct
Kochi Tuskers
KeralaKochi Kochi Cricket Private Ltd
US$333
million
Deccan Chargers HyderabadDeccan Chronicle Holdings
Limited
US$107
million
Pune Warriors
IndiaPune Sahara India Pariwar
US$370
million
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BRAND IMAGE
IPL Brand led Business Valuation
Brand Finance has treated the IPL as a single commercial entity in order to evaluate its worth.This means that we have aggregated the income that
both the BCCI and the franchisees willachieve, and the expenditure that each will incur.All cross-charged income/expenditure hastherefore been ignored. Brand Finance is calling this concept the IPL System.
Our approach has been to forecast the profits expec
ted to be made by the IPL System intotal, using publicly available data, both in termsof income and expenditure, and to apply acommon rate of tax to these profits (33.99%), and then discount the cash flows back to theirnet present value (NPV).
We have assumed that after the initial ten years the IPL concept will be continued. Thisassumes that there will be no viable competing domestic, or international, Twenty20tournament, and that the best domestic and international players will continue to be madeavailable to the tournament. A domestic tournament,in this case, means any tournament inany of the cricketing nations that is sanctioned bythe respective Governing Body, which hasthe potential to reach the scale, and dynamism, ofthe IPL. On this basis of this assumption
we have applied a perpetuity value to the IPL System.
We have estimated that the combined business valuecreated by the IPL brand is estimatedto be $ 3.03 billion.
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Furthermore, we have valued the brand IPL, using the Royalty Relief
methodology. The 'RoyaltyRelief' (also known as Relief from Royalty) method is based on thenotion that a brand holding
company owns the brand and licenses it to an operating company. Thenotional price paid by theoperating company to the brand company is expressed as a royalty rate.The NPV of all forecastroyalties represents the value of the brand to the businessOur approach has been to forecast the profits expected to be made by theindividual franchisee,using publicly available data, both in terms of income and expenditure,
and to apply a common rateof tax to these profits (33.99%), and then discount the cash flows back totheir net present value(NPV)The income of the individual franchisees comprises the followingrevenue streams:
BroadcastingIPL SponsorshipTeam sponsorshipMerchandisingGate receiptsWe have assumed that after the initial ten years the IPL concept will becontinued. This assumes thatthere will be no viable competing domestic, or international, Twenty20tournament, and that thebest domestic and international players will continue to be madeavailable to the tournament. A
domestic tournament, in this case, means any tournament in any of thecricketing nations that issanctioned by the respective Governing Body, which has the potential toreach the scale, anddynamism, of the IPL. On this basis of this assumption we have applieda perpetuity value to the IPL
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Team CostAuction process and Players salaries Team cost is expected to go up as franchisees will make best possible
attempt to retain keyplayers as new franchisees would be ready to pay significantly higher for
star players. Also, in theinitial phase of franchise's identity development, heavy investments needto be incurred inground activations to drive fan engagement & loyalty. In a rush to create / embrace new vehicles offan engagement,Franchises need to be cautiousdealing with Social Mediawhile it is enabling some teams to createmomentum, it is also
rapidly eroding fan equity due to poor planning & response fromFranchises. Already the IPL is second only to the American National BasketballAssociation ( NBA ), whoseannual average salary is 2.9 million pounds, whereas the annualisedIPL's average salary is 2.65million pounds - Annual Review of Global Sports Salaries- 20th April2011 The problem of the wage bill impacting operating profits is a globalphenomenon and themajority of clubs are struggling to contain players costs. Ranging from
55% to 60% of total cost,the IPL Franchises have not reached that level but they are not far away.
If franchises do not maintain a careful balance between players wages
and organic growth, itcan set up a vicious cycle which will have a direct impact on operating
profits and businesssustainability. IPL franchises need to be particularly conscious so as not to fall into
this obvious debt trap.
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Sponsorships
India's biggest property developerDLF Group paid 250 cr(around US$50 million) to be the title sponsor
of the tournament for 5 years from 2008 to 2012. [48] Beginning in the 2013 season, the American food and
beverage company PepsiCo took over title sponsorship in a new five-year deal valued at 396.8 cr, and
also reached deals with eight IPL teams to become their exclusive beverage supplier for the 2013
season.[49][50]
Other year sponsorship agreements include a deal with motorcycle makerHero Honda worth $22.5-
million, one with PepsiCo worth $12.5-million, and a deal with beer and airline conglomerate Kingfisherat
$26.5-million.[51]
Revenue and profits[edit]
The UK-based brand consultancy, Brand Finance, has valued the IPL at $4.13 billion in 2010. [52] It was
valued at US$2.01 billion in 2009 by the same consultancy.[53]
There are disputed figures for the profitability of the teams. One analyst said that four teams out of the
eight made a profit in 2009.[54] While The Times said that all but Kings XI Punjab made a profit.[55]
In 2010, the IPL expects to have 80 official merchandising deals. It has signed a deal
with Swiss watchmaker Bandelier to make official watches for the IPL.[56]
Mobile applications[edit]
DCI Mobile Studios (A division of Dot Com Infoway Limited), in conjunction with Sigma Ventures
ofSingapore, have jointly acquired the rights to be the exclusive Mobile Application partner and rights
holder for the Indian Premier League cricket matches worldwide for the next 8 years (including the 2017
season). Recently[when?], they have released the IPL T20 Mobile applications
foriPhone, NokiaSmartphones and BlackBerry devices. It is available across all other major Mobile
platforms including theAndroid, Windows Mobile, Palm & others.[57]
Official website[edit]The IPL negotiated a contract with the Canadian company Live Current Media Inc. to run and operate itsportals and the minimum guarantee has been negotiated at US $50 million over the next 10 years.[58] Theofficial website of the tournament is www.iplt20.com. Incorporating popular forms of social media, thewebsite now contains a more holistic presence across all online mediums to empower user interaction.
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Sponsorship[edit source]
See also: English football sponsorship
The Barclays Premier League sponsorship logo as used by media
The Premier League has been sponsored since 1993. The sponsor has been able to determine the
league's sponsorship name. There have been three sponsors since the league's formation.[35]
19921993: No sponsor (FA Premier League)
19932001: Carling (FA Carling Premiership)[5]
20012004: Barclaycard (Barclaycard Premiership)[5]
2004present: Barclays (Barclays Premier League; Barclays Premiership until 2007)[5][36]
As well as sponsorship for the league itself, the Premier League has a number of official partners and
suppliers.[37] The official ball supplier for the league is Nike who have had the contract since the 200001
season when they took over from Mitre.[38]
Finances[edit source]
See also: List of Premier League football club owners
The Premier League has the highest revenue of any football league in the world, with total club revenues
of 2.479 billion in 200910,[39] and is the second most profitable after the German Bundesliga.[40] In 2010
the Premier League was awarded the Queen's Award for Enterprise in the International Trade category
by Her Majesty Queen Elizabeth II. The Premier League was recognised for its outstanding contribution
to international trade and the value it brings to English football and the United Kingdom's broadcasting
industry.[41] The Premier League's gross revenue is regularly the fourth highest of any sports league
worldwide, behind the annual revenues of the three most popular North American major sports
leagues (the National Football League, Major League Baseball and the National Basketball
Association).[42]
In terms of world football, the Premier League clubs are some of the richest in the world. Deloitte, who
annually release figures on club revenues through its "Football Money League", listed seven Premier
League clubs in the top 20 for the 200910 season.[43] No other league has more than four clubs in this
table. Premier League teams have dominated the list for many years, and even topped the list for almost
a decade until the 200405 season. After the Premier League's new TV deal went into effect, the league-
wide increase in revenues is expected to increase the Premier League clubs' standing in the list, and
there is a possibility that a Premier League club will be top of the list.[44][45]
On 18 December 2012, the Premier League clubs agreed in principle to radical new cost controls. The
two proposals consist of a break-even rule and a cap on the amount clubs can increase their wage bill by
each season. With the new television deals on the horizon, momentum has been growing to find ways of
preventing the majority of the cash going straight to players and agents.[46]
http://en.wikipedia.org/wiki/File:Barclays-Premier-League.svghttp://en.wikipedia.org/wiki/File:Barclays-Premier-League.svghttp://en.wikipedia.org/wiki/File:Barclays-Premier-League.svghttp://en.wikipedia.org/wiki/File:Barclays-Premier-League.svg -
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Media coverage[edit source]
See also: List of Premier League broadcasters
United Kingdom and Ireland[edit source]
See also: English football on television
A 2012 match betweenArsenal andAston Villa.
Television has played a major role in the history of the Premier League. The money from television rights
has been vital in helping to create excellence both on and off the field. The League's decision to assign
broadcasting rights to BSkyB in 1992 was at the time a radical decision, but one that has paid off. At the
time pay television was an almost untested proposition in the UK market, as was charging fans to watch
live televised football. However, a combination of Sky's strategy, the quality of Premier League football
and the public's appetite for the game has seen the value of the Premier League's TV rights soar.[9]
The Premier League sells its television rights on a collective basis. This is in contrast to some other
European Leagues, including La Liga, in which each club sells its rights individually, leading to a much
higher share of the total income going to the top few clubs. [47] The money is divided into three parts:[48]half
is divided equally between the clubs; one quarter is awarded on a merit basis based on final league
position, the top club getting twenty times as much as the bottom club, and equal steps all the way down
the table; the final quarter is paid out as facilities fees for games that are shown on television, with the top
clubs generally receiving the largest shares of this. The income from overseas rights is divided equally
between the twenty clubs.[49]
http://en.wikipedia.org/wiki/File:Robin_Van_Persie_vs_Aston_Villa.jpghttp://en.wikipedia.org/wiki/File:Robin_Van_Persie_vs_Aston_Villa.jpghttp://en.wikipedia.org/wiki/File:Robin_Van_Persie_vs_Aston_Villa.jpghttp://en.wikipedia.org/wiki/File:Robin_Van_Persie_vs_Aston_Villa.jpg -
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Matches broadcast in the United Kingdom
Seasons BSkyB Setanta ESPN BT Total
19921997 60 60
19972001 60 60
20012004 110 110
20042007 138 138
20072010 96 42 138
20102013 115 23 138
20132016 116 38 154
The first Sky television rights agreement was worth 304 million over five seasons.[50] The next contract,
negotiated to start from the 199798 season, rose to 670 million over four seasons.[50] The third contract
was a 1.024 billion deal with BSkyB for the three seasons from 200102 to 200304. The league
brought in 320 million from the sale of its international rights for the three-year period from 200405 to
200607. It sold the rights itself on a territory-by-territory basis.[51] Sky's monopoly was broken from
August 2006 when Setanta Sports was awarded rights to show two out of the six packages of matches
available. This occurred following an insistence by the European Commission that exclusive rights should
not be sold to one television company. Sky and Setanta paid a total of 1.7 billion, a two-thirds increase
which took many commentators by surprise as it had been widely assumed that the value of the rights
had levelled off following many years of rapid growth. Setanta also hold rights to a live 3 pm match solelyfor Irish viewers. The BBC has retained the rights to show highlights for the same three seasons
(on Match of the Day) for 171.6 million, a 63 per cent increase on the 105 million it paid for the previous
three-year period.[52]Raidi Teilifs ireann broadcast thehighlights package in Ireland. Sky and BT have
agreed to jointly pay 84.3 million for delayed television rights to 242 games (that is the right to broadcast
them in full on television and over the internet) in most cases for a period of 50 hours after 10 pm on
matchday.[53] Overseas television rights fetched 625 million, nearly double the previous contract.[54] The
-
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total raised from these deals is more than 2.7 billion, giving Premier League clubs an average media
income from league games of around 40 million-a-year from 2007 to 2010.[55]
Cristiano Ronaldo preparing to take a free kick in a 2009 match between Manchester
United and Liverpool.
The TV rights agreement between the Premier League and Sky has faced accusations of being a cartel,
and a number of court cases have arisen as a result.[56] An investigation by the Office of Fair Trading in
2002 found BSkyB to be dominant within the pay TV sports market, but concluded that there were
insufficient grounds for the claim that BSkyB had abused its dominant position. [57] In July 1999 the
Premier League's method of selling rights collectively for all member clubs was investigated by the UK
Restrictive Practices Court, who concluded that the agreement was not contrary to the public
interest.[58]The BBC's highlights package on Saturday and Sunday nights, as well as other evenings when
fixtures justify, will run until 2016.[59] Television rights alone for the period 2010 to 2013 have been
purchased for 1.782 billion.[60] On 22 June 2009, due to troubles encountered by Setanta Sports after it
failed to meet a final deadline over a 30 million payment to the Premier League, ESPN was awarded two
packages of UK rights containing a total of 46 matches that were available for the 200910 season aswell as a package of 23 matches per season from 201011 to 201213.[61] On 13 June 2012, the Premier
League announced that BT had been awarded 38 games a season for the 201314 through 201516
seasons at 246 million-a-year. The remaining 116 games were retained by BSkyB who will pay
760 million-a-year. The total rights have raised 3.018 billion, an increase of 70.2% over the 201011 to
201213 rights.[62]
Worldwide[edit source]
Promoted as "The Greatest Show On Earth",[63][64] the Premier League is broadcast to over 600+ million
people in over 200 countries worldwide,[65] often on networks owned and/or controlled by 21st Century
Fox (which owns about 39.1% of BSkyB in the UK).
In the United States, coverage for most of the 2000s and early 2010s was shared between Fox
Soccer/Fox Soccer Plus (which are also owned by News Corporation) and ESPN, with Fox
Deportes and ESPN Deportes holding Spanish language rights.[66]NBC Sports (primarily
through NBCSN) replaced ESPN and Fox Soccer as the exclusive broadcaster of the league in the US (in
both English and Spanish; Telemundo and Mun2 now carry Spanish-language coverage) beginning in the
201314 season, as the result of a new three-year, $250 million USD deal with the league, including 20
matches that start at 5 p.m. GMT on Saturdays free-to-air on the main NBC network (12 noon
http://en.wikipedia.org/wiki/File:2009-3-14_ManUtd_vs_LFC_Ronaldo_Freekick_Back.JPGhttp://en.wikipedia.org/wiki/File:2009-3-14_ManUtd_vs_LFC_Ronaldo_Freekick_Back.JPGhttp://en.wikipedia.org/wiki/File:2009-3-14_ManUtd_vs_LFC_Ronaldo_Freekick_Back.JPGhttp://en.wikipedia.org/wiki/File:2009-3-14_ManUtd_vs_LFC_Ronaldo_Freekick_Back.JPG -
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American Eastern). Other games are carried through gametime-only channels known as "Premier League
Extra Time", and all games are carried through NBC Sports' website and the "NBC Sports Live Extra"
tablet/smartphone app with TV Everywhere authentication.[67]
In Canada, Sportsnet owned the Premier League rights for three years from the 201011 season. Select
games (particularly those aired by ESPN) were sub-licensed to TSN.[68] Starting in the 201314 season,
the matches will be divided equally between Sportsnet and TSN. In Australia, Fox Sports shows the
games with a Viewers Choice option for up to five live games and up to nine games live on any given
game-week.[69]
The Premier League is particularly popular in Asia, where it is the most widely distributed sports
programme.[70] In India, the matches are broadcast live on ESPN and Star Sports. In China, data from
2003 suggested that matches were attracting television audiences between 100 million and 360 million,
more than any other foreign sport.[71] However, when the Chinese rights to Premier League matches were
sold to a subscription channel in 2007, the number of viewers proved to be in the tens of
thousands.[72] Due to its popularity in Asia, the league has held four pre-season tournaments there, the
only Premier League affiliated tournaments ever to have been held outside England. [73] The Premier
League Asia Trophy has been played in Malaysia, Thailand, Hong Kong and China and involves threePremier League clubs playing against a local team from the host nation, often the national side.[74]
Figures from UK tourism body VisitBritain suggest that 750,000 visitors to Britain attended a Premier
League match in 2010, spending a total 595 million and an average of 766. Visitors from Norway are
most likely to come to watch Premier League football, with one in 13 Norwegian tourists travelling
specifically to attend matches. Second on the list is the United Arab Emirates. For those visiting family
and friends, the most likely to watch a football match are from Japan, China and Australia.[75]