COMPARISON BETWEEN IPL AND EPL .

Submitted by Name of Student: Steve Varghese Roll NO: 346

BACHELOR OF MANAGEMENT STUDIES. Semester- V. (201314)

Project Guidance by Professor: - Sita

UTTARI BHARTI SABHAS RAMANAND ARYA D.A.V COLLEGE OF COMMERCE AND SCIENCE. DATAR COLONY, BHANDUP (EAST)

DECLARATION

I Mr/MISS : Steve Varghese the student of BACHELOR OF MANAGEMENT STUDIES (BMS) Semester V (2013-14) hereby declare that I have completed my project on The information submitted is true and original to the best of my knowledge.

Signature of student NAME OF STUDENT: Steve Varghese ROLL NO : 346

CERTIFICATE
This is to certify that MR/MISS..,Roll No:..of T.Y.B.M.S Semester V ( 2013-14 ) has successfully completed the project on. under the guidance of Prof. Yashesh Ranpura submitted on September, 2013 to this college in fulfillment of the curriculum of BACHELOR OF MANAGEMENT STUDIES, MUMBAI UNIVERSITY OF MUMBAI.

PROJECT GUIDE

COURSE CO-ORDINATOR

EXTERNAL EXAMINER

PRINCIPAL
(Dr. Ajay Bhamare)

(Prof. Yashesh Ranpura) (Chandrakala Shrivastav)

OBJECTIVE OF THE STUDY

NEED OF THE STUDY

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 format of 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

As evident from above, the Chennai Super Kings are the most successful side in the history of the IPL, being winner twice and reaching in final three times. Until 2012, the Indian Premier League was sponsored by DLF after they paid $50 million for the five year sponsorship. Pepsi will take over the contract for the 2013 IPL after paying close to 400 crore rupees for the 5 year contract. In 2008, Sony paid $1 billion for the broadcasting rights over a ten year period. The IPL is watched across the world and in 2012 made history by becoming the first sporting event to be broadcast live on YouTube. The Indian Premier League has had its controversies over the year, with Lalit Modi being suspended as Chairman and Commissioner of the IPL on 2 April 2010 for what were deemed alleged acts of independent misdemeanors. Recently the player Mohnis Mishra was suspended from the game after becoming embroiled in a match fixing scandal during the 2012 tournament. The tournament is the largest, best known and most prestigious Twenty20 tournament in cricket.

The Premier League is an English professional league for men's association football clubs. At the top of the English football league system, it is the country's primary football competition. Contested by 20 clubs, it operates on a system of promotion and relegation with the Football League. Besides English clubs, some of the Welsh clubs can also qualify to play, and participation by some Scottish or Irish clubs has also been mooted. The Premier League is a corporation in which the 20 member clubs act as shareholders. Seasons run from August to May, with teams playing 38 matches each, totalling 380 matches in the season. Most games are played in the afternoons of Saturdays and Sundays, the other games during weekday evenings. It is currently sponsored by Barclays Bank and thus officially known as the Barclays Premier League. Outside of Great Britain it is commonly referred to as the English Premier League (EPL). The competition formed as the FA Premier League on 20 February 1992 following the decision of clubs in the Football League First Division to break away from The Football League, which was originally [1] founded in 1888, and take advantage of a lucrative television rights deal. This deal is worth 1 billion a year as of 201314, with BSkyB and BT Groupsecuring the rights to broadcast 116 and 38 games [2] respectively. The Premier League is the most-watched football league in the world, broadcast in 212 [3] territories to 643 million homes and a potential TV audience of 4.7 billion people. In the 201011 season the average Premier League match attendance was 35,363, the second highest of any [4] professional football league behind the German Bundesliga, and stadium occupancy was 92.2% [5] capacity. The Premier League ranked second in the Union of European Football Associations (UEFA) [6] coefficients of leagues based on performances in European competitions over the last five years. Since 1888, a total of 23 clubs have been crowned champions of the English football system. Of the 45 clubs to have competed since the inception of the Premier League in 1992, five have won the title: Manchester United (13), Arsenal (3), Chelsea (3), Blackburn Rovers (1) and Manchester City (1). The current champions are Manchester United, who won the title in the 201213 season.

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 stages featured 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 and was 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 and List 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 Tharoor from 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 [11] was confirmed that Kochi will take part in the fourth season of IPL. 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 [12] stage with two groups of five, limiting the number of matches to 74. 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

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 [13] disputes. Two months later both teams were finally allowed to take part in the 2011 edition after a court [14] ruling. Chennai Super Kings won their second consecutive title after defeating Royal Challengers Bangalore by [15] 58 runs in the final. This was the first time a franchise has won two titles.

Fifth season[edit]
Main articles: 2012 Indian Premier League and List 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 [16] opening match on 4 April and the final on 27 May. Delhi Daredevils, Kolkata Knight Riders, Mumbai Indians andChennai Super Kings qualified for the playoffs. The final of the season was played at the 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 of Manoj 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, [17][18] and a couple in the last ball. 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 [19] by a local news channel; India TV. The fifth season is often considered the most controversial Indian [20] Premier League organised.

Sixth season[edit]
Main articles: 2013 Indian Premier League and List 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 rounder Glenn 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 the Prime 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 of spot-fixing. Vindu Dara Singh was also arrested on charges of spot-fixing and alleged links to bookies during IPL 6.

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 [21] runs and became the first team through to the Final. 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 [22] wickets. 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 [7] disaster in 1985. 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 [5] revenues, and several top English players had moved abroad. 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 [8] the Hillsborough disaster, was published in January of that year. 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 [9] [10] four years. The 1988 negotiations were the first signs of a breakaway league; ten clubs threatened to [11] leave and form a "super league", but were eventually persuaded to stay. As stadia improved and match attendance and revenues rose, the country's top teams again considered leaving the Football League in [11] order to capitalise on the growing influx of money being pumped into the sport.

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

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

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 a [19] chairman, chief executive, and board of directors to oversee the daily operations of the league. The current chairman is Sir Dave Richards, who was appointed in April 1999, and the chief executive [20] is Richard Scudamore, appointed in November 1999. The former chairman and chief executive, John Quinton and Peter Leaver, were forced to resign in March 1999 after awarding consultancy contracts to [21] former Sky executives Sam Chisholm and David Chance. 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 [22] during the election of the chairman and chief executive and when new rules are adopted by the league. 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, [23] Liverpool, Manchester City, Manchester United, Newcastle United and Tottenham Hotspur. 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 [24] League and UEFA Europa League.

IPL
The winning bidders for the eight franchises were announced on 24 January, 2008. While the total [24] base price for auction was US $400 million, the auction fetched US $723.59 million. 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 by Sahara 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 [25] postponed by two weeks after many bidders and the BCCI objected to stiff financial clauses. 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] [23]

Chennai Super Kings Mumbai Indians Royal Challengers Bangalore Delhi Daredevils Kings XI Punjab Rajasthan Royals Kolkata Knight Riders Sunrisers Hyderabad Locations of IPL teams

Team Name

City

Owner(s)

Price

Captain

Head Coach

Current Teams

Chennai Super Kings

Chennai

India Cements

US$91 million

MS Dhoni

Stephen Fleming

Delhi Daredevils

New Delhi

GMR Group

US$84 million

Mahela Jayawardene

Gary Kirsten

Preity Zinta, Ness Wadia (Bombay Dyeing), Kings XI Punjab Mohali (Chandigarh) Mohit Burman (Dabur) Karan Paul (Apeejay Surendera
Group),The Oberoi Group

US$76 million

Adam Gilchrist

Darren Lehmann

Shahrukh Khan (Red Chillies Kolkata Knight Riders Kolkata

US$75.09 million

Gautam Gambhir

Trevor Bayliss

Juhi Chawla, Jay Mehta (Mehta

Mumbai Indians

Mumbai

Reliance Group Teesta Retail

US$111.9 million

Rohit Sharma

John Wright

Lachlan Murdoch (Emerging Rajasthan Royals Jaipur

US$67 million

Shilpa Shetty, Raj Kundra (UK

Rahul Dravid

Paddy Upton

Royal Challengers Bangalore

Bangalore

UB Group

US$111.6 million

Virat Kohli

Ray Jennings

Sunrisers Hyderabad

Hyderabad

Sun TV Network

US$159 million

Shikhar Dhawan

Tom Moody

Defunct

Kochi Tuskers Kerala

Kochi

Kochi Cricket Private Ltd

US$333 million

Deccan Chargers

Hyderabad

Deccan Chronicle Holdings Limited

US$107 million

Pune Warriors India

Pune

Sahara India Pariwar

US$370 million

BRAND IMAGE
IPL Brand led Business Valuation

Brand Finance has treated the IPL as a single comme rcial entity in order to evaluate its worth. This means that we have aggregated the income that both the BCCI and the franchisees will achieve, and the expenditure that each will incur. All cross-charged income/expenditure has therefore been ignored. Brand Finance is calling th is concept the IPL System. Our approach has been to forecast the profits expec ted to be made by the IPL System in total, using publicly available data, both in terms of income and expenditure, and to apply a common rate of tax to these profits (33.99%), and t hen discount the cash flows back to their net present value (NPV). We have assumed that after the initial ten years th e IPL concept will be continued. This assumes that there will be no viable competing dome stic, or international, Twenty20 tournament, and that the best domestic and internat ional players will continue to be made available to the tournament. A domestic tournament, in this case, means any tournament in any of the cricketing nations that is sanctioned by the respective Governing Body, which has the potential to reach the scale, and dynamism, of the IPL. On this basis of this assumption we have applied a perpetuity value to the IPL Syste m. We have estimated that the combined business value created by the IPL brand is estimated to be $ 3.03 billion.

Furthermore, we have valued the brand IPL, using the Royalty Relief methodology. The 'Royalty Relief' (also known as Relief from Royalty) method is based on the notion that a brand holding company owns the brand and licenses it to an operating company. The notional price paid by the operating company to the brand company is expressed as a royalty rate. The NPV of all forecast royalties represents the value of the brand to the business Our approach has been to forecast the profits expected to be made by the individual franchisee, using publicly available data, both in terms of income and expenditure, and to apply a common rate of tax to these profits (33.99%), and then discount the cash flows back to their net present value (NPV) The income of the individual franchisees comprises the following revenue streams: Broadcasting IPL Sponsorship Team sponsorship Merchandising Gate receipts We have assumed that after the initial ten years the IPL concept will be continued. This assumes that there will be no viable competing domestic, or international, Twenty20 tournament, and that the best domestic and international players will continue to be made available to the tournament. A domestic tournament, in this case, means any tournament in any of the cricketing nations that is sanctioned by the respective Governing Body, which has the potential to reach the scale, and dynamism, of the IPL. On this basis of this assumption we have applied a perpetuity value to the IPL

Team Cost Auction process and Players salaries Team cost is expected to go up as franchisees will make best possible attempt to retain key players as new franchisees would be ready to pay significantly higher for star players. Also, in the initial phase of franchise's identity development, heavy investments need to be incurred in ground activations to drive fan engagement & loyalty. In a rush to create / embrace new vehicles of fan engagement, Franchises need to be cautious dealing with Social Media while it is enabling some teams to create momentum, it is also rapidly eroding fan equity due to poor planning & response from Franchises. Already the IPL is second only to the American National Basketball Association ( NBA ), whose annual average salary is 2.9 million pounds, whereas the annualised IPL's average salary is 2.65 million pounds - Annual Review of Global Sports Salaries- 20th April 2011 The problem of the wage bill impacting operating profits is a global phenomenon and the majority 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, it can set up a vicious cycle which will have a direct impact on operating profits and business sustainability. IPL franchises need to be particularly conscious so as not to fall into this obvious debt trap.

Sponsorships
India's biggest property developer DLF Group paid 250 cr (around US$50 million) to be the title sponsor [48] of the tournament for 5 years from 2008 to 2012. 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 [49][50] season. Other year sponsorship agreements include a deal with motorcycle maker Hero Honda worth $22.5million, one with PepsiCo worth $12.5-million, and a deal with beer and airline conglomerate Kingfisher at [51] $26.5-million.

Revenue and profits[edit]

It was

There are disputed figures for the profitability of the teams. One analyst said that four teams out of the [54] [55] eight made a profit in 2009. While The Times said that all but Kings XI Punjab made a profit. In 2010, the IPL expects to have 80 official merchandising deals. It has signed a deal [56] with Swiss watchmaker Bandelier to make official watches for the IPL.

Mobile applications[edit]
DCI Mobile Studios (A division of Dot Com Infoway Limited), in conjunction with Sigma Ventures of Singapore, 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 [when?] season). Recently , they have released the IPL T20 Mobile applications for iPhone, Nokia Smartphones and BlackBerry devices. It is available across all other major Mobile [57] platforms including the Android, Windows Mobile, Palm & others.

Official website[edit]
The IPL negotiated a contract with the Canadian company Live Current Media Inc. to run and operate its [58] portals and the minimum guarantee has been negotiated at US $50 million over the next 10 years. The official website of the tournament is www.iplt20.com. Incorporating popular forms of social media, the website now contains a more holistic presence across all online mediums to empower user interaction.

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 [35] league's sponsorship name. There have been three sponsors since the league's formation. 19921993: No sponsor (FA Premier League) 19932001: Carling (FA Carling Premiership)
[5] [5] [5][36]

20012004: Barclaycard (Barclaycard Premiership)

2004present: Barclays (Barclays Premier League; Barclays Premiership until 2007)

As well as sponsorship for the league itself, the Premier League has a number of official partners and [37] suppliers. The official ball supplier for the league is Nike who have had the contract since the 200001 [38] season when they took over from Mitre.

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 [39] [40] of 2.479 billion in 200910, and is the second most profitable after the German Bundesliga. 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 [41] industry. 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 [42] Association). 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 [43] League clubs in the top 20 for the 200910 season. 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 leaguewide increase in revenues is expected to increase the Premier League clubs' standing in the list, and [44][45] there is a possibility that a Premier League club will be top of the list. 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 [46] preventing the majority of the cash going straight to players and agents.

Media coverage[edit source]

United Kingdom and Ireland[edit source]

A 2012 match between Arsenal 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 [9] and the public's appetite for the game has seen the value of the Premier League's TV rights soar. 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 [47] [48] higher share of the total income going to the top few clubs. The money is divided into three parts: 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 [49] between the twenty clubs.

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. The next contract, [50] negotiated to start from the 199798 season, rose to 670 million over four seasons. 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 [51] 200607. It sold the rights itself on a territory-by-territory basis. 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 solely for 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 [52] three-year period. 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 [53] [54] matchday. Overseas television rights fetched 625 million, nearly double the previous contract. The

[50]

total raised from these deals is more than 2.7 billion, giving Premier League clubs an average media [55] income from league games of around 40 million-a-year from 2007 to 2010.

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, [56] and a number of court cases have arisen as a result. 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 [57] insufficient grounds for the claim that BSkyB had abused its dominant position. 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 [58] interest. The BBC's highlights package on Saturday and Sunday nights, as well as other evenings when [59] fixtures justify, will run until 2016. Television rights alone for the period 2010 to 2013 have been [60] purchased for 1.782 billion. 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 2009 10 season as [61] well as a package of 23 matches per season from 201011 to 201213. On 13 June 2012, the Premier League announced that BT had been awarded 38 games a season for the 2013 14 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 [62] 201213 rights.

Worldwide[edit source]
Promoted as "The Greatest Show On Earth", the Premier League is broadcast to over 600+ million [65] people in over 200 countries worldwide, 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 [66] Deportes and ESPN Deportes holding Spanish language rights. 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
[63][64]

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" [67] tablet/smartphone app with TV Everywhere authentication. In Canada, Sportsnet owned the Premier League rights for three years from the 2010 11 season. Select [68] games (particularly those aired by ESPN) were sub-licensed to TSN. 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 [69] game-week. The Premier League is particularly popular in Asia, where it is the most widely distributed sports [70] programme. 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, [71] more than any other foreign sport. 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 [72] thousands. Due to its popularity in Asia, the league has held four pre-season tournaments there, the [73] only Premier League affiliated tournaments ever to have been held outside England. The Premier League Asia Trophy has been played in Malaysia, Thailand, Hong Kong and China and involves three [74] Premier League clubs playing against a local team from the host nation, often the national side. 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 [75] and friends, the most likely to watch a football match are from Japan, China and Australia.