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Finance

The English Premier League is the most lucrative and commercially attractive football league in the world, clubs in the premier league make the most revenue from TV Rights and other commercial revenue compared to any league in Europe. Fans across the world are actively interested on what goes on behind the scenes in the board room, player transfer values, rights and other commercial topics these days, not just the results and performances on the pitch.

The revenue which the Premier League distributes to clubs include:

  • Income generated from the sale of central broadcasting rights (United Kingdom and International)
  • Other central commercial rights.

The structure for distributing this revenue is the most equitable compared to any of Europe’s major football leagues and is based on the Premier League Founder Members’ Agreement, the contract signed by the initial clubs that formed the League in 1992.

The ratio between the club finishing top and that finishing bottom is 1.52:1, it works in the following way:

  • 50% of UK broadcast revenue split equally between the 20 clubs
  • 25% of UK broadcast revenue paid in Merit Payments (“Prize Money” depending on the position in the table)
  • 25% of UK broadcast revenue paid in Facility Fees each time a club’s matches are broadcast in the UK
  • All international broadcast revenue, and central commercial revenue, is split equally among the 20 clubs

The club that wins the title will expect to earn between £150 million to £160 million in TV Rights and prize money distribution. The club that finishes at the bottom will expect to earn between £90 million to £105 million. Below you can find the complete breakdown of the 20 clubs TV Rights money and the model/structure that premier league uses to distribute.

In the 2016-17 season a new record breaking three year TV deal which made Premier League the most lucrative football domestic league in the world. SkySports and BT Sports share the broadcasting rights of Premier League in the United Kingdom territory with a huge £5.136 billion deal. Premier League also signed new upgraded tv deals for international territories which takes the total TV income to more than £8.5 billion. The demand and appetite for the premier league does not seem to slow down, with the title race changing from a 4-horse race to a 6-horse race, the next bidding process is expected to cross £10 billion in worldwide TV Rights revenue.

Chelsea Football Club fans

A club finishing at the bottom of the table is guaranteed £90+ million a year. Premier League Prize Money Pool: The total money from both domestic and oversees three TV deals combined is around £8 billion. Which will be divided into three parts making prize money pool for each of the three seasons under the current TV deal period. £2.6 billion a season to be distributed among premier league clubs (part of it will be used as parachute payments to relegated clubs). That makes the prize money pool around £2.5 billion and this is how the distribution model is structured:

The Premier League Prize Money Pool per season will be setup the following way:

  1. Domestic TV Rights Money (£1.8 billion)
  2. Oversees TV Rights Money (around £1 billion)

The Domestic Portion of the money will be divided among 20 clubs according to following model:

  • 50% divided equally (Approx. £38 million per club)
  • 25% merit based: divided according to final position in the table (Approx. £2 million for 20th place team rising higher by £2m for every position all the way to £24 million for the champion)
  • 25% is divided as facility fee: to all clubs depending on how many times each club’s matches were shown live. (Approx. £1 million for every live game or guaranteed £10m if a team only had 10 or less live matches)

Liverpool Football Club fans

The Oversees Portion of the money will be divided equally between all 20 clubs per season, that is £47 million per club.

Here is a break down of how much each Premier League club made after the 2018-19 season:

1. Liverpool

League position: 2nd
Matches televised: 29
TV income: £33.5million
Prize money: £36.1million
Equal share: £79.4million
Total: £149million

2. Manchester City

League position: 1st
Matches televised: 26
TV income: £30.1million
Prize money: £38million
Equal share: £79.4million
Total: £147.5million

3. Chelsea

League position: 3rd
Matches televised: 25
TV income: £29million
Prize money: £34.2million
Equal share: £79.4million
Total: £142.6million

4. Tottenham

League position: 4th
Matches televised: 26
TV income: £30.1million
Prize money: £32.3million
Equal share: £79.4million
Total: £141.8million

5. Manchester United

League position: 6th
Matches televised: 27
TV income: £31.2million
Prize money: £28.5million
Equal share: £79.4million
Total: £139.1million

6. Arsenal

League position: 5th
Matches televised: 25
TV income: £29million
Prize money: £30.4million
Equal share: £79.4million
Total: £138.8million

7. Everton

League position: 8th
Matches televised: 18
TV income: £21.2million
Prize money: £24.7million
Equal share: £79.4million
Total: £125.3million

 

Manchester United, Old Trafford

8. Wolves

League position: 7th
Matches televised: 15
TV income: £17.9million
Prize money: £26.6million
Equal share: £79.4million
Total: £123.9million

9. Leicester City

League position: 9th
Matches televised: 15
TV income: £17.9million
Prize money: £22.8million
Equal share: £79.4million
Total: £120.1million

10. West Ham

League position: 10th
Matches televised: 16
TV income: £19million
Prize money: £20.9million
Equal share: £79.4million
Total: £119.3million

11. Newcastle United

League position: 13th
Matches televised: 19
TV income: £22.3million
Prize money: £15.2million
Equal share: £79.4million
Total: £116.9million

12. Crystal Palace

League position: 12th
Matches televised: 12
TV income: £14.6million
Prize money: £17.1million
Equal share: £79.4million
Total: £111.1million

13. Watford

League position: 11th
Matches televised: 10
TV income: £12.3million
Prize money: £19million
Equal share: £79.4million
Total: £110.7million

14. Bournemouth

League position: 14th
Matches televised: 8
TV income: £12.3million
Prize money: £13.3million
Equal share: £79.4million
Total: £105million

15. Burnley

League position: 15th
Matches televised: 11
TV income: £13.5million
Prize money: £11.4million
Equal share: £79.4million
Total: £104.3million

Lichtsteiner in action at the Emirates Stadium

16. Brighton

League position: 17th
Matches televised: 13
TV income: £15.7million
Prize money: £7.6million
Equal share: £79.4million
Total: £102.7million

17. Southampton

League position: 16th
Matches televised: 8
TV income: £12.3million
Prize money: £9.5million
Equal share: £79.4million
Total share: £101.2million

18. Cardiff City

League position: 18
Matches televised: 12
TV income: £14.6million
Prize money: £5.7million
Equal share: £79.4million
Total: £99.6million

19. Fulham

League position: 19th
Matches televised: 13
TV income: £15.7million
Prize money: £3.8million
Equal share: £79.4million
Total: £98.8million

20. Huddersfield Town

League position: 20th
Matches televised: 8
TV Income: £12.3million
Prize money: £1.9million
Equal share: £79.4million
Total: £93.6million

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