Premier League giants suffer defeat in revenue-sharing reform bid

Plans by the Premier League’s so-called ‘big six’ to drive through major reform to the way broadcast rights revenue is distributed have been shelved, with the top division of English football stating it had become clear that there is currently no consensus for change.

The Premier League has cancelled a meeting of shareholders scheduled for today (Wednesday) as it became apparent that opposition to the plan would mean that no deal would be reached.

The announcement came after a meeting scheduled to discuss the new media-rights distribution model was adjourned on October 4 without an agreement having been reached. A proposal presented by the league’s executive chairman, Richard Scudamore, suggested that 35 per cent of the global rights revenue should be divided between the clubs based on their final league position. 

Currently the rights income is split equally between the 20 clubs, but the six richest clubs – Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur – have reportedly been pushing for a larger share.

Fourteen of the clubs needed to back the proposal for it to be adopted, and while The Guardian newspaper said West Ham United, Leicester City and Everton had been brought on board, a final five teams failed to be convinced.

The Premier League said in a statement on Tuesday evening: “Clubs have been discussing the distribution formula for their international broadcasting revenues. The Premier League has facilitated these discussions, to bring together the wide range of views which exist. It has become clear that there is currently no consensus for change, meaning tomorrow’s club meeting is not necessary.”

Chelsea secured a payment of more than £150.8m (€163.8m/$195.2m) for winning the Premier League in 2016-17 as the first season of the competition’s new rights cycle took hold. The revenue distributed to clubs includes income generated from the sale of central broadcasting rights, both UK and international, and other central commercial rights.

The Premier League’s current system for distributing revenue sees 50 per cent of UK broadcast revenue split equally between the 20 clubs, which amounted to £35,301,989 per team in 2016-17. Twenty-five per cent of UK broadcast revenue is paid in merit payments based on a team’s finishing position in the table.

Twenty-five per cent of UK broadcast revenue is 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 former figure amounted to £39,090,596 per club for 2016-17 and the latter £4,759,404.