The Rich Get Richer: What to Make of the New TV Deal

The Premier League announced today that the revenues for the 2016-2019 seasons will revenue from England alone £5.136 billion or almost $8 billion USD.

The worry is that with the new amount of money from television rights filtering into clubs, players' wages will rise, increasing the cost of tickets, kits, and everything else the common supporter might buy. In honesty this is probably true. The problem in England has been spurred on from the Premier League's separation from the rest of the Football League in 1992 and rise in popularity. It meant that the Football League did not control the TV revenue brought in from the Premier League, which instead of filtering down into all 4 divisions is now solely distributed amongst the 20 clubs at the top. This in turn allowed the clubs to go out and buy better quality players, increasing the league's competitive nature but also their ticket prices. The cheapest ticket price for Chelsea will now run you about $80 a game. The cheapest season tickets are £299 or around $456 (at a rate of $24/game) for Manchester City.

Will the situation improve? Not without regulation more than likely. Clubs are too competitive in trying to both make money and buy the best talent, especially now with Financial Fair Play involved. It could help the Premier League's parachute payment plans in terms of revenue given to relegated clubs in their first 3 seasons after relegation if they fail to climb back up to the top flight. Teams risk financial insolvency usually with relegation and the estimated cost of relegation in the first year alone is around £40 million.

Still, the game is growing even more in popularity and the sport is only dragging in more money from it. Whether or not it opens up more record breaking transfer fees has yet to be seen but with the revenue flowing into the Premier League from the over 211 countries and territories it is broadcast in the question maybe more of when as opposed to if.

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