The TV Money: What Do You Think It Means?

[Essex Blue]

The new Premier League financial fair play rules are intrinsically linked to this new TV deal. Clubs who spend over 52million on wages can only raise their wage bill by about 4 million per year or something. It means my talk of blowing other European clubs out of the water when it comes to wages might not be possible, and quite possibly makes investment in infrastructure more likely.

I think this new TV deal only lasts three years, so if we are getting an extra 30million as a result of finishing 6th or 7th, that equates to an extra 90 million pound over 3 years. But because we are already making losses it will probably be around an extra 60 million over 3 years. However we will have stopped making losses! so we shouldn't be forced to sell the family silver as much!

An extra 60 million over 3 years may not seem all that much, especially if everyone else is receiving similar increases in revenue. But it's still an extra 60 million which needs to be spent, and if it's spent wisely I think we can more than get our house in order.

 

[sheeds]

This is it - because every club will get more, the playing field will be identical to now.

Agents and players will have their hands out & everything will probably rise across the board . We've had massive tv deals and still lose £5m a year , can't see it make it a massive difference to us but obviously hope it does .

 

[micknick]

Agents and players will have their hands out & everything will probably rise across the board . We've had massive tv deals and still lose £5m a year , can't see it make it a massive difference to us but obviously hope it does .

Sheeds, can I ask you honestly- do you think we actually had the £8.6m for Fer or was it an agreed bid to get the kid over here and then renegotiate over a problem we would have already known existed?!

 

[EvertruvianMan]

"Big screen TV's, blunts, 40's and B*****s."

It wont be the saviour for us or anyone else just like the last increase in TV money wasnt, and the increase before that, and the increase before that...

 

[Essex Blue]

It wont be the saviour for us or anyone else just like the last increase in TV money wasnt, and the increase before that, and the increase before that...

The quality of our squad has vastly increased as a result of the previous TV deals. The wages of Howard, Baines, Lescott and Johnson, and subsequent deals for Arteta and Fellaini were made possible through the increases in revenue from previous TV deals.

At the very least, it is going to stop us from making losses for a bit, which must surely be a very welcome change. It will also allow us to invest a bit more, which again, must surely be a welcome change.

 

[sbbefc]

The quality of our squad has vastly increased as a result of the previous TV deals. The wages of Howard, Baines, Lescott and Johnson, and subsequent deals for Arteta and Fellaini were made possible through the increases in revenue from previous TV deals.

At the very least, it is going to stop us from making losses for a bit, which must surely be a very welcome change. It will also allow us to invest a bit more, which again, must surely be a welcome change.

Did the quality of our squad not improve due to the shrewdness of Moyes in the transfer market and our improved league positions because of it?

 

[Essex Blue]

Did the quality of our squad not improve due to the shrewdness of Moyes in the transfer market and our improved league positions because of it?

Without the increase in TV money, Moyes would not have been able to offer the wages that those players now receive. Arteta probably wouldn't have signed a new contract, neither would Fellaini.

We are constantly informed about how the greater expenditure at other clubs allows them to sign a better calibre of player, the same applies to Everton as long as it is spent wisely, and not like Dalglish at Liverpool.

 

[sbbefc]

Without the increase in TV money, Moyes would not have been able to offer the wages that those players now receive. Arteta probably wouldn't have signed a new contract, neither would Fellaini.

We are constantly informed about how the greater expenditure at other clubs allows them to sign a better calibre of player, the same applies to Everton as long as it is spent wisely, and not like Dalglish at Liverpool.

Without the increases in tv money over the years they wouldn't be demanding so much, its the same across the board, no real advantage.

 

[Essex Blue]

Without the increases in tv money over the years they wouldn't be demanding so much, its the same across the board, no real advantage.

The TV money puts us at a significant advantage over our European competitors. Without the increases in TV money over the years, we would still have predominantly British squads.

Either increased expenditure allows you to sign a better calibre of player, or it doesn't. I believe it does, which is why we have a group of big name players shunning the top European leagues in favour of Russia.

There's no way we would have kept Arteta or Fellaini had we not benefited from the increases in TV money. It's extra money which needs to be spent. Spend it wisely and we will reap the rewards, spend it badly and we will regress in a similar fashion to Liverpool.

 

[njligernj]

The new Premier League financial fair play rules are intrinsically linked to this new TV deal. Clubs who spend over 52million on wages can only raise their wage bill by about 4 million per year or something. It means my talk of blowing other European clubs out of the water when it comes to wages might not be possible, and quite possibly makes investment in infrastructure more likely.

FFP is poorly written with too many loopholes. Clubs will (already have) found ways to work around it. I think the advantage to the Prem as a whole will be pretty big. Doesn't mean "we'll" win everything but it's going to have an impact -- we already have teams finishing in Europa spots (or maybe even outside of them) who spend more than CL teams who win their leagues. Everton spends more than a lot of CL teams and we're "broke."

The tv money could be £88.81m as a windfall. We know that we owe £46m and there could be an overdraft as well. We might currently be paying something like £5m in interest alone on our debts. If we paid back the £46m now we'll be £5m better off every season in future. It will take 10 years to reconcile it but it we'd be debt free. It would be crazy to take a short term view of the situation. Same with Finch Farm. It's supposed to be valued and £17m and we may well pay £5m per year in rent. In 4 years time it's paid for itself. It would cost us £63m up front but our accounts would show an extra £10m every year going forward. Paying interest and rent is just dead money.

I am not sure what it going on here. We still pay wages and operating costs so the overall figure isn't the one to use. It's basically 20m extra (assuming we retain 7th-ish finishes). So if we didn't increase our wages at all and had a 0 net spend we could maybe do what you want to do in three years. Of course we'll have Fellaini money too but things will kick right off (and we'd almost certainly finish lower) if they don't invest most of that back into the squad.

You could still do it but it would take a few years and we would slip from 8-10th in spend to bottom half of the table meaning our manager (whomever he is) has to work even more miracles. If we start slipping then we get less money so it might take longer to pay off.

 

[Brennan]

Finishing a couple of places lower under the new deal would also cost us about £2m per place. So finishing 10th instead of 7th would see us losing £6m per year from the extra £20m.

 

[njligernj]

Finishing a couple of places lower under the new deal would also cost us about £2m per place. So finishing 10th instead of 7th would see us losing £6m per year from the extra £20m.

Right. Dangerous game to not continue spending to keep up with the chasing pack ... although that unsustainable growth is a dangerous game too. It's all a bit silly really.

 

[Brennan]

Right. Dangerous game to not continue spending to keep up with the chasing pack ... although that unsustainable growth is a dangerous game too. It's all a bit silly really.

If it's managed properly we're in a good position.

We've got Stones coming through as a right back/centre back who has apparently been impressing, Barkley is Barkley, and Duffy will get in the side sooner or later. When Fellaini goes we'll hopefully get rid of Heitinga and get Neville's wages off the bill. That's £160k+ off the wage bill alone, and probably £20m in the way of transfer fees to reinvest.

The important thing is going to be how those sales plus the incoming TV revenues are managed. There's no reason why we can't look to challenge top 5 on a regular basis.

 

[bluebottle]

If it's managed properly we're in a good position.

We've got Stones coming through as a right back/centre back who has apparently been impressing, Barkley is Barkley, and Duffy will get in the side sooner or later. When Fellaini goes we'll hopefully get rid of Heitinga and get Neville's wages off the bill. That's £160k+ off the wage bill alone, and probably £20m in the way of transfer fees to reinvest.

The important thing is going to be how those sales plus the incoming TV revenues are managed. There's no reason why we can't look to challenge top 5 on a regular basis.

The only problem is that the league transfers will be subject to inflation, wouldnt they? If we had to sell to say, the russian league we'd want to charge them through the nose.

 

[billycopper]

Agents and players will have their hands out & everything will probably rise across the board . We've had massive tv deals and still lose £5m a year , can't see it make it a massive difference to us but obviously hope it does .

From what I've read this is a game-changing amount of money. It's something like a 60% increase in TV revenue and it will wipe out the debts of all but the biggest clubs. It's supposed to be such a huge windfall that a club would need to be spectacularly badly run to still be in financial trouble afterwards.

The problem with the summer transfer window is that everyone will know that the Premier League is awash with money and asking prices will once again peak. It would be better to try and pick players off from clubs who are financially struggling abroad, such as Negredo than to splurge. If we invested in infrastructure we could guarantee that we'd have at least £5m to spend each year and we could wait until prices stabilised again before going on a buying spree.