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Tv Money Compensation


HK Blues

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Just read today that the amounts being mentioned for repayment/compensation to the TV companies is around 3m.

I wonder where this will come from - hopefully the top-tier teams will bear the brunt of this.  Regardless, it's a fair dent in what will already be much reduced budgets.  I assume Hibs have already seen the writing on the wall hence their looking at wage reductions already.

Tough times ahead.

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That's only the liability to BT. BBC and other media companies have yet to agree compensation. It will come from the prize money for next season, so will be diluted down via every club. Likewise any compensation awarded to Hearts, Partick and Stranraer. There is also, quite incredibly, no league sponsor. As it stands a further liability to Sky has been reduced to £1.5m over 5 years on the apparent basis they will be given the league sponsorship for nothing. Neil Doncaster gets paid £400k a year for this btw :(

Everyone may end up paying a huge price for the SPFL ineptitude. 

Edited by Alexis
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1 minute ago, Alexis said:

It will come from the prize money for next season, so will be diluted down via every club. Likewise any compensation awarded to Hearts, Partick and Stranraer. There is also, quite incredibly, no league sponsor. As it stands a further liability to Sky has been reduced to £1.5m over 5 years on the apparent basis they will be given the league sponsorship for nothing. Neil Doncaster gets paid £400k a year for this btw :(

Everyone may end up paying a huge price for the SPFL ineptitude. 

I'd be willing to be that sh1te for a lot less if anyone from the SPFL is reading this..... Just putting it out there.

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6 minutes ago, Alexis said:

I'll give you a reference :)

Don't be too hasty Alexis ...

When eh was the President of the Happy Clappy Club, using his expertise ... He did say there might be some rough times ahead :happyyes:

But then went on to say, when it happened he'd back me all the way...And then persuaded me to make him My Deputy President:excited:

However when things took a turn for the worse and members left in droves (This was even before the Death Threats) he was gone :bye:

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38 minutes ago, HK Blues said:

Just read today that the amounts being mentioned for repayment/compensation to the TV companies is around 3m.

I wonder where this will come from - hopefully the top-tier teams will bear the brunt of this.  Regardless, it's a fair dent in what will already be much reduced budgets.  I assume Hibs have already seen the writing on the wall hence their looking at wage reductions already.

Tough times ahead.

Prize pot for 19/20 was roughly £25 million.

Of that £2.5 million was from the Ladbrokes sponsorship that is ending and hasn't been replaced within the pandemic. Sky and BT combined were about £21.5 million. £2 million went to international rights. That comes to a surplus which may just be bad rounding from various press reports or heading off to an account somewhere, no idea! Various other small sources of revenue like the BBC Scotland package and highlights as well which I can't find.

The compensation with Sky for their missing games was rumoured to be something like £5.5 million but they negotiated it to £1.5 million (imagine it was a drop in the ocean for them and they didn't want to push too hard), they have agreed to work this into the revised agreements re broadcasting streaming rights between 2020-2025 so around £300k a year depending on how they've staggered it. Reports saying BT are due £2.3 million and will settle that.

The new TV deal that starts this term is with Sky exclusively and is for around £32 million a year alone. Remove your £300k and a similar staggered agreement with BT for about £450k per annum and we're down to £31.25 million in the prize pot. I imagine there will be plenty of efforts as well to pick up the overseas deal and work on getting the new sponsorship in place. Also not sure how the highlights factor into that.

It's not a good situation but it has probably happened at the best time between the deals and will impact the top sides considerably more (who won't be able to furlough for another 2 or 3 months and will be draining a lot more money). For our position, we would still be getting >£120k on our league finish this season if we performed the same next term but we may have been anticipating that figure to be past £190k. The hit really depends on if teams were factoring in the sponsorship and international rights I think.

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@harry94 good post as always. They will try to mitigate the tv and sponsorship defecit as you say.  However, it's only a part of problem being discussed.

The projected cost, if Hearts and Partick's intial petition to the CoS is successful, will be around £12m, inclusive of costs. Clearly this is a top end amount and will have been inflated by issues like corporate losses etc., but these may still be deemed valid by a Court. 

If the SPFL challenge this then this amount will need to be ringfenced and Hearts will go for an interdict to stop the season starting. It then comes down to simple cashflow. A 5 year exclusive deal is of little use if clubs can't pay their players now. As we know most clubs run at a loss anyway, so the margins are very fine. Closed door games along with expensive testing regimes etc. means any reduction in prize money could be amplified. The cash grab demonstrated by clubs during the voting shambles shows just how desperate this might get. 

We, of course, have the benefit of insurance. That could make a huge difference to how we come out of this compared to most clubs. 

 

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7 minutes ago, Alexis said:

@harry94 good post as always. They will try to mitigate the tv and sponsorship defecit as you say.  However, it's only a part of problem being discussed.

The projected cost, if Hearts and Partick's intial petition to the CoS is successful, will be around £12m, inclusive of costs. Clearly this is a top end amount and will have been inflated by issues like corporate losses etc., but these may still be deemed valid by a Court. 

If the SPFL challenge this then this amount will need to be ringfenced and Hearts will go for an interdict to stop the season starting. It then comes down to simple cashflow. A 5 year exclusive deal is of little use if clubs can't pay their players now. As we know most clubs run at a loss anyway, so the margins are very fine. Closed door games along with expensive testing regimes etc. means any reduction in prize money could be amplified. The cash grab demonstrated by clubs during the voting shambles shows just how desperate this might get. 

We, of course, have the benefit of insurance. That could make a huge difference to how we come out of this compared to most clubs. 

 

I wonder how much this insurance is going to be and if it's going to insulate us as much as we hope?

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54 minutes ago, HK Blues said:

I wonder how much this insurance is going to be and if it's going to insulate us as much as we hope?

I must admit, I'm curious to the insurance. Is it for the team or individuals, if the team, I'd guess the insurers wouldn't be keen to add new players to the policy at least not at pre covid prices. There could be other issues like is it for a season (so not covered for next season unless we renew at I'd guess vastly higher premiums) etc....

We (the fans) have been told that we have insurance and are obviously pleased but the insurance companies aren't charities, this insurance might not be all we hope. As long as FPS are cool with it, that's the main thing I guess, they're paying the bills. I'm just nosey.

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