I have tried to make this as clear as possible --- This season (11/12), we received £45.6m (Broadcast & Performance Payments), £6m more than expected (due to finising in 12th position) --- Sources http://www.premierleague.com/en-gb/news/news/broadcast-payments-to-premier-league-clubs.html http://www.telegraph.co.uk/sport/football/competitions/premier-league/9329988/ESPN-lose-out-to-BT-in-bidding-for-Premier-League-broadcast-rights-in-3-billion-deal.html Current Revenues, 11/12 Season: 11/12 Season, 20th Wolves £20.3m (Domestic) £18.8m (Overseas) £39.1m (Overall Broadcast Revenues) Future Revenues, 13/14 Season Now...this £3bn deal with Sky & BT, means that the 20th-placed club, ??? £35.8m (Domestic...an increase of £15.5m, or 76%) £32.0m (Overseas...an increase of £13.2m - assuming the future deal delivers a 70% increase from now) Creating £67.8m (Overall Predicted Broadcast Revenues, increase of £28.7m) Performance Bonuses: Norwich £6m (12th place, so £6m/8 places = £0.75m per place) 13/14 Season, assuming that these were to rise in line with the 70% theme, each extra place is worth £1.28m Norwich's planned expenditure, 12/13 Season Paying off the external debt with the bank, £12m (please correct me if wrong) Paying annual interest on this loan ( £???,000, for indication 5% is £600k, anyone hazard a guess at what %?) --- Summary If Norwich survive next season, the club will receive: 1) £28.7m more TV revenues than now (for the 20th club, survivors will receive MORE!) 2) £0.53m more Performance Bonus per higher place (12th for example, £4.25m more than now) 3) £12m (as no external debt is being struck off) 4) £0 in Bank Interest Payments each year Equating to a huge influx of £42.3m, which we would have on addition what we already receive And should the worst happen: 1) We receive Parachute payments which we would allocate to paying off the debt 2) Next season (12/13), financial fair play rules brought in by the Football League from 2012-13, severely limiting investments by owners, such that monetary chasm between Premier League and Championship will be at its all time high 3) With this summer's transfers bought and the the money from the PL 12/13 season, we will be able to legitimately spend far more than the other Championship teams, without incurring financial penalties...effectively this would be a superb chance to bounce back on the 1st attempt.
If that is correct - WOW! This season is arguably the most important season in our history. If we can stay up, we can really kick-on and try to make ourselves a permanent fixture in this league. Great work
What's even better is that Hughton signed before this BT/Sky deal was done, so I'm sure he only expected a 10-20% rise in TV revenue, NOT 70%! He'll be even keener to keep us up with that financial incentive on the table Plus, this coming season 12/13, the TV revenues should be higher than last, just gets even better!
However this increase in funds is across the board in the premiership and very public. So inter league prices will rise by the same percentage. Salary's will no doubt will also rise. With the FFP rules in the football league they will be looking for higher transfer fees anyway and this will drive that up. Obviously costs of running the Company, utilities, staff salaries and he like will only rise at inflation so there a saving there. Where this money will have a real effect will be when buying players from clubs abroad. Where prices are lower and the euro is weak. The money would be very useful building a new stadium.
