30 Nov 2020
COVID-19 is threatening value of Premier League's media rights ahead of next three-year cycle due to begin in 2022, says GlobalData
Posted in Sport

The deflationary impact ofCOVID-19on sports rightsisposing a significant threat tothe valueofthe PremierLeague's mediarights, aheadofits selling process for the nextthree-yearcycleofTV rightsduetorun from 2022-25, with an overall drop invaluea real possibility, according toGlobalData, a leading data and analytics company.

According toGlobalData's report, 'The Business of the English PremierLeague', inthe current three-yearcycleofPremierLeagueTV rights, a decline inthe valueofdomestic rightswas offset by significant growth inoverseas markets, which saw the overall valueofPremierLeaguemediarightsgrow to$11.7bn - a 7% increase on the previous three-yearcycle.

However, inSeptember, the PremierLeaguewas forced toterminate its record overseas mediarightsdeal with Chinese broadcaster PPTV, worth £523m, following an unpaid £160m instalment for the 19/20 season as a result ofthe pandemic. This reflects the situation between Ligue 1 and Mediapro inFrance, something that islikely tobecome more commonplace across the sports rightsmarket as the downstream effects ofthe pandemic become more evident. The replacement deal for the Chinese market with Tencent, understood tobe worth just £25m per year, represents an 85% drop invalueon PPTV's deal.

Liam Fox, Sports Analyst at GlobalData, comments: 'It has been one ofthe most glaring examples ofthe deflationary impact ofCOVID-19on the valueofTV rights, and with the PremierLeaguepreparing for the upcoming selling process ofits nextthree-yearrightscycle, the hope that international broadcasters would be able toprevent the decline invalueofdomestic broadcast rightshas taken a hit.'

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GlobalData plc published this content on 30 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 November 2020 19:06:02 UTC