Yes, but the distibution of the money is less balanced than in Bundesliga or EPL. Juventus will get close to 80 Million Euros next season, AC Siena (last in the table) 21 Million Euros. The number of fans is also a factor in the distribution - one reason why I think that such a deal would be impossible in Germany. But as you say, all in all it`s a step forward into the right direction for Serie A. http://sport.orf.at/?href=http%3A%2F%2Fsport.orf.at%2Fticker%2F269797.html
True, but that's actually my point. Juve already earn that sum with individual marketing, roughly at least, so for them (as a representative of the big Italian clubs, which represent the league in Europe (CL), not much will change. But the league as a whole will benefit, no doubt. The Bundesliga is highly competitive in every area except TV rights, it is actually the leading league in a lot of them. But TV rights are our achilles heel, this has a lot to do with the structure of the TV market in this country. Pay TV is simply not important enough compared to other European countries, for various, well known reasons (relatively high number of Free TV channels etc.). The problem is that the DFL can't do much about this themselves, it's up to the players in the TV business to establish a stronger Pay TV market segment. As detestable as Murdoch is as a person, a guy like him is needed to make progress in this area. Germany had their own 'Murdoch' a while ago, Leo Kirch, and things were actually moving in that direction until the 'Kirch crisis' threw the Bundesliga behind.
More and more articles like this one appear. With its shortage of TV revenues, the Bundesliga is more sensitive than any other league to volatility in sponsorship revenue. The general crisis is only starting to hit the clubs now. I'm personally confident though that the crisis isn't just strangely protracted in Germany but that its external blow will be softened by how well the domestic economy was going up until last summer.
I don't think the problem is that "Pay-TV" isn't "important enough." I understand what you mean though. People here get out and do things, they don't spend so much time inside watching TV. However, I think the problem is too many people simply refuse to get "Pay-TV" because they feel their TV taxes entitle them to get all the things you see on "Pay-TV" without paying more. I did short story on this awhile back and most of the fans who responded to our question gave us that very response. I think the "Kirch-Crisis" came from the fact that they severely overestimated the number of fans who would buy the Premiere packages. I really don't get that way of thinking myself. From what I understand, TV taxes are minimal and for what you get, Premiere's packages are very reasonable. They are much cheaper than sports Pay-TV packages in the USA for example. My friends in England tell me they wish they could get Sky for what I pay for my full Premiere set-up each month. In some cases, I really think some people here just don't know what they're missing with the Premiere packages. You know the old saying, "You can't miss what you've never had........."" As stated earlier on this thread, I really think those in charge at the DFL really don't know how much more viewership they could pull in if they paid more attention to who they make their deals with in different places, especially the North and South American markets. I really think they concentrate too much on trying to take on the English in Asia and the Middle East. Don't get me wrong. The DFL is doing a good job. I just think they can be doing better.
I was talking about the domestic TV market when I wrote that the DFL can't do much about the relatively low acceptance of pay TV, for reasons you explained yourself. Totally agree on the overseas markets, there the DFL definitely can do better than they are doing now.
I am also worried about the effects of the current financial crisis on the Bundesliga. As mentioned by Projekt4 sponsorship deals will be hit. As far as TV markets abroad are concerned, I think that the engagement of the DFL in the Middle East and Asia can become very lucrative - in the long run. But they should try to emulate the NBA instead of the Premier League. In China, the PL lost 99% of its viewers 1 1/2 years ago by giving the TV rights to the highest bidder, in this case a start-up pay tv channel named win tv. Something like that would have never happened to the NBA or any normal business that deals with China. EPL blues in China Very insightful article on the Chinese sports market: The Agony and Ecstasy
Murdoch's News Corp is heavily affected by the global financial crisis, a record $6.4bn loss in the last quarter alone. http://www.guardian.co.uk/business/2009/feb/05/rupert-murdoch-news-corporation-records-loss News Corp is also one of the main shareholders of British Sky Broadcasting, another Murdoch company. And as we all know, Sky pay the EPL those enormous sums for the TV rights. It'll be interesting to see if they can actually continue to do so.
On last Thursday/Friday, they just agreed to do so, the EPL domestic contract for 2010-2013 has increased by yet another 5%.
Do you have any link? I must have missed that. Not just due to the global financial crisis, the TV networks / media in general have come under pressure, it's a structural challenge. The internet is becoming more important, and hurting the traditional media where it hurts most - advertising. While pay TV is still lucrative in certain countries like Britain, certainly not Germany, even pay TV will have to deal with the consequences of rising unemployment and decreasing purchasing power - a lot of people will ask themselves if the 'luxury' pay TV is actually still worth it, and if they can still afford it. That's why it's rather surprising to see Sky still increasing the already very high sums they pay the EPL. Probably because the EPL is so important to them, that they fear losing the rights would cause a mass exodus of customers. But the question remains how long they can actually continue to pay more, if they are under such enormous financial pressure. A loss of over $6bn a quarter is no joke (just for News Corp alone), and there is no end in sight for the crisis. Time will tell.
LOL, no need to be depressed. Cheer up, while football is a business indeed, success on the pitch is not just based on commercial success. Thanks for the link. I still stand by my point though - if Murdoch's companies continue to generate record losses, it will have consequences for Sky and therefore EPL TV rights, just like it did for the Bundesliga after the Kirch meltdown. The structural challenges for the traditional media are huge, even without the impact of the financial crisis.
Good ole Günter Netzer and the Schalke boss have moral doubts about the excessive modern football capitalism in England. They think that a financially responsible and stable Bundesliga will be the "model of the future".
Premiere in depts Pay-tv channel Premiere, who exclusively broadcast the BL matches live in Germany, made in 2008 a minus of 270 million €. Chief of executive board Mark Williams, installed their by Murdock, plans to bring Premiere out of trouble by doing an increase in capital stock of 412 million € to garantie Premiere solvency. Kicker has the story: kicker.de
Funny. That hasn't stopped them from constructing a huge new building in Unterföring (Munich). I only know that because my girlfriend lives in Unterföring and you can see the construction at the end of "Medienallee". I don't get why people can't see that Premiere is a great freakin' deal. It's one of the few things I pay for every month that fully satisfies me.
Actually great news for the BL ... but after the shocking tragedy with Robert Enke this evening, I really don't care.
Bundesliga Has Record Turnover - Debt Remains High FRANKFURT (AP)—The 36 German clubs in the top two division had a record turnover last season, although the total debt also rose to a four-year high. Click here for the story at Yahoo World Soccer.
Click here for the original report in English. You can also download the entire report "Bundesliga 2010 - The State Of Professional Football" in English from a link at the bottom left of the page.