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Will any clubs go to the wall over this.?

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Yoda
April 10, 2020, 3:16pm
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Before this coronavirus Oldham where on thin ice also Bolton have been in trouble.
Sunderland maybe their wage bill is massive.?
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thefish
April 10, 2020, 3:20pm

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Macclesfield haven't been paying players for a while...
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GollyGTFC
April 10, 2020, 3:36pm

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I doubt it will cause clubs at our level or above or even National League clubs to go out of business. The issue clubs have had in the post Leicester City/Leeds United administration era is that HMRC have shown zero tolerance to any clubs owing them any money as they strongly disagree with football creditors being paid in full and non-football creditors only getting a fraction of money owed. All football insolvency cases are caused by HMRC issuing winding up orders.

Clubs like Macclesfield and Oldham aren't paying their players on time but they are making sure they pay HMRC (even if they leave it to the last possible moment to do so).

Given the current climate and the huge recession that this is causing I can't see HMRC carrying on with their zero tolerance approach. They are going to have to offer all businesses (not just football) every opportunity to settle debts over an extended period and not when money is usually due or even write off some debts to keep businesses open and trading and to avoid needless unemployment that could result from going out of business.
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jock dock tower
April 10, 2020, 4:32pm
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The government furlough plan has probably helped such clubs who can offload all employee costs onto the government. Don't know how they'll be able to make up new squads when the game starts up again without any income coming in though.


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GollyGTFC
April 10, 2020, 4:56pm

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Quoted from jock dock tower
Don't know how they'll be able to make up new squads when the game starts up again without any income coming in though.


Simple. Players won't be able to command the same wages as they could before for the next couple of seasons. Players will have 2 options. Sign for a club on less money than before or find something else to do with their lives.
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The Yard Dog
April 11, 2020, 1:22am
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I think it will have a bigger impact on the Premiership clubs, wonder what Sky will do in the future.

I real reality check for most, stopping paying ridiculous wages to average players, some players think they are bigger than the clubs these days.

So much money goes out of football, through greedy agents, who have so much power in the game now.

Get rid of all agents in sports, when I am negotiating my pay, I dont want to be giving a % to someone else, just for sorting out my contract employment and pay. Yes I know these days players, wanting image rights, sponsorships, endorsements, etc etc

Look what happened to Italian football in the 90's, paying silly money to players and than bang.

This might be the Premierships bang, be interesting to see what money SKY has to throw at future contract bidding rights for all sports, when we get through this.

It might be the start of the demise of SKY, with other companies and platforms wanting a slice.

Do the big clubs really need SKY now? live streaming to a massive fan base, surely be the future.
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KingstonMariner
April 11, 2020, 8:08am
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As long as people pay subs to Sky they will carry on as before. Have people stopped paying during the crisis?

What will do for Sky is the proliferation of other channels. Old fashioned competition.


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GollyGTFC
April 11, 2020, 11:19am

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The Premier League is heading towards having it's own Netflix type subscription service similar to WWE Network. They are trialing it with their current deal for 2 rounds of fixtures per season on Amazon Prime.

The next round of TV rights will probably see them launch their own subscription service in a key market (probably Asia). And then all being well they will launch it at home and around the world once those TV rights expire.

Once launched the PL will probably have a weekend round of fixtures split as follows with up to 8 games live on the service and the other matches available in full on delay:-

Fri 20:00 - 1 match
Sat 12:30 -  1 match
Sat 15:00 - 2 matches (not live in UK)
Sat 17:30 - 1 match
Sat 20:00 - 1 match
Sun 11:30 - 1 match
Sun 14:00 - 1 match
Sun 16:30 - 1 match
Mon 20:00 - 1 match

They could sell different types of packages: Team specific home and away; Team specific away only and premium 380 match package. As well as the ability to buy on a per match basis or per round of fixture basis.

Sky would likely be given the contract to produce the content and simulcast 4 or 5 matches per round on what is now called Sky Sports Premier League.

Such a scenario would be good for the EFL too as would mean likely BT Sport wouldn't have PL football and might put a serious bid in to win EFL TV rights.
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rancido
April 11, 2020, 11:34am

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Quoted from GollyGTFC
The Premier League is heading towards having it's own Netflix type subscription service similar to WWE Network. They are trialing it with their current deal for 2 rounds of fixtures per season on Amazon Prime.

The next round of TV rights will probably see them launch their own subscription service in a key market (probably Asia). And then all being well they will launch it at home and around the world once those TV rights expire.

Once launched the PL will probably have a weekend round of fixtures split as follows with up to 8 games live on the service and the other matches available in full on delay:-

Fri 20:00 - 1 match
Sat 12:30 -  1 match
Sat 15:00 - 2 matches (not live in UK)
Sat 17:30 - 1 match
Sat 20:00 - 1 match
Sun 11:30 - 1 match
Sun 14:00 - 1 match
Sun 16:30 - 1 match
Mon 20:00 - 1 match

They could sell different types of packages: Team specific home and away; Team specific away only and premium 380 match package. As well as the ability to buy on a per match basis or per round of fixture basis.

Sky would likely be given the contract to produce the content and simulcast 4 or 5 matches per round on what is now called Sky Sports Premier League.

Such a scenario would be good for the EFL too as would mean likely BT Sport wouldn't have PL football and might put a serious bid in to win EFL TV rights.


Fair point but wouldn't that then result in more Championship game coverage? Then the next development could be The Championship breaking away from the EFL and wanting all the tv rights money , just like the old First Division did.


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GollyGTFC
April 11, 2020, 2:43pm

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The Championship breaking away is only a matter of time realistically. Especially after the fall out last season over the new EFL TV deal. League One & Two clubs were overwhelmingly in support of the deal and Championship clubs weren't happy at all.

Would it be terrible for League One and Two clubs if the Championship split?

This season (2019/20) the solidarity payments from the Premier League are as follows:-

Championship : £4.5m to 18 clubs (not Cardiff, Fulham, Huddersfield, Stoke, Swansea and West Brom)
League One : £675k to 23 clubs (not Sunderland)
League Two : £460k per club

*Clubs receiving Premier League parachute payments do not receive solidarity payments. Premier League clubs receive 4 years of parachute payments when relegated from the Premier League reduced to 2 years if their spell in the PL was just 1 season. For example last season 23 League One clubs received £700,000 each (£16.1m total) & Sunderland received a parachute payment of £34.9m.

This was down around 2% on last season because solidarity payments from the Premier League are fixed against TV money which is split evenly between the 20 premier league clubs. Before this season 50% of domestic TV revenue & 100% of international TV revenue was split equally between the 20 clubs. However the "Big 6" managed to "persuade" the other 14 clubs to accept a new system for distributing international TV revenue: 65% split evenly & 35% based on merit. This meant that solidarity payments were now only based on 65% and not 100% of international TV revenue and that the increase in TV revenues wasn't quite enough for solidarity payments to remain at the same level as 2018/19 season.

Last season League Two received a basic £472,000 per club from the EFL TV deal and £470,000 per club in parachute payments from the PL. This season the EFL TV deal has gone up & the parachute payment down 2% (as explained above).

To allow the Championship clubs to break away from the EFL there would have to be a deal done to ensure solidarity payments compensate L1 & L2 clubs either by diverting more of the PL solidarity payments or by also giving solidarity payments from the new 2nd tier or ideally BOTH.

But L1 & L2 clubs would then be able to sell their own TV rights. Could they maintain or increase their current income? The latest TV deal is apparently worth around £800,000 to L1 & £550,000 to L2 a season (basic). So could L1 & L2 clubs do a deal worth around £40m a season to cover those amounts and extra for appearance money for teams on TV?
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