HOW DOES TV RIGHTS DEALS FOR SOCCER WORK?
Most of the best soccer players in the world all play in the European league. The five most-viewed soccer leagues in the world are all European leagues.
This attracted a lot of attention to European football as fans want to stay updated with the latest news about their favourite players, clubs, and competitions. Having to visit the site of the 19+ clubs that compete can be stressful.
Additionally, other news and rumours about competitions, transfers, and so on will not be found on the official sites of these clubs. This is why certain broadcasting companies buy rights to broadcast information about the competition. Check UK.collected.reviews to see the people’s favourite broadcasting companies.
Broadcasting companies that are lucky to get TV rights deals will have to find the best broadband network to broadcast the live events of competitions and make it available for fans all over the world to watch matches and pre-match events in real-time. However, this does not come as easy as it sounds, the highest source of profit for clubs, leagues and cups comes from TV rights. It costs quite a fortune to be the official rights holder for a competition or a club.
How Does TV Rights Deal Work?
Ordinarily, clubs give rights to some local broadcasters for them to broadcast non-live events. However, for live and international events, the clubs allow the league to give TV rights to a broadcasting company. Premier League, for example, all the clubs in the European Premier League give the Premier League the license to sell rights to broadcasting companies that are willing and able to buy these rights. These companies will bid for the rights to broadcast the League and after the bidding period, the Premier League will release the companies that will get the rights.
The rights deals are awarded to companies based on existing constitutions of the competition body and not just the highest bidder, however, if the clubs are not pleased with the a part of the competition, 70% of the club can come together to vote for a change and the change will be affected. Competitions sell rights to broadcasters, but during the broadcast, sponsors of the league are advertised to give these sponsors more exposure. At the end of the league season, the profits obtained from TV rights are equally shared by the competition body to all the clubs that participated in the competition. The sharing is usually based on how much each club made during the competition and it is always transparent and fair.
The royalties that clubs get from selling TV rights are used to refurbish their infrastructures, develop youngsters, buy sporting equipment and so on. Sponsors get exposure and more customers, which will result in more profit for their companies. Broadcasting companies use their profits to invest in research on how to broadcast information faster and better. Fans and other viewers get to learn about the latest information about competitions, players, and clubs no matter how they are from where these news are happening. It is a win-win for everyone, all thanks to TV rights deals.