Premier league position money

[pureclaret]

I was looking to see what we may get dependent on what position we finish, but can not seem to get a list of this seasons prize money, can any one help?

[Royboyclaret]

The 2019/20 season is the first season within the new three year broadcast cycle. Domestic element for the full cycle reduced from £5.4bn to £5bn. Therefore the merit payments from the previous cycle of £1.9m per place is likely to reduce slightly to perhaps £1.8m per place.

So, for finishing a likely 10th Burnley will receive some £19.5m in merit payments for this current season.

As a comparison the following are the amounts we previously received in our PL seasons :-

2009/10, 18th, £2.4m
2014/15, 19th, £2.5m
2016/17, 16th, £9.7m
2017/18, 7th, £27.1m
2018/19, 15th, £11.5m.

[HunterST_BFC]

Doesn't most of this get spent on bonus' ?

[Royboyclaret]

Just to add, there will be additional merit payments from this season based on the Overseas broadcast element. The top six clubs ensured that the additional amount negotiated for the new cycle is distributed as a merit payment and not as previously a straight equal share.

[randomclaret2]

What do you think the final total payment is likely to be Roy ? Given all the talk of rebates to the broadcasters etc. Ive found it hard to estimate. Would 10th last season have equated to about £118m ?

[Royboyclaret]

Doesn't most of this get spent on bonus' ?

There is a very highly incentivised bonus payment for the Burnley players but it's unclear as to whether that payment is based on our finishing position or merely for avoiding relegation to the Championship.

Chester and myself have debated this several times on the MMT thread but there is no obvious answer to the question.

[ClaretTony]

What do you think the final total payment is likely to be Roy ? Given all the talk of rebates to the broadcasters etc. Ive found it hard to estimate. Would 10th last season have equated to about £118m ?

Considerable drop in the broadcasting money although for the domestic money (Sky for certain) it won't be withdrawn from this season's money, in effect it will have to be paid back in two years time.

[Royboyclaret]

What do you think the final total payment is likely to be Roy ? Given all the talk of rebates to the broadcasters etc. Ive found it hard to estimate. Would 10th last season have equated to about £118m ?

West Ham came 10th last season which earned them £122.5m in total Broadcast Income.

This season, with the new cycle figures and the potential rebates for both Domestic and Overseas payments it's very difficult to forecast the figure with any real certainty.

[Chester Perry]

I have posted about this a few times in the last couple of months:

money is distributed in the following way

Domestic TV income is split the following way
5% of the top goes to the PFA Charity

of the Premier League Domestic TV income Distribution Pot
50 % is distributed as an equal share
25% is in TV appearance monies
25% is in Merit or final place payments (divided in 210 shares - 1st gets 20 shares, last gets 1 share

Of the International TV income
if an equal share threshold of £43,184,608 is exceeded in revenue then the surplus is distributed using the same merit formula as for Domestic Income

There is also an equal Distribution of commercial Income (just shy of £5m each last season)

The sum of all equal payments is used to determine the value both the solidarity payments to the EPL and Parachute Payments

The Premier League also pays around £90m in total to Academies and the Football charities. This year it has also paid monies to the conference and Women's Super League to help with covid19 testing.

We are all aware that the Premier League is to pay TV rebates both domestically and Internationally, which reduces the distribution pot, but this year at least they have made sure that Solidarity and Parachute payments were made in line with start of season expectations - thereby reducing the pots for Premier League distribution even further.

It appears, given that the Premier League has informed the EFL that clubs promoted to the Premier League and clubs that are to be relegated from the Premier League that they will be sharing the pain of that reduced pot - It seems that it will be spread across the cycle (3 seasons and cost clubs about £8m a season) so that payments will be even each season.

There has never been a defined figure given publicly for merit payments in this cycle (or any other part of the distribution for that matter) though most analysts were suggesting around £2.5 for a single share which suggests a pot of (£525m - £2.5m ^ 210) if we assume that the overall distribution pot is now reduced by around £200m a year and that is split is even between the Domestic and International revenue pot it. That would leave a merit share at around £1.9 m ((£525m - £125m)/210 = £1.9m)

[HunterST_BFC]

There is a very highly incentivised bonus payment for the Burnley players but it's unclear as to whether that payment is based on our finishing position or merely for avoiding relegation to the Championship.

Chester and myself have debated this several times on the MMT thread but there is no obvious answer to the question.

I'm sure Garlic? stated it was used in part this way. This was a couple of years ago though. The net club gain after bonus' paid for 7th place was minimal. I could be wrong though and have certainly no idea how it works now.

[Royboyclaret]

I'm sure Garlic? stated it was used in part this way. This was a couple of years ago though. The net club gain after bonus' paid for 7th place was minimal. I could be wrong though and have certainly no idea how it works now.

Suspect you're referring to an interview given by Mr.Dyche where he intimated that within the Total Wage bill to Jun'18 of £81.6m that some £58m of that was basic wages. Clearly that had the bonus payment for that year at some £23m compared to the merit payment for that year (as above) of £27.5m.

Last season the PL merit payment was £11m but all indications within the financial accounts suggested the bonus payment was far higher than that. Hence, the uncertainty that I referred to in a previous post.

[HunterST_BFC]

Suspect you're referring to

I see now. Thank you.

[Royboyclaret]

To add yet more uncertainty to the potential total figure paid this season the Facility Fees element is a minefield in itself. That represents the number of games shown live for each PL club and the threshold minimum number previously has been 10 games over which a club receives an additional £1.05m for each live game.

This has been complicated this season, however, with these final 92 games all being shown live. My suspicion is that the figure per game will be reduced but, as of today, there's no confirmation of that.

[Chester Perry]

To add yet more uncertainty to the potential total figure paid this season the Facility Fees element is a minefield in itself. That represents the number of games shown live for each PL club and the threshold minimum number previously has been 10 games over which a club receives an additional £1.05m for each live game.

This has been complicated this season, however, with these final 92 games all being shown live. My suspicion is that the figure per game will be reduced but, as of today, there's no confirmation of that.

Roy on that point - I have convinced myself that all the additional games will not qualify for facility fees - as they have not been paid for - I think the clubs will have agreed to that before the restart - just not announced it, they rarely announce anything in advance where distribution is concerned - Mike Garlick must feel right at home there as the Premier League are as tight lipped as the Burnley board, both have been extremely successful while pursuing that policy.

[huw.Y.WattfromWare]

Considerable drop in the broadcasting money although for the domestic money (Sky for certain) it won't be withdrawn from this season's money, in effect it will have to be paid back in two years time.

I’ve read that the PL clubs will reduce money received by £8m/season for 3 years to balance the loss. This will include any teams coming into the PL. They, obviously, are not happy about this.

[Royboyclaret]

Roy on that point - I have convinced myself that all the additional games will not qualify for facility fees - as they have not been paid for - I think the clubs will have agreed to that before the restart - just not announced it, they rarely announce anything in advance where distribution is concerned - Mike Garlick must feel right at home there as the Premier League are as tight lipped as the Burnley board, both have been extremely successful while pursuing that policy.

In which case the Facility Fees figure for Burnley will be circa £13m for '19/'20, very similar to the previous year's figure. The records show that even prior to the pause we had already clocked up 12 live games, more than in any other of our PL seasons. With a slightly reduced amount per game from £1.05m in the previous three year cycle, the 12 live games should ensure the £13m from last season is at least equalled. The minimum payment is based on 10 games which in the last cycle equated to £12.2m.

For comparison the number of live games in our previous PL seasons is as follows :-
2009/10....11
2014/15....8
2016/17....10
2017/18....10
2018/19....11

A number of the pieces of the broadcast distribution jigsaw are therefore becoming apparent which may go some way to answering randomclaret's query as to the potential total broadcast figure for Burnley for 2019/20.

Domestic equal share....£32m (based on the reduced figure of £5bn from £5.4bn in the previous cycle).
Facility Fees....£13m (see above).
Domestic Merit payment....£19.5m (see previous post).
Overseas tv equal share....£43.2m
Overseas Merit payment....£14.5m (based on increased figure of £4.2bn from £3.1bn in the previous cycle).
Commercial equal share....£4.8m.

Total Burnley payment....£127m less agreed rebates for both Domestic and Overseas rights holders.

Our total Broadcast Income would normally represent some 85% of Total Turnover.

[randomclaret2]

Thanks Roy, much appreciated. Where would that leave us in terms of where we might have been without Covid 19 rearing its ugly head ? Obviously season ticket refunds and no match day income at all for 4 games have to be factored in, but could it be that things might not be as bleak financially this summer as was first feared ?

[ClaretTony]

The minimum payment is based on 10 games which in the last cycle equated to £12.2m.

Wasn't that figure of 10 games increased this season with the extra games as part of the deal.

[Royboyclaret]

Wasn't that figure of 10 games increased this season with the extra games as part of the deal.

Not seen any official reference to that change, but Chester Perry is convinced that the live games since the lockdown will not be included in the final payment.

[Chester Perry]

Wasn't that figure of 10 games increased this season with the extra games as part of the deal.

I have it in my head that his is now 12 games but have not found evidence to prove it - materially that is unlikely to produce any more money as the price per game has dropped significantly as a result of:
- more games sold
- less domestic revenue in the cycle
- covid19 induced rebates
- Payments external to Premier League clubs (Solidarity, Parachute, PFA, Academies, Football Charities) not being adjusted accordingly to revised revenue
- additional support Payments to Women's and non league game

[Royboyclaret]

Thanks Roy, much appreciated. Where would that leave us in terms of where we might have been without Covid 19 rearing its ugly head ? Obviously season ticket refunds and no match day income at all for 4 games have to be factored in, but could it be that things might not be as bleak financially this summer as was first feared ?

Well, the like for like comparison would have been £107.5m from '18/'19 compared to the £127m as detailed above.
The two main areas of increase being our additional domestic merit payment for potentially finishing 10th and the new negotiated overseas merit payment. The revised overseas figure for the new cycle included a remarkable increase of 35.5%, a figure higher than we're ever likely to see again.

In terms of matchday receipts we, as a club, suffer less than basically all other clubs to the tune of around £1.1m for those four home games. In fact our total matchday receipts for the whole of the previous season amounted to £5.6m compared to an astonishing £97m at Arsenal.

As for the overall financial situation this summer, it clearly could have been worse but the rights holders rebates remain to be settled at a future date.

[randomclaret2]

Thanks for all the detail Roy, really useful and much appreciated.

[ClaretTony]

Not seen any official reference to that change, but Chester Perry is convinced that the live games since the lockdown will not be included in the final payment.

No the extra games are not included but I’m sure the base number was increased to 12 because of the increase in the number of games televised.

[claretandy]

Some interesting detail in dyches press conference today.

"There is also an adjustment bonus for our position so that wil adjust against possible monies being paid back."