Sky and BT will lose £1bn if sporting events are cancelled untill August

uneasydaz

Well-Known Member
Sky and BT will lose almost £1bn in revenue if top-flight sport remains shut down until August, according to a report that recommends players take a pay cut to support their clubs.

In England, the Premier League has postponed matches until at least 30 April, and it appears increasingly unlikely that the league will resume then as the government’s nationwide lockdown is expected to continue for months.

The hypothesis informing governments assumes an initial three-month long lockdown,” said Enders Analysis, which published the report. “Group activities of 25 people involving close physical contact without protection will not plausibly be the first to be allowed when when some social life resumes.”

Sky has stopped charging commercial clients such as pubs that carry Sky Sports, and pay-TV subscribers can “pause” their payments. BT has told customers to call to “discuss their contract or other options”, while some customers on its flexible pay-TV package can elect to drop sport.

“Assuming a worst-case scenario of a four-month suspension of all sports coverage (British and foreign), with all sports subscribers pausing their contract and wholesale clients being allowed to follow suit, Sky would lose £700m and BT £228m in revenues,” Enders said.

The report says that beyond July Sky and BT will start saving money if sport remains off screens as upcoming rights payments would be postponed or cancelled.

Sky and BT are due to pay the Premier League the six-month licence fee for the first half of the 2020-21 season, which amounts to about £530m in total, in July. BT’s annual bill to Uefa for the Champions League rights is £394m.

The report suggests players need to play their part as clubs struggle economically, with wages accounting for 59% of revenues across the Premier League.

Football’s cost structure is pretty simple: most of the receipts flow into players’ pockets,” the report says. “The best solution is collectively negotiated pay cuts, but negotiating pay cuts with players is as difficult as herding cats.”

One top-flight German club has reached a deal with players and another is in talks. In France, Lyon has put players on the public “temporary” unemployment scheme, which should cut pay bills by half.

“To limit disruption, pain will have to be shared across the supply chain with players’ pay first in line,” the Enders report says.
 
%^*& them.They have ruined the Champions League with their closed shop for the bigger countries and %^*& the rest of you attitude.%^*& them for the absolute stupid amount of money being thrown at the EPL and the rest of you can live off the scraps.%^*& them for having a monopoly in almost all sporting events.
Reap what you sow.
 
The obscene amounts of money they throw a some sports or leagues is why they are going to lose as much money. The will make the money back by increasing subscriptions over the next few years.
 
They created the EPL, Boxing and F1 monsters.

Their customers have been overpaying for years and they have reaped the profits.

Those monsters still need fed,

You reap what you sow. ;)
F1 has already committed to free to air TV contracts as current agreements wash out.
 
%^*& them.They have ruined the Champions League with their closed shop for the bigger countries and %^*& the rest of you attitude.%^*& them for the absolute stupid amount of money being thrown at the EPL and the rest of you can live off the scraps.%^*& them for having a monopoly in almost all sporting events.
Reap what you sow.
Your post nails it mate.
They throw mega money at the EPL teams and the leftovers to SPL teams.
Won’t be popular but I think Rangers and Celtic globally are up there more than most of the teams in the EPL.
Also think we would hold our own against them with the money on offer.
 
The only issue will be after all this the bills go up massively. That said they would have to be careful not to price the customers out of affordability
 
Careful what you wish for.

If money starts dropping out of football in big ways, Scottish football will suffer more than most.
It's bad news as they will try and claw the money for contracts back in and that will ensure they dont null and void the league.
 
Your post nails it mate.
They throw mega money at the EPL teams and the leftovers to SPL teams.
Won’t be popular but I think Rangers and Celtic globally are up there more than most of the teams in the EPL.
Also think we would hold our own against them with the money on offer.
Theres maybe about 5 teams that are the size of us and with the same money who knows what would happen.
 
I'm guessing all the folk that always take pride in these stories about the EPL and Sky's demise are the kind who watch football on a grainy screen that buffers repeatedly and see a goal five minutes after its mentioned on a match thread?
 
Careful what you wish for.

If money starts dropping out of football in big ways, Scottish football will suffer more than most.

...So the frontline football country who statistically rely most on fans through the gate for their income will somehow suffer most? Yeah right!
 
The only issue will be after all this the bills go up massively. That said they would have to be careful not to price the customers out of affordability
I doubt there will be much appetite for customers to be renewing contracts at current levels never mind massive increases, once this pandemic is over with and the economic impact is clear.
 
I'm guessing all the folk that always take pride in these stories about the EPL and Sky's demise are the kind who watch football on a grainy screen that buffers repeatedly and see a goal five minutes after its mentioned on a match thread?
They jump in with no thought put into anything.

If we want the league null and void this is bad news
 
I'm guessing all the folk that always take pride in these stories about the EPL and Sky's demise are the kind who watch football on a grainy screen that buffers repeatedly and see a goal five minutes after its mentioned on a match thread?
Wrong. I have perfect BT and sky,,but i can see the bigger picture.
If sky n bt go under young Scottish talent will stop going to the likes of watford and fckn Sheffield. And you wont see the likes of sanches getting £650.000 PER WEEK for sitting on a bench !
Wed survive, about 95% of English premier League clubs wouldn't.
 
I suspect that they have other ways of making the money up. People are making more use of their phones, using broadband more and TV audiences will be higher hence a knock on to more advertising revenue.
 
I think for football August is now a pipe dream. In Holland they are hinting it could be as late as October before such large gatherings will be allowed. The players union are wanting this season nil and void and the spokesman said that the players may be fit enough to survive but they also have parents and grandparents. He said it is the only fair way for the players and their families.
 
They jump in with no thought put into anything.

If we want the league null and void this is bad news


It's bad news as they will try and claw the money for contracts back in and that will ensure they dont null and void the league.
Sorry mate but this argument just doesn't stack up for me.
Football is where these companies make their big fat profits so why would they cut off the hand that feeds them, especially in these unprecedented times of national crisis, by trying to claw back money for an unfinished campaign?
I think this theory has been put out there by people with ulterior motives to move the narrative in a certain direction.
I can see going forward however that they might want to renegotiate contracts as the whole landscape will have changed.
 
I suspect that they have other ways of making the money up. People are making more use of their phones, using broadband more and TV audiences will be higher hence a knock on to more advertising revenue.

I may be way off but I always remember reading that the TV for BT specifically was essentially a loss leader for their other services, which dwarf what Sky offer.

This may have been an internal justification for them throwing so much money at the UEFA tournaments right enough.
 
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